Organic Infant Formula Market

Organic Infant Formula Market Analysis by Starting Milk Formula, Follow-on Milk Formula, and Special Milk Formula in Powder, Concentrate, and Ready-to-feed from 2023 to 2033

Analysis of Organic Infant Formula Market Covering 30+ Countries Including Analysis of US, Canada, UK, Germany, France, Nordics, GCC countries, Japan, Korea and many more

Organic Infant Formula Market Outlook (2023 to 2033)

As reported by Fact.MR, the global organic infant formula market stands at US$ 20.77 billion in 2023. Accelerating at a CAGR of 7.6%, the market is predicted to reach a valuation of US$ 43.30 billion by the end of the forecast period (2023 to 2033).

Widespread availability of several types of organic infant formula through popular sales channels, including hypermarkets, supermarkets, e-Commerce, etc., is contributing to market growth. Moreover, increasing government initiatives related to the development of stores for organic food, infant nutritional premix, etc., are also driving market opportunities.

  • Special milk formula held a market share of 35.1% of overall revenue in 2022.
  • Specialty stores held 70% share of market revenue in 2022.

Rising demand for organic and natural products for infants by health-conscious parents is leading to robust market growth. Many parents are becoming more conscious of the benefits of different types of organic infant formula that are free from hormones, chemicals, synthetic preservatives, and pesticides. They are giving preference to healthier food options.

Several parents are concerned about the potential risks of traditional infant formula that comes with various not-so-healthy ingredients. Therefore, they are adopting organic alternatives, which is further contributing to market growth.

Certain challenges are faced by organic infant formula manufacturers. The high cost of production of organic infant formula in comparison to conventional formula adversely impacts expansion opportunities. Quality control measures along with the implementation of strict regulations required to acquire organic certification are predicted to result in increased cost of production. These regulations are anticipated to limit the affordability of various types of organic infant formula.

Producers of organic infant formula need to comply with these organic standards. They must adhere to these strict regulations and certifications that are time-consuming and complex. The tiring process of matching these requirements is projected to somehow limit the entry of new players.

Limited market availability of different organic ingredients is forecasted to pose challenges due to disruptions in supply chain management and adverse weather conditions. These factors are projected to impact production and sourcing. Moreover, consumer skepticism is anticipated to create challenges as many parents are concerned about the benefits of products.

The newly published industry research report by Fact.MR, a market research and competitive intelligence provider, on the organic infant formula landscape, offers detailed market insights.

Report Attributes Details

Organic Infant Formula Market Size (2023E)

US$ 20.77 Billion

Forecasted Market Value (2033F)

US$ 43.30 Billion

Global Market Growth Rate (2023 to 2033)

7.6% CAGR

Revenue Share of Special Milk Formula (2022)

35.1% Share

Revenue Share of Specialty Stores (2022)

70% Share

Key Markets in Asia Pacific

China and India

Key Companies Profiled

  • Nestlé S.A.
  • Abbott
  • Danone
  • Reckitt Benckiser Group PLC
  • Perrigo Company PLCS
  • Bellamy’s Organic
  • Friesland Campina
  • Shijiazhuang Junlebao Dairy Co., Ltd.
  • Heilongjiang Feihe Dairy Co., Ltd.
  • Friesland Campina
  • Bubs Organic, LLC

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What’s Responsible for Growing Sales of Organic Infant Formula?

“Rising Concerns about Infant Health and Their Food Consumption Habits”

In the past few years, there has been a significant increase in the consumption of food products containing artificial ingredients by young children and infants. The majority of parents are becoming more aware related to the impact of different food ingredients on toddlers and babies.

Owing to the increasing penetration of the internet, numerous parents are becoming aware of available options in the market and what is more appropriate for their kids. They are willing to spend more on healthy baby food compared to adult food. Further, the availability of various types of organic products across smaller towns is also growing, which is playing a pivotal role in revenue generation.

