Regulators have proposed sweeping changes for the baby formula industry, saying high prices and branding are leading to “poor outcomes” for parents.
In its final report on surging prices in recent years, the Competition and Markets Authority (CMA) said parents could be saving £300 annually by switching to lower-priced brands that offered the same nutritional benefits.
But the watchdog stopped short of recommending that bans on price promotions be overturned.
It cited government rulings on encouraging breastfeeding but said it was ready to re-examine the issue if asked.
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The report was released nearly two years after Sky News revealed, at the height of the cost of living crisis inflation peak, how a black market had evolved as desperate families struggled to feed their babies.
Parents openly described having no choice but to steal products to keep their child alive as prices spiked across the economy – largely driven by unprecedented energy costs.
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Desperate parents are stealing baby formula
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From May 2023: Parents stealing formula
The CMA has previously reported a 25% increase in prices over the past two years, with just three companies – Nestle, Kendamil and Danone – controlling 90% of the market.
The watchdog had determined that the lack of manufacturers meant there was no incentive to compete on prices which, it said, had meant that additional factory costs had been passed on “quickly” and in full to shoppers.
The CMA, which has no powers to bolster competition by forcing an increase in formula producers, said its four main recommendations were aimed at delivering better outcomes for parents on both choice and price.
Packaging, it argued, should be standardised to provide “clear information to parents in healthcare and retail settings on the nutritional sufficiency of all infant formula; making it easier to compare prices of different brands”.
It also recommended extending the ban on advertising to include follow-on formula; and allowing parents to use vouchers and loyalty points to buy infant formula.
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