Organic Infant Formula Market

Global Organic Infant Formula Market Overview

The Organic Infant Formula Market size was valued at USD 20.65 Billion in 2023. The organic infant formula industry is projected to grow from USD 22.21 Billion in 2024 to USD 36.99 Billion by 2032, exhibiting a compound annual growth rate (CAGR) of 6.58% during the forecast period (2024 - 2032). The widespread availability of organic infant formula through popular sales channels such as supermarkets, hypermarkets, e-commerce, & growing government initiatives related to organic food production department stores is the key market drivers enhancing the market growth.

Source: Primary Research, Secondary Research, MRFR Database and Analyst Review

Organic Infant Formula Market Trends

• Growing concerns related to child health are driving the market growth

Market CAGR for organic infant formula is being driven by the growing concern about consuming artificial ingredients infused food products by infants and young children has grown over the few years. Parents have become more aware of different food ingredients and are more concerned about what their babies and toddlers consume than what they consume as adults. With rapid internet penetration, parents know what's new in the market and suitable for their kids and are ready to spend more on baby food than adult food. Moreover, the availability of organic products in smaller towns is also increasing, and this factor is playing a significant role in driving the organic infant formula market revenue.

Additionally, growing health problems such as cancer in women drives the market growth. As the prevalence of health complications like breast cancer and diabetes increases, overall breastfeeding rates have witnessed a steep fall in recent years. According to a WHO report, around 2.3 million women across the globe had breast cancer in 2020, whereas 685,000 lost their lives. Moreover, 1 in 3 female cancer cases in the US is attributed to breast cancer. Not just United States but breast cancer has become the most common cancer form worldwide as it accounts for approximately 12 percent of all cancer cases annually. As a result, the breastfeeding trend is on the decline, ultimately driving the demand for organic infant formula.

The market is driven by promising demand dynamics such as fertility and suboptimal breastfeeding rates, indicating early dependence on breast milk substitutes. The modernization and evolving lifestyles of consumers are also driving product growth. The convenience of the product, along with compositional enhancement, is propelling the demand among parents. The increasing investment by prominent key players in the research and development of creative products is anticipated to positively impact the infant formula market growth. For instance, in January 2019, Nestle S.A. opened a new research center in Ireland. The center will focus on developing inventions in milk-based infant and maternal nutrition products for the world market.

The market is slowly transforming from a niche category to a significant industry category. The availability of products differs widely in each country depending on the market environment. In developed countries, such as Germany, the market for organic infant formula is strong, as large retail chains account for about 70% of products sold in Germany. Although these products are costlier than conventional products, retailers apply higher discounts, which make the consumer buy the products. The expansion of supermarkets and hypermarkets in tier 2 and tier 3 cities is a major driving factor for the growth of the market in developing countries, as consumers are aware of the products and have been buying them for the last few years.

Organic Infant Formula Market Segment Insights

Organic Infant Formula Product Insights

The organic infant formula market segmentation, based on product, includes starting-milk formula, follow-on milk formula, special milk formula, and others. The special milk formula segment dominated the market, accounting for 35% of market revenue (7.22 Billion). In developing economies, category growth is driven by rising parental concern about the nutritional value of their children’s meals and growing public awareness of the health benefits of special milk formulas. However, follow-on milk formula is the fastest-growing category as the ability of premium-sized follow-on milk former to mimic the nutritional function of breast milk due to its high protein, calcium, iron, and other micronutrient content.

Organic Infant Formula Distribution Channel Insights

The organic infant formula market segmentation, based on distribution channels, includes supermarkets & hypermarkets, convenience stores, specialty stores, and others. The specialty stores category generated the most income (70.4%) as the store provides a wide range of baby foods, specialized products, and breast milk substitutes. However, supermarkets & hypermarkets are the fastest-growing category due to growing customer preference for buying products from supermarkets.

Organic Infant Formula Formulation Insights

The organic infant formula market segmentation, based on formulation, includes powdered formula, concentrated milk formula, and ready-to-feed formula. The concentrated milk formula category generated the most income due to the rising utilization of innovative organic products, as these are suitable and immediate sources of energy and nutrition for infants. However, ready-to-feed formula is the fastest-growing category due to the increasing popularity and demand for organic packaged food.

