Consumer Health Trends are Fueling an Infant Nutrition Surge

FN Media Group Presents Market Commentary


New York, NY – February 4, 2021 – The global infant nutrition market is projected to grow at a CAGR of 7.7 percent to reach an incredible $61.6 billion by 2026. One of the major demographic factors contributing to this rapid growth is a fast growing population of young working mothers around the world relying on the convenience of infant nutrition formulas. According to the Journal of Taibah University Medical Sciences, many young mothers participating in the workforce lack the time for frequent and lengthy breastfeeding, creating intense demand for nutritious formula alternatives. Furthermore, markets in developed countries have seen an increased focus on health in recent years. These factors are contributing to huge opportunities for companies in the infant nutrition space, such as Else Nutrition (TSXV:BABY) (OTCQX:BABYF), Kraft Heinz Co (NASDAQ:KHC), Abbott Laboratories (NYSE:ABT), Danone (OTCQX:DANOY) and Walmart Inc (NYSE:WMT).


Else Nutrition Expands Market Footprint


As the infant nutrition market surges, Isreal-based food and nutrition company Else Nutrition (TSXV:BABY) (OTCQX:BABYF) is capitalizing on the rise of plant-based foods and increased focus on consumer health. Else Nutrition has developed a 100 percent plant-based, non-soy, and GMO-free infant nutrition formula that meets the highest standard for nutrition and industry standards to be considered a clean label product. At a time when nutrition products that parents can trust are in higher demand than ever, Else Nutrition is bringing to market a highly disruptive product that is backed by leading US pediatricians and nutritionists.


In recent months, Else has made significant headway distributing its infant nutrition products in the North American market. The company successfully launched its products online through its e-store and via Amazon in 2020 and Else products are now being made available at a rapidly growing list of major US retailers. On December 23, the company announced that beginning in February 2021, its products would be available at major US health food retailer Sprouts Farmers Market. In early January, Else announced that plant-based food ecommerce retailer PlantX would be stocking Else products as part of PlantX’s newly created baby products section on its ecommerce platform. On February 2, Else announced that it had signed an agreement with Thrive Market, a US-based online retailer of wellness, nutrition, and better-for-you food products, providing the company with yet another valuable distribution channel.


On January 27, Else announced that its products had been chosen for the high-profile KeHE Distributor’s Elevate program. This highly selective program curates unique brands and promotes them in the US market to maximize their growth and success, and to better serve market demands. This selection represents a significant feather in Else’s cap and could open numerous doors for the company.


“We are thrilled to have our products chosen for this unique program. KeHE offers best in class distribution and via the Elevate program we will be able to increase our brand awareness and visibility across the U.S. channels served by KeHE,” Else Nutrition CEO and Co-Founder Hamutal Yitzhak said in the company’s release.


Infant Nutrition Companies Update Offerings Amid Market Surge


Abbott Laboratories (NYSE:ABT), makers of Similac baby formula, released an earnings and revenue report on February 1 showing better-than-expected growth in 2020 amid challenging pandemic-related market factors. Among other key indicators, the company posted 5 percent sales growth in the pediatric nutrition segment led by the increased market share of Abbott’s Similac infant formula brand.


Danone (OTCQX:DANOY), maker of Aptamil, Karicare, Laboratoire Gallia, and Nutrilon brand formulas, announced last year that the company would be launching a tracking service that helps users follow the supply chain of its products. Danone hopes that this approach will help foster greater transparency and consumer trust in its products.


Rather than focusing on the infant formula market, Kraft Heinz Co (NASDAQ:KHC) offers a range of products for infants aged from under six months to over twelve months under its Heinz By Nature brand. Kraft Heinz revamped its baby nutrition line last summer with a greater focus on all-natural, plant-based offerings.


Walmart Inc’s (NYSE:WMT) store brand Parent’s Choice infant formula is one of the top selling infant formula brands in the United States market for its lower cost compared to its competitors. Recently, Walmart has been undergoing a significant overhaul of its Parent’s Choice brand, adding about 120 new products and improving another 100.


The infant nutrition market is surging, but it is also ripe for disruption from innovative and nutritious products that capitalize on ongoing trends in the food industry. This is why there is a huge opportunity for innovative infant nutrition companies like Else Nutrition.


For more information on Else Nutrition, click here.


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