The global infant formula market was valued over US$ 32,237.4 Mn in terms of revenue in 2019 and is predicted to grow at a CAGR of 10.1 per cent during the forecast period of 2020 to 2027 as stated in a new market study published by Coherent Market Insights.

Major manufacturers are focussing on innovative packaging of the infant formula such as pouches is projected to spur the market growth of the infant formula. Pouches are gaining popularity among consumers due to their ease of use and handling flexibility. Moreover, they are also available in attractive packaging that is further increasing consumer base. Thus, innovation in packaging is expected to positively impact the market growth of infant formula.

Rising demand for probiotic infant formula due to its various advantages offered to the infant is expected to offer major opportunities to the market. For instance, in April 2020, Gerber announced the launch of two first-of-their-kind A2 milk innovations: Gerber Good Start A2 Infant Formula and Good Start A2 Toddler Drink. Each product contains a combination of easy-to-digest A2 ß-casein protein – a high-quality protein found in A2 milk – probiotics and prebiotic HMO (Human Milk Oligosaccharide) designed to give little one advanced digestive support.

Many key players in the market such as Abbott Laboratories, Nestlé, and Mead Johnson use various corn, soy, and sugar derivatives, which are grown from genetically altered seeds in America. These genetically modified organisms (GMOs) lead to various medical conditions such as hormone disruption, gut damage, and other health problems. Hence, the use of genetically modified ingredients is expected to hinder the market growth of infant formula.

On the basis of product type, starting milk formula segment dominated the global infant formula market in 2019 with around 48.0 per cent of market share in terms of revenue, followed by follow-on milk formula and toddler’s milk formula respectively.

On the basis of distribution channel, pharmacy stores segment dominated the global infant formula market in 2019 with around 76.1 per cent of market share in terms of revenue, followed by supermarkets and others respectively.

Based on region, APEJ dominated the global infant formula market in 2019 with around 48.7 per cent of market share in terms of revenue, followed by North America and Western Europe respectively.

Toddler milk formula is gaining traction in the market due to growing modernisation along with the changing lifestyle of the consumers. Toddler formula contains various nutritional values such as nutrients, iron, calcium, minerals, protein and so on, which are important for infants above the age of 12 months. Growing economic development and increasing purchasing power of parents is further boosting demand for toddler formula. This is augmenting the market growth.

European Union 609/2013, commonly known as ‘Food for Specific Groups', which will be implemented from 20 July 2016 will set general composition and labelling rules. This regulation will initiate the restriction of pictures and text that idealise formula, to follow-up formula category. This regulation will move the existing requirements of Directive 2006/141/EC to regulatory status and replace that Directive.

Coronavirus (Covid-19) has majorly impacted the infant formula industry and has in turn changed the dynamics of their raw material suppliers supplying these products. However, rising demand for infant formula owing to busy lifestyle and growing women working population is expected to stabilise the growth of the market and reach US$70,642.2 Mn by the end of 2020.