Global Standard Milk Formula Market Scenario Highlighting Major Drivers & Trends, 2018 – 2027

Probiotics have been gaining significant traction in the wellness and nutrition sector across the globe. Probiotics, essentially live healthy bacteria, are being introduced in the infant formula space, on the back of their potential health benefits. Inclusion of probiotics in standard milk formula can promote the bacteria balance in the infant’s intestines in turn offsetting development of unhealthy organisms, particularly in babies in the age group of 0-6 months. Probiotics addition is likely to enhance the demand for standard milk formula, particularly among working women, in turn complementing the growth of the standard milk formula market.

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Sales through Online Platforms Offsetting Sluggishness Induced by Rising Milk Prices in Emerging Economies

Online platforms are transforming the retail sector, consequently providing potential avenues for producers of standard milk formula to market their products across tier II areas. With e-commerce on the rise, online platforms have facilitated a significant growth in sales of standard milk formula, consequently influencing the growth of the standard milk formula market in emerging economies. For instance, standard milk formula producers in China are adopting e-commerce platforms to enhance product sales. Moreover, with the introduction of two-child policy in China coupled with rising milk rates, dairy producers faced a shrinking market share. However, e-commerce boom resulted in a collaboration of domestic and foreign standard milk formula producers with online platforms leading to an extended product selling, from logistics to brand promotions which has translated in increasing standard milk formula sales by mitigating the impact of increasing milk prices.

New Standard for Chloride Content in Standard Milk Formula Ensures Safety

Being a highly regulated food product, examination of standard milk formula composition has become imperative for regulatory bodies. Along with nutritional labeling on standard milk formula packaging, stringent regulations have been laid by World Health Organization (WHO) and FAO (Food and Agriculture Organization of the United States). Largely focusing on the chloride content in standard milk formula, these regulatory bodies along with ISO (International Organization for Standardization) have developed the ISO 21422 | IDF 242 for chloride content determination, in a bid to ensure product safety.

Unethical Standard Milk Formula Marketing Practices Continue to Dent Consumer Confidence

The IBFAN (International Baby Food Action Network) has revealed several cases regarding unethical marketing of infant nutritional food products. Unethical practices adopted by medium and small scale standard milk formula players to market their products is likely to undermine the confidence among women that can breastfeed infants. Manufacturers of standard milk formula have been inducing a sense of uncertainty apropos to insufficient nutrient supply causing fussiness, perceived hunger and infant crying, and emphasizing on the point that standard milk formula can bridge the gap between needed and available nutrition, says IBFAN.

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Standard Milk Formula Demand Undermined by Ambiguities Over Nutritional Value of Infant Food Products

Manufacturers of standard milk formula are involved in marketing an increasing product range for various age groups, including products that feature additional nutrients in a bid to close on the effectiveness of breast milk along with products that claim to solve a broad spectrum of problems such as allergies. Yet, standard milk formula manufacturers are positioning their products in terms of new formulations in different markets that reveals the possibility of insufficient health considerations and less nutritional science being the product range. These ambiguities are likely to question the quality and efficiency of nutrition provided by standard milk formula, in turn challenging its market’s growth.

The standard milk formula market report includes detailed analysis on various key players operating in the market. Several facets of major players including Nestle S.A., Groupe Danone, the Kraft Heinz Company, Abbott Nutrition Manufacturing Inc., and Mead Johnson Nutrition, to name a few have been covered in this section of the report.

Major players in the standard milk formula market have been focusing on increasing their customer base by tapping new regions. For instance, Nestle S.A., has invested around CHF 30 million in developing its first infant formula plant in Russia in a bid to offer superior standard milk formula products to Russian consumers. In addition, the company has launched a global initiative to facilitate healthier lives for infants. It has aimed to support around 50 million infants by end of 2030 by providing right and adequate nutrition to children. On the other hand, giants such as Groupe Danone are relying on baby food sales to drive growth. Groupe Danone revealed a 3.3 percent rise in 2018 second quarter sales, underpinned with an immense demand from China. Likewise, players are collaborating with e-commerce platforms to push their sales turnovers, particularly in the emerging economies. For instance, Mead Johnson has partnered with JD.com to introduce a wide range of infant formula products, including standard milk formula, to consumers in China.

Segmentation

The market for standard milk formula has been segmented in detail to provide a holistic outlook to the reader. The standard milk formula market is segmented on the basis of product type (liquid standard milk formula, powder standard milk formula, concentrate standard milk formula and ready-to-feed standard milk formula), by flavor (unflavored, vanilla, strawberry, chocolate and other), by packaging type (cans, aseptic cartons, bottle & jars, pouches and other types), by nature (conventional and organic), by sales channel (modern trade, specialty stores, online stores, pharmacy stores and other sales channel) and by region (North America, Europe, Latin America, Japan, Asia Pacific excluding Japan and Middle East and Africa).

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