Figure 1: Organic Infant Formula Market, by Formulation, 2022 & 2032 (USD Billion)

Source: Primary Research, Secondary Research, MRFR Database and Analyst Review

Organic Infant Formula Regional Insights

By region, the study provides market insights into North America, Europe, Asia-Pacific and the Rest of the World. The North American organic infant formula market will dominate due to significant market players and the higher spending capacity of consumers in these regions. The booming organic food sector in the region has contributed to the increasing demand for several baby food products, driving market growth in this region. Further, the German organic infant formula market held the largest market share, and the UK organic infant formula market was the fastest-growing market in the North American region.

Further, the major countries studied in the market report are The US, Canada, German, France, the UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil.

Figure 2: ORGANIC INFANT FORMULA MARKET SHARE BY REGION 2022 (USD Billion)

Source: Secondary Research, Primary Research, MRFR Database and Analyst Review

Europe's organic infant formula market accounts for the second-largest market share owing to the growing demand for clean-label and sustainable infant formula. Further, the German organic infant formula market held the largest market share, and the UK organic infant formula market was the fastest-growing market in the European region.

The Asia-Pacific organic infant formula Market is expected to grow at the fastest CAGR from 2023 to 2032. This is due to expanding awareness regarding the consumption of organic infant formula and rising per capita disposable income. Moreover, China’s organic infant formula market held the largest market share, and the Indian organic infant formula market was the fastest-growing market in the Asia-Pacific region.

Organic Infant Formula Key Market Players & Competitive Insights

Leading market players are investing heavily in research and development to expand their product lines, which will help the organic infant formula market grow even more. Market players are also undertaking several strategic activities to expand their footprint, with important market developments including recent product launches, mergers and acquisitions, higher investments, contractual agreements,  and collaboration with other organizations. To expand and survive in a more competitive and rising market climate, the organic infant formula industry must offer cost-effective items.

Manufacturing locally to minimize operational costs is one of the key business tactics manufacturers use in the organic infant formula industry to benefit clients and increase the market sector. Major players in the organic infant formula market, including Nestle (Switzerland), Danone (France), Abbott (US), Reckitt Benckiser Group PLC (England), Bellamy's Organic (Australia), Perrigo Company PLC (Ireland), and others, are attempting to increase market demand by investing in research and development operations.

Nestle SA is a manufacturer and marketer of food products and beverages. The company's product portfolio comprises baby foods, bottled water, cereals, chocolates and confectionery, coffee, culinary products, plant-based foods, chilled and frozen foods, dairy products, nutritional products, ice cream, and pet care products. Nestle markets its products under the Aero, Purina Alpo, Milkybar, Nestle Ice Cream, Cerelac, Nescafe, Nespresso, Nido, Perrier, S.Pellegrino, Acqua Panna, Nestea, Milo, Maggi, Buitoni, Cailler, Movenpick, Purina, Boost, Gerber, and Kit Kat brand names. In August 2021, Nestle announced the successful acquisition of New York, United States-based The Bountiful Company. Nestle made a staggering $5.75 billion payment to KKR (the actual owner of Bountiful) to wrap up the process.

Danone SA is a manufacturer and producer of dairy and nutritional products. The company offers fresh dairy products, bottled water, early-life nutrition and medical nutrition products. Its portfolio comprises yogurt, fermented dairy products, dairy specialties, plant-based nutritional products and beverages, and specialized food for babies and frail older people. Danone also offers packaged water and flavored and sparkling water. The company markets its products under the names of Danone, Activia, Evian, Volvic, Aqua, Gallia, Actimel, Nutricia, and Bledina. Danone distributes its products through retail chains, traditional market outlets and specialized distribution channels, including hospitals, clinics and pharmacies. In August 2022, Danone launched a new dairy and plant blend baby formula to meet parents' desire for more plant-based foods.

