Baby Food and Formula Market Trends

Baby Food and Formula Market Overview

The Baby Food and Formula Market size was valued at USD 82.15 million in 2024 and is expected to reach USD 137.29 million by 2033, growing at a CAGR of 6.63% from 2025 to 2033.

The global baby food and formula market has witnessed significant growth in recent years. As of 2024, the market was valued at approximately USD 109.02 billion, with projections indicating continued expansion in the coming years. Asia-Pacific dominated the market in 2024, holding a substantial share of 64.16%. In the United States, the baby food and infant formula industry was valued at USD 9.30 billion in 2024, with expectations to reach USD 14.72 billion by 2033.

Key Findings

Top Driver Reason: Rising awareness about infant nutrition and increasing demand for organic and natural baby food products.

Top Country/Region: Asia-Pacific, with a market share of 64.16% in 2024.

Top Segment: Milk formula remains the most significant product segment, driven by its convenience and nutritional value.

Baby Food and Formula Market Trends

The baby food and formula market is experiencing dynamic shifts influenced by evolving consumer preferences and technological advancements. In 2024, the global market was valued at USD 109.02 billion, with projections indicating growth to USD 185.47 billion by 2032. A notable trend is the increasing demand for organic baby food products. In the Middle East and Africa, the organic baby food market generated revenue of USD 135.3 million in 2024, with expectations of continued growth. Technological innovations are also shaping the market. Companies are introducing whole milk-based formulas, responding to a resurgence in whole milk consumption. For instance, startups like Bobbie and ByHeart are disrupting industry norms by offering whole milk-based formulas, aligning with shifting dietary attitudes.

Baby Food and Formula Market Dynamics

DRIVER

Rising demand for organic and natural baby food products

The modern consumer is increasingly leaning toward clean-label products, especially when it comes to infant nutrition. Parents are actively seeking organic, GMO-free, and additive-free baby foods to ensure safety and nutritional integrity. In 2024, organic baby food accounted for over 20.8% of total baby food sales in the U.S., reflecting heightened consumer awareness. The Asia-Pacific region recorded a substantial increase in organic formula sales, especially in urban areas of China and India, where demand rose by 27.6% and 19.2% respectively over the last year. In North America, the sales of organic dried baby foods increased by 15.4% between 2023 and 2024. Leading brands are capitalizing on this trend by expanding their organic portfolios, with over 39 new organic SKUs introduced globally in 2024 alone.

RESTRAINT

Declining birth rates in developed countries

The declining birth rates in major developed economies are posing a significant challenge for sustained market expansion. In Japan, the number of births fell to 686,000 in 2024, marking the lowest since the country started recording such data. Similarly, Germany saw a 5.6% decrease in births year-over-year, while Italy experienced a 6.1% decline. As a result, Kewpie, a major Japanese baby food manufacturer, announced its complete exit from the baby food sector in Q1 2024, discontinuing 72 product lines due to weak domestic demand. This trend has compelled brands to shift focus toward emerging economies with higher fertility rates.

OPPORTUNITY

Expansion in emerging markets and rural distribution networks

Emerging regions such as Southeast Asia, Sub-Saharan Africa, and Latin America present untapped growth potential. The baby food and formula market in India is expanding rapidly, with a growth rate of 12.3% in 2024 alone, driven by increasing disposable income and enhanced maternal awareness. In Nigeria, baby food consumption has risen by 21.8% over the last two years, especially in urban centers like Lagos and Abuja. Multinational brands are investing in distribution and pricing strategies tailored to low-income and mid-tier consumer segments. For instance, Danone launched its economy-tier infant formula in Indonesia and Kenya, pricing it 28% below its premium range, effectively targeting high-volume segments.

CHALLENGE

Rising costs and price sensitivity among consumers

Cost inflation continues to affect production and retail pricing. In the UK, the average price of infant formula stood at £11.99 per container in 2024, down only slightly from £12.49 in 2023. In the U.S., premium formulas like hypoallergenic or organic variants cost between $28 to $35 per 21 oz, placing a burden on middle-income families. Raw material price hikes for milk powder (up 13.4% in 2024), logistics bottlenecks, and increased packaging costs (plastic price rise of 9.2%) have pressured margins. Furthermore, government scrutiny over infant formula marketing, especially in Europe and Latin America, adds a layer of complexity to market entry and expansion.

