Navigating the challenges of building a more resilient infant formula industry

Abstract

In 2022, U.S. consumers experienced an infant formula shortage that resulted in historic out-of-stock rates and brought renewed attention to market concentration in the infant formula market. FDA regulation, tariffs, and limiting WIC benefit redemption to a state's contract brand of infant formula, all potential barriers to competition, were temporarily relaxed to mitigate the impact of the shortage. This article discusses the potential trade-offs associated with permanent policy changes while highlighting opportunities for future research to support the development of policies to improve resiliency in the infant formula market.