What’s Behind America’s Shocking Baby-Formula Shortage?

Parents are in panic as the ongoing infant formula shortage worsens. What started with challenges from the COVID-19 pandemic has worsened in recent weeks after the large infant formula recall, with 40% of baby formula supplies out of stock according to a report from Datasembly.

A baby formula shortage gripping the U.S. since March has parents in a panic over where and when they’ll be able to find the products they need to feed their kids.

The out-of-stock rate, representing the amount of formula that’s not in stock compared to what’s typically available, was 43% for the week ending May 8, according to Datasembly, a provider of real-time product data for retailers and consumer packaged goods (CPG) brands. 

With no easy end in sight, caregivers nationwide have been forced to devote their free time to driving between stores in search of formula, prompting retailers to limit the number of cans customers can buy. Others have turned to Facebook groups and informal support networks to acquire the nutritional products that work best for their kids. 

In many states, including Texas and Tennessee, more than half of formula is sold out in stores. Nationwide, 40 percent of formula is out of stock—a twentyfold increase since the first half of 2021. As parents have started to stockpile formula, retailers such as Walgreens, CVS, and Target have all moved to limit purchases.

Drugstore chains Walgreens and CVS Health, and department store Target in April put limits on how many baby formula products consumers can purchase at one time.

A spokesperson for Walgreens told CBS MoneyWatch it is limiting customers to three infant and toddler formula products per transaction, citing “increased demand and various supplier issues.”

CVS Health also said it has imposed a limit of three baby formula products per purchase in stores and online, until it can procure sufficient supply from its vendors. 

Biden

And a spokesperson for Target confirmed it has product limitations in place. At Target.com, consumers can only purchase up to four pieces of a given baby formula product at a time. 

Is There a Formula Shortage?

Across the country, parents have been reporting formula shortages in their local store, whether it’s for Gerber, Enfamil, Similac, or other brands. The reason isn’t exactly easy to pinpoint. According to The Wall Street Journal, chains like Walmart and CVS blame supply issues; manufacturers are currently running low on ingredients and packing materials, as well as labor.

On the other hand, formula makers say they have enough supplies, but retail stores aren’t stocking the products fast enough (which could also be due to staffing issues). The Wall Street Journal points out that stores might also have trouble determining how much formula to stock, due to the large amount of relocations that took place during the pandemic. Formula recalls have also affected the stock. In February, an unspecified amount of Similac was pulled from store shelves after four children fell ill and two died after ingesting the powdered substance.

President Biden has directed his administration to work urgently to ensure that during the Abbott Nutrition voluntary recall, infant formula is safe and available for families across the country. Today, President Biden spoke with retailers and manufacturers, including Wal-Mart, Target, Reckitt, and Gerber, to discuss ways we can all work together to do more to help families access infant formula.

On February 17, the largest infant formula manufacturer in the country—Abbott Nutrition—initiated a voluntary recall of several lines of powdered formula. This came after concerns about bacterial contamination at Abbott’s Sturgis, Michigan, facility after four infants fell ill and two died. 

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