Who Owns the Baby Formula Market

In February 2022, a single factory recall triggered one of the most acute consumer product shortages in recent American history. Abbott Nutrition's Sturgis, Michigan facility was shut down after infant formula manufactured there was linked to bacterial infections in infants. Because Abbott, Reckitt (owner of Enfamil), and Nestlé collectively controlled approximately 90% of the US infant formula market, the closure of one facility sent empty shelves cascading across the country for months.

The baby formula shortage was, at its core, a story about market concentration. This post maps who owns the baby formula market, which brands belong to which company, and what has changed since the 2022 crisis.

For context on how large food companies manage their full brand portfolios, see our post on 20 food brands owned by the same 5 companies.

The Major Players

Abbott Laboratories

Abbott Laboratories is a publicly traded US health care company (NYSE: ABT) 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.

Abbott's key formula brands:

[Similac](/brands/similac) is Abbott's flagship infant formula brand, introduced in 1925. Similac holds the largest share of the US infant formula market, typically estimated at approximately 35-40% of the total market before the 2022 recall. Similac offers a wide range of formulas including 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. While not an infant formula, PediaSure is closely adjacent in the infant and 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, representing the medically specialized end of the infant formula market.

The 2022 Similac recall was the most consequential consumer product event in Abbott's recent history. The FDA investigation into Abbott's Sturgis facility found conditions that could allow the growth of Cronobacter sakazakii bacteria. Abbott voluntarily recalled several Similac, Alimentum, and EleCare products. The facility was closed and reopened only after extensive remediation. The shortage cost Abbott significant market share as retailers and consumers switched to alternatives, much of which was not fully recovered even after supply normalized.

Reckitt (Mead Johnson Nutrition)

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

Reckitt's key formula brand:

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

Reckitt's acquisition of Mead Johnson was controversial within the company. The $16.6 billion price was considered high even at the time, and Mead Johnson's growth trajectory slowed in the years following acquisition. Reckitt subsequently restructured its nutrition division and explored strategic options including a potential sale, though no buyer emerged at an acceptable price. The 2022 formula shortage benefited Reckitt's Enfamil, which gained US market share as Similac was temporarily unavailable.

Nestlé

Nestlé is the world's largest food and beverage company and the leading infant formula manufacturer globally outside the United States. Nestlé's infant nutrition business includes brands sold in more than 140 countries, making it the dominant player in global markets even where it has a smaller US presence.

Nestlé's key formula brands:

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

NAN is Nestlé's major infant formula brand across Europe, Asia, Latin America, and the Middle East, where it holds leading market positions in many countries. NAN is not sold in the US under that name but is a major brand globally.

Nestlé NestlePure and Lactogen are additional Nestlé infant formula brands sold in international markets, particularly in Asia and Africa.

Beyond infant formula, Nestlé's infant nutrition division includes follow-on formulas, growing-up milks for toddlers, and specialty medical nutrition for premature infants and those with metabolic disorders.

Controversy: Nestlé has faced decades of criticism and boycotts related to its marketing of infant formula in developing countries, beginning with the "Nestlé boycott" launched in 1977 after reports that Nestlé's aggressive promotion of formula in low-income countries was contributing to infant mortality by discouraging breastfeeding in environments where clean water for mixing formula was unreliable. Nestlé has faced ongoing scrutiny under the International Code of Marketing of Breast-milk Substitutes.

Smaller and Emerging Players

Bobbie is a US-based direct-to-consumer infant formula startup founded in 2018 by Laura Modi and Sarah Hardy. Bobbie launched the first USDA Organic European-style infant formula approved by the FDA for US sale. The company raised significant venture capital and became a notable alternative for parents seeking formula without corn syrup solids or certain additives. During the 2022 shortage, Bobbie received emergency FDA authorization to import additional formula from its European manufacturing partner.

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

Danone (Nutricia) is a major international formula company whose brands include Aptamil and Cow & Gate in Europe and international markets. Danone has limited direct US retail presence but is a significant competitor globally.

HiPP and Holle are German organic infant formula brands that were not FDA-registered for sale in the US but were widely imported informally before the 2022 shortage, and then formally cleared during the emergency. The shortage accelerated FDA engagement with European formula standards.

The 2022 Formula Shortage: What It Revealed

The 2022 baby formula shortage placed the concentrated ownership structure of the US infant formula market under unprecedented public scrutiny. Several structural factors amplified the impact of a single facility closure:

High barriers to entry. FDA registration requirements, facility inspections, and clinical testing requirements for new infant formula products make the US market unusually difficult to enter. The regulatory burden designed to protect infant safety also created the concentrated market structure that made one recall so consequential.

Limited import flexibility. European infant formula produced under EU regulations was not automatically eligible for US sale because US and EU standards differ in certain nutritional requirements and testing protocols. The FDA had to create emergency authorization pathways to allow European formula imports during the shortage.

Just-in-time manufacturing. Abbott's Sturgis facility was one of the few US plants producing certain specialty formula categories, including EleCare and Alimentum. No backup production capacity existed for the most medically sensitive products.

Post-2022 changes. The FDA undertook a comprehensive review of infant formula oversight and created a new office dedicated to food safety to address the regulatory gaps exposed by the shortage. Congressional investigations produced bipartisan calls for domestic manufacturing incentives and supply diversification requirements. Abbott invested in both its Sturgis facility and a new manufacturing site in Ohio.

Market Share Overview

FAQ

Why is baby formula so heavily concentrated among so few brands? The FDA's regulatory framework for infant formula requires detailed nutrient composition compliance, clinical testing for new formulas, and facility inspections before products can be sold. These requirements are appropriate for a product that serves as the sole nutrition source for vulnerable infants, but they create high barriers to entry that limit the number of manufacturers. The three major companies have also invested heavily in distribution, hospital sampling programs, and retailer shelf space agreements that make entry by new competitors difficult.

Can you buy European baby formula in the US? Yes, as of the post-2022 regulatory changes, the FDA created streamlined pathways for certain European formula brands to enter the US market. Brands including HiPP and Holle are sold legally through authorized US retailers following FDA review. European formulas must still meet certain US nutritional requirements.

Is Gerber formula made by Nestlé? Yes. Gerber Good Start infant formula is manufactured and marketed by Nestlé under the Gerber brand, which Nestlé acquired from Novartis in 2007.

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

Browse all baby care brands

Sources

1. Abbott Laboratories Annual Report 2024 -- https://www.abbott.com/investors.html 2. Reckitt Annual Report 2024 -- https://www.reckitt.com/investors/ 3. Nestlé Infant Nutrition Overview -- https://www.nestle.com/aboutus/overview/businesses/nutrition 4. FDA: Infant Formula Regulatory Oversight -- https://www.fda.gov/food/infant-formula 5. Congressional Research Service: Infant Formula Shortage 2022 -- https://crsreports.congress.gov 6. Bloomberg: Reckitt Mead Johnson acquisition, 2017 -- https://www.bloomberg.com 7. Bobbie: About our formula -- https://www.hibobbie.com/our-formula/

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