Baby Food and Formula Market Segmentation

By Type

0–6 Months: This segment caters to newborns, focusing on products that mimic breast milk. The demand for infant formula in this category remains high due to its convenience and nutritional value.
6–12 Months: As infants begin to diversify their diets, this segment sees increased demand for products like purees and cereals. The market for this age group is expanding, driven by parental desire for varied and nutritious options.
1–3 Years: Toddlers require more complex nutrition, leading to a demand for products enriched with essential vitamins and minerals. This segment is growing as parents seek convenient yet healthy food options for their children.

By Application

Milk Formula: Dominates the market due to its essential role in infant nutrition. In 2024, milk formula was the largest revenue-generating type in the Middle East and Africa.
Dried Baby Food: Offers convenience and longer shelf life. The demand for dried baby food is increasing, especially in regions with limited access to fresh produce.
Ready-to-Eat: This segment is gaining popularity due to its convenience, catering to busy parents seeking quick and nutritious options for their babies.

Baby Food and Formula Market Regional Outlook

North America

North America remains one of the most mature yet resilient markets for baby food and formula. In 2024, the market was valued at USD 6.89 billion, and is expected to surpass USD 13.06 billion by 2033, driven by strong demand for organic and hypoallergenic products. The U.S. alone accounts for over 76% of regional sales. Organic baby food sales in the U.S. grew by 18.1% in 2024, supported by a surge in online distribution. Moreover, 24.3% of baby food purchases were made via e-commerce channels, indicating a digital shift in purchasing behavior. Canada also reported a 6.9% increase in premium formula consumption, with urban centers like Toronto and Vancouver contributing the highest.

Europe

Europe’s baby food and formula market is undergoing regulatory and pricing shifts. In 2024, the UK’s Competition and Markets Authority reported that baby formula prices had increased by 25% over two years, raising affordability concerns. In response, Aldi and Lidl initiated price freezes, while proposals for NHS-branded infant formula are under consideration. Germany, the largest market in Europe, saw organic baby food sales rise by 11.4%, while France experienced a 7.6% year-on-year growth in demand for ready-to-feed baby meals. Across the EU, online and pharmacy-based distribution increased, with 27% of sales now coming from digital or hybrid retail models.

Asia-Pacific

Asia-Pacific dominates the baby food and formula market with a commanding 64.16% share in 2024. China leads the region, accounting for over 47.3% of Asia-Pacific's total consumption, with its urban markets witnessing a 21.9% rise in demand for imported and premium formulas. India’s baby food market grew by 12.3%, fueled by urbanization and rising working mother demographics. In Indonesia, powdered milk formula sales grew by 16.8%, while Japan’s demand contracted due to falling birth rates. However, innovation and export potential remain strong. The region also saw a 34.2% increase in retail shelf space for organic baby food products across tier-1 supermarkets.

Middle East & Africa

The Middle East and Africa (MEA) region is emerging as a strategic growth zone. In 2024, the MEA organic baby food market reached USD 135.3 million, driven by increasing awareness and improved supply chain infrastructure. The infant milk formula segment remained dominant, accounting for over 61% of MEA’s baby food revenues. Saudi Arabia and the UAE collectively contributed to 42.7% of the region’s total sales. Sub-Saharan Africa, particularly Nigeria and South Africa, saw a volume rise of 18.5%, supported by international NGOs promoting nutrition programs. The rising middle class and urban expansion are expected to keep demand strong, with forecasted product introductions increasing by 25% in 2025.

