United States Dairy Alternatives for Infant Market to Grow at 9.5% CAGR, Driven by Rising Milk Allergies, Vegan Trends, and Nutritional Innovation | DataM Intelligence

The global Dairy Alternatives for Infant Market reached USD 2,500 million in 2024 and is projected to reach USD 5,167 million by 2032, growing at a CAGR of 9.5% during the forecast period 2025-2032, according to DataM Intelligence.

United States: Recent Industry Developments

✅ In October 2025, Abbott Nutrition launched a new extensively hydrolyzed soy-based infant formula for babies with cow's milk protein allergy.
✅ In October 2025, the FDA approved new safety standards for plant-based infant formulas, ensuring nutritional adequacy and contaminant control.
✅ In October 2025, Danone North America introduced a new organic, oat-based infant formula with added prebiotics and probiotics for digestive health.

Japan: Recent Industry Developments

✅ In October 2025, Meiji Holdings launched a new rice-based infant formula specifically designed for infants with multiple food allergies.
✅ In October 2025, the Japanese Ministry of Health established new regulatory guidelines for amino acid-based elemental formulas for severe milk allergies.
✅ In October 2025, Morinaga Milk Industry developed a novel low-allergenicity soybean variant for infant formula production.

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Market Trends & Drivers

The Dairy Alternatives for Infant Market is experiencing significant growth driven by rising incidence of cow's milk protein allergy, increasing vegan population, and growing parental preference for plant-based nutrition. Key trends include the development of hypoallergenic formulations, organic and clean label products, and specialized formulas for specific dietary needs. The growing awareness of food allergies, concerns about dairy intolerance, and advancements in nutritional science are significantly accelerating market expansion.

Competitive Landscape

The market features strong competition among infant nutrition companies, pharmaceutical manufacturers, and specialty food producers.

Abbott Laboratories leads in specialized infant nutrition with its Similac Alimentum and EleCare hypoallergenic formulas.
Nestlé S.A. dominates with its Gerber and Alfamino specialized infant formula portfolios for allergic infants.
Danone S.A. (through its Nutricia and Happy Family brands) provides extensive dairy-free alternatives including amino acid-based formulas.
Reckitt Benckiser Group (Mead Johnson Nutrition) offers Enfamil Nutramigen and PurAmino for milk protein allergies.
Perrigo Company PLC manufactures store-brand infant formulas including dairy-free options for major retailers.
Meiji Holdings Co., Ltd. specializes in Asian-market tailored dairy alternatives for infant nutrition.
Morinaga Milk Industry Co., Ltd. develops specialized formulas for infants with multiple food allergies.
Else Nutrition Holdings Inc. focuses on clean-label, plant-based complete nutrition for infants and toddlers.
Sprout Organic Foods provides organic, plant-based early childhood nutrition products.
Little Spoon offers customized, fresh baby food including dairy-free options through direct-to-consumer model.

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Segmentation

By Product Type (Soy-Based Formulas, Hypoallergenic Formulas, Lactose-Free & Low-Lactose Formulas, Others)
By Stage (Stage 1 - Infant Formula (0-6 months), Stage 2 - Follow-on Formula (6-12 months))
By Distribution Channel (Online, Offline)
By Category (Organic, Conventional)

Regional Analysis:

⇥ North America (U.S., Canada, Mexico)
⇥ Europe (Germany, U.K., France, Italy, Spain, Netherlands, Rest of Europe)
⇥ Asia-Pacific (Japan, China, India, Australia, South Korea, Rest of Asia Pacific)
⇥ South America (Brazil, Argentina, Chile, Rest of South America)
⇥ Middle East & Africa (Saudi Arabia, U.A.E., South Africa, Rest of Middle East & Africa)

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