Report

The global infant food market is expected to grow at a CAGR of 2.52% from 2024 to 2030.

RECENT VENDOR DEVELOPMENTS

- In October 2024, Nestle India, part of Swiss multinational Nestle SA, announced the launch of "no refined sugar" variants of its Cerelac infant food. The expanded Cerelac range in India now includes 21 variants, 14 of which are free from refined sugar. This move came in response to controversy surrounding the high sugar content in Cerelac, prompting Nestle India to shift toward offering infant nutritional products with no added sugar.
- In September 2024, Perrigo Company announced a new brand partnership between Good Start and Dr. Brown's to offer innovative infant formula solutions.
- In August 2024, Abbott announced the expansion of its Pure Bliss by Similac line, featuring organic and European-made infant formulas.
- In 2024, Nestle is expanding its infant nutrition portfolio with six new products, including GERBER baby fruit smoothies, desserts, and nutrient-rich wholegrain cereals like Nestle Junior Strawberry, catering to young children's dietary needs.
- In November 2022, as part of its strategic investment, Perrigo acquired Nestle Canada's infant formula business, Gerber Products in the U.S. and Canada, the Eau Claire, Wisconsin formula plant, and North American rights to the Good Start brand.
- In 2022, Switzerland's Hero Group invested in a new baby food production facility in Spain, strengthening its commitment to the country and solidifying its position as a leader in the baby food sector.

KEY TAKEAWAY

- By Product Type: The infant formula segment holds the largest market share of over 68%, driven by its reliable alternative nature to breast milk, providing critical nutrients for growth and development,
- By Distribution Channel: The supermarkets & hypermarkets segment dominates the global infant food market with the largest share, as they stock a wide range of infant food products, including formula milk, purees, cereals, and organic options.
- By Geography: The APAC region holds the largest market share of over 46% in the global infant food market, driven by a combination of factors including demographic trends, urbanization, rising disposable incomes, and increased awareness of infant nutrition.
- Growth Factor: The global infant food market is set to grow due to rising awareness of infant nutrition and increasing demand for natural & organic products.

MARKET TRENDS & DRIVERS

Increasing Demand for Natural & Organic Products

Parents are increasingly aware of the potential risks associated with synthetic additives, pesticides, and genetically modified organisms (GMOs) in conventional baby foods. This awareness propels the demand for organic options perceived as safer and healthier for infants. Increased access to information has educated parents about the benefits of organic products, such as higher nutrient density and the absence of harmful residues. Trends highlighting the benefits of chemical-free farming and ethical sourcing have resonated strongly with modern consumers. The trend of investing in premium organic baby food is particularly prominent in developed economies such as the US, Germany, France, UK, Canada, etc., and is gradually gaining traction in emerging markets with rising middle-class populations. High awareness of health and wellness, stringent organic certifications (e.g., USDA Organic), and widespread availability of organic baby food in both physical and online retail are boosting the market. Countries with strict food safety regulations such as the US, Germany, France, and others foster trust in organic labels and encourage parents to choose organic baby food products, which often adhere to higher standards than conventional baby food. Europe has some of the world's strictest organic regulations. HiPP Organic, a leading European baby food brand, complies with these stringent standards and markets itself as a safer option for children.

Personalized Nutrition

According to the Centers for Disease Control and Prevention (CDC), food allergies are becoming increasingly common among children, with 5.9% of boys and 5.8% of girls affected in the year 2021. The prevalence of food allergies rises with age, starting at 4.4% in children aged 0-5 years. Allergies to common foods such as dairy, nuts, soy, and gluten are particularly widespread, contributing to a growing demand for allergen-free and specialized infant food products. Infants require different nutrients at various stages of growth, such as iron during the weaning phase or calcium during rapid bone development. Gerber, an infant food brand offers a wide range of infant food products designed to cater to different developmental stages, focusing on the specific nutritional needs of infants as they grow. Modern parents expect customized options for their children, aligning with broader trends in personalization across industries. Ready-to-eat, pre-portioned meals save time while offering tailored nutrition. With busier lifestyles, parents seek convenient, yet highly customized food solutions for their infants. The personalization of infant food is growing due to increasing parental awareness of specific dietary needs, such as addressing food allergies, intolerances, and developmental milestones. Modern parents prioritize tailored nutrition that supports brain development, immunity, and digestion, ensuring optimal growth for their children.

Urbanization and Changing Lifestyles

Urbanization often coincides with higher workforce participation rates among women. With dual-income households becoming more common, mothers often have less time for traditional practices like extended breastfeeding or home-cooked meals for their infants. Abbott Laboratories offers Similac Ready-to-Feed Formula, which offers convenience to the parents. Urban lifestyles are fast-paced, with parents juggling work, commutes, and other responsibilities. This leaves little time for sourcing fresh ingredients or preparing meals from scratch. Packaged baby food with a focus on quality, nutrition, and convenience has become a preferred choice for urban parents. Smaller nuclear families in urban areas often lack the support systems (e.g., grandparents) that traditionally assisted in child-rearing and meal preparation. Also, access to fresh, high-quality groceries can be limited due to logistics and time constraints. Parents seek ready-made solutions, including pre-packaged baby food, that reduce the burden of meal preparation. Urban parents are increasingly aware of the importance of proper nutrition for their infants, driving demand for products that offer both health benefits and convenience. Urban areas often have greater access to global baby food brands, allowing parents to choose products with international certifications and reputations for quality.

