Infant Nutrition Market - Growths, Trends, COVID-19 Impact and Forecasts (2021 - 2026)


Posted April 28, 2021 by manojshinde

The infant nutrition market is projected to register a CAGR of 5.58% during the forecast period, with a revenue of approximately USD 79.5 billion in 2020 and expected to reach USD 110.2 billion by 2026.
 
Certain factors are propelling the growth of the market, which include an increase in the working mother population, higher spending on baby health, and the rising demand for organic baby food.


The rising cases of COVID–19 are thus expected to have a short-term negative impact on the export-import of the nutrition sector. The short-term impact on the nutrition segment is less prominent, however, the negative impact of COVID-19 on the global economy can have significant indirect effects on the nutrition segment of the market. The healthcare facilities, such as market players and government, are investing heavily in maintaining the supply of essential nutrition and food. Most of the baby food manufacturers were found focusing on the ramp up the production of baby food to ensure the availability of the food. The American Academy of Pediatrics (AAP) also recommended that during the COVID-19 pandemic, people should buy no more than 10 days to 2 weeks supply of formula to ensure the availability of formulas to everyone. However, considering the rising cases of COVID-19 and its significant effect on healthcare systems across the world.

Over recent years, there has been a remarkable increase in the young working mother population that has been observed. This has worked as a key factor in propelling the growth of the infant nutrition market, as these working mothers are majorly dependent on processed infant nutrition products. For instance, in the United Kingdom (UK), the number of working mothers has increased to one of the highest in recent decades. In 2019, the Office for National Statistics (ONS) of the UK published data on families and the labour market. The data revealed that the number of mothers in the labour market had grown substantially over the last 2 decades. As per the figures, 66.2% of mothers were in employment in 2000, which rose to 75.1% by 2019. The low wages and high cost of living in cities increased the number of women working to support their families. Therefore, this factor is playing a key role in driving the infant food nutrition market, as the working mothers are primarily dependent on processed child nutrition products.

Stress is also currently, one of the most common problems faced by working women, which causes low milk production in them. These factors have encouraged the adoption of convenience-oriented lifestyles, making infant formula and baby foods more desirable.​

Furthermore, parents are also found spending more on their babies than in the previous years, owing to several social factors. Presently, children are deemed more worthy of protection than they used to be. According to many surveys, parents spend a high amount of money on their babies, sometimes out of guilt, out of shame, or out of social anxiety.

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Additionally, factors, like the growth of the middle class, rapid urbanization, and rising rates of female participation in the labour force in many developing markets, have encouraged the adoption of convenience-oriented lifestyles, making prepared baby foods and baby formula more desirable. The increasing middle-class population in the emerging and developing countries has opened new horizons in the infant nutrition market, as the need for products, compatible with a working mom’s schedule, is growing. Therefore, these factors boost the growth of the infant nutrition market.

Key Market Trends

First Infant Formula is Expected to Show a High Growth in the Infant Formula Segment over the Forecast Period

The first infant formula includes a formula for 0-6 months old babies. These products are available in liquid, powder, and ready-to-use formats, with dairy being the main ingredient over all types of products. It is being recommended if breast milk is unavailable, or to supplement the baby’s diet. The benefits offered by these products include the convenience of feeding, nutrient-rich formula, the option of lactose, and soy-free milk versions, which make this a good option, especially for working women.

The rising COVID-19, and lockdown measures introduced to reduce the spread of Covid-19 resulted in a rapid change in circumstances for pregnant women, new mothers and their infants. The global food & beverages industry is one of the major industries suffering due to the outbreak of COVID-19. These factors have severely affected the baby infant formula market. There was a huge loss found disrupting the sales of the market products and the market players were found investing heavily in maintaining the supply of essential nutrition and food to the children.

It has been found that the American Academy of Pediatrics (AAP) recommends iron-fortified cow’s milk infant formula, as it is most appropriate for babies (0 to 12 months old), who are not breastfed or who are partially breastfed.

Abbott and Reckitt Benckiser Group are found to be the two major companies with a major share in this category of products. Some of the major brands offered by these companies are SIMILA, ADVANCE, and Enfamil.

Hence the benefits offered by the products, such as the convenience of feeding, nutrient-rich formula, an option of lactose and soy-free milk versions, make this a good option, especially for the working women. However, due to the changing lifestyle, and to supply additional nutrients to infants apart from breastfeeding, the demand for the First Infant Formula segment of the market studied is likely to grow.

North America is Expected to Witness a High Growth Throughout the Forecast Period

The market in North America is expected to grow due to the increasing number of working women and the increasing demand for baby food. Also, the presence of high per capita healthcare expenditure, coupled with high awareness levels and rising disposable income, is also contributing to the growth of the market in the region.

Due to the rising COVID-19, there is a huge loss found disrupting the sales of infant nutrition products due to the lockdown. There are rising efforts to mitigate the transmission of COVID-19 that are disrupting food systems, upending health and nutrition services, devastating livelihoods, and threatening food security. However, the market players are found investing heavily in maintaining the supply of essential nutrition and food to the children.

The percentage of working women is high and rising in the United States (US). As per a 2019 report by the Catalyst Organization, in 2018, there were 75,978,000 women aged 16 and over in the labour force, representing 46.9% of the total labour force. As a result of these factors, the working women find infant/baby nutrition helpful, which can be fed to the babies of working mothers even in their absence.

There are also a rising number of start-ups in the US that aim to work with existing infant nutrition companies to improve their blends. A start-up called Sugarlogix is using cutting-edge gene-editing tools to recreate in a lab the most commonly found breast milk sugars, which are known to be associated with boosting the baby’s immune system. Many more such initiatives are expected to boost the growth in the market. Hence, the robust guidelines and new initiatives and start-ups have helped the increasing demand for infant nutrition be met, which has helped the overall market growth in the region.

Moreover, there are consumers, especially in the developed countries, who are willing to pay for premium amounts for such products, owing to the general perception of these products being more healthy and safe, as compared to conventional products.

Competitive Landscape

Some of the companies that are currently dominating the market studied are Abbott Laboratories, Baby Gourmet Foods Inc., Bellamy's Australia Limited, Danone SA, Royal FrieslandCampina NV, Reckitt Benckiser (Mead Johnson), and Nestlé SA. The market players resort to various strategic initiatives such as new product launches, mergers, and acquisitions to strengthen their foothold in the market and expand their product offerings.

There are also stringent regulatory scenarios that create high entry barriers for new entrants in the market studied. Moreover, there is a significant investment needed in the R&D sector, which makes small companies be acquired or work in partnership with big players, which is highly beneficial for the market studied. For example, a collaboration between companies to improve human milk oligosaccharides.

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Issued By Statzy Market Research
Country India
Categories Health
Tags infant nutrition market , infant nutrition market forecast , infant nutrition market share , infant nutrition market size
Last Updated April 28, 2021