USD 68.27 Billion
Global Organic Infant Formula Market Size, Share, Growth Analysis, By Source(Plants (Soy and others), Protein hydrolysates), By Distribution channel(Offline and online) - Industry Forecast 2023-2030
Report ID:
SQMIG30I2284 |
Region:
Global |
Published Date: March, 2024
Pages:
198
|
Tables:
64 |
Figures:
75
Global Organic Infant Formula Market Insights
Global Organic Infant Formula Market size was valued at USD 68.27 Billion in 2022 and is poised to grow from USD 74.99 Billion in 2023 to USD 158.88 Billion by 2031, at a CAGR of 9.84% during the forecast period (2024-2031).
The global organic infant formula market is experiencing robust growth, driven by increasing consumer demand for natural and organic products for infants. Parents are becoming more aware of the potential health benefits of organic infant formula, which is free from chemicals, hormones, and pesticides. This awareness, coupled with rising disposable incomes and a growing preference for healthier food options, has fueled the market's expansion. The market has witnessed significant growth opportunities, including the increasing consumer awareness about the advantages of organic products and the emergence of new markets in developing regions. As more parents become educated about the potential risks associated with conventional infant formula, they are opting for organic alternatives, contributing to market growth. Additionally, countries in Asia-Pacific and Latin America, experiencing economic development and urbanization, present significant growth potential for organic infant formula due to changing consumer preferences and increasing awareness.
However, the market also faces certain challenges. One such challenge is the higher cost of organic infant formula production compared to conventional formula. The strict standards and quality control measures required for organic certification result in increased production costs, limiting affordability for some consumer segments. Moreover, the limited availability of organic ingredients can pose challenges, as supply chain disruptions and weather conditions can impact sourcing and production. Another challenge is ensuring regulatory compliance with organic standards. Manufacturers must adhere to stringent regulations and certifications, which can be complex and time-consuming. Meeting these requirements may pose barriers to entry for new players in the market. Consumer skepticism is also a challenge, as some parents may question the true benefits of organic infant formula compared to traditional options. Building trust in the organic product category and educating consumers about the value and safety of organic formulas is essential for sustained market growth. Despite these challenges, the global organic infant formula market is expected to continue its upward trajectory. Growing consumer demand for natural and organic products, along with favorable market trends and opportunities, will drive the market's expansion in the coming years.
US Organic Infant Formula Market is poised to grow at a sustainable CAGR for the next forecast year
Market snapshot - 2024-2031
Global Market Size
Largest Segment
Offline
Fastest Growth
Offline
Growth Rate
9.84% CAGR
Global Organic Infant Formula Market ($ Bn)
Country Share for North America Region (%)
Global Organic Infant Formula Market By Distribution Channel ($ Bn)
Global Organic Infant Formula Market By Distribution Channel (%)
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Global Organic Infant Formula Market Segmental Analysis
The global organic infant formula market is segmented on the basis of source, distribution channel, and region. By source, the market is segmented into plants (soy and others), protein hydrolysates, milk (cow, camel, goat, and others). By distribution channel, the market is segmented into offline and online. By region, the market is segmented into North America, Europe, Asia Pacific, Middle East and Africa, and Latin America.
Analysis By Source
The global market for organic infant formula can be categorized into different types of sources, namely plants (such as soy and others), protein hydrolysates, and milk (including cattle, camel, goat, and others). The milk segment dominated the market, primarily due to the widespread availability of dairy milk worldwide, unlike alternatives like soy milk which have gained popularity more recently. Cow milk contains various high-quality proteins, vitamins, and minerals like riboflavin, calcium, and B12 that help prevent bone abnormalities in infants, enhance the absorption of amino acids, and stabilize blood pressure. On the other hand, camel milk promotes rapid body growth and helps prevent conditions like autism spectrum disorder.
However, plant-based formulas and protein hydrolysates are projected to experience the highest growth rates, with a compound annual growth rate (CAGR) of 9.8% during the forecast period. This growth is attributed to the increasing prevalence of lactose intolerance in infants. Additionally, protein hydrolysates facilitate better nutrient absorption by assisting in the proper uptake of amino acids in infants' bodies.
Analysis Distribution Channel
The global organic infant formula market can be further divided based on the mode of conveyance. The offline segment held the majority share. Offline channels, represented by physical stores, have a widespread presence in both urban and rural areas, and have been the primary means of purchasing for several decades. Although e-commerce sales have gained some market share in urban areas, their reach is limited due to inadequate infrastructure and connectivity in impoverished regions. This limitation has inadvertently benefited offline distribution channels.
