Demand for major changes in the baby formula industry, impact on parents struggling with inflation
There is a demand for strict reforms regarding the rising prices of baby formula. The Competition and Markets Authority (CMA) has proposed a number of important changes to tackle this problem and help parents save up to £300 a year.
Why the high prices of baby formula are a cause for concern
Baby system costs have extended by using up to 25% inside the final two years, making it difficult for low-earnings households to manage to pay for it. Many parents need to compromise on their simple wishes in an effort to feed their youngsters.
Sophie Livingstone, CEO, Little Village (a Baby Bank service), said:
“Around 1 in 10 families we support are using diluted baby formula to make it last longer. The cost is so high that parents are already struggling with rising rent, energy bills and food costs.”
Key changes proposed by the CMA
To tackle expensive baby formula and confusing branding, the CMA has suggested the following steps:
1. Non-branded NHS baby formula
- The NHS could introduce its own baby formula, which could increase competition in the market and reduce prices.
- Only non-branded formula should be provided in hospitals, so parents are not forced to rely on a particular brand.
2. Clear packaging and labelling
Formula packaging should display nutritional information clearly.
Unproven claims about health benefits should be banned so parents are not misled.
3. Promoting cheap products
- Parents could save up to £300 a year by switching to cheaper baby formula brands.
- The NHS says that all baby formula brands meet the required nutritional standards, regardless of their price.
Why baby formula prices are not regulated
The CMA has not recommended putting a price cap on prices. Last year, this was considered, but eventually rejected.
Sarah Cardell, CEO of the CMA, said:
“Many parents make brand choices at a time when they are price sensitive, and often assume that more expensive formulas are better quality. But the NHS is clear that all baby formulas meet nutritional requirements.”
Who controls the baby formula market in the UK
The UK baby formula industry is dominated by three big companies:
- Danone
- Kendal
- Nestlé
These three companies control 90% of the market, leading to a lack of competition and higher prices.
The CMA believes that introducing non-branded options and increasing transparency will help reduce prices.
What happens next
The regulatory bodies will work with industry leaders, government bodies and consumer groups on ways to implement these recommendations.
Meanwhile, social organizations are urging the government to give clear guidelines to baby banks to ensure they safely provide baby formula to parents.
Conclusion
Many parents are facing difficulties due to the rising prices of baby formula. The CMA’s proposed changes could bring relief to parents, but with no direct control over prices the battle is far from over.
- NHS non-branded baby formula could reduce prices.
- Clearer labelling would give parents the right information.
- Switching to cheaper alternatives could save up to £300 a year.
However, unless strong policies are put in place, parents could be left with higher baby formula prices.
FAQs
How can parents save £300 on baby formula costs?
Using loyalty programs, bulk buying, and switching to supermarket brands can help reduce expenses.
Why are baby formula prices rising?
Inflation, supply chain issues, and increased production costs are driving prices higher.
Do government benefits cover rising formula costs?
Not fully—many parents find benefit payments insufficient to cover increased prices.