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2023

U.s. Baby Infant Formula Market

U.S. Baby Infant Formula Market Size, Share, Competitive Landscape and Trend Analysis Report by Product Type (Infant Milk, Follow-On Milk, Specialty Baby Milk, and Growing-Up Milk), Ingredients (Carbohydrate, Fat, Protein, Minerals, Vitamins, and Others), Distribution Channel (Hypermarkets, Supermarkets, Pharmacy/Medical Stores, Specialty Stores, Hard Discounter Stores and Others) and Source (Regular, Organic, Milk with HMO, Goat Milk, Plant Based Formula, and Others), Opportunity Analysis and Industry Forecast, 2023-2032

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Author's: Jaya Bundele| Indranil Chakraborty | Roshan Deshmukh
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The U.S. baby infant formula market size was valued at $3,962.7 million in 2022 and is projected to reach $6,973.7 million by 2032, registering a CAGR of 5.7% from 2023 to 2032.

Infant formula serves as an ideal alternative suitable for infant consumption, which mimics the nutritional composition of breast milk as closely as possible. Although physicians recommend breast milk for optimal infant nutrition, it may not always be possible, suitable, or solely adequate. Enspire infant formula and toddler milk and Similac infant formula and toddler milk are infant formulas available for healthy, full-term infants who are not breastfed or partially breastfed.

The growth of the U.S. infant formula market is majorly driven by surge in female labor force participation. For instance, according to the United States Bureau of Statistics, the percentage of working women in the U.S. increased to 56.8% in 2022. Majority of working moms return to work soon after giving birth. As a result, breastfeeding is not always practical for working women owing to time constraints and inconvenience. In such cases, infant formula serves as an ideal choice for working women as it meets both the need for appropriate, nutritious meals for their newborns and their need for convenience.

U.S. Baby Infant Formula Market

The COVID-19 pandemic affected farmers and employees as carrying out operations was tough due to stringent lockdown rules initiated by the government. The pandemic has increased volatility and uncertainty for dairy companies as production was getting disrupted due to a lack of resources. The prices were fluctuating, due to the lower availability of milk in the market, which impacted on the overall price of the finished product.

A dip in the quality of raw materials was arising as farmers were trying to increase the volume of products to meet the demand from the baby food companies. Furthermore, the rise in transportation costs resulted in regular delays in product distribution across the U.S. In the current scenario, the vaccination drive and decline in COVID-19 cases around the globe have helped to normalize the situation. Governments have lifted the lockdown which has eased the difficulties in the supply chain.

Infant formula producers have evaluated several ingredients as a part of their continuous efforts to verify the nourishing and functional properties of human milk. Hence, many key players have set up extensive R&D to determine new ingredients. Consequently, to augment the health of infants, prebiotics, and probiotics are introduced in baby infant formula. The number of infant formulas manufactured using these elements has witnessed gradual growth. Prebiotics and probiotics that are categorized as GRAS (generally regarded as safe) by the FDA are now being promoted as an ingredient in commercial infant formulas.

This can be regarded as an U.S. baby infant formula market opportunities by the manufacturers to boost their product sales and gain an edge in the U.S. baby infant formula market in the near future. Some of the brands that have introduced their products in the market are as follows Hipp Dutch Stage 1 (0-6 Months) Organic Combiotic Infant Milk Formula, Kendamil Stage 1 (0-6 Months) Organic Baby Formula: (prebiotics), Earth’s Best Organic Toddler (prebiotics), Earth’s Best Organic Dairy (prebiotics) by The Hain Celestial, and Similac Probiotic Tri-Blend Supplement Powder.

However, infant formula is a highly susceptible food product to contamination/adulteration, which hampers the U.S. baby infant formula market growth. In the past, infant formula products were occasionally found to be contaminated with salmonella and E. coli. Although they are uncommon, these events can cause infants to suffer or even die. Some newborns may be allergic to the components in baby formula, such as soy or cow milk protein.

Hives, vomiting, diarrhea, and rashes are some of the symptoms prevalent among infants. Furthermore, certain parents are concerned that formula does not provide as much nutrition as breast milk or that it may contain nutrient imbalances that are harmful to their child's health. According to several studies, formula-fed infants are more likely to acquire health problems such as obesity, diabetes, and allergy as they grow. As a result, worries about the safety of newborn infant formula function as a key impediment to market expansion.

On the contrary, infant formula producers have evaluated several ingredients as a part of their continuous efforts to verify nourishing and functional properties of human milk. Hence, many key players have set up extensive R&D to determine new ingredients. Consequently, for proper development of infants, prebiotics and probiotics are introduced in baby infant formula. The number of infant formulas manufactured using these elements has witnessed gradual growth. Prebiotics and probiotics that are categorized as GRAS (generally regarded as safe) by the FDA are now being promoted as ingredients in commercial infant formulas.