However, the online segment is projected to be the fastest-growing segment, with a CAGR of 9.1% during the forecast period. This growth can be attributed to technological advancements that have made online retail operations more feasible. Services like Google maps and e-banking have greatly facilitated online shopping. Additionally, the increasing trend of working from home and people's busy lifestyles have contributed to the growing popularity of online shopping.
Global Organic Infant Formula Market By Distribution Channel, 2023 (%)
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Global Organic Infant Formula Market Regional Insights
North America held the largest share, accounting for 36% of the overall market. The growth in this region can be attributed to various factors, such as negative attitudes toward breastfeeding, a high level of women's participation in household responsibilities, which leaves them with limited time for breastfeeding, inadequate workplace setups or supportive environments for breastfeeding, high disposable incomes, and a lack of awareness regarding the benefits of breastfeeding.
Asia-Pacific is expected to be the fastest-growing segment during the forecast period. This growth can be attributed to rapid urbanization, higher fertility rates compared to western countries, increasing disposable incomes due to growing economic prosperity, western influences, strengthening retail infrastructure, and the presence of expanding market players facilitated by ease of doing business.
Global Organic Infant Formula Market By Region, 2024-2031
- Largest
- Fastest
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Global Organic Infant Formula Market Dynamics
Drivers
Growing Health Problems such as Cancer in Women are Anticipated to Boost Market Demand.
- The prevalence of health complications such as breast cancer and diabetes has been on the rise, leading to a significant decline in breastfeeding rates in recent years. According to a report from the World Health Organization, approximately 2.3 million women worldwide were diagnosed with breast cancer in 2020, and 685,000 lost their lives to the disease. In the US, breast cancer accounts for 1 in 3 female cancer cases, making it the most common form of cancer globally, representing approximately 12% of all cancer cases each year. This decline in breastfeeding rates is subsequently fueling the demand for organic infant formula.
Restraints
Strict Production Process, Inflation, and Hampered Business Activities may Hamper Growth
The production of organic infant formula follows a stringent manufacturing process to ensure it is completely free from chemicals, hormones, and pesticides. As a result, the production cost of organic formula is higher compared to conventional infant formula. This increased cost may lead to customer aversion towards purchasing organic formula due to the higher price point. Additionally, production activities have been hampered by government restrictions aimed at reducing the spread of viruses, disrupting the balance between supply and demand. Inflation rates have soared in both high-income and low-income countries following the pandemic. For instance, in Pakistan, the annual inflation rate reached an overwhelming 12.2%. Similarly, Indian consumers are facing the burden of an 8-month high inflation rate of 6.07%.
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Global Organic Infant Formula Market Competitive Landscape
The global organic infant formula market is characterized by intense competition, with players striving to gain a competitive edge. Key factors driving competition include product innovation, quality, pricing, distribution networks, and marketing strategies. Partnerships, acquisitions, and collaborations are common strategies employed to expand product portfolios and geographic reach. The competitive landscape is dynamic, influenced by evolving consumer preferences, regulatory developments, and market trends. Companies must continuously adapt their strategies to maintain competitiveness and meet the growing demand for organic infant formula.
Top Player’s Company Profile
- Nestlé (Switzerland)
- HiPP GmbH & Co. Vertrieb KG (Germany)
- Danone (France)
- Abbott Laboratories (US)
- Mead Johnson Nutrition (US)
- Holle Baby Food AG (Switzerland)
- Bellamy's Organic (Australia)
- Bubs Australia Limited (Australia)
- Earth's Best Organic (US)
- Babybio (France)
- Plum Organics (US)
- Happy Family Organics (US)
- Parent's Choice (US)
- Lebenswert Bio (Germany)
- Kabrita (Netherlands)
- Biostime International Holdings Limited (China)
- Nature's One (US)
- Prolacta Bioscience (US)
- The Honest Company (US)
- Bobbie (US)
Recent Developments
-
The newborn nutrition firm ByHeart announced the release of their infant formula in August 2023. According to the manufacturer, their infant formula is the closest thing to breastmilk available.
-
Groupe Danone, a French firm, entered the US market in March 2023 with its hypoallergenic Pepticate baby formula. For babies who have allergies, a hypoallergenic formula has been particularly created.
-
In September 2022, Nestle discovered a new element called myelin, a nutrient combination present in breast milk. The company first introduced Nutrilearn Connect, an infant formula with this unique ingredient, in Hong Kong before bringing it to other regions.