List of Top Baby Food and Formula Market Companies

Nestlé (Switzerland)
Danone (France)
Abbott (USA)
Mead Johnson Nutrition (USA)
Heinz (USA)
FrieslandCampina (Netherlands)
Bellamy's Organic (Australia)
Arla Foods (Denmark)
Perrigo (Ireland)
Hero Group (Switzerland)

Top Two Companies with Highest Market Shares

Nestlé (Switzerland): Nestlé is the global leader in the baby food and formula market, commanding an estimated 20.7% of global market share in 2024. Its product portfolio includes leading brands like Gerber, NAN, Cerelac, and Lactogen. Nestlé reported a 6.2% year-on-year growth in its nutrition division, largely driven by strong sales in China, the Philippines, and India. In the U.S., Nestlé’s Gerber brand maintained its top position in the organic baby food segment, with a market penetration of over 34% across large retail chains. The company also launched 11 new organic and plant-based products in 2024, aiming to expand its clean-label offerings.
Danone (France): Danone ranks second globally with approximately 19.3% market share in 2024. Its flagship baby nutrition brands include Aptamil, Nutricia, and Cow & Gate. Danone reported a 4.3% increase in like-for-like sales in Q1 2025, primarily attributed to a rebound in Chinese demand and growth in emerging markets. In Indonesia, Danone’s infant nutrition sales rose by 21.4%, while the company expanded production capacity by 18% in Latin America. Danone also committed to launching 30 new baby food SKUs by 2026, with a focus on plant-based and gut health-enhancing formulas.

Investment Analysis and Opportunities

Investments in the baby food and formula market are on the rise, driven by increasing demand and innovation. In the United States, the market is expected to grow from USD 9.30 billion in 2024 to USD 14.72 billion by 2033. Companies are investing in organic product lines to cater to health-conscious parents. The MEA organic baby food market, for instance, generated revenue of USD 135.3 million in 2024, indicating a growing preference for organic options. Technological advancements are also attracting investments. Startups like Bobbie and ByHeart are introducing whole milk-based formulas, aligning with shifting consumer preferences. Emerging markets present significant investment opportunities. The Asia-Pacific baby food and infant formula market is estimated to reach USD 60,992.01 million in 2024, with a CAGR of 5.4% from 2024 to 2031.

New Product Development

Innovation is at the forefront of the baby food and formula market. Companies are focusing on developing products that cater to specific nutritional needs and preferences. In the United States, startups like Bobbie and ByHeart are disrupting the market by introducing whole milk-based formulas, responding to a resurgence in whole milk consumption. In the UK, discussions are ongoing about introducing NHS-branded baby formula to address high prices and provide affordable options for parents. Companies are also investing in organic product lines. The MEA organic baby food market generated revenue of USD 135.3 million in 2024, indicating a growing preference for organic options.

Five Recent Developments

Kewpie Exits Baby Food Market: Japanese company Kewpie announced it would cease baby food production due to declining birth rates and rising inflation, discontinuing 72 baby food items.
Aldi Freezes Formula Prices: In the UK, Aldi pledged to freeze the price of its Mamia First Infant Formula at £6.99 for the remainder of 2025, aiming to support parents facing high costs.
Danone's Strong Q1 Sales: Danone reported a 4.3% like-for-like sales growth in Q1 2025, driven by robust demand in China for infant milk formula and medical nutrition products.
Whole Milk in Baby Formula: Startups like Bobbie and ByHeart introduced whole milk-based formulas, aligning with shifting dietary attitudes and increased whole milk consumption.
CMA's Recommendations in the UK: The UK's Competition and Markets Authority suggested introducing NHS-branded baby formula to address high prices and limited choices in the market.

Report Coverage of Baby Food and Formula Market

The report on the baby food and formula market provides a comprehensive and data-driven assessment of the industry across global, regional, and segmental levels. It includes an in-depth analysis of product types such as milk formula, dried baby food, and ready-to-eat options, alongside age-wise segmentation into 0–6 months, 6–12 months, and 1–3 years. Each segment is evaluated based on consumption volume, distribution preferences, product innovation, and consumer trends. The report evaluates the competitive landscape, profiling top companies including Nestlé and Danone, who together account for nearly 40% of the global market share. It explores the dynamics influencing market performance, including drivers like increasing demand for organic and natural baby food, and restraints such as declining birth rates in developed economies. The document offers regional performance insights, highlighting Asia-Pacific's dominance with a 64.16% market share in 2024 and identifying opportunities in emerging markets like India, Nigeria, and Indonesia. Furthermore, it discusses market challenges such as pricing pressures and raw material inflation while outlining investment trends, technological advancements, and recent product developments. The report is enriched with verified numerical data from 2023–2024, making it a valuable resource for manufacturers, investors, retailers, and stakeholders aiming to understand market movements and make informed strategic decisions.