Amino Acid-Based Formula Market

Amino Acid-Based Formula Market Analysis, By Product Type (Follow-on Milk Formula, Specialty Infant Milk Formula, Growing-Up Milk Formula), By Type (Lactose Amino Acid-Based Formula, Lactose-Free Amino Acid-Based Formula), By Point of Sale, By Age Group & Regional Forecast 2031

Analysis of Amino Acid-Based Formula market covering 30 + countries including analysis of US, Canada, UK, Germany, France, Nordics, GCC countries, Japan, Korea and many more

Amino Acid-Based Formula Market Outlook

The global amino acid-based formula market amassed revenue worth US$ 738.4 Mn in 2020. Fact.MR, a market research and competitive intelligence provider, has recently published a revised industry analysis, which estimates the market to rise at a CAGR of 7.4% and be valued at around US$ 1,363 Mn by 2031.

Amino Acid-Based Formula Market Size (2020) US$ 738.4 Mn
Market Forecasted Value (2031) US$ 1.36 Bn
Global Market Growth Rate 7.4% CAGR
Market Share of Tier-I Amino Acid-Based Formula Manufacturers 75%

Even though amino acid-based formula accounts for around 2.5% of the overall amino acid market, which was worth around US$ 28.6 Bn in 2020, protein intake among infants across the globe is anticipated to rise steadily over the next ten years, boding well for amino acid-based formula industry expansion.

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Amino Acid-Based Formula Consumption Analysis from 2016 to 2020 Vs Market Outlook for 2021 to 2031

According to Fact.MR analysis, from 2016 to 2020, consumption of amino acid-based formula increased at a CAGR of 6.1%, wherein, countries such as China, Japan, India, Germany, and the U.S. held significant shares in the global market. 

Infants suffering from severe allergy to milk and various gastrointestinal conditions, including malabsorption syndrome and food protein-induced enterocolitis syndrome, need proper infant milk formula. Amino acid formula is a type of infant milk formula widely chosen across the globe. Although the taste of this milk formula is not preferred by infants, its exceptional benefits outweigh this minor drawback. 

Not only as an infant milk formula but amino acid-based formula has also been used to fulfil the protein requirements of infants. Growing food and milk allergy in infants across the globe driving consumption of amino acid-based formula. It is anticipated that demand for amino acid-based formula is expected to rise in the next ten years as focus on the infant food industry in various regions of the world grows. 

  • Growing up milk formula holds the highest market share and is anticipated to expand at a CAGR of 8.9% over the forecast period.
  • East Asia amino acid-based formula market holds majority of the global share. The regional market expanded at a CAGR of 6.9% during 2016-2020 and is anticipated to surge at a CAGR of 8.7% through 2031.
  • Demand for follow-on milk formula is anticipated to increase at a CAGR of 10.4% over the forecast period.

What are the Prominent Driving Factors for Amino Acid-Based Formula Sales?

The amino acid-based formula market is primarily driven by growing concern regarding baby health, including the need for nutritional foods to combat skin diseases. 

Promising demand dynamics such as suboptimal breastfeeding rates and fertility rates lead to early dependence on breast milk substitutes. Changes in lifestyles of people across the globe are also driving requirement for infant formula. Working women are highly in favour of infant formula because they get to spend less time with their babies during workdays.

As per the Global Breastfeeding Outlook, 2019 by the United Nations Children's Fund (UNICEF) and World Health Organization (WHO), the rate of breastfeeding remains sub-potential as compared to standard recommendations across the globe.

Amino acid based formula market analysis by region and by product type from Fact.MR

Country-wise Analysis

Why is China a Prominent Market for Amino Acid-Based Formula?

In terms of consumption, China is the world largest market for amino acid-based formula, whereas, the second-largest in terms of production. Over 50% of European infant formula prepared every year is exported to China, and this is so because Chinese consumers still have a preference toward foreign origin food products. 

In 2008, in China, over 300,000 children were poisoned after drinking infant milk formula containing melamine. Melamine helps boost the protein level artificially, proven in nutrition tests. Twenty-two companies were subjected to legalities ranging from imprisonment to the death penalty. The melamine scandal still haunts consumers across China, which leads to driving the adoption of amino acid-based formula imported from other countries.

Consumption of amino acid-based formula in China is anticipated to increase at a CAGR of 11.1%, whereas production is anticipated to rise at a CAGR of 6.2% over the forecast period. 

Why is the Amino Acid-Based Formula Market in the Netherlands Anticipated to Grow Much Faster Than the Global Average?

The Netherlands is the largest producer and exporter of infant formula across Europe. Over 33% of total European exports of infant formula are from the Netherlands. 

Prominent manufacturers of amino acid-based formula have established their production base in leading European countries, of which, the Netherlands is also one among them. For instance, Danone opened an infant formula production facility in the Netherlands in 2019. The company invested over US$ 275 Mn in establishing the plant.

The Netherlands amino acid-based formula market is driven by increasing investments in infant formula production. From 2016-2020, the market for amino acid solutions in the Netherlands increased at a CAGR of 8.7% and is anticipated to grow faster over the forecast period.

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Category-wise Analysis

Why is Ready-to-Feed Formula Demand So High?

