SOURCE: Kalorama Information

Kalorama Information

February 20, 2009 10:33 ET

Emerging Markets Drive Growth in Infant Formula Market

NEW YORK, NY--(Marketwire - February 20, 2009) - The world market for infant formula has been expanding substantially in recent years. While the U.S. and Western European markets are fairly saturated and stable, the primary growth is being seen in Asia, Eastern Europe and the Middle East with rates of 20% and more. Medical market research publisher Kalorama Information, in its new report "Clinical Nutrition Products: World Markets, 3rd Edition," estimates the market for infant formula products at $10.22 billion in 2008, which represents an increase of 17.3% from the prior year.

Developed markets such as the United States and Western Europe currently consist of well-known market leaders who enjoy strong brand loyalty. Consumers are also increasingly buying premium organic and follow-on formulas, which are experiencing healthy growth, while standard unspecialized products are slipping in market share. New product development is a key factor for growth in these highly competitive regions. But as the recession worsens, a growing number of consumers are turning to cheaper store brands sold in places like Wal-Mart.

"Organic and follow-on formulas are niche markets -- demand for premium infant formulas in emerging markets will likely be the driving factor for overall growth in the future," notes Bruce Carlson, publisher of Kalorama Information. "The opportunity for new product development, high-growth potential and accessible market penetration for new manufacturers is difficult in more developed markets such as the United States."

China is the biggest of these new markets. Following cases of counterfeit and repackaged out-of-date formula, Chinese consumers of infant formulas began buying high-end foreign brands to ensure quality, causing a 16% increase in sales in 2004 and 18% increase in 2005. The trend has continued in 2006 and 2007, rising 15% and 17% respectively. Total sales growth for infant formulas in China is estimated at 25-28% annually, making this a highly attractive market.

Kalorama Information's new report, "Clinical Nutrition Products: World Markets, 3rd Edition," provides a detailed review of three essential medical nutrition segments: infant, enteral and parenteral nutrition. The report includes incidence of conditions, demographics, product descriptions, new developments, market estimates and forecasts, as well as a competitive analysis of leading providers. For further information visit: http://www.kaloramainformation.com/redirect.asp?progid=67594&productid=2089645

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Kalorama Information supplies the latest in independent market research in the life sciences, as well as a full range of custom research services. We routinely assist the media with healthcare topics.

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