The Competition and Markets Authority (CMA) has identified concerns in the infant formula market, including unintended consequences of regulations, lack of clear information for parents, companies' responses to marketing regulations affecting pricing, and limited competition leading to high prices.

The CMA found that regulations intended to support public health goals have inadvertently contributed to higher prices for consumers. Companies cannot promote formula prices due to regulations, leading to reliance on brand-building and marketing to differentiate products.

Parents often choose infant formula without access to clear information, leading to decisions based on brand reputation and assumptions that higher prices mean better quality, despite NHS advice that all formulas meet babies' nutritional needs equally.

Regulations on labelling and advertising aim to prevent confusion between infant and follow-on formulas, but evidence shows that similar branding and marketing strategies blur the distinction, potentially influencing parents' choices.

The CMA is considering various options to address these issues, such as providing better information to parents, incentivizing price competition, clarifying existing regulations, and strengthening labelling rules to reduce the impact of branding on decision-making.