Meiji Holdings is planning to enter the $5.9 billion U.S. baby formula market, joining Nestle SA, Danone DA and other global giants seeking to supply powdered milk to ease a national shortage.

Japan¡¯s largest maker of baby formula has applied to the Food and Drug Administration for authorization to export to the United States, including specialized formula and its portable cube-shaped powder milk, Shinichirou Tanaka, manager of Meiji¡¯s global infant nutrition business, said in an interview.

Parents in the U.S. are struggling to find baby formula amid a nationwide shortage, prompting President Joe Biden to invoke emergency powers under the Defense Production Act to speed production of formula and use government planes to import ingredients and formula. At the same time, the deaths of infants suspected to be tied to contaminated formula earlier this year has also fueled concerns over the quality of products.

¡°The opportunity rolled in unexpectedly, and we really want to give it a try,¡± Tanaka said, adding that the cost and quality of Meiji¡¯s products are competitive. A container of 800 grams of formula costs about $15 in Japan, while a 350-gram can of Abbott¡¯s Similac retails for about $17.50 on Walmart¡¯s website. ¡°We are scraping together inventory for the U.S. market.¡±

The FDA has temporarily relaxed its rules until Nov. 14 to import more supplies of powdered milk. Global baby formula providers including Nestle, Danone, and Abbott Laboratories have already secured permission to sell formula manufactured overseas in the U.S. The current environment provides a good entry point for brands outside of the country to gain access into the lucrative market, according to Bloomberg Intelligence analyst Ada Li.

¡°If the regulator approves entry, there will be opportunity for new entrants like Meiji,¡± Li said. Even so, ¡°it will be incredibly difficult to compete head-on with giants such as Reckitt Benckiser Group PLC, Abbott and Nestle, which have dominated the U.S. market for decades,¡± because demand for baby formula is very sticky and consumers don¡¯t easily switch products, she said.

Meiji, which has been focusing on expanding sales in Asia, sees a chance to build a new source of income. In its home market of Japan, the nation¡¯s low birthrate has translated into shrinking sales of powdered milk for babies. Even so, Meiji¡¯s nutrition business, which includes formula and liquid food for the elderly, grew 7.8% to ?110 billion ($806 million) for the fiscal year ended March, making up 11% of total revenue.

Meiji also sells baby formula in Asia, including in Vietnam and Taiwan. The company, which also manufactures and markets dairy products, chocolates and beverages, is planning to export to the U.S. powdered milk made at its factory in Saitama Prefecture,...