The Competition and Markets Authority (CMA) has today launched a market study into the supply of infant formula in the UK, <a href="https://www.gov.uk/government/news/cma-sets-out-autumn-update-in-review-of-competition-in-groceries-sector" class="govuk-link">after publishing its initial findings</a> and committing to look at the sector in further detail in November last year.By launching a market study, the CMA will now be able to use its compulsory information gathering powers, rather than rely on firms providing information voluntarily. Any recommendations to government resulting from the work will now also have a formal status.The CMA intends to conduct the market study as swiftly as possible and with the intent of publishing a final report in September 2024. As outlined in the invitation to comment, the CMA’s infant formula market study will gather additional evidence on:Following this, it will consider whether there are problems in the market and, if so, what actions could or should be taken to address these. This could include making recommendations to government – for example, on the regulations governing how infant formula is marketed, or on the information provided to parents to help them choose an infant formula brand.Today’s update follows the CMA’s Autumn 2023 report into <a href="https://www.gov.uk/government/publications/price-inflation-and-competition-in-food-and-grocery-manufacturing-and-supply" class="govuk-link">price inflation and competition in the Groceries sector</a>, which found that the average price of infant formula had risen by 25% over the previous 2 years and that families could make significant savings of more than £500 over the first year of a baby’s life, through buying cheaper infant formula options.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.More information is available on the CMA’s <a href="https://www.gov.uk/cma-cases/infant-formula-and-follow-on-formula-market-study" class="govuk-link">Infant Formula Market Study</a> case page.

CMA Launches Market Study on Infant Formula Supply

The Competition and Markets Authority (CMA) has commenced a market study on the infant formula market in the UK, utilizing its compulsory information gathering powers to investigate pricing and information provision to parents. The study, set to conclude in September 2024, will assess market issues and potentially recommend regulatory changes. The CMA's CEO expressed concerns about high prices and lack of information for parents, prompting the need for evidence-based proposals through the market study.

CMA Launches Market Study on Infant Formula Supply

The CMA has initiated a market study on the infant formula supply in the UK, aiming to address concerns about pricing and information available to parents.