Baby Milk & Infant Formula - South America

South America

Highlights

Revenue in the Baby Milk & Infant Formula market amounts to US$2.43bn in 2024. The market is expected to grow annually by 5.98% (CAGR 2024-2029).
In global comparison, most revenue is generated China (US$17bn in 2024).
In relation to total population figures, per person revenues of US$5.88 are generated in 2024.
In the Baby Milk & Infant Formula market, volume is expected to amount to 130.50m kg by 2029. The Baby Milk & Infant Formula market is expected to show a volume growth of 5.3% in 2025.0.
The average volume per person in the Baby Milk & Infant Formula market is expected to amount to 0.3kg in 2024.

Key regions:

Market definitionIn-Scope/Out-of-scopeMarket structureMethodology

The Baby Milk & Infant Formula Market in South America is experiencing slight growth, influenced by factors such as increasing demand for convenience and health-consciousness among consumers. The market's growth rate is currently negligible due to economic challenges and low birth rates in the region.

Customer preferences: The Baby Milk & Infant Formula Market in South America is experiencing a growing demand for organic and natural products, as parents become increasingly health-conscious. This trend is driven by the region's cultural emphasis on a healthy lifestyle and the rising number of millennial parents who prioritize natural and eco-friendly options for their babies. As a result, there has been a shift towards cleaner and simpler ingredient lists in baby formula products, along with a focus on sustainable packaging. This is also reflected in the increasing popularity of online shopping for baby food products in the region, as consumers seek more convenient and accessible options.

Trends in the market: In South America, the Baby Milk & Infant Formula Market is experiencing a shift towards organic and natural products, with more parents opting for healthier options for their babies. This trend is significant as it reflects the growing awareness and preference for clean label and sustainable products. It also presents opportunities for industry stakeholders to expand their product offerings and cater to the evolving demands of consumers. Additionally, there is a rising demand for lactose-free and allergen-free formulas, highlighting the need for innovation and product differentiation in the market.

Local special circumstances: In South America, the Baby Milk & Infant Formula market is driven by the growing middle class and their increasing purchasing power. In Brazil, specifically, the market is influenced by cultural preferences for formula feeding and the government's efforts to promote breastfeeding. In Argentina, the market is impacted by the country's economic crisis, which has led to higher demand for affordable and high-quality formula options. Additionally, in Colombia, the market is influenced by the government's regulations on formula advertising and promotion, leading to a more competitive landscape among brands.

Underlying macroeconomic factors: The Baby Milk & Infant Formula Market of the Baby Food Market within The Food market is greatly influenced by macroeconomic factors, including global economic trends, national economic health, fiscal policies, and other relevant financial indicators. For instance, countries with stable economic conditions and favorable fiscal policies tend to have higher demand for baby milk and infant formula products, as consumers have greater purchasing power and are more likely to spend on these essential goods. Additionally, the rise in disposable income, urbanization, and changing consumer lifestyles are also significant drivers of market growth in South America. Moreover, increasing awareness about the importance of proper nutrition for infants and young children is fueling the demand for high-quality and nutritious baby milk and infant formula products in the region.

Data coverage:

The data encompasses B2C enterprises. Figures are based on the total consumer spending on food, which comprises all private household spending on food that is meant for at-home consumption (out-of-home consumption is not accounted for).

Modeling approach:

Market sizes are determined through a top-down approach, building on specific predefined factors for each market segment. As a basis for evaluating markets, we use resources from the Statista platform as well as in-house market research, national statistical offices, international institutions, trade associations, companies, the trade press, and the experience of our analysts. In addition, we use relevant key market indicators and data from country-specific associations, such as GDP, consumer spending, and consumer price index. This data helps us estimate the market size for each country individually.

Forecasts:

In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the relevant market. For example, the exponential trend smoothing is well suited for forecasting the Food market with a projected steady growth. The main drivers are GDP per capita and consumer spending per capita.

Additional notes:

The data is modeled using current exchange rates. The impact of the COVID-19 pandemic and the Russia-Ukraine war are considered at a country-specific level. The market is updated twice a year.