Ready-to-feed formula is gaining attention across the globe. This is because of the busy lifestyle of people. Mostly in developed countries, women are engaged with scheduled work, which doesn't allow them to spend more time with their family.

Hence, the culture of breastfeeding is reducing to a great extent due to the busy lifestyle of women mostly in countries such as the U.S., South Korea, and Singapore. As a substitute for breast milk, cow milk and goat milk have been chosen by parents globally. But growing allergic problems such as lactose intolerance due to milk drives the requirement for amino acid solutions.

Historically, from 2016-2020, ready-to-feed formula increased at a CAGR 3.2%, considering the global trend of busy lifestyle.

Will Growing-up Milk Formula Drive Most Market Expansion?

Growing-up milk formula is mostly preferred among all types of milk formula consumed across the globe. This formula held over 45% of the global market share in 2020.

Countries such as China, the U.S., India, and GCC countries are the largest growing-up milk formula consumers globally. Over 25% is consumed by China itself. Other Asian countries such as South Korea and Japan are also portraying significant demand for growing-up milk formula.

Increasing concerns regarding child health along with growing disposable income has made people shift toward imported growing-up milk formula for the best health benefits to their children.

Amino acid based formula market value share and opportunity analysis by age from Fact.MR

Competitive landscape

The report reveals that top manufacturers of Amino acid formula include Neocate, Abbott, Ausnutria, Nestle, Mead Johnson, and Aptamil.

Key amino acid-based formula brands are focusing on increasing their market share in the Asia Pacific and European markets through joint ventures and entering into strategic partnerships with regional players and investment groups.

On the other hand, regional market players are focusing on forging long-term relationships with prominent distributor and pharmaceutical companies to sustain continuous revenue flow. In addition, global and domestic manufacturers are focusing on adopting an alternative way of selling, such as online channels, to gain more coverage in the marketplace.

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Competitive landscape highlights only certain players
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Amino Acid-Based Formula Milk Industry Report Scope

Forecast Period 2021-2031
Historical Data Available for 2016-2020
Market Analysis Value in US$ Mn, Volume in Tons
Key Regions Covered
  • North America
  • Latin America
  • Europe
  • East Asia
  • South Asia
  • Oceania
  • Middle East Africa
Key Countries Covered
  • U.S.
  • Canada
  • Brazil
  • Mexico
  • Argentina
  • Germany
  • France
  • Italy
  • U.K.
  • Spain
  • Russia
  • China
  • Japan
  • South Korea
  • India
  • Thailand
  • Indonesia
  • Malaysia
  • Australia
  • New Zealand
  • GCC Countries
  • Turkey
  • South Africa
Key Market Segments Covered
  • By Product Type
  • By Type
  • By Point of Sale
  • By Age
  • By Sales Channel
  • Region
Key Companies Profiled
  • Nestle
  • Abbott
  • Mead Johnson
  • Nutricia
  • Ausnutria
  • Aptamil
Pricing Available upon Request

Amino Acid-Based Formula Industry Research Key Segments

  • By Product Type

    • Follow-on Milk Formula
    • Specialty Infant Milk Formula
    • Growing-Up Milk Formula
    • Others
  • By Type

    • Lactose Amino Acid-Based Formula
    • Lactose-Free Amino Acid-Based Formula
  • By Point of Sale

    • Prescription-Based Sales of Amino Acid-Based Formula
    • Over-the-Counter (OTC) Sale of Amino Acid-Based Formula
  • By Age Group

    • Amino Acid-Based Formula for 0-3 Months
    • Amino Acid-Based Formula for 4-7 Months
    • Amino Acid-Based Formula for 8-12 Months
    • Amino Acid-Based Formula for 12 Months & Above
  • By Sales Channel

    • Offline Sales of Amino Acid-Based Formula
      • Super and Hyper Markets
      • Specialty Outlets
      • Pharmacy Stores
      • Others
    • Online Sales of Amino Acid-Based Formula
      • Direct Sales
      • Third Party E-Commerce  Sales

- FAQs -

How much was the global market for amino acid-based formula worth in 2020?

In 2020, the global amino acid-based formula market was valued at US$ 738.4 Mn

What are the sales projections for amino acid-based formula for the decade?

Sales of amino acid-based formula are projected to increase at a CAGR of 7.4% during 2021 – 2031.

How did the global market perform in the last 5 years?

Amino acid formula consumption increased at a CAGR of 6.1% during 2016 – 2020.

What is the latest trend related to amino acid-based formula in 2021?

Specialty infant milk formula is gaining in popularity across regions.

What are the primary reasons driving the sales of amino acid-based formula?

Busy lifestyle of women and growing concerns regarding child health are the two prominent factors driving the sales of amino acid-based formula.

How much share do tier-1 manufacturers of amino acid-based formula hold in the market?

Tier-1 manufacturers of amino acid-based formula account for over 75% share in the market.

Which countries are key demand generators for amino acid-based formula?

Top 5 countries driving demand for amino acid-based formula are China, South Korea, India, the U.S., and Netherlands.

How is the North American market for amino acid-based formula performing?

North America accounted for nearly 16.4% of global amino acid-based formula demand in 2020.

What is the anticipated growth rate for the European market during 2021-31?

The European market for amino acid-based formula is projected to expand at a CAGR of 7.8% during 2021 – 2031.

Amino Acid-Based Formula Market

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