PROSPECTS AND OPPORTUNITIES
Value-led growth set to reshape the category
Over the forecast period, Australia’s baby food category is expected to transition from volume-led expansion to value-driven growth, shaped by declining birth rates, evolving parental expectations, and shifting nutritional paradigms. With national birth rates projected to remain below replacement level, the category will continue to face structural volume pressures, particularly within the core categories of standard and follow-on milk formula.
Health-led innovation driving growth in plant-based and alternative milk formula
Australia’s baby food market is undergoing a period of structural transformation, driven by rising health consciousness, dietary sensitivities, and growing demand for clean-label, easily digestible alternatives to cow’s milk. This has fuelled strong value growth in special baby milk formula, with plant-based products emerging as one of the most disruptive areas in the market.
Regulatory shift set to reshape the market
The Australian milk formula market is set to enter a new regulatory era following the ACCC’s 2025 decision to reject the extension of the MAIF Agreement, a voluntary code that had long restricted the marketing and promotion of infant formula to protect breastfeeding. While the ACCC reaffirmed the importance of breastfeeding, it concluded that the MAIF Agreement was no longer effective in supporting breastfeeding rates and lacked sufficient public benefit to justify ongoing commercial restrictions.
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Overview:
Understand the latest market trends and future growth opportunities for the Baby Food industry in Australia with research from Euromonitor International's team of in-country analysts – experts by industry and geographic specialisation.
Key trends are clearly and succinctly summarised alongside the most current research data available. Understand and assess competitive threats and plan corporate strategy with our qualitative analysis, insight and confident growth projections.
Data and analysis in this report provides further detailed coverage dedicated to a comprehensive range of core packaged food categories.
If you're in the Baby Food industry in Australia, our research will help you to make informed, intelligent decisions; to recognise and profit from opportunity, or to offer resilience amidst market uncertainty.
The Baby Food in Australia report includes:
- Analysis of key supply-side and demand trends
- Detailed segmentation of international and local products
- Historic volume and value sizes, company and brand market shares
- Five year forecasts of market trends and market growth
- Robust and transparent research methodology, conducted in-country
This report answers:
- What is the market size of Baby Food in Australia?
- Which are the leading brands in Baby Food in Australia?
- How are products distributed in Baby Food in Australia?
- How is the rise of e-commerce and/or the expansion of modern grocery retail impacting traditional retail?
- What are the key health and wellness concerns driving, or challenging, sales in Baby Food?
- How significant are vegan and vegetarian dietary requirements in determining sales growth in Australia?
- How has COVID-19 impacted consumer demand? To what extent have lockdown, home seclusion and stockpiling boosted sales? Will the longer term economic repercussions of the pandemic stimulate or suppress future growth?
- Where is future growth expected to be most dynamic?
- How significant will values-based claims, such as sustainability and ethical labelling, be in supporting future growth and brand equity?
Baby Food in Australia - Category analysis
KEY DATA FINDINGS
Baby food faces ongoing challenges amid demographic and behavioural shifts
Nutricia leads baby food while specialist products gain momentum
Supermarkets dominate sales but health and beauty specialists see growing appeal
Value-led growth set to reshape the category
Health-led innovation driving growth in plant-based and alternative milk formula
Regulatory shift set to reshape the market
Dairy Products and Alternatives in Australia - Industry Overview
Dairy products and alternatives in 2025: The big picture
Key trends in 2025
Competitive Landscape
Channel developments
What next for dairy products and alternatives?
DISCLAIMER
The following categories and subcategories are included:
Baby Food
- Dried Baby Food
- Prepared Baby Food
- Other Baby Food
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- Liquid Standard Milk Formula
- Powder Standard Milk Formula
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- Liquid Follow-on Milk Formula
- Powder Follow-on Milk Formula
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- Liquid Growing-Up Milk Formula
- Powder Growing-Up Milk Formula
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- Liquid Special Baby Milk Formula
- Powder Special Baby Milk Formula
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Baby Food
This is the aggregation of milk formula, prepared, dried and other baby food.
See all of our definitionsWhy buy this report?
- Gain competitive intelligence about market leaders
- Track key industry trends, opportunities and threats
- Inform your marketing, brand, strategy and market development, sales and supply functions
This report originates from Passport, our Baby Food research and analysis database.
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