UK CMA Reports on High Baby Formula Prices

The UK's Competition and Markets Authority (CMA) has launched an investigation into the baby formula market, highlighting that parents can spend up to £700 in the first year of their baby's life due to rising prices, which have increased by 25% over the past two years. The CMA noted that two companies, Danone and Nestlé, dominate the market, controlling 85% of sales, while retailers lack incentives to negotiate lower prices. Recommendations to alleviate this burden include the government offering a low-cost formula under an NHS brand and possibly introducing price caps to foster competition. The CMA is concerned that parents are often misled into thinking that higher-priced formulas are of better quality, which exacerbates financial strain on families. Their interim report will guide further actions, with a final report expected early next year. The watchdog also suggests enhancing public health messaging to support informed choices among parents.