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Infant Formula Manufacturing: Market Research Report

Market Research • Market Size • Industry Statistics • Industry Analysis • Industry Trends

Infant Formula Manufacturing Market Research Report | NAICS OD4287 | May 2017

Happy healthy baby: Supplement and nondairy products will help operators prevent significant loses

IBISWorld’s Infant Formula Manufacturing market research report is a comprehensive guide to market size and growth prospects. Our industry reports offer strategic industry analysis of the factors influencing companies, including new product developments, economic, lifestyle and demographic influences, distribution and supply chain factors and pricing issues. Full analysis accompanies our data forecasts to illustrate how the market responds to emerging industry trends.

Report Snapshot
Industry Statistics & Market Size
Annual Growth 12-17
Annual Growth 17-22
Annual Growth
Industry Threats & Opportunities
  • As breastfeeding becomes more popular, demand for industry products will suffer
  • The price of formula is mainly determined by the price of milk
  • Operators will continue to promote formula that can serve as supplements to regular breastfeeding
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Industry Analysis & Industry Trends

As information about the importance of breastfeeding has spread recently, the Infant Formula and Manufacturing industry has struggled to maintain growth. As a substitute for breastmilk, demand for infant formula is directly determined by the popularity of breastfeeding. However, regardless of trends in breastfeeding, there will always be infants who cannot breastfeed for medical reasons, such as allergies. Over the next five years, while breastfeeding rates are expected to continue growing, companies are expected to adapt to this trend through supplement and nondairy products. An increase in the number of births will also drive steady demand... ... purchase to read more

Industry Report - Starting a New Business Chapter

Barriers to entry for the Infant Formula Manufacturing industry are high. With concentration at nearly 90.0%, there is little room for new small companies to enter the industry. Customers are also unlikely to switch brands while formula feeding to avoid upsetting their infants diet, making it difficult to gain a market within the industry. In addition, due to growing efforts by the medical community to encourage breastfeeding, demand for industry products is low, creating more competition within the industry. The industry also has high initial capital costs and strict regulatory standards, making the start-up costs for new entrants high. Most new companies would have little chance of succeeding in this industry, unless they had a new product that could disrupt the industry.

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Additional Insights for the Infant Formula Manufacturing Industry

IBISWorld identifies 250 Key Success Factors for a business.The most important for the Infant Formula Manufacturing Industry are

  • Economies of scale
  • Proximity to key suppliers
  • Having a wide and expanding product range
  • IBISWorld analysts also discuss how external factors such as Number of births and Price of milk in the Infant Formula Manufacturing industry impact industry performance... purchase to read more


    Industry ProductsRelated Reports

    What is the Infant Formula Manufacturing Industry?

    This industry manufactures infant formula, a powdered substitute for breast feeding that consumers use to support adequate growth of infants.

    Industry Products
    Powdered formulaConcentrated liquid formulaReady-to-feed formula
    Industry Activities
    Manufacturing powder infant formulaManufacturing concentrated liquid formulaManufacturing ready-to-feed infant formulaManufacturing nondairy infant formula

    Table of Contents
    About this Industry
    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry at a Glance
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Industry Performance
    Executive Summary
    Key External Drivers
  • Number of births
  • Price of milk
  • Labor force participation rate of women
  • Per capita disposable income
  • Trade-weighted index
  • Current Performance
  • Breast is best
  • Formula prices
  • Industry structure
  • Chart: Revenue Growth
  • Industry Outlook
  • Away from formula
  • Product prices
  • Table: Infant Formula Manufacturing Industry Revenue Outlook
  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Infant Formula Manufacturing Industry Lifecycle vs The Economy
  • Products & Markets
    Supply Chains
  • Key Buying Industries
  • Supermarkets & Grocery Stores
  • Pharmacies & Drug Stores
  • Hospitals
  • Key Selling Industries
  • Dairy Farms
  • Dairy Product Production
  • Soybean Farming
  • Products & Services
  • Powdered formula
  • Ready-to-feed formula
  • Concentrated liquid formula
  • Chart: Infant Formula Manufacturing Industry Products and Services Segmentation
  • Demand Determinants
    Major Markets
  • Infants between 3 and 6 months old
  • Infants under 3 months old
  • Infants older than 6 months
  • Chart: Major Market Segmentation for the Infant Formula Manufacturing Industry
  • International Trade
    Business Locations
  • Chart: Business Locations by State
  • Competitive Landscape
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
  • Chart: Cost Structure Benchmarking – Sector vs Infant Formula Manufacturing
  • Basis of Competition
    Barriers to Entry
  • Table: Barrier to Entry Checklist for the Infant Formula Manufacturing Industry
  • Industry Globalization
    Major Companies
    Abbott Laboratories
    Mead Johnson
    Perrigo Company plc
    Nestle SA
  • Table: Abbott Laboratories - financial performance
  • Table: Mead Johnson - financial performance
  • Table: Perrigo Company plc - financial performance
  • Table: Nestle SA - financial performance
  • Operating Conditions
    Capital Intensity
  • Chart: Level of Capital Intensity for the Infant Formula Manufacturing Industry
  • Chart: Tools of the Trade: Growth Strategies for Success
  • Technology & Systems
    Revenue Volatility
  • Chart: Volatility vs Industry Growth
  • Regulation & Policy
    Industry Assistance
    Key Statistics
  • Table: Industry Data for the Infant Formula Manufacturing Industry
  • Includes:
  • Industry Revenue (2008-2022)
  • Industry Gross Product (2008-2022)
  • Establishments (2008-2022)
  • Businesses (2008-2022)
  • Employment (2008-2022)
  • Exports (2008-2022)
  • Imports (2008-2022)
  • Wages (2008-2022)
  • Number of births (2008-2022)
  • Table: Annual Percentage Change for Key Industry Data
  • Table: Key Ratios for Industry Key Data
  • Jargon & Glossary
    Breast Pumping
  • Using a breast pump to extract milk for later use
  • Evaporator
  • A device that converts a liquid into a gas and leaves the solid remains of the mixture
  • Formula Feeding
  • Feeding an infant formula as a substitute for natural breast milk
  • Ready-To-Eat Formula
  • Formula sold in liquid formula that does not need to be mixed

  • Why Buy this Report?
    IBISWorld industry market research reports enable you to:
    • Find out about key industry trends
    • Identify threats and opportunities
    • Inform your decisions for marketing, strategy and planning
    • Quickly build competitive intelligence
    This report on Infant Formula Manufacturing:
    • Provides Market Size information to assist with planning and strategic decisions.
    • Includes the necessary information to perform SWOT, PEST and STEER analysis.
    • Helps you understand market dynamics to give you a deeper understanding industry competition and the supply chain.
    • Analyses key performance and operational metrics so that you can benchmark against your own business, that of your customers’ businesses, or your competitors’ businesses.
    The Infant Formula Manufacturing market research report includes:
    • Historical data and analysis for the key drivers of this industry
    • A five-year forecast of the market and noted trends
    • Detailed research and segmentation for the main products and markets
    • An assessment of the competitive landscape and market shares for major companies
    • And of course, much more

    IBISWorld reports on thousands of industries around the world. Our clients rely on our information and data to stay up-to-date on industry trends across all industries. With this IBISWorld Industry Research Report on Infant Formula Manufacturing, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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