This can be regarded as an opportunity by the manufacturers to boost their product sales and gain an edge in the U.S. baby infant formula market in the near future. Some of the brands that have introduced their products in the market are Hipp Dutch Stage 1 (0-6 Months) Organic Combiotic Infant Milk Formula, Kendamil Stage 1 (0-6 Months) Organic Baby Formula: (prebiotics), Earth’s Best Organic Toddler (prebiotics), Earth’s Best Organic Dairy (prebiotics) by The Hain Celestial, and Similac Probiotic Tri-Blend Supplement Powder.

The U.S. baby infant formula market is segmented into type, ingredient, distribution channel, and source. Depending on type, the market is segregated into infant milk, follow-on-milk, specialty baby milk, and growing-up milk. On the basis of ingredient, it is fragmented into carbohydrate, fat, protein, minerals, vitamins, and others. By distribution channel, it is categorized into hypermarkets, supermarkets, pharmacy/medical stores, specialty stores, hard discounter stores, and others. By source, it is classified into regular, organic, milk with HMO, goat milk, plant-based formula, and others.

According to the U.S. baby infant formula market analysis, on the basis of product type, the infant milk segment dominated the market in 2022 and is expected to dominate the market during the forecast period. Infant milk is specially designed to meet the growing needs of babies under six months of age, who are not breastfed or partially breastfed. The lack of acceptable alternatives—as only breast milk is a viable substitute—for infant milk is expected to drive the growth of the market. The composition of infant milk includes vitamins, minerals, prebiotics, and higher levels of iron than other formulas to compensate for nutritional deficiencies, which may occur in the transition phase of infant nutrition. In addition, it is enriched with vitamin D and calcium for normal growth and development of bones.

U.S. Baby Infant Formula Market
By Product Type
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Growing-up milk segment would exhibit the highest CAGR of 6.5% during 2023-2032, owing to the increased demand by infant's mother due to its nutritional benefits.

According to the U.S. baby infant formula market trends, on the basis of the ingredients, the carbohydrate segment dominated the market in 2022 and is expected to maintain its dominance during the forecast period. Carbohydrates are an important source of energy for growing infants, as they account for almost 40% of their daily energy intake. In most cow milk-based formulas, lactose is the key source of carbohydrates. Lactose may benefit the gut microbiota and help in the absorption of calcium. According to the EU Directive 2006/141/EC of December 22, 2006, on infant formula and follow-on formula and amending Directive 1999/21/EC, manufacturers shall have a minimum of 9 g of total carbohydrates/100 kcal and a maximum of 14 g/100 kcal.

U.S. Baby Infant Formula Market
By Ingredients
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Vitamins segment would exhibit the highest CAGR of 7.0% during 2023-2032, owing to the increased demand for vitamins enriched baby infant formula in the market.

According to the U.S. baby infant formula market demand, on the basis of the distribution channel, the hypermarkets segment dominated the market in 2022 and is expected to dominate the market during the forecast period. Hypermarkets significantly invest to improve their supply chain to offer products at the lowest possible (market) relative rate. In addition, these stores invest in categorizing their products and in-store product placement and try to boost the sale of numerous other products while leveraging the sale of one single product.

U.S. Baby Infant Formula Market
By Distribution Channel
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Hard discounter stores segment would exhibit the highest CAGR of 6.9% during 2023-2032, owing to the increased available of baby infant formula along with high offering of discounts for the consumers.

On the basis of the source, the regular segment dominated the market in 2022 accounting for more than one-third of the market share, and is expected to maintain its dominance during the U.S. baby infant formula market forecast period. The highest market share of the regular segment is attributed to the inclination of consumers towards conventional infant formulas, and when it comes to the infant’s health parents are very keen on trusting conventional products over new products as they do not want to take unwanted health risks. Another factor that keeps regular formulas over organic and other formulas is the cost is comparatively cheaper than the organic formulas.

U.S. Baby Infant Formula Market
By Source
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Goat milk segment would exhibit the highest CAGR of 7.2% during 2023-2032, owing to the increased awareness about the benefits of consuming infant formula mad with goat milk

Players operating in the U.S. baby infant formula market have adopted various developmental strategies to expand their U.S. baby infant formula market share, increase profitability, and remain competitive in the market. Key players profiled in this report include Abbott Laboratories, Arla Foods amba, Aussie Bubs, Bobbie, Danone S.A., Dana Dairy Group Ltd, ByHeart, Else Nutrition Holdings, Inc., Holle Baby Foods AG, Kabrita USA, Nature's One, LLC, Nestle S.A., Reckitt Benckiser Group LTD, and The Hain Celestial Group, Inc.

Some Examples of Agreement in The Market

  • In March 2021, Else Nutrition Holdings signed an agreement with United Natural Foods (UNFI) for distribution in over 30,000 retail outlets in the U.S. The agreement will strengthen the presence of the company in the U.S.
  • In September 2020, Else Nutrition and KeHE Distributors signed a distribution agreement to bring novel plant-based toddler nutrition product to the U.S. retailers. The agreement will strengthen the presence of the company in local retail stores of the U.S.

