From 2025 to 2030, the Australia baby formula market is expected to add USD 45.0 million in value, implying a compound annual growth rate just below 3.5%. This expansion will be driven primarily by value rather than volume, as retail sales volumes continue to face structural pressure from a declining birth rate and a shrinking population of children aged 0–36 months. Despite these headwinds, current-value sales have remained resilient, supported by product premiumisation and the increasingly complementary role of formula alongside breastfeeding. Under the strain of balancing work and childcare, modern parents are more inclined to use formula as a supplement when breast milk supply is insufficient, reinforcing the category’s essential status even as overall usage intensity moderates.
Within the category, baby formula continues to be the main contributor to value growth across infant nutrition, reflecting accelerated innovation and trading-up behaviour. Demand is expanding most visibly in goat milk, plant-based alternatives and specialist formulas, as digestive comfort becomes a central purchase criterion. Goat milk formula, in particular, is gaining traction due to perceptions of gentler digestion linked to smaller fat globules and higher oligosaccharide content, resonating strongly with parents of infants with sensitivities. Growing-up formulas are also extending their reach, with brands introducing age-specific solutions for toddlers and pre-schoolers that target immunity, cognitive development, bone health and gut comfort, effectively lengthening the consumption lifecycle to offset infant-stage volume decline. Meanwhile, plant-based innovation is moving beyond traditional soy, incorporating proteins such as rice, pea, almond, buckwheat and coconut to address lactose intolerance, cow’s milk protein allergy and flexitarian preferences, while emphasising bioavailability and closer alignment with breast milk functionality.
Consumer behaviour is increasingly selective and quality-driven. Parents are placing greater emphasis on ingredient purity, safety assurances and functional nutrition, fuelling strong demand for premium organic, A2 protein, goat milk and medical or specialist formulas, particularly among first-time parents and higher-income households. Brands are responding by strengthening clean-label positioning, highlighting certifications and reinforcing science-led claims to build trust and sustain loyalty in a market where perceived risk aversion around infant feeding remains high.
Distribution dynamics reflect both cost pressures and health-led differentiation. Supermarkets remain the dominant channel, benefiting from one-stop shopping convenience, high footfall and competitive pricing, especially as families seek to integrate formula into routine grocery purchases amid cost-of-living pressures. At the same time, health and beauty specialist retailers are emerging as the fastest-growing channel, leveraging professional credibility, expert guidance and loyalty programmes to attract millennial and Generation Z parents. These outlets are expanding assortments of organic, allergy-friendly and functionally enhanced formulas, capitalising on their health-oriented positioning. Looking ahead, growth will increasingly hinge on deepening value per child rather than expanding volumes. Regulatory shifts granting greater flexibility in digital marketing and health communication are likely to lift the visibility of specialist, digestive-health and plant-based innovations, although brands will need to balance commercial ambition with responsible, evidence-based messaging to maintain public trust in an increasingly premiumised and competitive market.
Offering a deep dive into the baby formula industry in Australia, this report – updated in 2025 – features market data from 2020 onward and projections to 2030. It equips professionals with actionable insights based on a robust data foundation for strategic assessment and planning.
What’s Inside the Report
Annual market size figures expressed in (Tons/AUD/USD), spanning 2020 to 2030. The dataset includes both historical actuals and forecasts, along with CAGR calculations for historical and projected periods.
Market Segmentation
The Australia baby formula market is categorized into the following segments:
Product type – e.g., standard infant formula, follow-up formula, growing-up formula, special formulas
Packaging type – e.g., carton bottles, flexible packaging, metal cans and bottles, paper containers
Distribution channel – e.g., e-commerce, supermarkets, others
Macroeconomic & Demographic Indicators
In addition to core market data, the report incorporates key socio-economic indicators that provide essential context for interpreting market dynamics. These include population trends, the Consumer Price Index (CPI), Gross Domestic Product (GDP), per capita consumption (expressed in USD), and consumer spending as a percentage of GDP. Together, these metrics offer a macroeconomic backdrop that enhances the strategic relevance of the market size figures, helping stakeholders better assess demand potential and long-term growth opportunities.
Competitive Landscape: Market Share Analysis
This section delivers market share statistics for the baby formula market in Australia, helping readers assess brand performance and competitive dynamics. Leading players featured include: Bubs Australia Ltd., China Mengniu Dairy Company Limited, Danone S.A., Lactalis South Africa (Pty) Ltd., Nestle S.A., The a2 Milk Company Limited, etc.
This report provides market share data for leading players in the overall baby formula market, as well as in key segments including infant formula, standard infant formula, follow-up formula, growing-up formula and special formulas.
Market share analysis covered in the report:
Australia infant formula market share
Australia standard infant formula market share
Australia follow-up formula market share
Australia growing-up formula market share
Australia special formulas market share
Why Choose This Report?
Designed as a concise, data-rich market snapshot, this report is ideal for stakeholders seeking timely, reliable, and strategic insights. Whether you’re an investor, operator, consultant, or supplier, the data-driven structure supports confident, evidence-based decision-making.
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Deliverables Include
Professionally structured PDF report
Full EXCEL databook with year-by-year figures and multi-dimensional segmentation from 2020 to 2030
Table of Contents
TABLE OF CONTENTS
Market Segmentation
Market Overview
Australia Baby Formula Market – Product Type Analysis
Australia Baby Formula Market – Packaging Type Analysis
Australia Baby Formula Market – Distribution Channel Analysis
Company Shares Analysis
Bubs Australia Ltd.
China Mengniu Dairy Company Limited
Danone S.A.
Lactalis South Africa (Pty) Ltd.
Nestle S.A.
The a2 Milk Company Limited
Macroeconomic Data and Forecast
Research Methodology
Disclaimer
FIGURES AND TABLES
Table Australia Baby Formula Market 2020-2030
Chart Australia Baby Formula Market, Net Growth, 2020-2030
Chart Australia Baby Formula Market, Growth Rates, 2020-2030
Table Australia Baby Formula Market by Product Type, 2020-2030
Chart Australia Baby Formula Market by Product Type, CAGR Historic and Forecast, 2020-2030
Chart Australia Baby Formula Market by Product Type, 2020-2030
Table Australia Baby Formula Market by Packaging Type, 2020-2030
Chart Australia Baby Formula Market by Packaging Type, CAGR Historic and Forecast, 2020-2030
Chart Australia Baby Formula Market by Packaging Type, 2020-2030
Table Australia Baby Formula Market by Distribution Channel, 2020-2030
Chart Australia Baby Formula Market by Distribution Channel, CAGR Historic and Forecast, 2020-2030
Chart Australia Baby Formula Market by Distribution Channel, 2020-2030
Table Australia Baby Formula Market Share (%), by Companies, 2020-2025
Chart Australia Baby Formula Market, by Companies, 2025
Table Australia Baby Formula Market Share (%), by Brands, 2020-2025
Chart Australia Baby Formula Market, by Brands, 2025
Table Australia – Population (Millions) and Forecast
Table Australia – Consumer Price Index (CPI) and Forecast
Table Australia – Gross Domestic Product and Forecast
Table Australia Baby Formula Market: Spend as a Proportion of GDP (%)
Table Australia Baby Formula Market: Consumption per Capita (Population)