Key Companies in the Organic Infant Formula market include

• Nestle (Switzerland)
• Danone (France)
• Abbott (US)
• Reckitt Benckiser Group PLC (England)
• Bellamy's Organic (Australia)
• Perrigo Company PLC (Ireland)
• Shijiazhuang Junlebao Dairy Co., Ltd. (China)
• Friesland Campina (Netherlands)
• Heilongjiang Feihe Dairy Co., Ltd. (China)
• Bubs Organic, LLC (Australia)

Organic Infant Formula Industry Developments

September 2022: Nestlé identified a nutrient blend of components found in breast milk, myelin, and launched Nutrilearn Connect, an infant formula containing the novel ingredient, in Hong Kong before expanding to other markets.

Organic Infant Formula Market Segmentation

Organic Infant Formula Product Outlook

• Starting-Milk Formula
• Follow-On Milk Formula
• Special Milk Formula
• Others

Organic Infant Formula Distribution Channel Outlook

• Supermarkets & Hypermarkets
• Convenience Stores
• Specialty Stores
• Others

Organic Infant Formula Formulation Outlook

• Powdered Formula
• Concentrated Milk Formula
• Ready to Feed Formula

Organic Infant Formula Regional Outlook

• North America
  • US
  • Canada

• Europe
  • Germany
  • France
  • UK
  • Italy
  • Spain
  • Rest of Europe

• Asia-Pacific
  • China
  • Japan
  • India
  • Australia
  • South Korea
  • Australia
  • Rest of Asia-Pacific

• Rest of the World
  • Middle East
  • Africa
  • Latin America

Organic Infant Formula Market Segmentation

Organic Infant Formula Product Outlook (USD Billion, 2018-2032)

• Starting-Milk Formula

• Follow-On Milk Formula

• Special Milk Formula

• Others

Organic Infant Formula Distribution Channel Outlook (USD Billion, 2018-2032)

• Supermarkets & Hypermarkets

• Convenience Stores

• Specialty Stores

• Others

Organic Infant Formula Formulation Outlook (USD Billion, 2018-2032)

• Powdered Formula

• Concentrated Milk Formula

• Ready to Feed Formula

Organic Infant Formula Regional Outlook (USD Billion, 2018-2032)

• North America Outlook (USD Billion, 2018-2032)

  • North America Organic Infant Formula by Product

    • Starting-Milk Formula

    • Follow-On Milk Formula

    • Special Milk Formula

    • Others

  • North America Organic Infant Formula by Distribution Channel

    • Supermarkets & Hypermarkets

    • Convenience Stores

    • Specialty Stores

    • Others

  • North America Organic Infant Formula by Formulation

    • Powdered Formula

    • Concentrated Milk Formula

    • Ready to Feed Formula

  • US Outlook (USD Billion, 2018-2032)

  • US Organic Infant Formula by Product

    • Starting-Milk Formula

    • Follow-On Milk Formula

    • Special Milk Formula

    • Others

  • US Organic Infant Formula by Distribution Channel

    • Supermarkets & Hypermarkets

    • Convenience Stores

    • Specialty Stores

    • Others

  • US Organic Infant Formula by Formulation

    • Powdered Formula

    • Concentrated Milk Formula

    • Ready to Feed Formula

  • CANADA Outlook (USD Billion, 2018-2032)

  • CANADA Organic Infant Formula by Product

    • Starting-Milk Formula

    • Follow-On Milk Formula

    • Special Milk Formula

    • Others

  • CANADA Organic Infant Formula by Distribution Channel

    • Supermarkets & Hypermarkets

    • Convenience Stores

    • Specialty Stores

    • Others

  • CANADA Organic Infant Formula by Formulation

    • Powdered Formula

    • Concentrated Milk Formula

    • Ready to Feed Formula

• Europe Outlook (USD Billion, 2018-2032)

  • Europe Organic Infant Formula by Product

    • Starting-Milk Formula

    • Follow-On Milk Formula

    • Special Milk Formula

    • Others

  • Europe Organic Infant Formula by Distribution Channel

    • Supermarkets & Hypermarkets

    • Convenience Stores

    • Specialty Stores

    • Others

  • Europe Organic Infant Formula by Formulation

    • Powdered Formula

    • Concentrated Milk Formula

    • Ready to Feed Formula

  • Germany Outlook (USD Billion, 2018-2032)

