Who Owns the Baby Formula Market

In February 2022, one factory recall emptied baby formula shelves across the United States for months. Abbott, Reckitt (owner of Enfamil), and Nestlé together held approximately 90% of the US infant formula market. When Abbott's Sturgis, Michigan plant was shut down by the FDA after its products were linked to bacterial infections, there was almost nowhere else for parents to turn.

That shortage was not a supply chain accident. It was the inevitable outcome of a market so concentrated that a single facility closure could destabilize an entire country's supply of food for infants.

This post maps who owns the baby formula market, which brands belong to which company, and what has changed since 2022. For context on how large food companies manage portfolios at this scale, see our post on 20 food brands owned by the same 5 companies.

The Major Players

Abbott Laboratories

Abbott Laboratories (NYSE: ABT) is a publicly traded US health care company headquartered in North Chicago, Illinois. Its nutritional products division, Abbott Nutrition, is the largest manufacturer of infant formula in the United States by market share.

[Similac](/brands/similac) is Abbott's flagship infant formula brand, introduced in 1925. Before the 2022 recall, Similac held an estimated 35-40% of the US infant formula market. The brand includes standard cow's milk-based options (Similac Advance, Similac 360 Total Care), hypoallergenic versions (Similac Alimentum), soy-based options, and specialty formulas for premature infants.

[PediaSure](/brands/pediasure) is Abbott's nutritional supplement drink for toddlers and children aged 2 to 13. It is not an infant formula, but it is closely adjacent in the toddler nutrition category and is one of Abbott's most commercially significant nutritional brands globally.

EleCare is Abbott's amino acid-based hypoallergenic formula for infants with severe cow's milk protein intolerance, sitting at the medically specialized end of the market.

The FDA investigation into Abbott's Sturgis facility found conditions that could allow the growth of Cronobacter sakazakii bacteria. Abbott voluntarily recalled Similac, Alimentum, and EleCare products. The facility was shut down and reopened only after extensive remediation. The shortage cost Abbott significant US market share, much of which was not fully recovered even after supply normalized. Abbott subsequently invested in a new manufacturing facility in Ohio.

Reckitt (Mead Johnson Nutrition)

Reckitt (LSE: RKT) is a British consumer health company headquartered in Slough, England, known for Lysol, Dettol, and Nurofen. Reckitt acquired Mead Johnson Nutrition, the maker of Enfamil, in June 2017 for approximately $16.6 billion.

Enfamil is the second-largest infant formula brand in the United States, with estimated market share in the range of 35-40%. Mead Johnson introduced Enfamil in 1959 as one of the first science-backed formulas designed to mimic breast milk's nutritional composition. The product line includes Enfamil NeuroPro (standard cow's milk), Enfamil Gentlease (sensitive digestion), Enfamil Nutramigen (hypoallergenic), and specialty products.

The $16.6 billion acquisition price was considered high at the time of closing, and Mead Johnson's growth slowed in subsequent years. Reckitt restructured its nutrition division and explored a potential sale of the business, though no deal was reached at an acceptable price. The 2022 shortage gave Enfamil an unexpected lift: with Similac off shelves, Enfamil captured US market share it had not previously held.

Nestlé

Nestlé is the world's largest food and beverage company and the leading infant formula manufacturer globally outside the United States. Its infant nutrition business spans brands sold in more than 140 countries.

[Gerber Good Start](/brands/gerber) is Nestlé's primary infant formula brand in the US, marketed under the Gerber brand that Nestlé acquired from Novartis in 2007 for approximately $5.5 billion. Good Start uses partially hydrolyzed whey protein, positioned as easier to digest. Demand for Good Start rose during the 2022 shortage, allowing Nestlé to temporarily increase its US share.

NAN is Nestlé's major infant formula brand across Europe, Asia, Latin America, and the Middle East. It is not sold under that name in the US but is a leading brand in many international markets.

Lactogen is an additional Nestlé infant formula brand sold in Asia and Africa.

A note on controversy: Nestlé has faced decades of criticism over its marketing of infant formula in developing countries. A boycott launched in 1977 followed reports that aggressive promotion of formula in low-income countries, where clean water for mixing formula was unreliable, contributed to infant deaths. Nestlé has faced ongoing scrutiny under the International Code of Marketing of Breast-milk Substitutes ever since.

