Infant Formula: Upgradation from Safer Products to Premiumization
Infant formula is among the most novel product in the food segment as it is considered a replacement for human milk. Thus, it is one of the most complex category requiring specific capabilities, technical expertise, and state of art quality protocols. Safety during raw material selection, production packaging, trade, transport, sales, and distribution is strictly under the jurisdiction of food authorities and regulatory bodies in all the countries. However, due to increased consumer sentiments and awareness about the quality and its feature of resembling a mother’s milk profile, the manufacturers are now coupling the safety aspect with added premium features via ingredients embracing additional nutritional benefits.
The global infant formula market is estimated to be USD 56 Billion in 2020, showing a very steep growth from 2010. It is projected to grow at a CAGR of 4% in the next five years.Source: Eurominitor, GIRA Reports, ChemBizR Analysis
Despite witnessing declining birth rates globally, the infant formula market has shown a hockey stick growth graph exhibiting a CAGR of 4% in the last 10 years. The growth for infant formula products during the period 2010 to 2020 has been different across different regions. The developed countries registered lower growth rates while countries such as China and other South-Asian countries have registered double-digit growth during this period. China remains to be the largest market for Infant formula products globally with a market value of approximately USD 25 billion in 2020.
A notable trend that is evident in the infant formula market during recent times is that there is a growing demand for premium products with novel ingredients. The urge for parents to feed their babies with formula, which is close to mother’s milk and highly embedded with nutritional needs for their babies, is taking all the attention of the stake owners in the production value chain; the product formulators, blenders, and ingredient manufacturers that supply oils, fats, base milk, lipids, nutritional ingredients, and nutritional premix.
To read more about ChemBizR’s insights on the topic, click the link below:
Anil P, Associate Consultant, Food & Nutrition