Innovation Is Supercharging The Billion Dollar Infant Nutrition Market

NEW YORK, Nov. 16, 2020 /PRNewswire/ -- As our understanding of the nutritional needs of infants have grown, and as our ability to design and produce the best possible nutritional formula has developed, there is an opportunity to revolutionize the infant formula market. For decades, infant nutrition companies have worked to develop a formula that is as close as possible to human breast milk, which is incredibly complex and contains more than 200 unique sugars. Now with modern understanding of synthetic biology, innovative infant nutrition companies can disrupt the estimated $99 billion market with highly nutritious plant-based products. Innovative companies like Else Nutrition Holdings Inc. (TSXV:BABY) (OTCQX:BABYF) (FSE:0YL) are disrupting a market that is currently being led by companies like Abbott Laboratories (NYSE:ABT) and Kraft Heinz Co (NASDAQ:KHC), as well as store brands like Walmart Inc (NYSE:WMT) and Target Corporation (NYSE: TGT).

Else Nutrition's Plant-Based Formula Disrupts the Infant Nutrition Market

Else Nutrition Holdings (TSXV:BABY) (OTCQX:BABYF) (FSE:0YL) has been possibly the most disruptive force in the infant nutrition market in recent years. The Israli-based company is focused on developing innovative, clean, and plant-based food and nutrition products for infants, toddlers, children, and adults. The company has launched their flagship product, an entirely plant-based, non-soy, non-dairy infant nutrition formula that replicates the nutritional profile of human breast milk. Else Nutrition's baby formula has been endorsed by leading US pediatricians and nutritionists.

In a market like infant nutrition, it can be difficult to make one product stand out from the rest. With its innovative plant-based soy free formula, Else has created a product that not only stands out from the crowd but also taps into the largest trend in the food market today. Since Beyond Meat and Impossible Foods popularized the plant-based foods market, a growing number of consumers have made efforts to reduce their consumption of animal products for both ethical and health reasons. Else Nutrition's baby formula allows these consumers to carry on these new buying habits when shopping for their infants.

Else Nutrition launched its products in the United States in August, completing its second production run in October and commencing a third, larger production run in November in order to keep up with demand. The company's products are available online via Amazon now and have been listed in five US retail chains, including one of the country's largest natural food retail chains, for release in Q4.

"We are encouraged by the early response to our long awaited product launch, and equally pleased to have to ramp up our inventory as we continue to see strong demand for our novel, clean-label, plant-based Toddler Nutrition product," Hamutal Yitzhak, CEO and Co-Founder of Else, said in the company's October 29 release. "We are grateful for the very positive daily feedback from parents across North America, and look forward to bringing the product to store shelves soon. Additionally, a consistent, high quality and scalable manufacturing process is a critical pillar of our business – we are pleased to have successfully completed two commercial scale runs and look forward to exponentially scaling the next one."

Legacy Players in the Infant Nutrition Market

The largest infant nutrition company to be listed on a US exchange is Abbott Laboratories (NYSE:ABT), makers of Similac baby formula. Abbott, along with other major baby formula manufacturers, has been working to disrupt the infant nutrition market by attempting to bioengineer ingredients that better replicate the nutritional profile of human breast milk.

Some of the largest retail chains in the world sell baby formula under in-house store brands. These brands, like Walmart Inc's (NYSE:WMT) Parent's Choice and Target Corporation's (NYSE: TGT) Up & Up brands look to differentiate themselves from the rest of the infant nutrition market by undercutting price points rather than disrupting the market like Else Nutrition.

Kraft Heinz Co (NASDAQ:KHC) has entered the infant nutrition market through its Heinz By Nature brand. The product line does not at this time have a baby formula on the market but it offers a variety of products designed for infants ranging from under six months old to over 12 months. Kraft distinguishes its products with a plant-based, all-natural appeal.

The baby formula market has not advanced much in recent years, but companies like Else Nutrition are looking to change that with innovative and disruptive new products.

For more information about Else Nutrition, click here.

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