The United States Infant Nutrition Market is estimated to be valued at USD 13.81 Bn in 2024 and is expected to reach USD 20.43 Bn by 2031, growing at a CAGR of 5.5% from 2024 to 2031.

The market has been observing favorable growth on the account of rising number of working women and growing awareness among parents about balanced nutrition for infants.

Market Driver – Growing Demand for Organic and Natural Products

The demand for organic and natural products has seen significant rise over the past few years in the United States. An increasing number of health conscious parents are looking to offer their infants foods made from organic and natural ingredients without any synthetic preservatives, pesticides, hormones, or antibiotics. This growing preference for clean label products is directly benefiting the infant nutrition market. According to the USDA, sales of organic food products increased by over 14% between 2019 and 2020. Awareness around the potential health risks associated with chemicals used in conventional infant foods is a major factor influencing parental choices. More parents want products that are gentler on sensitive infant digestive systems and offer optimal nutrition.

To capitalize on this growing demand, companies in the US infant nutrition space are extensively expanding their organic and natural product lines. They are introducing organic baby cereal, purees, snacks, formula, and other items made from ingredients like organic fruits and vegetables, grass-fed meats, and probiotics. This trend is evident across major brands as well as new startups focused on natural products. The availability of a wide variety of organic options suitable for various stages has boosted competition in the market.

Market Driver – Increasing Awareness of Nutrition and Health

Increasing awareness around nutrition and health among parents in the United States is a major driver propelling the growth of the nation's infant nutrition market. More and more mothers are conscious about providing their babies with balanced and nutritious first foods which are essential for proper development in early years. The Centers for Disease Control and Prevention recommends exclusively breastfeeding infants for the first 6 months which has boosted the sales of breastmilk alternatives.

According to Save the Children, over 76% of American mothers start off breastfeeding in the hospital however the rates drop significantly thereafter as challenges emerge. This growing perception that breastmilk substitutes are as optimal as breastmilk for infant health and development has benefitted formula milk manufacturers. As working women have risen substantially in recent years, the demand for ready-to-feed liquid formula and formula milk powder has surged exponentially owing to their convenience. The ‘on-the-go’ lifestyles of American families have further popularized nutrition-rich packaged baby snacks and meals that can be prepared in little time.

Market Challenge – High Production Costs

High production costs pose a major challenge restraining the growth of United States infant nutrition market. Producing infant formula requires stringent processes to ensure highest quality and safety standards as it caters to the nutrition of fragile newborns. Strict regulatory frameworks mandate compliance to quality certifications involving complex manufacturing procedures and protocols. This increases production costs substantially.

Maintaining sterile environments, precise formulation as per nutritional requirements, tests for contaminants and accurate labeling are some of the key processes involved. Specialized production facilities, skilled workforce and continuous research & development further drive up costs. Significant investments are needed to set up production plants and maintain them as per regulations. Producers have to incur high capital and operational expenditures to acquire certifications and ensure product integrity. This makes infant formula a relatively costly nutrition option for families in the country.

The cost burden is passed on to consumers making infant formula less affordable for many American households. According to the 2020 Census Bureau data, the poverty rate in United States stood at 11.4% with millions of families struggling to make ends meet especially during the pandemic.

Market Opportunity – Growing Demand for Online Sales

The Covid-19 pandemic has accelerated the shift towards online shopping in the United States as people have been staying indoors amidst lockdowns and social distancing norms. This presents a huge growth opportunity for players in the infant nutrition market to capitalize on the growing demand for online sales through strategic partnerships and enhancing their direct-to-customer capabilities.

Many new parents who earlier preferred to purchase infant formulas and foods from brick-and-mortar stores are now increasingly shopping online due to convenience and safety concerns. E-commerce platforms allow buyers to easily compare products, read reviews, and have the items delivered at their doorsteps without any physical contact. This trend is likely to continue even in the post-pandemic world as virtual shopping has become a habit for many.

Furthermore, the growing popularity of subscription models for regular purchases of items like diapers and formula boxes through auto-delivery has seen a massive boost during this time. This ensures uninterrupted supply and saves customers’ time from frequent grocery visits. Several major players have partnered with online retailers to set up dedicated storefronts and launch subscription programs over the past year.

Insights, By Product Type: Health Benefits of Powder Milk

In terms of product type, powder milk sub-segment contributes the highest share of 71.2% in the market owning to perceived health benefits.

Powder milk has been a preferred choice for infant nutrition among American parents owing to certain perceived health benefits over other choices like baby food. Parents consider powder milk to be a more natural and complete source of nutrition for babies as it is similar to breastmilk in terms of formulation and nutrition composition. Many parents believe that powder milk provides babies with essential vitamins, proteins, minerals and other nutrients in correct proportions required for healthy growth and development of infants.

Additionally, powder milk formulations are developed using stringent guidelines and quality standards ensuring hygiene and safety. This gives parents a sense of assurance about the quality and purity of nutrients presents in powder milk. The drying process employed in manufacturing powder milk is also believed to retain all nutritional qualities better than alternative forms of milk. These perceived health advantages have resulted in higher consumption and demand for powder milk among American parents fulfilling their needs for the best infant nutrition options. Various milk formula brands promoting powder milk as the most 'complete nutrition' comparable to breastmilk have further boosted its acceptance over other segments.

Insights, By Pricing: Premium Pricing Drives Super Premium Segment

Within the pricing segmentation of the United States infant nutrition market, the super-premium sub-segment contributing highest share of 33.9% is driven by parents' willingness to pay premium prices for higher nutrition and premium brands. Parents perceive super premium products to offer finest quality ingredients, advanced formulations tailored to specific needs and superior nutritional value justified by their higher costs.

This premium segment caters mainly to health-conscious parents looking for most 'efficacious' options backed by latest scientific research. They are ready to pay more for niche formulations targeting aspects like immunity, brain development, digestion etc. above and beyond basic nutrition. Strategic marketing by international brands as 'clinically tested' and 'doctor recommended' options have also bolstered credibility and popularity of super premium products.

Affluent American parents moreover consider super premium buys as 'investments' towards securing their babies' long-term health and development. Brands resonating these aspirations and values have succeeded in this competitive segment. Sustainability initiatives and emphasis on organic, non-GMO ingredients further augment the 'superiority aura' of premium products driving repeat purchases by quality-conscious customers. Thus, the perception of 'you get what you pay for' drives sustained demand for high-priced yet exclusive super premium variants within the United States infant nutrition sector.

The major players operating in the United States Infant Nutrition Market include Abbott Nutrition, Mead Johnson Nutrition, Nestle USA, Perrigo Company, Danone S.A., Reckitt Benckiser (Mead Johnson & Company, LLC), Bellamy's Organic, Biostime, DMK Baby GmbH, and Ausnutria.

• In January 2024, Nestle introduced a new line of infant formula products in the United States, featuring advanced nutritional profiles and improved taste.
• In October 2022, Abbott Laboratories announced plans to expand its infant nutrition operations in the United States, including the construction of a new manufacturing facility and the introduction of new products.
• In July 2022, Danone S.A launched a new line of organic infant formula products in the United States, catering to the growing demand for organic and natural products.

• By Product Type
  • Baby Food
  • Powder Milk
• By Pricing
  • Super Premium
  • Premium
  • Mainstream
  • Economy