According to a new report published by Allied Market Research, titled, U.S. Baby Infant Formula Market by Product Type, Ingredient, Distribution Channel, and Point of Sale (POS): Opportunity Analysis and Industry Forecast, 2021–2027,” the U.S. baby infant formula market size is expected to reach $5,811 million by 2027 at a CAGR of 5.8% from 2021 to 2027.
The U.S. baby infant formula market was valued at $3,653 million in 2019, and is projected to reach $5,811 million by 2027, registering a CAGR of 5.8% from 2021 to 2027. In 2019, the carbohydrate segment accounted for 56.48% of the market share. First few years of an infant are crucial as the infant is in its growth phase, requiring appropriate nutrition. Carbohydrates are the major fuel source of infants, and are essential for proper growth and development. Offering infants healthy, nutrient-dense carbohydrates is expected to optimize their growth and maintain a healthy body weight.
The growth of the U.S. baby infant formula market is majorly driven by rise in female working population. For instance, according to the U.S. Bureau of Statistics, the working women population has increased from 57.1% in 2018 to 57.5% in 2020. Most of the working mothers resume their jobs shortly after their delivery. Hence, breastfeeding is not always possible for working mothers, due to lack of time and inconvenience. Baby infant formula serves as an ideal alternative for working mothers, which meets the requirements of healthy, nutritious food for their babies with their need for convenience. Thus, increase in female workforce notably contributes toward the growth of the U.S. baby infant formula market. Breastfeeding is not always possible for mothers working outside homes; thus, baby infant formula acts as a suitable alternative for infants, as its composition is similar to that of breast milk. Baby infant formulas contain nucleotides necessary for the metabolic processes such as energy metabolism and enzymatic reactions. These nucleotides act as building blocks of deoxyribonucleic acid (DNA) and ribonucleic acid (RNA) for normal body functions. In addition, iron-rich infant formula helps to prevent anemia. Various infant formulas are based on probiotics, which help prevent diarrhea, ease colic, and reduce the risk of food allergies. Moreover, baby infant formulas are high in protein, linoleic acid, minerals, calcium, carbohydrates, phosphorus, iodine, sodium chloride, potassium chloride, and other nutrients, which are necessary for proper development of infants. Thus, physicians recommend the use of baby infant formula for babies as a substitute to breast milk, owing to its high nutritional content, thereby driving the market growth.
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Baby infant formula is a highly sensitive food product, as it is a substitute to breast milk and is added to the diet of infants for their proper development. Cases related to adulteration of baby infant formula have been reported across the globe. For instance, traces of melamine were reported to have been found by the U.S. Food and Drug Administration in infant formula sold in the U.S. in 2008. Thus, concerns related to the safety of baby infant formula act as the major restraint for the growth.
Baby infant formula serves as an ideal substitute of mother’s milk, however, it lacks antibodies and the complexity of nutrients found in mother’s milk. Moreover, it is less digestible as compared to breast milk and might contain allergens. Thus, development in technology has resulted in formulation of advanced products with high density of nutrition that match the nutrient complexity of breast milk and overcome the abovementioned disadvantages. These factors collectively are expected to offer potential growth opportunities for the U.S. baby infant formula market during the forecast period.
As per the U.S. baby infant formula market share analysis, in 2019, the infant milk segment garnered the largest share, and is likely to maintain this trend during the forecast period. This is attributed to the fact that infant milk contains vitamins and nutrients, such as iron that can help prevent anemia. Some types of baby infant formulas are supplemented with a probiotic bacteria called Bifidobacterium lactis, which helps to prevent diarrhea, ease colic, and lower the risk of food allergies. Furthermore, infant milk contains nutrients, minerals, and vitamins necessary for the development and growth of the baby. According to the U.S. baby infant formula market trends, the launch activities and promotion of the baby infant formula in the U.S. have led to high penetration of baby infant formula.
In addition, upsurge in awareness among consumers regarding the health benefits associated with organic infant formula has led to increase in preference for organic baby drinks. Thus, baby infant formula free from ingredients such as added sugar, sodium, and preservatives is anticipated to gain traction in the U.S., thereby contributing toward the growth of the U.S. baby infant formula industry. However, according to the U.S. baby infant formula market forecast, the concerns related to food safety and decline in birth rate may hamper the U market growth.
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Key finding of the study
- In 2019, the infant milk is segment was the highest contributor to the U.S. baby infant formula market, in terms of value, and is expected to grow at a CAGR of 6.0% from 2021 to 2027.
- The carbohydrate segment is generated the highest revenue in 2019, and is likely to grow at a CAGR of 5.7% during the forecast period.
- The vitamins segment is anticipated to exhibit the highest CAGR of 7.3% from 2021 to 2027.
- The hypermarkets segment garnered the highest revenue in 2019, and is estimated to grow at a CAGR of 5.3% during the forecast period.
- The pharmacy/medical store distribution channel acquired prominent market share in 2019, and is likely to grow at the highest CAGR of 6.6%.
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