The rising middle class and an increasing number of women participating in the labor force are key factors to drive the global infant formula ingredients market, says Frost & Sullivan
SANTA CLARA, Calif., July 29, 2021 /PRNewswire/ -- Frost & Sullivan's recent analysis, Global Infant Formula Ingredients Growth Opportunities, finds that the global infant formula ingredients market expands steadily as the demand for high-quality infant formula products that can closely mimic the breast milk composition is on the rise. The market is estimated to hit $8.21 billion by 2025 from $6.37 billion in 2020, an uptick at a compound annual growth rate (CAGR) of 5.2%. Additionally, the growing demand for organic and plant-based infant formulas from health-conscious consumers gives further impetus to the overall industry's growth presenting lucrative growth prospects across the non-allergenic and non- genetically-modified organisms (GMO) plant protein ingredients space.
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"The growing trend of mimicking infant formulas to breast milk is leading manufacturers to develop specialized ingredients that could offer superior nutrition composition to formula-fed infants," said Smriti Sharma, Chemicals, Materials, and Nutrition Research Analyst at Frost & Sullivan. "Going forward, across different infant formula segments, volume growth is primarily from the specialty infant formula category, with growing-up/toddler milk estimated to account for a majority of the bulk demand for ingredients, primarily due to its sheer volume. The demand for premium, organic, clean-label products will drive all application segments."
Sharma added: "Regulations across the infant formula space are predicted to play a significant role in shaping market dynamics. For instance, new European regulations have proposed reduced protein concentration and high DHA levels, which is likely to impact DHA oil adoption. Moreover, proposed changes in the infant formula national standards (GB standards) in China—one of the leading markets of infant formula products—are anticipated to impact the market significantly. Further, expected approvals for highly specialized ingredients (for example, HMOs) in the Chinese market will foster future growth and innovation potential."
Rapid urbanization, growth of the middle class, and rising number of women participating in the labor force—especially in developing markets—are key factors to drive the global infant formula ingredients market. Participants should explore the following to unlock growth opportunities:
- Innovation Across Functional Ingredients to Cater to the Growing Demand for Specialty Formulas: Ingredient manufacturers need to keep up with changing requirements and offer ingredients that align with changing product requirements.
- Expanding Their Portfolio By Offering Functional Ingredients That Enable Products Closer to Breast Milk: Manufacturers need to push authorities to have a regulatory framework that supports innovation. Approval of novel ingredients needs to be fast-tracked to ensure early adoption.
- Offering High-quality, Non-GMO, Organic Ingredients to Cater to Changing Consumer Demand: Increasing clean-label requirements and creating product differentiation are driving the demand for organic, non-GM ingredients. Ingredient manufacturers need to pivot in terms of their offerings to cater to changing consumer demand.
Global Infant Formula Ingredients Growth Opportunities is the latest addition to Frost & Sullivan's, Chemicals, Materials, and Nutrition research and analysis available through the Frost & Sullivan Leadership Council, which helps organizations identify a continuous flow of growth opportunities to succeed in an unpredictable future.
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Global Infant Formula Ingredients Growth Opportunities
SOURCE Frost & Sullivan