pregnant woman

With Baby Formula Hard to Find, Retailers and Producers Shift Blame



Manufacturers and Top Retailers Acknowledge Shortage, Point Fingers at Each Other

For the past several months, parents have reported difficulty finding baby-formula brands like Gerber, Similac (ABT), and Enfamil. Many retailers report an out-of-stock rate approaching 20% for baby formula — around 10 points above what’s considered problematic. Baby-formula makers and retail companies agree the product faces shortages but blame the issue on each other.

Retail chains like CVS (CVS) and Walmart (WMT) say baby-formula manufacturers are having issues obtaining supplies, leading to the shortages. Target is another major retailer experiencing out-of-stock issues, and there haven’t been reports of consumers stockpiling. The top formula brands counter it’s actually retailers who are struggling to deliver products to individual stores following wholesale deliveries.

Retailers May Be Struggling to Know Where Customers Are

There’s some evidence retailers are having difficulty getting baby formula to the right place. Analysts blame that on the number of people who have relocated during the pandemic. Data would seem to eliminate unexpected demand as an explanation, as market research firm IRI notes baby formula spending increased by 4.5% last year.

Still, there are signs that manufacturers face their own issues including Omicron-related staffing shortages. While many of the top formula brands are produced domestically, they rely on raw materials and packaging that’s often imported, also leaving them vulnerable to supply-chain snags. Enfamil maker Reckitt Benckiser says they have ample supply on hand, while Similac owner Abbott Labs admits there have been shipping delays.

Panicked Parents Could Be Stockpiling, Packing Pantries with Formula

While retailers haven’t reported the stockpiling of baby formula in a fashion similar to toilet paper during the pandemic, others say it’s part of the problem. An industry group representing formula makers maintains there’s no shortage of supply. Instead, they point to retail supply-chain issues as well as altered consumer behavior.

The Infant Nutrition Council of America suggests there’s evidence of baby-formula stockpiling. The co-founder of organic baby formula startup Bobbie says parents are easily rattled when brand names aren’t available, adding chatter within Facebook groups can even trigger panic buys. Some analysts predict an easing of supply-chain issues during the first quarter of 2022. Until then baby-formula shortages will have retailers and manufacturers scrambling.

Things are changing daily within the financial world. Sign up for the SoFi Daily Newsletter to get the latest news updates in your inbox every weekday.

Sign up


Please understand that this information provided is general in nature and shouldn’t be construed as a recommendation or solicitation of any products offered by SoFi’s affiliates and subsidiaries. In addition, this information is by no means meant to provide investment or financial advice, nor is it intended to serve as the basis for any investment decision or recommendation to buy or sell any asset. Keep in mind that investing involves risk, and past performance of an asset never guarantees future results or returns. It’s important for investors to consider their specific financial needs, goals, and risk profile before making an investment decision.
The information and analysis provided through hyperlinks to third party websites, while believed to be accurate, cannot be guaranteed by SoFi. These links are provided for informational purposes and should not be viewed as an endorsement. No brands or products mentioned are affiliated with SoFi, nor do they endorse or sponsor this content.
Communication of SoFi Wealth LLC an SEC Registered Investment Advisor
SoFi isn’t recommending and is not affiliated with the brands or companies displayed. Brands displayed neither endorse or sponsor this article. Third party trademarks and service marks referenced are property of their respective owners.
SOSS22011303


All your finances.
All in one app.

SoFi QR code, Download now, scan this with your phone’s camera

All your finances.
All in one app.

App Store rating

SoFi iOS App, Download on the App Store SoFi Android App, Get it on Google Play

ABOUT Meg Richardson Meg Richardson is a writer specializing in markets, technology, and personal finance. She loves breaking down seemingly complex ideas and making them readable and interesting for everyone. She holds an MFA in writing from Columbia University. When she is not writing about finance, she enjoys running in Central Park and drawing cartoons.


TLS 1.2 Encrypted
Equal Housing Lender