Infant Formula Oil and Fat Ingredients Market Size, Share, Growth, and Industry Analysis, By Type (OPO Fat and Other Oils and Fats), By Infant Age (0-6 Months Baby, 6-12 Months Baby, and 12-36 Months Baby), and Regional Forecast to 2033

INFANT FORMULA OIL AND FAT INGREDIENTS MARKET OVERVIEW

Infant Formula Oil And Fat Ingredients Market Size was estimated at USD 5531.72 million in 2024 and it is expected to grow from USD 5714.27 million in 2025 to USD 6097.63 million by 2033. The Market CAGR (growth rate) is expected to be around 3.3% during the forecast period (2025 - 2033).

Infant formula oil and fat ingredients comprise a special package of vegetable oils that are supposed to resemble the composition of human breast milk. These oils are a source of desirable fatty acids known as DHA and ARA that play a central role in the development of the brain and eyes in babies. Some of the typical oils based on which infant formulas are made are palm oil, soy oil, coconut oil, sunflower oil, and safflower oil. The specific blend of oils will differ depending on the manufacturer of the formula and may well also differ according to the type of formula.

The global infant formula oil and fat ingredients market has been boosted by the growing market for infant formula in the global market, especially in developing nations. Some drivers for market growth include factors such as; awareness of the nutritional value of the formula, improved disposable incomes, and shift in diet preferences. The market is competitive and not fragmented due to rivalry between dominant companies in the market and differentiation is through innovation. Major players are putting a lot of effort and money into the research and development of new products, including kid’s juices fortified with DHA, ARA and other essential fatty acids.

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KEY FINDINGS

• Market Size and Growth: The Infant Formula Oil And Fat Ingredients Market size was USD 5531.72 Million in 2024, is projected to grow to USD 5700 Million by 2025 and exceed USD 6097.63 Million by 2033, with a CAGR of 3.3%.

• Key Market Driver: Rising awareness about the importance of structured lipids in infant nutrition is fueling demand, with research showing these specialized oils can improve calcium absorption by nearly 25% in infants.

• Major Market Restraint: Volatility in raw material prices, particularly dairy and vegetable oils, has increased production costs by 12% over the last year, limiting profit margins for many manufacturers.

• Emerging Trends: Companies are rapidly adopting plant-based DHA and ARA sources, with plant-derived oils making up 30% of new product formulations launched in 2024.

• Regional Leadership: Europe leads the market, holding over 40% share, largely due to stringent regulations and high consumer preference for premium organic formulations.

• Competitive Landscape: Around 15 major players dominate, and in 2024, five companies invested heavily in R&D to create formulas that mimic human milk fat more closely than before.

• Market Segmentation: The long-chain polyunsaturated fatty acids segment accounts for roughly 35% of the market, driven by their proven benefits for infant brain development.

• Recent Development: In late 2024, a leading manufacturer unveiled a patented structured triglyceride technology designed to enhance energy absorption in infants by up to 20%.

COVID-19 IMPACT

"Infant Formula Oil and Fat Ingredients Industry Had a Negative Effect Due to supply chain disruption during COVID-19 Pandemic"

The global COVID-19 pandemic has been unprecedented and staggering, with the market experiencing lower-than-anticipated demand across all regions compared to pre-pandemic levels. The sudden market growth reflected by the rise in CAGR is attributable to the market’s growth and demand returning to pre-pandemic levels.

The COVID-19 pandemic also greatly affected the global infant formula oil and fat ingredients market. Uncertain global supply chains, scarcity of human capital, and higher consumer necessities such as baby food were some of the dilemmas experienced throughout production. But it was the pandemic which brought the focus back on baby food, especially infant formula in particular, and on the fast-growing segments such as e-commerce with contactless delivery.

LATEST TREND

"Technological Advancements Drive Market Growth "

Consumer technological change remains an influential factor in the infant formula oil and fat ingredients market. Improvements in handling and sourcing of ingredients and methods of distribution are making food safer and of better quality. Furthermore, from the nutrient delivery perspective, precision systems can provide formulations that fit infants’ needs. These advancements are not only enhancing the quality of baby nutrition but the feasibility and sustainability of infant formula.

