Global Standard Milk Formula Market to Surpass US$ 23 Bn by 2027

The market for standard milk formula is likely to remain influenced by increasing demand for premium nutrition products for infants, backed by rising percentage of working women across the globe. Other macroeconomic aspects including a stable rise in the purchasing power parity coupled across nations with a substantial increase in birth rate, particularly among developing regions are expected to remain instrumental in driving sales of standard milk formula.

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Fact.MR has presented an ocean of information on use of standard milk formula across various regions. The standard milk formula market report reveals that sales of standard milk formula are expected to cross US$ 15.5 Bn by end of 2019 and are likely to witness an upward march. The demand for standard milk formula is projected to expand at a stable rate of 4.7% throughout the period of assessment, 2018-2027.

In addition to being a highly profitable and a large arena, the market for standard milk formula is largely concentrated in the hands of major multinational companies including but not limited to Nestle S.A., Mead Johnson, Danone and Abbott Nutrition. With strong presence across the globe, these companies have been focusing on emerging economies of the Asia Pacific, this move primarily driven by the growing market potential for standard milk formula in China and India.

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The report on standard milk formula market reveals that the sales of standard milk formula are likely to remain concentrated in Asia Pacific excluding Japan region, making it a potential revenue pocket for standard milk formula manufacturers. On the other hand, a tug-of-war between Europe and North America region is likely to prevail during 2018-2027 timeline, with the latter having slight advantage. The report also reveals that the demand for standard milk formula is projected to expand at a robust pace in Middle East and Africa region, albeit at a lower base.

standard milk formula market 2

With a paradigm shift toward online channels, manufacturers of standard milk formula have been trying to expand their reach to cater tier 2 and suburban areas, in a bid to enhance their sales funnels. Moreover, various international standard milk formula manufacturers are collaborating with e-commerce platforms to introduce wide standard milk formula product range across regions. According to the report, sales of standard milk formula through online channels are projected to expand at a high rate crossing US$ 3.5 Bn by end of assessment period. Manufacturers of standard milk formula can leverage this opportunity to increase their consumer base on a broader level. However, modern trade is expected to remain an attractive channel in the current situation, says the report.

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Packaging of standard milk formula using bottle and jars is likely to gain high traction in the forthcoming years as they provide higher convenience in distribution and transportation. However, owing to low cost, cans are being largely used for standard milk formula packaging. The report analyzes that standard milk formula packaging using bottle and jars is much more superior to cans due to higher safety and handling features they offer.

Market for standard milk formula being highly competitive, manufacturers are focusing on product differentiation as a key to sustenance and enhancing sales. Substances existing in breastmilk, such as prebiotics, probiotics and omega oils, are being blended with standard milk formula. In addition, manufacturers are using alternatives desirable to infant health that are GMO-free, organic, 100% lactose and palm oil-free.

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Demand for organic standard milk formula is expected to rise across developed and emerging economies worldwide as compared to conventional standard milk formula. Albeit at a higher base, conventional standard milk formula is expected to lose ground as they are produced from crops that are grown by using pesticides and artificial methods. On the contrary, organic standard milk formula consist of good bacteria that facilitate infant growth without side effects. This factor is poised to enhance the sales of organic standard milk formula in the forthcoming years.

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