February 19, 2025 – Parents want the best for their kids, and they choose infant formula to ensure their babies get essential nutrition for growth and development. Infant formula, also referred to as baby formula and milk, includes all infant, baby, and toddler formulas and milk, as well as specialty formulas. Innova’s 360 research highlights the latest infant formula market trends, top companies, and what may develop in the future.
Infant Formula Trends Impact
Megatrend drivers and food and beverage trends impact the baby and toddler’s marketplace. Every year, Innova releases the top 10 food and beverage trends for the upcoming year. The infant formula market reflects a few of Innova’s top trends.
1 in 3 consumers globally always look at ingredients of interest on product packaging. They also seek protein, vitamins, and fibers as ingredients in infant formula products. This aligns with Innova’s top food trend, ‘Ingredients: Taking the Spotlight,’ which highlights that brands are feeding positive consumer attitudes toward key ingredients by promoting a product’s star element.
Non-dairy plant-based options are expanding in the market as companies diversify infant formula bases with plant ingredients. This reflects another Innova’s top food trend, ‘Plant-Based: The Rise of Applied Offerings,’ where consumers are adapting well-known dishes and formats, offering familiarity and clarity to consumers who are keen to embrace plant-based products.
Infant Formula Market Size and Trends
The market value and volume of baby formula and milk have been rising slowly over the past five years. Infant formula trends research predicts a projected growth rate of 3% CAGR in value and 2% CAGR in volume till 2027.
Asia, led by China, drives infant formula market value over the past year. Asia represents more than two-thirds of infant formula sales value. Vietnam and Australia are the fastest-growing countries in retail value.
Infant Formula Product Launch Trends
The demand for infant formula has been declining over the past five years. The value growth despite falling launch rates displays price increases.
Asia is the leading region for launches of baby formulas, followed by Western Europe. Africa is the only region with the fastest growth rate of 4% CAGR for infant formula as a percentage of total formula launches in the past five years.
1 in 8 infant formula market launches are in China. The leading countries for launches are mainly in Asia. India and China lead in infant formula launches, with both countries being the only ones experiencing growth in new product introductions. South Africa, Serbia, South Korea, and Chile are the fastest growing countries for launches over the past five years.
Top Brands and Companies in Infant Formula Market
Large multinationals lead infant formula innovation in the global market. Nestlé is the top formula and milk company globally, followed by Danone, Abbott, Hipp, and Holle Baby Food. Companies like Yili are experiencing a growth of 43% CAGR over the past five years. Infant formula trends research shows that the top 10 companies account for nearly 58% of global formula launches in the past year.
Infant Formula Ingredients Trends
Cow’s milk remains the traditional and dominant base for infant formula, while goat’s milk gains attention for its digestibility and hypoallergenic properties. Protein ingredients such as whey protein concentrate, whey protein, and milk protein play a key role, with lactoferrin and alpha-lactalbumin displaying the fastest growth.
Fats and oils, dairy, and antioxidants are added to more than 90% of formula launches in the infant formula market. A variety of other ingredients appear in over half of launches. HMOs (human milk oligosaccharides) are rising despite market contraction. These prebiotic ingredients mimic the natural prebiotics in breast milk. Bifidobacterium is the leading type of probiotic used in infant formula. Many of the probiotics added to infant formula also occur naturally in human milk.
Key fat-related ingredients in the infant formula market include conventional oils, with omega-3 fatty acids supporting brain development. Dairy ingredients, primarily milk and whey protein, dominate formulations, while A2 milk emerges as a growing alternative for its better-tolerated casein protein. The addition of vitamins and minerals continues to align with overall market growth, reinforcing infant formula’s role in providing essential nutrition.
Infant Formula Flavor Trends
Only a small percentage of infant formulas have added flavors. Most get their taste naturally from dairy ingredients. Flavored products typically are for older children. Vanilla, brown, dairy alternatives, and fruit are the top flavors for infant formula launches in the past five years.
What’s Next in Global Infant Formula Trends?
The value and volume of the infant formula market are on the rise, but product launches are decreasing. Anti-inflation sentiment is gaining attention, and consumers in countries such as the UK are pushing for lower retail prices for infant formula. Manufacturers who can manage costs while offering added benefits to infants could capture market share.
Infant formula value and volume are rising, but new product launches are slowing. Consumers, especially in markets like the UK, demand lower retail prices, pushing manufacturers to balance cost management with added infant benefits.
Formulas are increasingly moving toward mimicking human milk, with HMOs and lactic acid bacteria becoming more common despite fewer launches. This trend should be accompanied by savvy marketing to parents that stresses ingredient benefits while complying with infant formula marketing regulations in individual regions and countries.
As plant-based food and beverage products gain attention, parents may desire non-dairy, plant-based formulas for their children. Establishing nutritional equivalency with human milk and proving scientifically that plant-based formulas can support infant growth is key. As plant-based innovation advances, formulas customized to evolving parental preferences are likely to gain their trust for infant nutrition.
This article is based on Innova’s Now & Next in Infant Formula – Global report. This report is available to purchase or with an Innova Reports subscription. Reach out to find out more
