(Bloomberg) -- The UK’s competition watchdog has raised further concerns that British families are paying too much for infant formula, despite choosing not to escalate its probe earlier this year.
Unlike with other foods, “there is little pressure on manufacturers or retailers to shelter customers from increases in manufacturing costs, which have largely been passed on quickly and in full,” the Competition and Markets Authority said Friday.
French dairy group Danone SA, Kendal Nutricare Ltd. and Swiss food giant Nestle SA dominate the formula market in the UK with a market share of more than 90%. According to a CMA analysis, the price of branded formula rose by between 18% and 36% between December 2021 and December 2023
The CMA also highlighted the concerns that stressed parents often first choose infant formula when emerging from hospital, and must select from a confusingly similar array of bands without clear access to impartial information. It says it will now consult with government and industry before making final recommendations early next year.
(Updates with latest pricing figures in the third paragraph)
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