March 16, 2026 – The European infant formula market is facing a variety of challenges, as well as opportunities for brands to innovate. Strict regulations shape the formula marketplace and place barriers around innovation. However, new technologies are enabling brands to reproduce particular compounds and nutritional elements that are present naturally in human breast milk. Clean label and packaging trends are also driving major shifts in the baby food market, highlighting opportunities for brands. Innova’s “Infant Formula in Europe Report” delves into the trends driving the market, as well as the benefits and ingredients that consumers expect in their infant formula.
What are the Major Issues and Opportunities in the European Baby Food Market?
Currently, in the European market, infant formula launches are stable, albeit at a lower level. The CAGR for formula launches remains negative and below launch rate growth for food and beverage products in the European market. Regulations also play a large role in defining the marketplace, by placing restrictions on both innovation and marketing.
Dairy remains the leading base for infant formula in Europe, but goat milk has also increased to 10% of total launches. The latter is promoted as easily digestible and rich in the nutrients found in human milk, signaling an innovation opportunity for brands. Rice and soymilk formulas account for the latest plant-based innovation, though this introduction was made back in 2020-2021. Any new plant-based ingredients will need to meet strict regulatory requirements before entering the infant formula market.
How are Regulations Shaping the Formula Marketplace?
Regulations are central to the baby food market, as the EU and its European Food Safety Authority (EFSA) closely regulates both the composition and marketing of formulas. Strict limitations can make innovation difficult, as new ingredients must be scientifically tested and approved before they are included in commercial formula options. This ensures consistency but impedes upon innovation. For example, the essential fatty acid docosahexaenoic (DHA) must be included in all infant and follow-on formulas.
Labeling and advertising must also not discourage breast feeding, as it is still noted as the preferred food for healthy infants. Regulations also make sure that key ingredient groups, from dairy and minerals to nutraceuticals and antioxidants, are added to all formulas.
How is Technology Enabling Better Replication of Milk in Infant Formulas?
Innova’s baby food trends research indicates that dairy remains the leading base for infant formula launches in the European market, but advanced ingredient technologies like precision fermentation are enabling the production of functional ingredients in formula products. This is significant, as many of these functional ingredients are already present in breast milk. These allow formula brands to better replicate breast milk, and leading ingredients include protein lactoferrin and human milk oligosaccharides (HMOs) which support immunity and gut health, respectively. Nevertheless, production using these technologies faces challenges in terms of time, cost, and quality assurance requirements in the baby food market. They will also need to follow EFSA regulations.
Which Key Health Benefits, Claims, and Ingredients are Gaining Ground?
When it comes to the key benefits and claims, DHA, omega-3s, immune health, and brain health are leading claims on infant formula. Clean label and lifestyle claims are increasingly popular, from palm free to vegetarian, and soy-free. In order to incorporate these desired benefits, new innovation strategies and sources are being employed by infant formula brands. For example, microalgae will likely impact infant formula trends in 2026, as it is being leveraged as a sustainable, plant-based source of omega-3 fatty acids, including DHA.
Protein is also a prominent claim, driving baby food trends. Forms of whey protein, such as concentrate, demineralized, and general are the top protein ingredients in the European infant formula market. Despite the fact that the CAGRs for launches with protein ingredients remains negative, the launch rates for alpha-lactalbumin and demineralized whey protein suggest the potential for growth if innovation continues.
What are the Latest Packaging Trends Impacting Infant Formula in the European Market?
In the European infant formula market, packaging is moving away from traditional tin formats to pouches for formula powders. According to Innova’s research, the growth of pouches is positive for brands, as it reduces shipping costs for manufacturers. This shift also minimizes the space required for both stores and consumers at home, and these include plastic pouches and aluminum flat pouches. Compared to liquid formulas, they are also more portable for parents, but they also require reconstitution before use.
What’s Next for Infant Formula Trends?
When considering future baby food trends and innovation opportunities, brands can anticipate a movement toward plant-based and marine sources of omega-3s. Brands can also expect a push towards expansion in HMOs and a continued demand for products that replicate human milk composition. Nevertheless, what will remain a challenge and opportunity for innovation is the continuation of regulation and formulation standards that will inform the new EFSA-approved ingredients and drive infant formula trends in 2026.
This article is based on Innova’s Infant Formula in Europe report. This report is available to purchase or with an Innova Reports subscription. Reach out to learn more.