The UK’s Competition and Markets Authority (CMA) has recently launched a “market study” into the supply of infant formula in the country. The study comes after the CMA discovered that prices of infant formula had risen by 25% over the previous two years. This marks an important development in the food and beverage industry trends, and sheds light on food and drink consumer trends. The CMA “will now be able to use its compulsory information gathering powers, rather than rely on firms providing information voluntarily,” indicating a proactive approach to gathering relevant data.
The study will focus on the majority of infant formula sold in the UK, which is marketed by two companies – Nestlé and Danone. This market dominance raises concerns about competition and consumer choice, which are crucial factors in the food and drink business. Notably, the CMA intends to conduct the study “as swiftly as possible” and publish its report in September, demonstrating a commitment to addressing these issues promptly.
CMA CEO Sarah Cardell emphasized the importance of ensuring that the infant formula market is working well for consumers, stating, “we are determined to ensure this market is working well for the many new parents who depend on infant formula.” This underscores the regulator’s goal of protecting consumer interests and fostering a competitive, transparent market environment. The report will also investigate barriers to entry and marketing regulations within the sector, key focus areas for business and market development.
