Concentration in the Market for Infant Formula: Causes, Symptoms, and Remedies

Abstract

This scholarship argues that the widespread shortages resulting from the February 2022 recall of several infant formula brands following the closure of Abbott’s Sturgis plant are emblematic not of an acute market hiccup, but rather of a series of anti-competitive policy measures decades in the making. Using the aforementioned punctuating event as a guidepost, this analysis reviews the critical role that quality regulations, import restrictions, and procurement protocols within the WIC program play on concentration within the market for infant formula