The price of baby formula is under investigation by the Competition and Markets Authority.
A report back in November found that prices had risen by 25% over two years and that the market was highly concentrated, with only two companies making up 85% of sales.
The CMA said that parents could save over £500 during the first year of a baby’s life by buying cheaper formula.
Sarah Cardell, CEO of the CMA, said:
Infant formula is a key part of the weekly shop for many parents across the UK, who rely on these products to ensure their baby gets all the essential nutrients they need.
Whilst it’s a positive sign that prices of some products have fallen since our update last November, the cost of infant milk remains at historically high levels. We’re concerned that parents don’t always have the right information to make informed choices and that suppliers may not have strong incentives to offer infant formula at competitive prices.
We are determined to ensure this market is working well for the many new parents who depend on infant formula and it’s essential that any changes we propose are based on evidence and a strong understanding of the market. That’s why we’ve now decided to take forward our work on infant formula as a market study, using our formal legal powers.
