The global human milk oligosaccharides (HMO) market size is expected to reach USD 71.2 billion by 2025, according to a new report by Grand View Research, Inc. The HMO market is projected to witness a strong CAGR of 21.9% during the forecast period. Growing consumer awareness regarding infant health is expected to be the key factor driving the market. Moreover, heavy investments by prominent companies in emerging economies is anticipated to fuel the industry growth. The global infant formula market was valued at over USD 45.0 billion in 2016, with Asia being the dominant region.
Increasing number of middle-class households and number of working women are among the key reasons behind the growth of the infant formula market. Presence of numerous companies and resultant competition in this sector is likely to facilitate the usage of HMO in infant formula over the forecast period, boosting the market growth. High demand for dietary supplements owing to increased health consciousness is also expected to augment the market growth over the forecast period. HMOs in dietary supplements provide benefits, such as enhanced immune system and digestive comfort.
For example, DuPont Nutrition & Health’s CARE4U is used as a dietary supplement ingredient. The market witnessing intense competition due to the increasing number of market entrants. For instance, in June 2018, BASF announced that it will launch its HMO ingredient 2’FL by early 2019. Similarly, in June 2018, Abbott introduced its new infant formula product, Similac Eye-Q Plus with HMO, in Vietnam.
Further Key findings from the study suggest:
- In terms of revenue, the infant formula segment is expected to witness the fastest CAGR of 22.0% over the forecast period
- North America accounted for a share of over 80% in 2017, in terms of revenue on account of early adoption of the product and presence of numerous infant formula companies in the region
- Business expansion and product launch are the major strategies undertaken by major companies in the global HMO market.
- For instance, in November 2016, Inbiose NV partnered with DuPont Nutrition & Health and launched a new infant nutrition ingredient, based on complex carbohydrates found in human milk.