The United States infant formula market size presents a compelling investment opportunity for B2B investors seeking growth in the health and wellness sector. Expected to reach US$ 8.46 billion by 2033, the market is poised for a steady expansion at a CAGR of 3.3% from 2023. This growth is fueled by a confluence of factors, including rising demand for convenient feeding solutions, increasing health consciousness among parents, and a growing emphasis on specialized formulas.

Demand Drivers Propelling Market Growth

  • Rise of Working Mothers: The increasing number of women in the workforce is a significant driver of demand. Infant formula provides a convenient and reliable source of nutrition for babies when breastfeeding is not an option.

  • Focus on Infant Nutrition: Parents are becoming increasingly aware of the importance of proper infant nutrition for healthy development. This has led to a growing demand for high-quality formulas with essential nutrients and organic ingredients.

  • Specialized Formulas for Specific Needs: A rise in infant allergies and sensitivities is propelling the market for specialized formulas. These formulas cater to specific medical conditions, digestive issues, and lactose intolerance, offering targeted solutions for improved infant health.

  • E-commerce Boom: The burgeoning e-commerce industry is making it easier for parents to access and purchase a wider variety of infant formula brands and types. This convenience factor is further boosting demand.

The United States infant formula market is expected to rise due to certain crucial factors during the forecast period. The interest in plant-based diets has extended to infant nutrition, leading to an increase in plant-based infant formula options. These formulas typically use ingredients like soy, rice, or oat proteins as alternatives to animal-based sources.

With an increased emphasis on overall health and wellness, parents are seeking formulas that support their babies’ immune systems, brain development, and gut health. Manufacturers have been incorporating specific nutrients such as DHA (docosahexaenoic acid) and probiotics to cater to these needs.

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Infant formulas with additional nutrients and better quality are readily accepted by parents at high prices. The sudden rise in infant formula sales can be attributed to a change in the lifestyle of women. Several working women who commute to work are looking for simple solutions to feed their babies

The birth rate and overall population growth have a significant impact on the demand for infant formula. A high birth rate or increasing population can lead to great demand for infant formula products. Health concerns related to breastfeeding or certain medical conditions can result in a high reliance on infant formula as a primary source of nutrition for babies.

Public health campaigns promoting breastfeeding and raising awareness about its benefits can influence consumer choices, potentially impacting the demand for infant formula. The rise of online retail and e-commerce platforms provides consumers with easy access to a wide variety of infant formula products, increasing market reach.

“Growing importance of infant health and wellness is likely to drive demand for infant formula in the United States. Key manufacturers are investing heavily in marketing campaigns to promote the benefits of their formulas, which is helping expand their reach in the market.” – says a lead analyst at Future Market Insights (FMI)

Growing Factors Expanding Market Horizons

  • Innovation in Production Techniques: Advancements in processes like membrane filtration and wet mixing are improving the efficiency and quality of infant formula production.

  • Focus on Sustainability: Sustainable practices are gaining traction in the industry. Investors can support companies developing eco-friendly packaging solutions and utilizing organic and non-GMO ingredients.

  • Strategic Partnerships: Collaboration between established manufacturers and start-ups can leverage expertise, expand product portfolios, and enhance distribution networks.

Key Takeaways from the United States Infant Formula Report:

  • The United States infant formula market is likely to hold a total of US$ 6,150.0 million by 2033.
  • Demand for the United States infant formula is poised to register at 3% CAGR over the forecast period.
  • In 2033, the United States infant formula market is anticipated to reach US$ 8,456.0 million.
  • Based on product type, specialized milk formula is gaining supremacy in the United States market.
  • In terms of distribution channel, supermarket and hypermarket division to hold mammoth share in the United States.

Who is Winning?

Key manufacturers partnered with retail chains, pharmacies, supermarkets, and online platforms to ensure their products were readily available to consumers. They are focused on developing organic formulas free from artificial additives, preservatives, and genetically modified ingredients.

Infant formula manufacturers prioritized quality and safety to comply with stringent regulations and gain consumer confidence. They implemented rigorous testing and quality control measures to ensure their products met the necessary safety standards.

For instance,

  • In July 2022, Danone, recently announced a new Dairy & Plants Blend infant formula to cater to the growing demand of parents for a product that would satisfy their baby’s nutritional needs. A product that is suitable for flexitarian as well as vegan consumers

Get More Valuable Insights

Future Market Insights (FMI), in its new offering, provides an unbiased analysis of the United States infant formula market presenting historical demand data (2018 to 2022) and forecast statistics for the period from 2023 to 2033.

The study incorporates compelling insights on the United States infant formula market based on product type (starting milk formula, follow-on milk formula, special milk formula), distribution channel (specialty outlets, supermarkets, online stores, pharmacy stores, and others), across various States.

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About Future Market Insights (FMI)

Future Market Insights, Inc. (ESOMAR certified, recipient of the Stevie Award, and a member of the Greater New York Chamber of Commerce) offers profound insights into the driving factors that are boosting demand in the market. FMI stands as the leading global provider of market intelligence, advisory services, consulting, and events for the Packaging, Food and Beverage, Consumer Technology, Healthcare, Industrial, and Chemicals markets. With a vast team of over 400 analysts worldwide, FMI provides global, regional, and local expertise on diverse domains and industry trends across more than 110 countries.

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