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Market Consolidation and Disparities in Infant Formula Sales: Economic Insights from COVID-19 and the 2022 Formula Shortages

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  • Li, Mengjie
  • Andreyeva, Tatiana

Abstract

Breastfeeding offers significant health benefits, yet only 25% of U.S. infants meet exclusive six month recommendations. A stable formula supply is essential for formula-fed infants, but market consolidation makes it vulnerable to disruptions. Using NielsenIQ Retail Scanner Data, this study evaluates the impacts of COVID-19 and the 2022 formula shortage on infant formula purchases. The pandemic increased formula sales by 14.8%, with greater impacts in low-income and rural areas, while the 2022 shortage led to a 24.3% decline, disproportionately affecting low-income and highly consolidated markets. Findings highlight the need for regulatory reforms to strengthen formula supply chain resilience and reduce disparities.

Suggested Citation

  • Li, Mengjie & Andreyeva, Tatiana, 2025. "Market Consolidation and Disparities in Infant Formula Sales: Economic Insights from COVID-19 and the 2022 Formula Shortages," 2025 AAEA & WAEA Joint Annual Meeting, July 27-29, 2025, Denver, CO 360894, Agricultural and Applied Economics Association.
    • Handle: RePEc:ags:aaea25:360894
    DOI: 10.22004/ag.econ.360894
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