INDUSTRY RESTRAINTS

Stringent Regulatory Standards

Adhering to diverse regulations across countries requires significant investments in testing, certifications, and documentation. Small and medium-sized enterprises (SMEs) face barriers to entry due to high compliance costs, limiting competition and innovation. Regulatory bodies often require rigorous testing and lengthy approval processes, delaying the time to market for new products. Companies may miss opportunities in rapidly evolving market segments, such as plant-based or personalized infant foods. Non-compliance, even unintentional, can lead to product recalls, reputational damage, and financial losses. Various regulatory bodies such as the Food and Drug Administration (FDA) in the US, and the European Food Safety Authority (EFSA) in Europe, do frequent inspections, and high costs of compliance deter smaller players, prohibits the use of certain pesticides and GMOs in infant food, implies strict labeling guidelines, including mandatory disclosure of allergens and regulated other standards. Manufacturers must invest in advanced testing facilities, certifications, and skilled personnel, raising production costs and potentially increasing product prices. Regional variations in standards force companies to customize products for each market, reducing economies of scale and complicating global distribution. On the positive side, strict regulations ensure high-quality and safe products, fostering consumer trust and long-term brand loyalty.

SEGMENTATION INSIGHTS

INSIGHTS BY PRODUCT TYPE

The global infant food market by product type is segmented into infant formula, prepared infant food, dried infant food, and others. The infant formula segment accounted for the largest market share of over 68%. Parents are becoming more aware of the importance of balanced nutrition during the early stages of life. Infant formula offers a reliable alternative to breast milk, providing critical nutrients for growth and development. Many formulas are fortified with DHA, ARA, probiotics, and prebiotics, which support brain development, vision, and gut health. There is a growing trend toward developing stage-based foods that are designed for infants as they transition from milk to solid foods. These include pureed foods for younger infants and more textured or chunkier foods for older infants starting to chew. Unlike other infant food products (snacks, purees, etc.), infant formula serves as a direct substitute for breast milk, making it an essential product for many families. This necessity ensures consistent demand. With ongoing advancements in formulation, packaging, and marketing strategies, this segment is poised to dominate the infant food market for years to come.

By Product Type
- Infant Formula
- Prepared Infant Food
- Dried Infant Food
- Others

INSIGHTS BY DISTRIBUTION CHANNEL

The global infant food market by distribution channel is categorized into supermarkets & hypermarkets, pharmacies & drugstores, online channels, convenience stores, and others. Supermarkets & hypermarkets account for the largest market share. Supermarkets and hypermarkets stock a wide range of infant food products, including formula milk, purees, cereals, and organic options. This variety helps parents make informed choices based on their child's specific dietary needs. Retail giants like Walmart, Carrefour, and Tesco have aisles for infant food featuring trusted brands. They frequently offer discounts, bundle deals, and loyalty programs such as reward points and exclusive member benefits that make products more affordable. These stores combine multiple product categories, enabling parents to buy infant food along with other household essentials in a single trip. Target, Walmart in the US, Tesco, Sainsbury's in the UK, and Dmart, Reliance retail stores in India offer a mix of baby products, groceries, and even baby care items under one roof, thus helping segmental growth.

By Distribution Channel
- Supermarkets & Hypermarkets
- Pharmacies & Drugstores
- Online Channels
- Convenience Stores
- Others

GEOGRAPHICAL ANALYSIS

The APAC region holds the largest market share of over 46% and shows the highest CAGR of 3.23% in the global infant food market, driven by a combination of factors including demographic trends, urbanization, rising disposable incomes, and increased awareness of infant nutrition. According to Asia-Pacific Population and Development Report 2023 by United Nations Publication, the APAC region, home to over 4.7 billion people, has a substantial population of infants and young children. Countries such as China, India, Indonesia, and Vietnam have large birth rates, making them lucrative markets for infant food products. While some nations, such as Japan and South Korea, have declining birth rates, the spending per child in these countries is significantly higher, driving the demand for premium and specialized products. The rapid economic growth in APAC countries has resulted in rising disposable incomes, enabling families to invest in premium and branded infant food products.

By Geography

- APAC
o China
o India
o Japan
o South Korea
o Australia
- North America
o US
o Canada
- Europe
o Germany
o France
o UK
o Italy
o Spain
- Middle East & Africa
o Turkey
o Saudi Arabia
o South Africa
- Latin America
o Brazil
o Mexico
o Argentina

COMPETITIVE ANALYSIS

The global infant food market report contains exclusive data on 24 vendors. The market is highly competitive and dynamic, characterized by the presence of established global players and numerous regional and local competitors. The market is consolidated with Abbott, Danone, Hero Group, Nestle, Perrigo, and Reckitt Benckiser Group major players dominating the market. Global market leaders dominate the infant food market, leveraging their strong brand recognition and extensive distribution networks. Brand loyalty plays a critical role in the infant food market as parents prioritize trusted brands for their babies. Price wars and product differentiation are common competitive strategies. The future of the global infant food market will rely on new product innovations such as personalized nutrition plans, probiotic-enriched formulas, and plant-based infant foods. The future of the market will be influenced by eco-friendly packaging and ethical sourcing of ingredients.

Key Vendors

- Abbott
- Danone
- Hero Group
- Nestle
- Perrigo
- Reckitt Benckiser Group

Other Prominent Vendors

- Asahi Group Holdings
- Ausnutria Dairy
- Bobbie
- ByHeart
- Dana Dairy Group
- Else Nutrition
- Feihe
- FrieslandCampina
- H&H Group
- HiPP
- Kewpie Corporation
- Kraft Heinz Company
- Little Spoon
- Sprout Organics
- The Hain Celestial Group
- Walgreen
- Yili Group
- Yumi

KEY QUESTIONS ANSWERED:

1. How big is the global infant food market?
2. What are the factors driving the global infant food market growth?
3. What is the growth rate of the global infant food market?
4. Which region will have the highest CAGR in the global infant food market?
5. Who are the major players in the global infant food market?