Sunday, September, 15, 2019 02:05:22

Global Market Insights, Inc. has added a new report on Infant Formula Market that provides a comprehensive review of this industry with respect to the driving forces influencing the market size. Comprising the current and future trends defining the dynamics of this industry vertical, this report also incorporates the regional landscape of market in tandem with its competitive terrain.

Increased demand for baby nutrition resulting from consistent growth of population will reinforce the global infant formula market, with evolving lifestyles of parents influencing their purchasing behavior as well as the availability of essential products. In recent times, continuous economic development worldwide has affected the workforce diversity as more women are now working to support families and have busier lives, needing healthy but read-to-make baby food. The infant formula industry has gained traction specifically on account of modern mothers wanting various products offered that contain necessary ingredients like proteins, minerals, vitamins, carbohydrates and fats. These products are being considered as a suitable alternative to human milk and increasing awareness about baby health will thus further drive the market demand.

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Rapid proliferation of the infant formula market has also stemmed from favorable regulations on the production and quality of products. The U.S. FDA categorizes infant formula under its Federal Food and Drug and Cosmetics act, citing various added requirements and minimum needed concentration of various vital nutrients infused in the formula. The FDA apparently carries out inspection of manufacturing facilities where formula is made, ensuring the quality and safety of every batch of product released. Similar monitoring of facilities and implementation of food regulations globally will boost the confidence in product quality among consumers, fueling the infant formula industry expansion.

Infant formula market, product

  • Standard
  • Follow-on
  • Toddler
  • Specialty

Specialty infant formulas are emerging as a novel application area in baby healthcare, as they are designed to address different ailments a baby can suffer, including galactosemia, reflux, spit up or lactose-intolerance. Augmented consumption of specialty formulas will certainly accelerate development of the infant formula market, in concurrence with the explosion in consumer purchasing power. The presence of large supermarket chains worldwide has made products easily accessible to majority of customers as well as helped to propagate their benefits. The Asia-Pacific (APAC) infant formula market, projected to record more than 10% CAGR over 2019-2025, will particularly advance through in-store product sales.

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Elaborating further, although e-commerce has garnered tremendous momentum in APAC, most parents in the region are expected to purchase baby food in the traditional way, in convenience stores and supermarkets. The region has experienced massive rise in the number of supermarket chains over the last few decades, where both domestic and international brands have established a foothold and loyal customer base. Anticipated to surpass a population of 4.7 billion by 2025, Asia will undoubtedly represent the biggest target base for infant formula industry players, in turn providing lucrative prospects for supermarkets to leverage on the incessant consumption of a crucial food product category.

Infant formula market by distribution channel

  • Hypermarket
  • Supermarket
  • Convenience store
  • Online
  • Others

A leading retail brand based in China, Lianhua, operates around 3,421 supermarket and convenience store outlets across 17 municipalities and provinces in the country. The Chinese market is home to several other domestic supermarket chains, including Yonghui, Wu-Mart and Haihang Commercial, along with few global names. U.S. retail giant Walmart, for instance, serves customers in China through 412 Walmart Supercenter and 23 Sam’s Club outlets in the nation. Thousands of existing supermarkets spread throughout rural and urban areas in the region will provide higher consumer access and a remarkable growth platform for the infant formula market in Asia. Incidentally, supermarkets also held the highest revenue share in 2018 amounting to USD 18 billion and are expected to account for the maximum of infant formula market share by 2025.

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Speaking further on the enormous opportunities derived from retail, Australia-based Woolworths is the biggest supermarket chain in the country and runs nearly 995 stores all over the continent. The company allows its customers to not only gain access to numerous key products in stores, but also lets them shop online. Such efforts by supermarkets to digitize their process and allow customers to browse, choose and pay for products online will incredibly transform the APAC infant formula industry by helping specific products reach a wider audience. It will, in addition, assist them in competing with e-commerce and online grocery delivery services.

As the retail sector in APAC region keeps pace with the requirements of a surging infant population, significant consumption of novel milk substitutes can be expected due to ever-changing consumer preference. Propelled by a broader access to distribution channels like supermarkets, hypermarkets and online stores, the global infant formula market is forecast to reach an annual valuation of more than $98 billion by 2025.

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Global Market Insights, Inc., headquartered in Delaware, U.S., is a global market research and consulting service provider; offering syndicated and custom research reports along with growth consulting services. Our business intelligence and industry research reports offer clients with penetrative insights and actionable market data specially designed and presented to aid strategic decision making. These exhaustive reports are designed via a proprietary research methodology and are available for key industries such as chemicals, advanced materials, technology, renewable energy and biotechnology.