Global Organic Infant Formula Key Market Trends
- Increasing Consumer Awareness: There is a growing awareness among consumers about the benefits of organic infant formula, including its natural and chemical-free composition. This awareness is driving the demand for organic options as parents seek healthier alternatives for their infants.
- Growing Preference for Natural and Organic Products: The global trend towards natural and organic food products extends to infant formula as well. Parents are increasingly opting for organic options due to concerns about potential health risks associated with conventional formulas.
Global Organic Infant Formula Market SkyQuest Analysis
SkyQuest’s ABIRAW (Advanced Business Intelligence, Research & Analysis Wing) is our Business Information Services team that Collects, Collates, Correlates, and Analyzes the Data collected by means of Primary Exploratory Research backed by robust Secondary Desk research.
According to our analyses, the global organic infant formula market is witnessing substantial growth and transformations, with North America emerging as the dominant region and Asia-Pacific as the fastest-growing market. Increasing consumer awareness about the benefits of organic products and a preference for natural and chemical-free options are driving the demand for organic infant formula. North America holds a significant market share, fuelled by factors such as negative attitudes towards breastfeeding, changing lifestyles, and high disposable incomes. On the other hand, the Asia-Pacific region presents immense growth potential due to rapid urbanization, increasing disposable incomes, and changing consumer preferences. However, challenges such as higher production costs and limited availability of organic ingredients need to be addressed. Regulatory compliance, product innovation, and building consumer trust will remain crucial for market players. With a focus on innovation, sustainability, and meeting evolving consumer demands, the global organic infant formula market is poised for continued expansion in the coming years.
| Report Metric | Details |
|---|---|
| Market size value in 2023 | USD 68.27 Billion |
| Market size value in 2031 | USD 158.88 Billion |
| Growth Rate | 9.84% |
| Forecast period | 2024-2031 |
| Forecast Unit (Value) | USD Billion |
| Segments covered |
|
| Regions covered | North America (US, Canada), Europe (Germany, France, United Kingdom, Italy, Spain, Rest of Europe), Asia Pacific (China, India, Japan, Rest of Asia-Pacific), Latin America (Brazil, Rest of Latin America), Middle East & Africa (South Africa, GCC Countries, Rest of MEA) |
| Companies covered |
|
| Customization scope | Free report customization with purchase. Customization includes:-
|
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Table Of Content
Executive Summary
Market overview
- Exhibit: Executive Summary – Chart on Market Overview
- Exhibit: Executive Summary – Data Table on Market Overview
- Exhibit: Executive Summary – Chart on Global Organic Infant Formula Market Characteristics
- Exhibit: Executive Summary – Chart on Market by Geography
- Exhibit: Executive Summary – Chart on Market Segmentation
- Exhibit: Executive Summary – Chart on Incremental Growth
- Exhibit: Executive Summary – Data Table on Incremental Growth
- Exhibit: Executive Summary – Chart on Vendor Market Positioning
Parent Market Analysis
Market overview
Market size
- Market Dynamics
- Exhibit: Impact analysis of DROC, 2021
- Drivers
- Opportunities
- Restraints
- Challenges
- Exhibit: Impact analysis of DROC, 2021
- SWOT Analysis
KEY MARKET INSIGHTS
- Technology Analysis
- (Exhibit: Data Table: Name of technology and details)
- Pricing Analysis
- (Exhibit: Data Table: Name of technology and pricing details)
- Supply Chain Analysis
- (Exhibit: Detailed Supply Chain Presentation)
- Value Chain Analysis
- (Exhibit: Detailed Value Chain Presentation)
- Ecosystem Of the Market
- Exhibit: Parent Market Ecosystem Market Analysis
- Exhibit: Market Characteristics of Parent Market
- IP Analysis
- (Exhibit: Data Table: Name of product/technology, patents filed, inventor/company name, acquiring firm)
- Trade Analysis
- (Exhibit: Data Table: Import and Export data details)
- Startup Analysis
- (Exhibit: Data Table: Emerging startups details)
- Raw Material Analysis
- (Exhibit: Data Table: Mapping of key raw materials)
- Innovation Matrix
- (Exhibit: Positioning Matrix: Mapping of new and existing technologies)
- Pipeline product Analysis
- (Exhibit: Data Table: Name of companies and pipeline products, regional mapping)
- Macroeconomic Indicators
COVID IMPACT
- Introduction
- Impact On Economy—scenario Assessment
- Exhibit: Data on GDP - Year-over-year growth 2016-2022 (%)
- Revised Market Size
- Exhibit: Data Table on Global Organic Infant Formula Market size and forecast 2021-2027 ($ million)
- Impact Of COVID On Key Segments
- Exhibit: Data Table on Segment Market size and forecast 2021-2027 ($ million)
- COVID Strategies By Company
- Exhibit: Analysis on key strategies adopted by companies
MARKET DYNAMICS & OUTLOOK
- Market Dynamics
- Exhibit: Impact analysis of DROC, 2021
- Drivers
- Opportunities
- Restraints
- Challenges
- Exhibit: Impact analysis of DROC, 2021
- Regulatory Landscape
- Exhibit: Data Table on regulation from different region
- SWOT Analysis
- Porters Analysis
- Competitive rivalry
- Exhibit: Competitive rivalry Impact of key factors, 2021
