Parents could be pocketing an extra £540 annually by swapping their premium baby milk formula for more economical alternatives. According to a fresh report from the Competition and Markets Authority (CMA) released this week, parents are suffering “poor outcomes” due to problematic practices within the baby milk sector.
It’s common for parents to stick with pricier formulas under the belief that budget-friendly brands are “inferior” despite all brands meeting the same nutritional standards, as stated by the CMA. The CMA’s analysis across various formula brands revealed that price differences can significantly weigh on parental wallets over the initial twelve months of a child’s life—especially given recent spikes in market prices.
The findings indicate that families can chop a neat £300 off their yearly expenses by opting for less costly offerings like Little Steps, which nutritionally match up to their higher-priced counterparts such as market leader Aptamil. Opting for Aptamil’s deluxe range, Aptamil Advanced, instead of something like Little Steps, leads parents to shell out an additional £540.
The CMA report revealed that the cost of many baby formula brands exceeds the weekly value of individuals’ benefits, leading some parents to reduce their food intake to afford the formula. The report highlighted that baby milk brands often supply hospitals with formula at below-market prices, as parents tend to remain loyal to the brand they initially use, reports the Mirror.
To help lower costs, the regulator suggests the NHS could offer its own non-branded baby formula to parents. The regulator also proposed that formula should be packaged plainly in hospitals and that parents should be permitted to purchase baby milk in supermarkets using loyalty points and vouchers.
However, it maintained that restrictions on price promotions and discounts on formula should stay in place to avoid discouraging breastfeeding. Formula milk is strictly regulated by UK law, both in terms of nutrients and recipes, and pricing.
To prevent the perception of baby formula being superior to breast milk, advertising it or applying discounts or promotions to it is illegal in the UK. The NHS advises mothers to exclusively breastfeed for six to eight weeks post-birth to fully establish their milk supply.
Following this period, the NHS suggests mothers wishing to combi-feed replace one of their baby’s regular daily feeds with a bottle. The Competition and Markets Authority (CMA) has highlighted a significant 25% surge in baby formula prices over the last two years, with Nestle, Kendamil, and Danone dominating 90% of the market.
Despite rising costs, the idea of price caps was notably absent from their report. The watchdog pointed out that the scarcity of manufacturers in the sector means there’s little motivation to compete on price, leading to shoppers bearing the brunt of any increased expenses, which are passed on “quickly” and in full.
In an effort to mitigate brand influence on new parents, the CMA’s report suggests that hospitals should provide formula in plain packaging. It also calls for clearer nutritional information on products sold in stores and a ban on unsubstantiated claims that parents can’t “easily” verify.
Moreover, the CMA recommends extending the advertising ban to encompass follow-on formula.
Sarah Cardell, the CMA’s chief executive, commented on the issue, stating that many parents “pick a brand at a vulnerable moment, based on incomplete information, often believing that higher prices must mean better quality”. She underscored this concern by referencing NHS guidance, which assures that all brands satisfy a baby’s nutritional needs, regardless of brand or cost.
Public health minister Ashley Dalton welcomed the findings, saying: “I welcome this report and would like to thank the Competition and Markets Authority for their thorough investigation. There are many benefits of breastfeeding but for those families that cannot or choose not to breastfeed, it is vital that they can access formula that is affordable and high quality.
“Families should not be paying over the odds to feed their babies because of outdated regulation. As part of our Plan for Change, we’re determined to ensure every child has the best start to life. We will carefully consider these recommendations and respond fully in due course.”
A representative for Danone, the company behind the Aptimol brand, commented: “We agree that not currently being able to collect loyalty card points when purchasing infant formula – or use them to purchase infant formula – penalises parents unjustifiably. It will now be important for government to consider how to take forward the CMA’s recommendations and we look forward to engaging with all stakeholders to ensure parents in the UK are supported as much as possible.”