The infant nutrition industry navigated a complex market environment in 2024, with our infant formula cost model reflecting the intricate balance of specialized dairy proteins, premium oils, and functional ingredients required for these sensitive products.

The dairy protein segment showed divergent trends critical to infant formula manufacturers. While standard milk powders remained relatively stable, with European SMP production declining by 3.67% YoY, specialty ingredients like demineralized whey powder and high-protein concentrates saw increased pressure. The shift in dairy processing towards whey proteins for sports nutrition created additional competition for key ingredients, particularly affecting specialty grades suitable for infant nutrition.

Oil blends saw significant volatility, with specific challenges in high-oleic oils. Palm oil prices surged from 800 to 1056 USD/MT, while coconut oil prices doubled, impacting specialized fat blend costs. This was particularly relevant as manufacturers maintain strict specifications for infant formula fat compositions, limiting their ability to substitute ingredients.

Lactose markets provided some stability, benefiting from improved production and relatively steady demand. However, competition for high-grade lactose suitable for infant nutrition remained strong, maintaining premium pricing for pharmaceutical-grade products.

In 2025 the industry faces multiple challenges ahead. The implementation of EUDR will affect sourcing strategies for palm oil and other tropical fats, potentially requiring supply chain adjustments. Continued pressure on specialty dairy proteins is expected as competition intensifies across nutrition sectors. Manufacturers must balance these cost pressures against the strict quality and regulatory requirements inherent to infant nutrition, while maintaining the exacting standards this sensitive category demands.

What’s inside this report

For a deeper dive into the trends that defined 2024 and the forces shaping 2025, our full report provides detailed insights into:

  • Dairy
    • Raw Milk
    • Skimmed Milk Powder (SMP)
    • Whole Milk Powder (WMP)
    • Specialty Proteins
  • Oils & Fats
    • Palm Oil
    • Coconut Oil
    • Soybean Oil
    • Other Vegetable Oils
  • Sweeteners and Additives
    • Sugar
    • Glucose
    • Alternative Sweeteners
  • Energy Markets

Each section offers comprehensive data and analysis, helping you navigate the complexities of the dairy market and make informed decisions for the year ahead.

Download the full report now to stay ahead of the curve and uncover actionable insights for 2025: https://vespertool.com/downloads/downloads-eoy-report-infant-nutrition-2024/