Market Trends of Infant Nutrition Industry
This section covers the major market trends shaping the Infant Nutrition Market according to our research experts:
The Infant Dried Food Sub-segment is Expected to Show High Growth over the Forecast Period
Dried Baby Food is either refrigerated or powdered form products that have a comparatively higher shelf life than traditional packaged food. These products are easy to carry and consume. Meeting government standards in terms of food safety, hygiene, and nutritional value, along with an attractive flavor variety, will drive the demand for dried baby food. Nutrient-rich formula and the option of lactose- and soy-free milk versions make this a good option, especially for working women.
The rising COVID-19 pandemic 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 and beverage industry is one of the major industries suffering due to the outbreak of COVID-19. These factors have severely affected the infant formula market. There was a huge loss found disrupting the sales of market products, and market players were found investing heavily in maintaining the supply of essential nutrition and food to children.
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.
The market players resort to various strategic initiatives, such as new product launches, to strengthen their foothold in the market and expand their product offerings. For instance, in February 2021, the company planned to launch instant baby cereal, pureed fruits and vegetables, freeze-dried finger foods, and teething biscuits in the near term.
Due to changing lifestyles and the need to supply additional nutrients to infants apart from breastfeeding, the demand for infant-dried food is expected to grow.
North America is Expected to Witness 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. 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.
The rising COVID-19 pandemic disrupted the sales of infant nutrition products due to the lockdown. There were rising efforts to mitigate the transmission of COVID-19, which is disrupting food systems, upending health and nutrition services, devastating livelihoods, and threatening food security. However, the market players are found to invest heavily in maintaining the supply of essential nutrition and food to children.
The percentage of working women is high and rising in the United States. As per a report by the Catalyst Organization published in August 2022, there were 75,699,000 women aged 16 and above in the labor force, representing 56.1% of all women in the United States population and making up close to half (47.0%) of the total labor force in 2021. As a result of these factors, working women find infant/baby nutrition helpful, which can be fed to their babies even in their absence.
According to the 2020-2025 United States DGAs provided by the INCA, USDA, and HHS, commercial, iron-fortified infant formula was the only safe and recommended alternative for those who cannot or chose not to use breast milk in the United States.
Additionally, in August 2022, Reckitt received approval from the US FDA to import 150 metric tons (approximately 331,000 pounds) of infant formula base powder from Reckitt's nutrition facility in Delicias, Mexico.
There is also a rising number of start-ups in the United States that work with existing infant nutrition companies to improve their blends. A start-up called Sugarlogix is using cutting-edge gene-editing tools to recreate the most common breast milk sugars in a lab, which are known to be associated with boosting the baby's immune system. Moreover, in October 2022, Bobbie launched Bobbie Labs, its research and development hub dedicated to evolving infant feeding. Bobbie Labs is a core element of Bobbie's commitment to invest USD 100 million to increase infant formula access, quality, and options for all US families by 2030, via funding critical research that will reimagine the future of infant feeding through the lens of research and data. Several more such initiatives are expected to boost the growth of 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, consumers, especially in developed countries, are willing to pay premium amounts for such products, owing to the general perception that these products are healthier and safer than conventional products.