“Increasing Cases of Different Health Problems among Women”

Increasing health problems, including cancer in women, etc., are driving sales of organic infant formula to match the nutrition requirements of kids. The rising prevalence of various health complications, including diabetes and cancer, is resulting in a steep fall in overall breastfeeding rates.

  • On February 03, 2023, The World Health Organization in its report mentioned that more than 2.3 million cases are occurring every year, making it more common among adults. It is either the first or second prominent cause of death among women due to any cancer type.

In the United States, 1 in 3 cancer cases among women is of breast cancer. It is not limited to the United States, rather has become the widely found cancer type globally. These healthcare issues lead to a significant decline in breastfeeding, ultimately bolstering sales of organic infant formula.

What is Restraining the Market Growth for Organic Infant Formula?

“Rising Raw Material Prices and Stringent Production Regulations”

During the production process of organic infant formula, a certain stringent process is followed to meet the guidelines set for the same. Manufacturers need to produce products free from hormones, chemicals, and pesticides, which leads to increased production costs compared to traditional infant formula. This is predicted to lead to consumer’s aversion toward buying organic formula owing to higher price points.

The uncertainty in the availability of raw materials required for the production of organic infant formula is another aspect restricting market growth. Constantly fluctuating weather and certain adverse environmental conditions are anticipated to impact crops and their quality, which have a direct correlation with the production of organic infant formula.

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How are Start-ups Estimated to Make Profits in the Global Market?

“Competition among New Manufacturers Leading to Product Innovations”

Start-ups are investing at a significant rate in numerous R&D activities to produce innovative products that are estimated to impact demand for organic infant formula. Through extensive research activities, they are concentrating on inventions in maternal and infant nutrition products that are based on milk or organic milk.

Organic Infant Formula Market Size, Share, Trends, Growth, Demand and Sales Forecast Report by Fact.MR

Country-wise Insights

Why is the United States a Key Market for Organic Instant Formula?

“Presence of Key Players in the Country”

The United States market is estimated to hold a dominating position in the North American landscape. The presence of numerous prominent players in the United States is generating lucrative opportunities. In addition, the increased spending capacities of various Americans are also fueling demand for organic infant formula. A rapid expansion of the organic food & beverages sector in the United States is also leading to the growing consumption of different types of baby food products.

Which Markets in Europe are Expected to Grow Significantly?

“Booming Demand for Sustainable & Clean-label Infant Formula in the United Kingdom and Germany”

The United Kingdom and Germany are two prominent markets from the European region generating opportunities for players. Between these two, the United Kingdom is predicted to expand at a rapid pace, and Germany is projected to hold a significant share of the regional market revenue in the coming decade. The growth in these regional markets is attributed to the thriving demand for sustainable and clean-label infant formula.

Which Asia Pacific Countries are Generating Lucrative Opportunities for Manufacturers of Organic Infant Formula?

“Increasing Spending on Nutrient-rich Products with Rising Income Levels in China and India”

China is forecasted to hold a significant share of the regional landscape. However, India is predicted to expand at a rapid pace compared to other regional markets over the coming 10 years.

The opportunities in these regional markets are due to the propelling awareness about the health benefits of the consumption of various types of organic infant formula. The increasing per capita disposable income of numerous consumers from these countries is projected to lead to their rising spending capacities on different nutrient-rich products for kids as well as for themselves.

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Category-wise Insights

What is Helping the Special Milk Formula Segment Maintain its Hegemony in the Market?

“Rising Traction for Special Milk Formula among Health-conscious Parents”

Starting-milk formula, special milk formula, and follow-on milk are segments of the global market, based on product. Among these, the special milk formula segment held a 35.1% share of the market revenue stream in 2022.

Rising concerns among parents related to the nutritional value of the meal of their kids are leading to a significant increase in the consumption of special milk formula. Various people are becoming aware of the health benefits associated with standard milk formula.

Which Medium Accounts for High Product Sales in This Space?

“High Preference for Specialty Stores for Supply of Organic Infant Formula”

Supermarkets & hypermarkets, specialty stores, and convenience stores are some popular distribution channels adopted by manufacturers of organic infant formula for product delivery. Among these, specialty stores held about 70% share of the market revenue in 2022.