  • Germany Organic Infant Formula by Product

    • Starting-Milk Formula

    • Follow-On Milk Formula

    • Special Milk Formula

    • Others

  • Germany Organic Infant Formula by Distribution Channel

    • Supermarkets & Hypermarkets

    • Convenience Stores

    • Specialty Stores

    • Others

  • Germany Organic Infant Formula by Formulation

    • Powdered Formula

    • Concentrated Milk Formula

    • Ready to Feed Formula

  • France Outlook (USD Billion, 2018-2032)

  • France Organic Infant Formula by Product

    • Starting-Milk Formula

    • Follow-On Milk Formula

    • Special Milk Formula

    • Others

  • France Organic Infant Formula by Formulation

    • Powdered Formula

    • Concentrated Milk Formula

    • Ready to Feed Formula

  • France Organic Infant Formula by Distribution Channel

    • Supermarkets & Hypermarkets

    • Convenience Stores

    • Specialty Stores

    • Others

  • UK Outlook (USD Billion, 2018-2032)

  • UK Organic Infant Formula by Product

    • Starting-Milk Formula

    • Follow-On Milk Formula

    • Special Milk Formula

    • Others

  • UK Organic Infant Formula by Distribution Channel

    • Supermarkets & Hypermarkets

    • Convenience Stores

    • Specialty Stores

    • Others

  • UK Organic Infant Formula by Formulation

    • Powdered Formula

    • Concentrated Milk Formula

    • Ready to Feed Formula

  • ITALY Outlook (USD Billion, 2018-2032)

  • ITALY Organic Infant Formula by Product

    • Starting-Milk Formula

    • Follow-On Milk Formula

    • Special Milk Formula

    • Others

  • ITALY Organic Infant Formula by Distribution Channel

    • Supermarkets & Hypermarkets

    • Convenience Stores

    • Specialty Stores

    • Others

  • ITALY Organic Infant Formula by Formulation

    • Powdered Formula

    • Concentrated Milk Formula

    • Ready to Feed Formula

  • SPAIN Outlook (USD Billion, 2018-2032)

  • Spain Organic Infant Formula by Product

    • Starting-Milk Formula

    • Follow-On Milk Formula

    • Special Milk Formula

    • Others

  • Spain Organic Infant Formula by Distribution Channel

    • Supermarkets & Hypermarkets

    • Convenience Stores

    • Specialty Stores

    • Others

  • Spain Organic Infant Formula by Formulation

    • Powdered Formula

    • Concentrated Milk Formula

    • Ready to Feed Formula

  • Rest Of Europe Outlook (USD Billion, 2018-2032)

  • Rest Of Europe Organic Infant Formula by Product

    • Starting-Milk Formula

    • Follow-On Milk Formula

    • Special Milk Formula

    • Others

  • REST OF EUROPE Organic Infant Formula by Distribution Channel

    • Supermarkets & Hypermarkets

    • Convenience Stores

    • Specialty Stores

    • Others

  • Rest Of Europe Organic Infant Formula by Formulation

    • Powdered Formula

    • Concentrated Milk Formula

    • Ready to Feed Formula

• Asia-Pacific Outlook (USD Billion, 2018-2032)

  • Asia-Pacific Organic Infant Formula by Product

    • Starting-Milk Formula

    • Follow-On Milk Formula

    • Special Milk Formula

    • Others

  • Asia-Pacific Organic Infant Formula by Distribution Channel

    • Supermarkets & Hypermarkets

    • Convenience Stores

    • Specialty Stores

    • Others

  • Asia-Pacific Organic Infant Formula by Formulation

    • Powdered Formula

    • Concentrated Milk Formula

    • Ready to Feed Formula

  • China Outlook (USD Billion, 2018-2032)

  • China Organic Infant Formula by Product

    • Starting-Milk Formula

    • Follow-On Milk Formula

    • Special Milk Formula

    • Others

  • China Organic Infant Formula by Distribution Channel

    • Supermarkets & Hypermarkets

    • Convenience Stores

    • Specialty Stores

    • Others

  • China Organic Infant Formula by Formulation

    • Powdered Formula

    • Concentrated Milk Formula

    • Ready to Feed Formula

  • Japan Outlook (USD Billion, 2018-2032)