Smaller and Emerging Players

Bobbie was founded in 2018 by Laura Modi and Sarah Hardy. It launched the first USDA Organic European-style infant formula approved by the FDA for US sale, raising significant venture capital. During the 2022 shortage, Bobbie received emergency FDA authorization to import additional formula from its European manufacturing partner, a decision that gave the brand significant national exposure.

ByHeart raised approximately $190 million in funding and built its own FDA-registered US manufacturing facility specifically to avoid the concentration risk that caused the 2022 shortage. ByHeart uses whole milk-based formula rather than skim milk with added fats.

Danone (Nutricia) sells Aptamil and Cow & Gate in Europe and international markets. Its direct US retail presence is limited, but it is a significant competitor globally.

HiPP and Holle are German organic formula brands that were not FDA-registered for US sale before 2022. Parents imported them informally before the shortage. The FDA created emergency authorization pathways during the crisis, and both brands are now available through authorized US retailers.

The 2022 Formula Shortage: What It Revealed

Several structural factors turned a single factory closure into a months-long national shortage.

High barriers to entry. FDA registration, facility inspections, and clinical testing requirements for new infant formulas are appropriate given the product's role as the sole nutrition source for vulnerable infants. Those same requirements, however, created the concentrated market structure that made one recall so damaging. New competitors cannot launch formula in weeks or months.

Limited import flexibility. European formula produced under EU regulations was not automatically eligible for US sale. US and EU nutritional requirements differ. The FDA had to create emergency authorization pathways from scratch to allow European imports, a process that took weeks even in a declared shortage.

No backup production capacity. Abbott's Sturgis facility was one of the only US plants producing specialty formulas including EleCare and Alimentum. When it closed, there was no domestic fallback for medically sensitive products.

Post-2022 changes. The FDA created a new office dedicated to food safety and undertook a comprehensive review of infant formula oversight. Congress called for domestic manufacturing incentives and supply diversification. Abbott invested in the Sturgis facility remediation and opened a new Ohio plant.

We noted when analyzing these regulatory changes that the real structural problem, extreme market concentration combined with high regulatory barriers, has not been fully resolved. Two companies still hold roughly 70% of the US market.

Market Share Overview

FAQ

Why is baby formula so concentrated among so few brands?

FDA requirements for infant formula include detailed nutrient composition compliance, clinical testing for new products, and facility inspections before market approval. These are appropriate for a product that serves as the sole nutrition source for vulnerable infants, but they create high entry barriers that limit competition. The three major companies have also built distribution advantages through hospital sampling programs and retailer shelf agreements that new entrants cannot easily replicate.

Can you buy European baby formula in the US?

Yes. After the 2022 shortage, the FDA created streamlined pathways for certain European formula brands. HiPP and Holle are now sold legally through authorized US retailers following FDA review. European formulas must still meet US nutritional standards.

Is Gerber formula made by Nestlé?

Yes. Gerber Good Start infant formula is manufactured and marketed by Nestlé under the Gerber brand. Nestlé acquired Gerber from Novartis in 2007 for approximately $5.5 billion.

Explore Related Brands

• Similac - Abbott's flagship infant formula, the largest US brand by market share
• Gerber - Nestlé's US baby food and formula brand
• PediaSure - Abbott's toddler nutrition supplement drink
• Who Owns the Diaper Market - P&G and Kimberly-Clark's baby care duopoly

Browse all baby care brands

Sources

1. Abbott Laboratories Annual Report 2024. abbott.com/investors 2. Reckitt Annual Report 2024. reckitt.com/investors 3. Nestlé Infant Nutrition Overview. nestle.com 4. U.S. Food and Drug Administration. Infant Formula Regulatory Oversight. fda.gov 5. Congressional Research Service. Infant Formula Shortage 2022. crsreports.congress.gov 6. Bloomberg. Reckitt Mead Johnson acquisition, 2017. bloomberg.com 7. Bobbie. About our formula. hibobbie.com

All brand ownership data verified through WhoBrands.com research methodology. Last updated: March 2026.