Infant Formula Ingredients Market

Infant Formula Ingredients Market Size Report – In a Glance

As per the survey report on Infant formula ingredients market, the market is expected to foresee a CAGR value of 9.3% during 2025-2035, and further generate a market size of USD 65.5 billion by the end of 2035. In 2025, the market size was value at USD 25.3 billion revenue.

• The Infant formula ingredients market’s growth is driven by rising number of working mothers.
• In Japan, the infant formula ingredients market growth is attributed by rising awareness about infant nutritional needs.
• KDMI analyst’s growth analysis foresees high cost of ingredients as the restraint for Infant formula ingredients market.
• Asia-Pacific, having the highest market share in the infant formula ingredients market, is estimated to dominate the global market.

Infant Formula Ingredients Market Analysis

Infant formula contains essential nutrients such as proteins, fasts, carbohydrates, vitamins, and minerals, which are necessary for infant’s growth and brain development. The most common ingredient of infant’s formula is the modified cow’s or soy milk, while fats are typically a blend of vegetable oils like palm, soy, and coconut oil. Carbohydrates are lactose or corn syrup solids, and these formulas include a list of vitamins like A, C, D, E, K, B, and minerals like calcium, iron, zinc, etc. According to the global health observatory report, in 2024, 150.2 million children under age 5 were too short for their age, 42.8 million were too thin for their height, and 35.5 million were too heavy for their height. This statistics data shows the significant impact of malnutrition among infants, which demands great focus on ingredients used in the infant formula production. AAK AB, Danone S.A, Nestle S.A, and The a2 Milk Company are the major producers of infant formula.

Analyst’s Observation on Japan Infant Formula Ingredients Market Survey

The Japan infant formula ingredients market growth is propelled by rising awareness about the growing nutritional needs of infants among parents and the popularity of trend for convenience foods. Also, technological advancements enable innovation in production of infant formula by properly testing and including ingredients, which enhances reliability, performance, and safety of products. Smart packaging solutions such as quick response (QR) codes allow parents to scan and check ingredient details that further boosts demand for innovation in infant formula products. The research report shows, Japan is “on course” to meet the target for stunting, with 7.1% of children under 5 years of age affected, which is lower than the average of Asia region. The growing focus and government imposing initiatives is promoting production of nutritional and safer formula products. Arla Foods Amba, BASF SE, and Carbery Food Ingredients Limited are some of the significant participants in the Japan infant formula ingredients market.

Infant Formula Ingredients Market Growth Drivers and Restraints

Growth Drivers

• Rising number of working mothers – The potential driver for infant formula ingredients market growth is the growing number of working mothers, as more women are interested in joining workforce across the countries, which drives demand for convenient and reliable infant nutrition solutions. Working mothers find difficulty in breastfeeding, exclusively due to long working hours and this demand for effective solutions that are reliable and safer for nutrient health wellness. Due to technological advancement in food industry and innovation of food products, the primary source of reliance is infant formula. The difficulty of breastfeeding is shifting consumer demand towards supplements or infant formula, which is well-designed to meet nutritional value. These formula products included ingredients such as carbohydrates, fats, vitamins, proteins, and minerals. The growing focus is further expanding the market reach and ensures babies receiving balanced nutrition.
• Increasing demand for premium & specialty formulas – Growing awareness among parents about the infant nutrition and are increasingly seeking for products that are close substitutes of breast milk. This has boosted demand for formulas enriched with premium ingredients such as omega fatty acids, probiotics, prebiotics, and hypoallergenic protein alternatives. The specially formulated infant formula products help in brain development, digestion, immunity, and overall infant growth. Also, rising investment from organization, institutions, and healthcare facilities in developing infant infrastructure for health wellness, emphasize manufacturers to adopt specialty ingredients like lactose-free, soy-based, and hydrolyzed protein formulas. These factors boost adoption of natural and safer ingredients in formulating infant formula leading to market expansion.

Restraints

• High cost of premium ingredients – One of the major hurdles for global infant formula market growth is the advanced functional ingredients such as DHA, ARA, specialty proteins, and probiotics, which are relatively expensive than conventional ingredients. Due to their high cost, the production of infant formula becomes costly and this limits the affordability of consumers in low-income markets.
• Growing preference for natural breastfeeding – The global campaigns promoting breastfeeding, pediatric recommendations, and increased awareness of breastfeeding benefits, affect the adoption of infant formula market growth. Due to less interest in infant formula or alternative solutions to breastfeeding is impacting growth of market, which results in slowdown expansion of the market.

Infant Formula Ingredients Market Segmentation

Our experts at KD Market Insights have segmented the global infant formula ingredients market research report as:

Infant Formula Ingredients Market Regional Synopsis

Asia-Pacific region dominates the global infant formula ingredients market and the growth of the region in particular market is driven by high birth rates, rising middle-class income, and increasing adoption of infant formula in leading countries such as China, India, Japan, and South Korea. Especially, China is the largest contributor in the regional market growth due to shifting lifestyles and preference for premium and imported formula products. The Asia-Pacific’s baby food and formula market is expected to reach USD 25.7 billion by 2026 from USD 14.8 in 2017. Moreover, adoption of innovation in baby food production is further expanding adoption of infant formula, produced by integrating natural, eco-friendly ingredients.

North America is the second largest contributor in the global infant formula ingredients market, which is driven by rising awareness about infant nutrition and high consumer acceptance of specialty formulas. The United States and Canada are the leading countries in the region, due to strong R&D in advanced ingredients such as HMOs, probiotics, and hydrolyzed proteins. Also, due to rising working mother in the region, the demand for breastmilk substitutes is gaining traction.

In Europe, the infant formula ingredients market is highly regulated and is propelled by emphasizing over clean-label, organic, and high-quality ingredients. Germany, France, and the UK are the major shareholders in the region growth. The growth of the market in these countries is driven by strict safety standards and preference for premium formulations that further boosts adoption of infant formula or other substitutes to breastmilk.

Latin America is experiencing moderate growth, supported by expanding urbanization and improved access to infant formula products. Brazil and Mexico are the leading participants in the regional market, which are driven by rising awareness, accessibility, and affordability of baby products.

The MEA shows steady growth for infant formula ingredients market due to significant improvement in healthcare access, rising disposable income, and higher adoption of packaged baby food products.

As per our analysts at KD Market Insights, the following five participants in the Asia-Pacific region for infant formula ingredients market share:

• Abbott
• Arla Foods Amba
• Campbell Soups
• Dana Dairy Group Ltd
• Danone, Nestle S.A

Infant Formula Ingredients Market Competitive Landscape

Some of the significant participants who top the global infant formula ingredients market growth:

• Fonterra Co-operative Group Limited 
• AAK AB 
• Royal FrieslandCampina N.V. 
• Synlait Milk Ltd. 
• Abbott Laboratories 
• Reckitt Benckiser Group plc 
• Danone S.A. 
• Nestlé S.A. 
• The a2 Milk Company 
• Mead Johnson Nutrition Company 
• Perrigo Company plc 
• Bellamy's Organic 
• Hain Celestial Group, Inc.