  • Japan Organic Infant Formula by Product

    • Starting-Milk Formula

    • Follow-On Milk Formula

    • Special Milk Formula

    • Others

  • Japan Organic Infant Formula by Formulation

    • Powdered Formula

    • Concentrated Milk Formula

    • Ready to Feed Formula

  • Japan Organic Infant Formula by Distribution Channel

    • Supermarkets & Hypermarkets

    • Convenience Stores

    • Specialty Stores

    • Others

  • India Outlook (USD Billion, 2018-2032)

  • India Organic Infant Formula by Product

    • Starting-Milk Formula

    • Follow-On Milk Formula

    • Special Milk Formula

    • Others

  • India Organic Infant Formula by Distribution Channel

    • Supermarkets & Hypermarkets

    • Convenience Stores

    • Specialty Stores

    • Others

  • India Organic Infant Formula by Formulation

    • Powdered Formula

    • Concentrated Milk Formula

    • Ready to Feed Formula

  • Australia Outlook (USD Billion, 2018-2032)

  • Australia Organic Infant Formula by Product

    • Starting-Milk Formula

    • Follow-On Milk Formula

    • Special Milk Formula

    • Others

  • Australia Organic Infant Formula by Formulation

    • Powdered Formula

    • Concentrated Milk Formula

    • Ready to Feed Formula

  • Australia Organic Infant Formula by Distribution Channel

    • Supermarkets & Hypermarkets

    • Convenience Stores

    • Specialty Stores

    • Others

  • Rest of Asia-Pacific Outlook (USD Billion, 2018-2032)

  • Rest of Asia-Pacific Organic Infant Formula by Product

    • Starting-Milk Formula

    • Follow-On Milk Formula

    • Special Milk Formula

    • Others

  • Rest of Asia-Pacific Organic Infant Formula by Formulation

    • Powdered Formula

    • Concentrated Milk Formula

    • Ready to Feed Formula

  • Rest of Asia-Pacific Organic Infant Formula by Distribution Channel

    • Supermarkets & Hypermarkets

    • Convenience Stores

    • Specialty Stores

    • Others

• Rest of the World Outlook (USD Billion, 2018-2032)

  • Rest of the World Organic Infant Formula by Product

    • Starting-Milk Formula

    • Follow-On Milk Formula

    • Special Milk Formula

    • Others

  • Rest of the World Organic Infant Formula by Formulation

    • Powdered Formula

    • Concentrated Milk Formula

    • Ready to Feed Formula

  • Rest of the World Organic Infant Formula by Distribution Channel

    • Supermarkets & Hypermarkets

    • Convenience Stores

    • Specialty Stores

    • Others

  • Middle East Outlook (USD Billion, 2018-2032)

  • Middle East Organic Infant Formula by Product

    • Starting-Milk Formula

    • Follow-On Milk Formula

    • Special Milk Formula

    • Others

  • Middle East Organic Infant Formula by Distribution Channel

    • Supermarkets & Hypermarkets

    • Convenience Stores

    • Specialty Stores

    • Others

  • Middle East Organic Infant Formula by Formulation

    • Powdered Formula

    • Concentrated Milk Formula

    • Ready to Feed Formula

  • Africa Outlook (USD Billion, 2018-2032)

  • Africa Organic Infant Formula by Product

    • Starting-Milk Formula

    • Follow-On Milk Formula

    • Special Milk Formula

    • Others

  • Africa Organic Infant Formula by Distribution Channel

    • Supermarkets & Hypermarkets

    • Convenience Stores

    • Specialty Stores

    • Others

  • Africa Organic Infant Formula by Formulation

    • Powdered Formula

    • Concentrated Milk Formula

    • Ready to Feed Formula

  • Latin America Outlook (USD Billion, 2018-2032)

  • Latin America Organic Infant Formula by Product

    • Starting-Milk Formula

    • Follow-On Milk Formula

    • Special Milk Formula

    • Others

  • Latin America Organic Infant Formula by Distribution Channel

    • Supermarkets & Hypermarkets

    • Convenience Stores

    • Specialty Stores

    • Others

  • Latin America Organic Infant Formula by Formulation

    • Powdered Formula

    • Concentrated Milk Formula

    • Ready to Feed Formula