CMA Warns UK Consumers Are Paying Too Much for Infant Formula

The UK’s Competition and Markets Authority (CMA) has issued a warning that UK consumers are being charged “over the odds” for baby formula, with prices rising by between 18% and 36% from December 2021 to December 2023. The CMA’s interim report highlights concerns that many parents, often in vulnerable situations, are choosing more expensive baby formula products due to misleading marketing and the misconception that higher prices equate to better quality.

To address these issues, the CMA has proposed several measures aimed at increasing competition in the sector, including allowing companies to promote price reductions, reinforcing existing regulations, and improving parental education. CMA chief executive Sarah Cardell emphasized the need for stronger price competition, noting that many parents may not have clear information and thus opt for pricier options, believing they are of higher quality.

The report also pointed out that marketing practices, such as using similar packaging branding, have made it harder for parents to differentiate between products. This is partly due to advertising restrictions that prevent formula companies from offering discounts or promotions, in an effort to encourage breastfeeding.

Furthermore, the CMA discovered that supermarket own-label baby formula, which is typically cheaper, accounted for less than 5% of the market, while major brands like Danone, Nestlé, and Kendal Nutricare dominate over 90% of the UK’s baby formula supply.

In response, Danone UK and Ireland stated that the market remains competitive and dynamic, while Nestlé emphasized its commitment to providing affordable, accessible products to support families’ nutrition needs. The CMA is currently consulting on its provisional findings and options to gather input from the government and stakeholders, with final recommendations expected early next year.