Allied Market Research

Asia-Pacific Baby Infant Formula Market Expected to Reach $26.8 Billion by 2026


quote The growth of infant formula is highly dependent on the awareness among the consumers to provide complete nutrition to their child. Demand for infant formula is higher in the emerging countries, as they are equally growing in terms of money and population. Countries such as China and India occupy larger market share, as companies need to address rapidly changing consumer needs to cater to their emerging demand. Moreover, upsurge in online sale of infant formula products would is expected to increase the overall revenue for the industry quote

Shankar Bhandalkar
Team Lead-Research, Food and Beverages at Allied Market Research

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According to a new report published by Allied Market Research, titled, "Asia-Pacific Baby Infant Market by Type, Ingredients, and Distribution Channel: Asia-Pacific Opportunity Analysis and Industry Forecast, 2019–2026," The Asia-Pacific baby infant formula market size was valued at $11.4 billion in 2017, and is projected to reach $26.8 billion by 2026, registering a CAGR of 9.8% from 2019 to 2026. According to the Federal Food, Drug, and Cosmetic Act, baby infant formula refers to food that purports to be or is represented for special dietary use solely as a food for infants by reason of its simulation of human milk or its suitability as a complete or partial substitute for human milk.

The significant factor that influences a child development and growth is nutrition. Infant formula is produced for feeding babies and infants, which are under 12 months of age. Infant formula facilitates healthy growth & development of babies, improves cognitive performance and development, prevents them from allergies, and increases gastrointestinal health & immunity. 

Moreover, consumer prefer to purchase infant formula from stores such as supermarkets and retail stores; however, this scenario is changing and customers are changing their perforce toward online channels. Online sales have evolved as a key source of revenue for many companies. The online sales market is expected to expand at a higher rate in the near future, owing to rapid penetration of smartphones, increase in m-commerce sales, and ease in payment options. However, the collaborative initiatives of various organizations, such as World Health Organization (WHO) and United Nations International Children's Emergency Fund (UNICEF), have increased the overall awareness about breastfeeding among women. This in turn limits the overall revenue generation for the Asia-Pacific baby infant formula market.

In addition, stakeholders are coming up with goat milk infant formula, owing to its high nutritional content and potential medicinal property. It has been recognized that the goat milk is preferable for the infant suffering from cow milk allergy and discomfort. Moreover, goat milk is considered similar to mother’s milk, as it has high amount of oligosaccharide, which helps in boosting the immune system of infants. In addition, goat milk contains A2 casein, which does not cause inflammation, hence is easily digestible for infants. Therefore, stakeholders are preferring goat milk for producing baby infant formula, which is augmenting the Asia-Pacific baby infant formula market growth.

Continuous innovation in product functionality along with coherent strategies such as tailored packaging, which reflect the healthy ingredients of the baby food products allow major players in the Asia-Pacific baby infant formula market to sustain in the consumer-centric market. Moreover, attractive and convenient packaging acts as a key selling point for leading manufacturers. As a result, prominent players in the Asia-Pacific baby infant formula market have introduced baby food in a variety of packaging formats, including, but not limited to stand up pouches, glass & plastic containers, and cans.

Key Findings of the Study:

  • On the basis of type, the infant milk segment dominated the Asia-Pacific baby infant formula market in 2017, and is expected to retain its dominance throughout the forecast period.
  • Depending on ingredient, the carbohydrate segment accounted for highest share in the Asia-Pacific baby infant formula market analysis in 2018, and is projected to grow at a CAGR of 9.8% from 2019 to 2026.
  • By distribution channel, the hypermarket segment was the major shareholder during the Asia-Pacific baby infant formula forecast period, and is projected to register a CAGR of 9.5% from 2019 to 2026. 
  • Country wise, China exhibited the highest growth in the Asia-Pacific baby infant formula market share in 2017, and is expected to continue this trend during the forecast period.

The key players operating in the Asia-Pacific baby infant formula industry include Abbott, Arla Foods Amba, Campbell Soups, Dana Dairy Group Ltd., Danone, Nestle S.A., Reckitt Benckiser (Mead Johnson & Company LLC), Perrigo Company Plc, Heinz Baby, and Gujarat Co-operative Milk Marketing Federation Ltd. (GCMMF).

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quote Asia-Pacific Baby Infant Formula Market by Type (Infant Milk, Follow-on Milk, Specialty Baby Milk, and Growing-up Milk), Ingredient (Carbohydrate, Fat, Protein, Minerals, Vitamins, and Others), and Distribution Channel (Hypermarket, Supermarket, Pharmacy/Medical Stores, Specialty Stores, Hard Discounter Store, E-commerce, and Others): Asia-Pacific Opportunity Analysis and Industry Forecast, 2019–2026 quote

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