INFANT FORMULA OIL AND FAT INGREDIENTS MARKET SEGMENTATION

By Type

Based on Type, the global market can be categorized into OPO Fat and Other Oils and Fats

• OPO Fat: OPO fat is one variety that is much more easily broken down by a baby’s digestive tract. It is one thing to give them a system where their bodies will digest it in the first instance. It assists them to better assimilate calcium which is so important for bone formation. OPO fat also assists in decreasing fussiness and enhancing the consistency of stool, which makes it so much better for the baby, as well as the parent.
• Other Oils and Fats: This category refers to a range of oils and fats such as vegetable oils (sunflower, coconut), and fish oil (DHA, EPA and others). These fats include nutrient density such as omega three fatty acids that are crucial in treating the brain. It is for the same reason that these tumors positively contribute towards general growth and development.

By Infant Age

Based on infant age, the global market can be categorized into 0-6 Months Baby, 6-12 Months Baby, and 12-36 Months Baby

• 0-6 Months Baby: At this age, the babies are exclusively on the formula because they do not consume any other type of food. The concepts of oils and fat in their diets form the basis of their growth and development more so at this early development stage. These nutrients are needed for brain growth, vision, and the immune system as well as during pregnancy.

• 6-12 Months Baby: When babies begin taking solid foods, formula feeds remain an essential component in the infant’s meals. It is formulated with the right mix of oils and fats making sure that they are able to access the nutrients they require even as they grow older in terms of diet. This in a way assists the child to have a balanced growth and development besides exposing him/her to other foods’ tastes and texture.

• 12-36 Months Baby: It is vital to understand that even when toddlers are introduced to table foods, then formula can still be useful all through. Their contents of oils and fats remain to help in their brain development, immune responding and body growth.

MARKET DYNAMICS

Market dynamics include driving and restraining factors, opportunities and challenges stating the market conditions.

DRIVING FACTORS

"Growing Awareness of Infant Nutrition Boost the Market "

A factor in the Infant Formula Oil and Fat Ingredients market growth is the increasing parental concern regarding the nutrition of their babies and its impact on their further development. These increasing concerns have led to the need for exquisite specialized baby foods that are nutritionally as close to breast milk as possible. Therefore, manufacturers have been adding specialized oils and fats like long-chain polyunsaturated fatty acids (LCPUFAs) and medium-chain triglycerides (MCTs) to infant food products to promote the cognitive, visual, and immune development of the infants.

"Increasing Female Labor Force Participation Expand the Market"

The global infant formula oil and fat ingredients industry has been growing as more women venture into the workplace. More mothers are employed thus the need for other easy to prepare and healthy foods to substitute breastfeeding. Working mothers can turn to infant formula to feed their babies, while oils and fats are the components that are vital for a baby’s development. These ingredients are then chosen to replicate the characteristics of breast milk and supply the infant with the FDA-required essential fatty acids and other nutrients.

RESTRAINING FACTOR

"Negative Public Perception and Health Concerns Potentially Impede Market Growth"

Increasing the trend of breastfeeding across the globe may pose a threat to the oil and fat ingredients for the infant formula market. This is because breast milk has been deemed by most as the healthiest for the baby. After all, it accords several benefits to both the mother and the baby. The key components requisite in the preparation of infant formula are these oil and fat ingredients; therefore, the boost in breastfeeding amongst mothers may lead to a decrease in the sale of infant formula. Such a change in feeding practices may result in reduced growth or even market diminution for components of the infant formula oil and fats.

OPPORTUNITY

"Growing Preference for Premium Infant Nutrition Products Create Opportunity in the Market"

The global infant formula oil and fat ingredients are growing fairly rapidly because consumers around the world are focusing on buying high-quality baby food products. People have developed a trend of buying infant formulas that are very close to the breast milk quality; thus, requiring a higher number of quality oils and fats. These are important for infants as they provide energy, support infant brain development, and are also valuable in vitamin A, D, E and K fat-soluble vitamin absorption. The demand for early nutritional intervention and the rising disposable income in developing countries are also putting pressure on the manufacturers of oil and fat ingredients as demand for premium infant formulas is set to rise.  