Some Examples of Product Launch in The Market

  • In January 2021, Bobbie launched first organic, European style infant formula with DHA level that meets the FDA requirements in the U.S. The launch will increase the product portfolio of the company.
  • In August 2020 Arla Foods Ingredients launched the organic micellar casein isolate, helping manufacturers meet demand for organic, natural, and functional protein products. Micellar casein isolate is a new ingredient, which is rich in native milk proteins. The launch will increase the product portfolio of the company in the U.S.

KEY BENEFITS FOR STAKEHOLDERS

  • This report provides a quantitative analysis of the market segments, current trends, estimations, and dynamics of the U.S. baby infant formula analysis from 2022 to 2032 to identify the prevailing U.S. baby infant formula opportunities.
  • The market research is offered along with information related to key drivers, restraints, and opportunities.
  • Porter's five forces analysis highlights the potency of buyers and suppliers to enable stakeholders make profit-oriented business decisions and strengthen their supplier-buyer network.
  • In-depth analysis of the U.S. baby infant formula segmentation assists to determine the prevailing market opportunities.
  • Market player positioning facilitates benchmarking and provides a clear understanding of the present position of the market players.
  • The report includes the analysis of U.S. baby infant formula industry trends, key players, market segments, application areas, and U.S. baby infant formula Market growth strategies.

U.S. Baby Infant Formula Market Report Highlights

Aspects Details
U.S. Baby Infant Formula Market By Product Type
By Product Type
  • Infant milk
  • Follow-on milk
  • Specialty baby milk
  • Growing-up milk
U.S. Baby Infant Formula Market By Ingredients
By Ingredients
  • Carbohydrate
  • Fat
  • Protein
  • Minerals
  • Vitamins
  • Others
U.S. Baby Infant Formula Market By Distribution Channel
By Distribution Channel
  • Hypermarkets
  • Supermarkets
  • Pharmacy/medical stores
  • Specialty stores
  • Hard discounter stores
  • Others
Key Market Players
Key Market Players

Reckitt Benckiser Group LTD, Nature's One, LLC, Bobbie, Holle Baby Foods AG, The Hain Celestial Group, Inc, Nestle S.A., Dana Dairy Group Ltd, Danone S.A., Kabrita USA, Aussie Bubs, Abbott Laboratories, ByHeart, Else Nutrition Holdings, Inc., Arla Foods Amba

Analyst Review

Depending on the insights of various CXOs of leading companies, the market has witnessed increase in launch activities and promotion of baby infant formula in the U.S. In addition, recommendation by physicians to use infant formula for babies up to 12 months as a substitute for breastmilk has changed the perception of people, leading to its high consumption. The brand name, level of nutrition, and safety of ingredients play a vital role in influencing the purchase decisions of consumers for baby infant formula products. The CXOs further added that Americans have gradually become conscious regarding the ingredients, which go into the making of their baby infant formula products, hence, tend to prefer specific trusted brands that cater to their requirements.

In 2022, infant milk accounted for the major market share, and is expected to continue its dominance during the forecast period. CXOs are optimistic about the growth of baby infant formula market in U.S. market, owing to the introduction of organic ingredients in infant products. In addition, hectic lifestyle of people, increase in participation of women in the labor force, and convenience in feeding babies have led to higher consumption of baby infant formula.

However, CXOs further added that concerns related to food safety and decline in birth rate may hamper the market growth. Moreover, consumers tend to purchase products, which are labeled as recyclable, or easy to recycle, since they are becoming increasingly environmentally conscious. Hence, eco-friendly packaged products help to influence the decision of eco-conscious parents to a certain extent.

Author Name(s) : Jaya Bundele| Indranil Chakraborty | Roshan Deshmukh
Frequently Asked Questions?

The U.S. baby infant formula market was valued at $3,962.7 million in 2022 and is projected to reach $6,973.7 million by 2032, registering a CAGR of 5.7% from 2023 to 2032.

The U.S. baby infant formula market registered a CAGR of 5.7% from 2023 to 2032.

Raise the query and paste the link of the specific report and our sales executive will revert with the sample.

The forecast period in the U.S. baby infant formula market report is from 2023 to 2032.

The top companies that hold the market share in the U.S. baby infant formula market include Abbott Laboratories, Arla Foods amba, Nestle S.A., Reckitt Benckiser Group LTD, and The Hain Celestial Group, Inc.

The U.S. baby infant formula market report has 4 segments. The segments are type, ingredients, distribution channel and source.

By type, infant milk segment in the U.S. baby infant formula market has the highest growth rate at a CAGR of 5.9% from 2023 to 2032.

Post-COVID-19, The U.S. baby infant formula market is witnessing new heights of growth and is recovering from its losses. Moreover, changes in consumer consumption patterns increased the popularity of infant formula products in the market. In addition, the introduction of new fortified infant formula in the post-COVID era augmented the demand for infant formula and is expected to rise during the forecast period.

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U.s. Baby Infant Formula Market