Parents across the UK are struggling to afford baby formula as prices continue to rise, outpacing government support programs.
The Competition and Markets Authority (CMA) has proposed major reforms to tackle high costs and misleading branding, potentially saving parents up to £300 per year.
Let’s break down why baby formula prices are a growing concern, what changes regulators are recommending, and what parents can expect moving forward.
Why Are Baby Formula Prices a Concern?
Over the past two years, baby formula prices have increased by 25%, making it even harder for low-income families to keep up. Many parents now spend more on formula than the value of government benefits designed to support them.
Some families are being forced to make dangerous compromises to cope with these rising costs. Sophie Livingstone, CEO of Little Village, a baby bank service, warns:
“Nearly one in 10 families we support are watering down formula to make it last longer. The cost is simply too high, adding pressure when families are already struggling with housing, energy, and food expenses.”
Key Changes Proposed by the CMA
To help parents manage costs and ensure fair pricing, the CMA has recommended several key changes:
1. NHS Non-Branded Baby Formula
- The NHS could introduce its own non-branded baby formula to lower costs.
- Hospitals should provide generic formula instead of promoting specific brands to new parents.
2. Clearer Packaging and Labeling
- Nutritional information should be clearly displayed on formula packaging.
- Misleading health claims about one brand being superior to another should be banned.
3. Encouraging Lower-Priced Products
- Parents could save up to £300 per year by switching to cheaper baby formula brands.
- The NHS confirms that all baby formulas meet required nutritional standards, regardless of brand or price.
Why Isn’t There a Price Cap?
Despite widespread concerns, the CMA has not recommended a price cap on baby formula. Last year, regulators considered introducing price controls, but ultimately decided against it.
Sarah Cardell, CEO of the CMA, explains:
“Many parents pick a brand at a vulnerable moment, based on incomplete information, often believing that higher prices mean better quality. But NHS advice confirms that all formulas meet the required nutritional standards.”
This highlights a major issue—parents often pay more than necessary because of marketing tactics rather than actual nutritional differences.
Who Controls the Baby Formula Market?
The UK baby formula market is controlled by three major companies:
| Company | Market Share |
|---|---|
| Danone | 40% |
| Nestlé | 35% |
| Kendal | 15% |
Together, these brands control 90% of the market, limiting competition and keeping prices high. This lack of competition means parents often have no choice but to pay high prices, even though all formulas provide the same basic nutrition.
What Happens Next?
The CMA will continue working with:
Government bodies to explore regulations for better pricing.
Industry leaders to encourage fairer pricing and transparency.
Consumer advocacy groups pushing for better access to affordable formula.
Additionally, campaigners are urging the government to provide clearer guidance on how baby banks can safely supply formula to struggling families.
With baby formula prices soaring, the CMA’s proposed reforms could offer much-needed relief to parents. By introducing non-brand options, improving labeling, and promoting lower-cost products, regulators hope to reduce financial pressure on families while ensuring babies receive proper nutrition.
However, the lack of a price cap means the fight for fairer baby formula pricing is far from over. Parents and advocacy groups will need to continue pressuring the government for stronger protections against price exploitation.
If you’re struggling with formula costs, consider checking NHS recommendations, exploring cheaper brands, and seeking support from local baby banks or charities. Every parent deserves affordable and accessible baby nutrition.
