The global infant formula market revenue was valued at USD 81.72 billion in 2024 and is projected to grow to USD 90.91 billion in 2025, ultimately reaching USD 178.83 billion by 2032. This reflects a compound annual growth rate (CAGR) of 10.15% over the forecast period. The Asia Pacific region led the market in 2024, holding a dominant 68.73% share. Additionally, the U.S. infant formula market is anticipated to experience significant growth, with its market value expected to reach USD 10.22 billion by 2032. This growth is largely driven by increasing parental awareness of the benefits of high-quality, nutritious formula for infant development.

Infant formula is specifically designed for babies under one year of age. Regulatory bodies such as the Food Safety and Standards Authority of India (FSSAI) and the World Health Organization (WHO) have established stringent standards to ensure product quality. These regulations encourage consumer confidence and foster market growth. For example, in 2019, FSSAI introduced updated guidelines for formulas intended for special medical needs, premature infants, and lactose-free options.

Information Source: https://www.fortunebusinessinsights.com/industry-reports/infant-formula-market-101498 

Segmentation

Infant Milk Segment Leads Market Due to Product Innovations

Based on type, the market is segmented into infant milk, follow-on milk, and others. The infant milk category captured the largest share in 2022, supported by continuous new product launches from leading brands, which is helping to drive growth in this segment.

Hypermarkets/Supermarkets Remain the Preferred Retail Channel

By distribution channel, the market is divided into hypermarkets/supermarkets, pharmacies/medical stores, specialty stores, and others. Hypermarkets and supermarkets hold the largest share, as consumers prefer shopping in larger stores due to the wider selection and competitive pricing.

Geographically, the market is analyzed across Asia Pacific, North America, Europe, the Middle East & Africa, and South America.

Report Coverage

This market report provides an in-depth analysis of the factors driving growth, key trends, and strategic moves by leading companies. It also examines the impact of COVID-19 on market dynamics and outlines how companies are adapting to retain market share.

Drivers and Restraints

Rising Parental Awareness of Early Nutrition Drives Market Growth

The growing recognition of the importance of early nutrition for infants is a key driver of market expansion. Parents are increasingly prioritizing nutritional quality and are showing interest in plant-based products for their added health benefits.

However, safety concerns regarding new infant formula products could pose challenges to market growth.

Regional Insights

Asia Pacific Leads the Market, Driven by Higher Birth Rates

Asia Pacific remains the largest regional market, supported by higher birth rates, which contribute to increased product demand.

In Europe, the market is expected to expand steadily over the forecast period, supported by ongoing innovation from leading players such as Organix and Nestlé.

Competitive Landscape

Leading Companies Focus on Capacity Expansion and Strategic Initiatives

Top players in the infant formula market are pursuing growth through mergers, acquisitions, joint ventures, and product innovation. Many companies are also prioritizing capacity expansion to strengthen their market positions.

Key Market Players

• Nestlé S.A. (Switzerland)
• Danone S.A. (France)
• Arla Foods (Denmark)
• Yili Group (China)
• Abbott (U.S.)
• The Kraft Heinz Company (U.S.)
• Bellamy’s Organic (Australia)
• Reckitt Benckiser Group PLC (U.K.)
• Perrigo Company plc (Ireland)
• FrieslandCampina (Netherlands)

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Key Industry Development

August 2022 – Abbott announced the reopening of its Similac infant formula production plant in Sturgis, Michigan. The move aimed to supply more than 8 million pounds of infant formula to the U.S. market.