The baby food market needs a change to help parents who can’t afford it, according to the UK’s competition watchdog.

An interim report by the Competition and Markets Authority (CMA) said there were “limited incentives” for the sector to compete on price and parents were suffering the consequences of high prices.

The watchdog had previously reported that there had been a 25% increase in prices in the last two years and that just three companies (Nestle, Kendall and Danone) controlled 90% of the market.

Her suggestions include a call for better public health messaging and clarity for parents trying to choose between different brands.

The CMA also confirmed that it was examining the impact of a price cap, but said it was not recommending a price cap at this time.

“The CMA provisionally finds that, unlike many other grocery categories, there is little pressure on manufacturers or retailers to protect customers from increases in production costs, which are largely reflected quickly and fully,” the report said.

Sarah Cardell, CMA’s chief executive, said: “This is a very important and unique market.”

“We are concerned that companies are not competing strongly on price, and that many parents choosing baby food under sensitive circumstances and without clear information are opting for more expensive products, pairing higher costs with better quality for their babies.”

“We have identified options for change but now want to work closely with governments and other stakeholders across the UK as we develop our final proposals.”

The CMA expects to publish a final report in February. At the beginning of this year the regulator Announced that he will inspect baby food prices amid concerns that it remains “historically high.”

His decision to launch a market study gave him the authority to demand that suppliers provide detailed information about pricing and other practices.

Previously, the CMA relied on voluntary applications from suppliers.

Responding to the interim report’s findings, a Danone UK spokesperson said: “We are considering the CMA’s interim report carefully and will work with the CMA as it develops its final findings and recommendations. In Danone’s experience, the UK formula milk market is competitive and dynamic, with world-leading research and “We will continue to work constructively on ways we can continue to deliver value to parents through continued investment in innovation.”

World Health Organization (WHO) in 2023 Called on governments to take action on rising baby food pricesThis was said to be “exploiting” families in the UK.

In an interview with Sky News, the WHO criticized multinational manufacturers for “manipulating prices” to increase profits from baby food.

Research at the time showed that food prices in the UK had risen by 24% in the last two years, with the lowest cost brands seeing a 45% increase in that period.

WHO is calling on governments to step in and ease the burden on struggling families by finding ways to reduce prices in stores.

The head of baby feeding charity Feed said in a statement that the CMA’s latest work was a welcome intervention.

“The rising cost of baby food in recent years has hit those who can afford it the hardest. We know that some mothers make sacrifices to buy premium brands because they believe it is best for their baby, and the guilt of not breastfeeding can have a negative impact on breast milk. plays a key role in purchasing decisions,” said Clare Murphy.

“This needs to end.”

Ultimately, Ms. Murphy added, these proposals alone “cannot fix the broken system that is failing both women and their babies.”

“We need an infant feeding framework that reflects the real experiences of families… We call on the government to take action.”

Sky News has previously reported the extreme measures some parents are taking to feed their babies, including stealing formula, buying it on the black market, diluting bottles or using condensed milk. Former prime minister Rishi Sunak He described the situation as “sad” In that case.

WHO technical officer Laurence Grummer-Strawn told Sky News: “It is shocking to see a high-income country like the UK facing situations where mothers cannot afford to feed their babies.”

When asked if this constituted abuse, Grummer-Strawn said: “Yes, I think we can say that when we see that these prices are pushed towards the consumer and they are forced to pay extremely high prices.”

A number of supermarkets and brands have already slashed prices on baby milk products in response to growing anger.

In January 2024, Asda and Tesco join Sainsbury’s and Iceland Aptamil helps reduce the cost of infant formula.

Asda also said it will allow customers to pay for baby food using rewards program vouchers for the first time.

Richard Walker, chief executive of Island Foods, said: “We have a moral obligation to act.”

“The Prime Minister said o ‘Sad’ families dilute the food “We are trying to make it last longer, but these are still just words and Iceland is taking further steps today.”

You can receive breaking news alerts from your smartphone or tablet. Sky News app. You can also follow @SkyNews on X or subscribe to us YouTube channel To follow the latest news.