The baby formula market has been forecast to increase at a compound annual growth rate (CAGR) of 5.4% through to 2016, driven by the growth in urbanisation, particularly in developing countries, and the increasing adoption of organic baby food by consumers.
Infant formula is a manufactured food designed and marketed for feeding to babies and infants under 12 months of age, usually prepared for bottle-feeding or cup-feeding from powder (mixed with water) or liquid (with or without additional water).
The composition of infant formula is designed to be roughly based on a human mother's milk at approximately one to three months postpartum, although there are significant differences in the nutrient content of these products.
The most commonly used infant formulas contain purified cow's milk whey and casein as a protein source, a blend of vegetable oils as a fat source, lactose as a carbohydrate source, a vitamin-mineral mix, and other ingredients depending on the manufacturer.
Organic food is considered safe for babies since it is produced without the use of pesticides or chemicals. Thus, many companies are introducing organic baby foods in the market since they perceive organic food to be a differentiating marketing strategy.
The US is the largest market for organic baby food and formula products. Further, many countries in the EMEA and APAC regions are witnessing an increase in the demand for organic baby food and formula products. For instance, organic food is considered to be healthier than conventional foods; hence, companies are positioning themselves as producers of safe, tasty, and healthy food for babies.
Companies offering organic baby food such as Organix and Plum Organics have been gaining a significant share of the baby formula market in recent years.
Key players currently dominating the baby formula market include Abbott Laboratories, Danone SA, Mead Johnson Nutrition Co., and Nestle S.A.
For more information on the baby formula market, see the latest research: Baby Formula Market
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