Infant formula is engineered food that is used as a substitute to human breast milk. It is one of the most complex foods as it requires specific manufacturing capabilities and sophisticated quality assurance protocols. Infant formula sits on the dividing line between pharmaceuticals and food. This is indicated by the fact that the infant formula industry has historically been dominated by major pharmaceutical firms such Danone Nutricia, Abbott Laboratories, GlaxoSmithKline plc, Pfizer, Inc., Bristol-Myers Squibb Company, etc. Growth in the baby food/formula market is significantly driven by rise in number of working women. According to the World Bank, the percentage of women workforce increased by 4% all over the world from 1990 to 2013. Currently, many working mothers resume their jobs shortly after giving birth. In such a situation, prepared baby formulas and foods offer an attractive alternative to working mothers, fulfilling their need for healthy and nutritious food for their babies.

The infant formula market can be segmented on the basis of formula type, formulation, and geography. On the basis of formula type, the market is segmented into infant milk formula, follow on milk formula, growing up milk formula, and specialty baby milk formula. On the basis of formulation, the market is segmented into powder, liquid concentrate, and ready to feed formulas. On the basis of region, the market is segmented into five major geographies; North America, Europe, Asia Pacific, Latin America, and Middle East & Africa.

The infant formula market is witnessing significant growth due to rise in baby boomers population, increasing disposable income of people in developing regions, and growing female participation in the labor force that has encouraged the acceptance of baby formula and prepared baby foods. In addition, rapid urbanization and the growth of the middle class have further propelled the infant formula market. However, the main barrier to entry for the market is the regulatory hurdle associated with gaining approval for manufacturing of infant formula and food. China has recently implemented more stringent quality and safety standards for manufacturers and distributors of infant formula and food in the country. The China Certification and Accreditation Administration (CNCA) stated that of the 800+ foreign brands distributing infant formula in China, only 94 brands received approval for sale in China. Stringent regulations associated with infant formula products might hinder the growth of the market.

In terms of geography, North America accounts for the largest market in terms of revenue. Factors such as high disposable income, presence of major players in the region, and well developed pharmaceutical and biotechnology industry is attributed to the growth of the market in the region. Europe is the second largest market for infant formula owing to good manufacturing facilities and high spending power per baby. Asia Pacific is expected to witness the highest growth rate in the coming years. Factors such as high baby boomer population, increasing disposable income, and high rate of urbanization contribute to the growth of the market in Asia Pacific. Moreover, slowdown in sales in developed regions has compelled leading players to target emerging markets. China’s large population base and rapidly growing volume of consumers with increasing purchasing power is very attractive to multinational brands, however, the 2008 melamine infant formula issue still overshadows the market and has created an environment where consumers are concerned with the health and safety of infant formula.

Ausnutria Hyproca, Abbott Laboratories, Bristol-Myers Squibb Company, Glanbia plc, Pfizer, Inc., GlaxoSmithKline plc, Mead Johnson, Nestlé S.A., Perrigo Nutritionals, and Danone Nutricia are some of the key players operating in the infant formula market globally.

This study by TMR is all-encompassing framework of the dynamics of the market. It mainly comprises critical assessment of consumers' or customers' journeys, current and emerging avenues, and strategic framework to enable CXOs take effective decisions.

Our key underpinning is the 4-Quadrant Framework EIRS that offers detailed visualization of four elements:

  • Customer Experience Maps
  • Insights and Tools based on data-driven research
  • Actionable Results to meet all the business priorities
  • Strategic Frameworks to boost the growth journey

The study strives to evaluate the current and future growth prospects, untapped avenues, factors shaping their revenue potential, and demand and consumption patterns in the global market by breaking it into region-wise assessment.

The following regional segments are covered comprehensively:

  • North America
  • Asia Pacific
  • Europe
  • Latin America
  • The Middle East and Africa

The EIRS quadrant framework in the report sums up our wide spectrum of data-driven research and advisory for CXOs to help them make better decisions for their businesses and stay as leaders.

Below is a snapshot of these quadrants.

1. Customer Experience Map

The study offers an in-depth assessment of various customers’ journeys pertinent to the market and its segments. It offers various customer impressions about the products and service use. The analysis takes a closer look at their pain points and fears across various customer touchpoints. The consultation and business intelligence solutions will help interested stakeholders, including CXOs, define customer experience maps tailored to their needs. This will help them aim at boosting customer engagement with their brands.

2. Insights and Tools

The various insights in the study are based on elaborate cycles of primary and secondary research the analysts engage with during the course of research. The analysts and expert advisors at TMR adopt industry-wide, quantitative customer insights tools and market projection methodologies to arrive at results, which makes them reliable. The study not just offers estimations and projections, but also an uncluttered evaluation of these figures on the market dynamics. These insights merge data-driven research framework with qualitative consultations for business owners, CXOs, policy makers, and investors. The insights will also help their customers overcome their fears.

3. Actionable Results

The findings presented in this study by TMR are an indispensable guide for meeting all business priorities, including mission-critical ones. The results when implemented have shown tangible benefits to business stakeholders and industry entities to boost their performance. The results are tailored to fit the individual strategic framework. The study also illustrates some of the recent case studies on solving various problems by companies they faced in their consolidation journey.

4. Strategic Frameworks

The study equips businesses and anyone interested in the market to frame broad strategic frameworks. This has become more important than ever, given the current uncertainty due to COVID-19. The study deliberates on consultations to overcome various such past disruptions and foresees new ones to boost the preparedness. The frameworks help businesses plan their strategic alignments for recovery from such disruptive trends. Further, analysts at TMR helps you break down the complex scenario and bring resiliency in uncertain times.

The report sheds light on various aspects and answers pertinent questions on the market. Some of the important ones are:

1. What can be the best investment choices for venturing into new product and service lines?

2. What value propositions should businesses aim at while making new research and development funding?

3. Which regulations will be most helpful for stakeholders to boost their supply chain network?

4. Which regions might see the demand maturing in certain segments in near future?

5. What are the some of the best cost optimization strategies with vendors that some well-entrenched players have gained success with?

6. Which are the key perspectives that the C-suite are leveraging to move businesses to new growth trajectory?

7. Which government regulations might challenge the status of key regional markets?

8. How will the emerging political and economic scenario affect opportunities in key growth areas?

9. What are some of the value-grab opportunities in various segments?

10. What will be the barrier to entry for new players in the market?

Note: Although care has been taken to maintain the highest levels of accuracy in TMR’s reports, recent market/vendor-specific changes may take time to reflect in the analysis.

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Infant Formula Market

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