Infant Formula Market in Asia: Growth Drivers and Consumer Preferences

Asia's infant formula market is undergoing significant transformation, driven by demographic shifts, evolving consumer preferences, and regulatory changes. As the region continues to urbanize and incomes rise, the demand for infant nutrition products is increasing, presenting both opportunities and challenges for industry stakeholders.​

Market Overview

The Asia-Pacific region dominates the global infant formula market, accounting for over two-thirds of global sales value. In 2025, the market is projected to generate revenue of approximately USD 34.51 billion, with an expected annual growth rate of 6.66% through 2030 . However, market dynamics vary across countries. While China remains a significant player, its declining birth rate is impacting overall growth. Conversely, countries like India, Indonesia, and the Philippines are experiencing steady growth, with India's infant formula market expected to grow at a 6% CAGR between 2024 and 2029.

Growth Drivers

1. Urbanization and Lifestyle Changes: Rapid urbanization and the rise of dual-income households have increased the demand for convenient and reliable infant nutrition options. Working parents are seeking products that align with their busy lifestyles, leading to a surge in demand for ready-to-feed and easy-to-prepare formulas.​

2. Health and Nutrition Awareness: There is a growing awareness among parents about the importance of early childhood nutrition. This has led to increased demand for formulas fortified with essential nutrients like DHA, ARA, and prebiotics, which support cognitive development and digestive health.​

3. Premiumization: With rising disposable incomes, especially among urban populations, there is a trend towards premium and specialized infant nutrition products. Parents are willing to invest in high-quality formulas that offer added health benefits, such as organic ingredients or formulations designed for specific health needs.​
   

Consumer Preferences

Consumer preferences in Asia are shifting towards products that offer both health benefits and convenience. Key trends include:​

• Organic and Natural Ingredients: There is a growing demand for organic infant formulas, driven by concerns over food safety and a desire for natural ingredients. Organic infant formula is anticipated to exhibit a CAGR of over 8% as more parents prioritize organic products.​

• Specialized Formulas: Products catering to specific dietary needs, such as hypoallergenic formulas or those designed for infants with digestive issues, are gaining popularity. Special baby milk formula is predicted to buck the decline in Asia Pacific between 2024 and 2029, with a 1% retail value CAGR forecast.

• Convenience: Ready-to-feed and easy-to-prepare formulas are in high demand, particularly in urban areas where time constraints are a significant factor for parents.​
  

Regulatory Landscape

Regulations across Asia are becoming more stringent, focusing on product safety, labeling, and marketing practices. Governments are implementing policies to ensure the nutritional quality of infant formulas and to protect consumers. Compliance with these regulations is essential for companies operating in the region.​

Challenges and Opportunities

While the market presents significant opportunities, companies must navigate challenges such as:​

• Demographic Changes: Declining birth rates in countries like China are impacting market growth. Companies are responding by diversifying their product lines to include nutrition products for older children and adults.

• Local Competition: Domestic brands are gaining market share by offering affordable and culturally tailored products. International companies must adapt their strategies to compete effectively.​

• Consumer Trust: Building and maintaining consumer trust is crucial, especially in markets that have experienced food safety scandals in the past. Transparency in sourcing and manufacturing processes can help establish credibility.​
  

Conclusion

The infant formula market in Asia is poised for continued growth, driven by urbanization, increasing health consciousness, and a demand for premium products. Companies that can adapt to changing consumer preferences, comply with evolving regulations, and build trust with consumers will be well-positioned to succeed in this dynamic market.​

As the market evolves, staying informed about regional trends and consumer behaviors will be essential for stakeholders looking to capitalize on the opportunities within Asia's infant formula industry. Please write to enquire@grgonline.com to learn how GRG Health is helping clients gather more in-depth market-level information on such topics.