Infant Formula Company Makes Bold Move Amid Low Birthrate Crisis: "We Will Now Prepare Meals for the Elderly"

The multinational food giant 'Nestl?,' famous for chocolate drinks and capsule coffee, is also a powerhouse in the infant formula industry. However, Nestl?'s baby food business is being shaken by the global trends of aging populations and declining birth rates. Amid this, Nestl? is reportedly positioning 'elderly meals' as its future growth engine.

On the 2nd (local time), the British financial media 'Financial Times' (FT) quoted Nestl? CEO Mark Schneider saying, "Meals for the elderly have become a major priority for Nestl?." Schneider's calculation is that "the global low birth rate will persist in the long term, and the population aged 50 and over will increase significantly over the next 10 to 20 years." In other words, new foods targeting the elderly, rather than baby food, are expected to expand the market going forward.

Nestl? is considered one of the largest companies in the global infant formula industry. [Image source=Nestl? website]

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CEO Schneider believes Nestl? can meet the needs required for the lives of those aged 50 and above. Nestl? is currently developing health foods for middle-aged and older adults, focusing on △maintaining target weight △preserving muscle mass △preventing micronutrient deficiencies △controlling blood sugar levels.

FT explained that Nestl? is not the only company expanding its main customer base to middle-aged and older adults. Recently, most food companies have been actively developing foods targeting the elderly. For example, Mars, known for processed chocolate products in the U.S., is diversifying its business into specialized nutrition, pet food, and coffee. Fresenius, a German healthcare company where CEO Schneider previously worked, has invested heavily in nutrition products such as fortified drinks, protein powders, vitamins, and supplements. It has also embarked on developing a peanut allergy treatment, the company's first pharmaceutical product in its history.

Nestl? is already regarded as a leader in the healthcare sector. FT reported that the adult and medical nutrition segment accounts for 30% of Nestl?'s business portfolio, a very high level compared to major competitor Danone's 20%. Meanwhile, infant formula accounts for about 15% of Nestl?'s total profit, much lower than Danone's 50%. This indicates that Nestl? has already succeeded in reducing its dependence on the baby food business.

However, CEO Schneider told FT, "Nestl? will not move away from the infant nutrition sector where it first started," but emphasized, "We know that in most countries worldwide, the bigger opportunity lies with middle-aged and elderly populations."

As the elderly population grows, the pet market is also expanding. Regarding this, CEO Schneider predicted, "As pets become 'fully qualified family members,' market premiumization will also progress." This means an increasing demand for 'premium pet consumer goods' such as high-quality pet food and customized nutritional supplements exclusively for pets.

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