Baby formula prices at historic high despite UK watchdog proposals

The Guardian

29-05-2025

Baby formula prices remain close to historic highs more than 18 months after the UK competition watchdog began an investigation into the market, with the government a week late in responding to its proposed remedies.
The cost of infant formula fell only 50p on average last year, to £11.99 a tin, compared with £11.10 in 2021, with the most expensive priced at £18.
The products are out of reach for those entitled to the government's Healthy Start allowance designed to help poorer families, according to the First Steps Nutrition Trust campaign group. Most baby formula products have not changed price in the past year.
Dr Vicky Sibson, the director of the trust, said: 'You can see that despite being exposed for maintaining 50-75% profit margins, the big brands are maintaining high prices, which we think is shameful.'
The exceptions are two supermarket own-label products, with Lidl and Aldi offering formula at £6.99.
The Competition and Markets Authority proposed in February several measures to help parents, which it said could allow them to save £300 a year by switching to a lower-priced brand.
The government, which was due to publish a response more than a week ago, has yet to outline its plans for the market. However, a Department of Health and Social Care spokesperson said: 'There are many benefits of breastfeeding but for those mothers that cannot or choose not to breastfeed, it is vital parents can access infant formula that is affordable and high quality. Families should not be paying over the odds to feed their babies.
'As part of our plan for change, we're determined to ensure every child has the best start to life. We are working closely with the devolved governments to carefully consider these recommendations and will respond fully in due course.'
The CMA's recommendations included standardised packaging in hospitals and other healthcare locations to tackle the power of marketing on new parents and allowing families to use gift vouchers and loyalty card points to buy formula milk.
Until now, advertising of baby formula, as well as price reductions and deals, have been restricted to avoid discouraging breastfeeding.
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While shoppers tend to seek out cheaper options on most products, parents are reluctant to change brands when it comes to formula, where there are only the two supermarket own-label alternatives to the big brands.
Two companies, Danone and Nestlé, account for 85% of sales, with few parents aware that baby formula is tightly regulated so that all products meet babies' nutritional and safety needs.
The CMA launched its study into the infant formula market after finding that manufacturers raised prices by 25% in two years and managed to increase profit margins during the cost of living crisis.