Specialty stores offer a wide variety of breast milk substitutes, specialized products, and baby foods. These food products are specially designed according to the requirements of kids from different categories.

What is Leading to Higher Consumption of Concentrated Milk Formula?

“Inclination towards Concentrated Milk Formula as Immediate Energy & Nutrition Source”

Based on formulation, the global market is bifurcated into concentrated milk formula, powdered formula, and ready-to-feed formula. Among these, the category of concentrated milk formula is predicted to generate significant income over the coming decade. This growth is attributed to the growing use of concentrated milk formula in numerous innovative products. They are suitable immediate sources of nutrition and energy for infants.

Key Market Players

Prominent manufacturers of organic infant formula are increasing their spending capacities for various purposes, including maintaining product standards, strengthening their systems adopted for supply chain management, ensuring quality control, and others.

Product launches, etc., are some initiatives taken by market players to expand their presence to other markets.

For instance :

  • In September 2022, Nestle S.A. came up with Nutrilearn Connect, which is a blend of nutrient-rich components found in myelin and breast milk.

Key players in the organic infant formula market are Nestle S. A., Abbott, Danone, Reckitt Benckiser Group PLC, Perrigo Company PLCS, Bellamy’s Organic, Friesland Campina, Shijiazhuang Junlebao Dairy Co., Ltd., Heilongjiang Feihe Dairy Co., Ltd., Friesland Campina, and Bubs Organic, LLC.

Segmentation of Organic Infant Formula Industry Research

  • By Product :

    • Starting Milk Formula
    • Follow-on Milk
    • Special Milk Formula
  • By Distribution Channel :

    • Convenience Stores
    • Supermarkets & Hypermarkets
    • Specialty Stores
  • By Formulation :

    • Powdered Formula
    • Concentrated Milk Formula
    • Ready-to-feed Formula
  • By Region:

    • North America
    • Europe
    • Asia Pacific
    • Latin America
    • Middle East & Africa

- FAQs -

What is the current size of the organic infant formula market?

The global organic infant formula market stands at US$ 20.77 billion in 2023.

At what rate is the demand for organic infant formula predicted to grow?

Sales of organic infant formula are projected to rise at a CAGR of 7.6% from 2023 to 2033.

Which product type held a significant share of global market revenue in 2022?

Special milk formula accounted for 35.1% share of global market revenue in 2022.

What was the revenue share of specialty stores in 2022?

Specialty stores accounted for 70% of product sales in 2022.

Which are the two prominent markets in the Asia Pacific region?

China and India are leading markets in the Asia Pacific region.

What is the forecasted valuation of the organic infant formula market for 2033?

The market for organic infant formula is estimated to reach US$ 43.30 billion by 2033.

Name some of the key providers of organic infant formula operating globally.

Nestlé S.A., Abbott, Reckitt Benckiser Group PLC, Danone, and Bubs Organic, LLC are prominent suppliers of organic infant formula.

- Also of Interest -

Organic Milk Market

Organic Milk Market Analysis by Skimmed Milk, Whole Milk, and Partly Skimmed Milk from 2023 to 2033

Infant Nutritional Premix Market

Infant Nutritional Premix Market Analysis by Vitamins, Minerals, Nucleotides, and Amino Acids for Bone Health, Immunity, Digestion, Vision Health, and Brain Health & Memory from 2023 to 2033

Organic Foods & Beverages Market

Organic Foods & Beverages Market Size, Share & Forecast Analysis, By Product Type (Fruits & Vegetables, Meat, Fish & Poultry, Dairy Products, Frozen & Processed Foods, Beverages,), By Distribution Channel (Offline, Online), & Region – Global Market Insights 2022 to 2032

Standard Milk Formula Market

Standard Milk Formula Market Analysis by Liquid Formula, Powder Formula, Concentrate Formula, and Ready-to-Feed Formula from 2023 to 2033

Organic Infant Formula Market