Infant Formula Ingredients Market: Current Analysis and Forecast (2023-2030)

Infant Formula Ingredients, refers to the manufacturing of secure, incredibly nourishing formulas that support newborns' growth and development using infant formula. Infant formula plays a crucial role in providing nutrition to newborns during their early developmental stages, focusing on delivering essential vitamins and minerals, including less common ones, in precise amounts tailored to the infant's age. To ensure the health and immunity of infants, various organizations like the FSSAI and WHO, in collaboration with governments, have established stringent rules and regulations specific to certain food products. Recent research has identified cases of lactose intolerance in some newborns, prompting the development of lactose-free food formulations designed to address these issues by accommodating the body's intolerance. It is anticipated that demand for components in infant formula in coming years would also increase due to rising protein consumption as an ingredient in a variety of applications, including growing-up milk and specialty formula. Proteins are utilized to make alternative hypoallergenic protein diets for infants with milk allergies, celiac disease, and gluten intolerance. These foods are made from substances found in infant formula.

The Infant Formula Ingredients Market is expected to grow at a steady rate of around 8.65% owing to the rise in infant nutrition concerns as well as increase of working women in middle-class families throughout several regions, including North America, Asia Pacific, Central and South America, are major drivers of industries growth. With urbanization and economic development, more women are entering the workforce which is leading to an increased demand for convenient and nutritionally balanced infant formula products. According to WHO, Globally 2022, due to malnutrition in infants, 149 million children under 5 were estimated to be stunted (too short for age), 45 million were estimated to be wasted (too thin for height), and 37 million were overweight or living with obesity and Nearly half of deaths among children under 5 years of age are linked to undernutrition.

Based on type, the market is segmented into carbohydrates, oil and fats, protein, vitamin, minerals and prebiotics. Carbohydrates accounted for the dominant share in the market in 2022. Carbohydrates are preferred as infant formula ingredients due to their role as a readily available energy source, their digestibility, contribution to nutrient balance, support for brain development, and palatability. These factors make carbohydrates a crucial component of infant nutrition and a staple ingredient in infant formula.

On the basis of form, the market is categorized into powder, liquid and semi-liquid. The powder formula held the largest market share in the year 2022. It is owing to the prevailing consumer trust and ease through which the said formula is created. Powdered formulas are also versatile, allowing for customization based on individual dietary needs or preferences. For instance, specialty powdered formulas are available for infants with specific dietary requirements, such as those with lactose intolerance or cow's milk protein allergy. Additionally, powdered formula can be easily mixed with breast milk or water to achieve the desired consistency and taste, providing flexibility for parents and caregivers.

Based on application, the infant formula ingredients market has been classified into growing milk, standard infant, follow on formula, specialty formula. Over the projected period, the growing-up milk category is anticipated to develop at the fastest rate. The aforementioned application contains calcium, iron, and vitamin D. Application of growing milk serves as a component of a balanced diet for infants 12 months and older. It appeals to parents who are looking to transition their infants from breast milk or traditional infant formula to solid foods. The gradual introduction of solids can be a challenging process for some parents, and growing milk formula serves as a reassuring option, ensuring that their child's nutritional requirements are met during this transition period.

For a better understanding of the market adoption of the Infant Formula Ingredients industry, the market is analyzed based on its worldwide presence in the countries such as North America (United States, Canada, and the Rest of North America), Europe (Germany, U.K., France, Spain, Italy, Rest of Europe), Asia-Pacific (China, Japan, India, Rest of Asia-Pacific), Rest of World. Asia Pacific is anticipated to grow at a substantial CAGR during the forecast period. This is mainly due to the increasing urbanization and increased disposable income. Promising initiatives by the government such as: production standards, safety regulations, and consumer trust. These standards and guidelines ensure the safety, quality, and nutritional adequacy of ingredients used in infant formula production. Regulatory agencies set maximum levels for contaminants, such as heavy metals and microbial pathogens, and require ingredient manufacturers to adhere to Good Manufacturing Practices (GMP) to maintain product integrity. Major players are focusing on offering quality products to their parents with best ingredients and examining new alternatives with organic and plant based solutions as the market becomes more competitive. For Instance: In May 2023, DuPont Nutrition and Health announced the launch of a new line of infant formula prebiotics. These prebiotics are designed to improve the gut health of babies and develop a healthy immune system. Furthermore, In June 2023, Kerry Group announced the acquisition of Prolacta Bioscience, a leading producer of human lacto-oligosaccharides (HMO) for infant formula with the objective to expand its product range and reach new markets.

Some of the major players operating in the market include Abbott, Arla Foods Amba, Campbell Soups, Dana Dairy Group Ltd, Danone, D-Signstore, HIPP GmbH & Co. Vertrieb KG, Reckitt Benckiser, Nestle, The Hain Celestial Group