According to a new report published by Allied Market Research, titled, “U.S. Baby Infant Formula Market by Product Type, Ingredients, Source, and Distribution Channel: Opportunity Analysis and Industry Forecast, 2021–2030,”
The U.S. baby infant formula market size was valued at $3.88 billion 2020, and is projected to reach $6.78 billion by 2030, registering a CAGR of 8.6% from 2021 to 2030. In 2020, the carbohydrate segment accounted for 56.4% of the market share. First few years of an infant are crucial as the infant is in its growth phase, requiring appropriate nutrition. Carbohydrates are the major fuel source of infants, and are essential for proper growth and development. Offering infants healthy, nutrient-dense carbohydrates is expected to optimize their growth and maintain a healthy body weight.
Physician recommends infant formula as an alternative to breastmilk. As many working mothers resume their jobs shortly after giving birth, infant formula serves as a healthy and nutritious alternative that can be fed at convenience. Thus, increase in participation of women in labor force has led to rise in preference for infant formula for their babies. This acts as a key driving force of the baby infant formula market in the U.S. Furthermore, high nutrition contents in baby infant formula, change in lifestyle, rise in middle-class population, and increase in disposable income are expected to propel the market growth during the U.S. baby infant formula market forecast period.
In 2020, the infant milk segment garnered the largest share, and is likely to maintain this trend during the forecast period. This is attributed to the fact that infant milk contains vitamins and nutrients, such as iron that can help prevent anemia. Some types of infant formulas are supplemented with a probiotic bacteria called Bifidobacterium lactis, which helps to prevent diarrhea, ease colic, and lower the risk of food allergies.
Furthermore, infant milk contains nutrients, minerals, and vitamins necessary for the development and growth of the baby. Moreover, launch activities and promotion of the infant formula in the U.S. have led to high penetration of infant formula.
In addition, upsurge in awareness among consumers regarding the health benefits associated with organic infant formula has led to increase in preference for organic baby drinks. Thus, baby infant formula free from ingredients such as added sugar, sodium, and preservatives is anticipated to gain traction in the U.S., thereby contributing toward the growth of the market. However, concerns related to food safety and decline in birth rate hamper the U.S. baby infant formula market growth.
The key players studied in the report are Abbott Laboratories, Arla Foods Amba, Aussie Bubs, Bobbie, Campbell Soups Company, Dana Dairy Group Ltd, Danone Sa, D-Signstore, Else Nutrition Holdings Inc, Hipp Gmbh & Co. Vertrieb Kg, Holle Baby Food Ag, Kabrita Usa, Nature’s One, Llc, Nestle S.A, Reckitt Benckiser Group Plc, And The Hain Celestial Group, Inc.
Key findings of the study
- In 2020, the infant milk is segment was the highest contributor to the U.S. baby infant formula market, in terms of value, and is expected to grow at a CAGR of 8.0% from 2021 to 2030.
- The carbohydrate segment is generated the highest revenue in 2020, and is likely to grow at a CAGR of 8.4% during the forecast period.
- The vitamins segment is anticipated to exhibit the highest CAGR of 14.2% from 2021 to 2030.
- The hypermarkets segment garnered the highest revenue in 2020, and is estimated to grow at a CAGR of 7.9% during the forecast period.
- The pharmacy/medical store distribution channel acquired prominent U.S baby infant formula market share in 2020, and is likely to grow at the highest CAGR of 9.6%.