- Threat of substitute products
- Exhibit: Threat of Substitute Products Impact of key factors, 2021
- Bargaining power of buyers
- Exhibit: buyers bargaining power Impact of key factors, 2021
- Threat of new entrants
- Exhibit: Threat of new entrants Impact of key factors, 2021
- Bargaining power of suppliers
- Exhibit: Threat of suppliers bargaining power Impact of key factors, 2021
- Competitive rivalry
- Skyquest special insights on future disruptions
- Political Impact
- Economic impact
- Social Impact
- Technical Impact
- Environmental Impact
- Legal Impact
Market Size by Region
- Chart on Market share by geography 2021-2027 (%)
- Data Table on Market share by geography 2021-2027(%)
- North America
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- USA
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Canada
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Europe
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- Germany
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Spain
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- France
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- UK
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of Europe
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Asia Pacific
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- China
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- India
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Japan
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- South Korea
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of Asia Pacific
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Latin America
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- Brazil
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of South America
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Middle East & Africa (MEA)
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- GCC Countries
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- South Africa
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of MEA
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
KEY COMPANY PROFILES
- Competitive Landscape
- Total number of companies covered
- Exhibit: companies covered in the report, 2021
- Top companies market positioning
- Exhibit: company positioning matrix, 2021
- Top companies market Share
- Exhibit: Pie chart analysis on company market share, 2021(%)
- Total number of companies covered
Methodology
For the Global Organic Infant Formula Market, our research methodology involved a mixture of primary and secondary data sources. Key steps involved in the research process are listed below:
1. Information Procurement: This stage involved the procurement of Market data or related information via primary and secondary sources. The various secondary sources used included various company websites, annual reports, trade databases, and paid databases such as Hoover's, Bloomberg Business, Factiva, and Avention. Our team did 45 primary interactions Globally which included several stakeholders such as manufacturers, customers, key opinion leaders, etc. Overall, information procurement was one of the most extensive stages in our research process.
2. Information Analysis: This step involved triangulation of data through bottom-up and top-down approaches to estimate and validate the total size and future estimate of the Global Organic Infant Formula Market.
3. Report Formulation: The final step entailed the placement of data points in appropriate Market spaces in an attempt to deduce viable conclusions.
4. Validation & Publishing: Validation is the most important step in the process. Validation & re-validation via an intricately designed process helped us finalize data points to be used for final calculations. The final Market estimates and forecasts were then aligned and sent to our panel of industry experts for validation of data. Once the validation was done the report was sent to our Quality Assurance team to ensure adherence to style guides, consistency & design.
Analyst Support
Customization Options
With the given market data, our dedicated team of analysts can offer you the following customization options are available for the Global Organic Infant Formula Market:
Product Analysis: Product matrix, which offers a detailed comparison of the product portfolio of companies.
Regional Analysis: Further analysis of the Global Organic Infant Formula Market for additional countries.
Competitive Analysis: Detailed analysis and profiling of additional Market players & comparative analysis of competitive products.
Go to Market Strategy: Find the high-growth channels to invest your marketing efforts and increase your customer base.
Innovation Mapping: Identify racial solutions and innovation, connected to deep ecosystems of innovators, start-ups, academics, and strategic partners.
Category Intelligence: Customized intelligence that is relevant to their supply Markets will enable them to make smarter sourcing decisions and improve their category management.
Public Company Transcript Analysis: To improve the investment performance by generating new alpha and making better-informed decisions.
Social Media Listening: To analyze the conversations and trends happening not just around your brand, but around your industry as a whole, and use those insights to make better Marketing decisions.
Global Organic Infant Formula Market Report Snapshots
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