CHALLENGE

"Negative Public Perception and Health Concerns Could Be a Potential Challenge for Consumers"

This market for infant formula oil and fat ingredients receives a serious setback from negative attitudes of the public and health issues. Increasing customer consciousness regarding the dangers that are connected with some oils and fats and utilization, for instance, negative consequences of using palm oil affects the brand image and may lead to boycotts. In addition, controversy over the quality or nutritional and health values of specific ingredients such as overused oils and gears has many parents away from the formulas that contain them. They propose that increased vigilance makes it critical for manufacturers to promote the right levels of disclosure, responsible sourcing of inputs, and product safety to retain customer confidence and market viability in the long run.

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INFANT FORMULA OIL AND FAT INGREDIENTS MARKET REGIONAL INSIGHTS

NORTH AMERICA

The North American infant formula oil and fat ingredients market is propelled by the growing consciousness of the requirement of infant nutrition and the surge in the demand for premium and niche formulas. Manufacturers, retailers and suppliers aim at identifying additional specialised nutrients like DHA and ARA for brain development and long-chain polyunsaturated fatty acids (LCPUFAs) for immune system support. The United States Infant Formula Oil and Fat Ingredients Market share also belongs to the factors favoring this include focused nurturing of infant nutrition and health, big market and sound health care infrastructure. The market is a niche with consumers more inclined to high-quality and specialty products including DHA, ARA and prebiotics.

EUROPE

The European market is highly regulated and particular attention is paid to the need to allocate sustainable practices. Consumers are moving towards conscious consumption and are asking for more organic and natural ingredients, plant-based oils and fats. The region also has a focus on science-tech research and innovation which shows through companies’ work to introduce new ingredients/formulations in flavors.

ASIA

The Asia Pacific is the fastest-growing market for infant formula oil and fat ingredients due to factors such as urbanization, increase in income level and birth rate. It is strategic since it has unique customer preferences and regulatory environments for this industry which range from highly regulated to not regulated at all. That, however, is a large and growing market that many players in the industry will target.

KEY INDUSTRY PLAYERS

"Key Industry Players Shaping the Market Through Innovation and Market Expansion"

The major market players are dominating market trends through investments in research and development, collaborations, and acquisitions in the global infant formula oil and fat ingredients market. The market leaders are striving to innovate and bring new technologies to build better products with better nutritive infant formula. Working with leading research universities and academic organizations is stimulating development in neonatal nutrition science. In addition, the agreements with ingredients suppliers and distributors are broadening the market accessibility and guaranteeing required supplies.

LIST OF TOP INFANT FORMULA OIL AND FAT INGREDIENTS COMPANIES

• AAK (Sweden)
• Bunge Loders Croklaan (Netherlands)
• Advanced Lipids (Sweden)
• Wilmar (Yihai Kerry) (China)
• GrainCorp Foods (Australia)
• Danisco/DuPont (U.S.)
• Fuji Oil Holdings (Japan)
• Stepan International (U.S.)

KEY INDUSTRY DEVELOPMENT

February 2024: Yali Bio created a fat called OPO that is naturally found in high concentrations in human breast milk, which opens the potential to improve infant formula and highlights precision fermentation as a “clear technology fit” to produce an ingredient that previously was too expensive to source.

REPORT COVERAGE

The study encompasses a comprehensive SWOT analysis and provides insights into future developments within the market. It examines various factors that contribute to the growth of the market, exploring a wide range of market categories and potential applications that may impact its trajectory in the coming years. The analysis takes into account both current trends and historical turning points, providing a holistic understanding of the market's components and identifying potential areas for growth.

The Infant Formula Oil and Fat Ingredients market is poised for a continued boom pushed by Technological Advancements, the Growing Awareness of Infant Nutrition, and Increasing Female Labor Force Participation. Despite challenges, which include Negative Public Perception and Health Concerns, the demand for Growing Preference for Premium Infant Nutrition Products supports marketplace expansion. Key industry players are advancing via technological upgrades and strategic marketplace growth, enhancing the supply and attraction of Infant Formula Oil and Fat Ingredients.