The standard milk formula market report reveals that sales of standard milk formula are expected to cross $15.5 billion by the end of 2019, and are likely to witness an upward march. These were the findings of a report on the standard milk formula market by Fact.MR.
It added that the demand for standard milk formula is projected to expand at a stable rate of 4.7 per cent throughout the period of assessment, 2018-2027.
The market for standard milk formula is likely to remain influenced by the increasing demand for premium nutrition products for infants, backed by the 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.
This report presented information on the use of standard milk formula across various regions.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 focussing on emerging economies of the Asia Pacific, this move primarily driven by the growing market potential for standard milk formula in China and India.
The report revealed that the sales of standard milk formula were likely to remain concentrated in Asia Pacific, excluding the Japan region, making it a potential revenue pocket for standard milk formula manufacturers.
A tug-of-war between Europe and North America region is likely to prevail during the 2018-2027 timeline, with the latter having a slight advantage. The report also stated that the demand for standard milk formula was projected to expand at a robust pace in the Middle-East and Africa region, albeit at a lower base.
With a paradigm shift toward online channels, manufacturers of standard milk formula have been trying to expand their reach to cater to 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 $3.5 billion by the end of the 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.
Packaging of standard milk formula using bottles 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 analysed that standard milk formula packaging using bottles and jars was much more superior to cans due to the higher safety and handling features they offer.
Market for standard milk formula being highly competitive, manufacturers are focussing on product differentiation as a key to sustenance and enhancing sales.
Substances existing in breast milk, 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 (genetically-modified organisms)-free, organic, 100 per cent lactose and palm oil-free.
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.
