How Much Does Baby Formula Cost?

Last Updated on June 26, 2024
Written by CPA Alec Pow | Content Reviewed by CFA Alexander Popinker

For new parents, understanding the costs associated with feeding a newborn can be challenging. Baby formula in particular can have a significant impact on the family budget. This guide provides an in-depth look at the pricing, expenses, and financial planning involved with formula feeding an infant.

Proper budgeting is essential to managing this major new expense for parents. This guide covers the different types of baby formulas, price comparisons, cost-saving tips, and financial planning strategies to help new families navigate formula costs confidently.

How Much Does Baby Formula Cost?

Baby formula can range from $15 to $35 dollars per standard 20-ounce container, with organic and specialty options costing $25 to $50 per container, whether using popular name brands or cheaper store labels.

When estimating monthly and yearly costs, it’s important to factor in that the average newborn consumes around 25 to 35 ounces of formula per day. This can amount to going through 8 to 14 containers per month, costing parents approximately $120 to $500+ monthly depending on the specific formulas used.

Over the course of a year, the total cost for feeding a baby formula can easily exceed $1,500 to $6,000+. That is a lot of money, and thus proper budgeting is crucial for families to navigate this new expense.

Looking at the typical cost per ounce provides a useful baseline for budgeting:

Average Price Per Ounce

• Name brand standard formulas: $1.00 – $1.50
• Store brand standard formulas: $0.70 – $1.00
• Organic formulas: $1.25 – $1.75
• Specialty formulas: $2.00+
• Amino acid formulas: $3.00+

Monthly and Yearly Formula Costs

Based on average infant consumption of 25-35 ounces daily:

• 8 containers per month at $25 per container = $200 monthly
• 96 containers per year at $25 per container = $2,400 annually

When multiplied over thousands of feedings, even small price differences between brands and products become significant.

Additional Monthly Expenses

Other formula feeding supplies add $30 to $50 in costs per month:

• Bottles and nipples
• Bottle brushes, steamers, and sterilizers
• Formula mixing pitchers
• Bottle warmers
• Burp cloths and bibs
• Any supplements like probiotics or vitamins

Proper budgeting accounts for these secondary expenses too.

According to Healthline, the average cost of baby formula in the US can range from $20 to $50 per can, depending on the brand and type of formula. They note that name-brand formulas tend to be more expensive, while store-brand or generic formulas can be more affordable.

For example, they cite Enfamil Infant formula costing around $40 per 21.1 oz can, while Walmart’s Parent’s Choice formula costs around $20 per 23.2 oz can.

Consumer Reports provides a more detailed breakdown of formula costs. They state that the average cost of a 12.4 oz can of powder formula is $24, with prices ranging from $18 to $30 depending on the brand. They also mention that ready-to-feed formula in 32 oz bottles can cost $5 to $8 per bottle.

The United States Department of Agriculture (USDA) reports that the average monthly cost of formula for a 6-month-old baby is around $150. This estimate is based on the cost of a 12.4 oz can of powder formula, which they state costs an average of $23.50.

BabyCenter cites a range of $20 to $50 per can of formula, with an average cost of $30 to $40 per can. They note that the cost can vary depending on the brand, type of formula (e.g., organic, sensitive, or specialty), and whether it’s purchased in-store or online.

Babylist reports that the average cost of formula in the US is $1.50 to $2 per ounce. They provide examples of formula prices, such as Similac Advance costing $37.99 for a 20.1 oz can and Enfamil Infant costing $39.99 for a 21.1 oz can.

Types of Baby Formula

One of the first steps in understanding formula costs is learning about the different types of formula available:

Cow’s Milk-Based Formulas

The vast majority of baby formulas are cow’s milk-based. These contain whey and casein proteins found in cow’s milk, modified and supplemented to better match the nutritional profile of breastmilk. Within this broad category, there are options tailored for different infant needs:

• Standard newborn formulas – For most healthy babies
• “Gentle” formulas – Partially broken-down proteins for sensitive tummies
• Added rice starch formulas – For babies that need thicker formula
• Lactose-free formulas – For lactose intolerant babies

Most major formula brands like Enfamil, Similac, and Gerber have cow’s milk formulas for every routine need. The pricing for standard cow’s milk-based options ranges from $15 to $25 per container.

Soy-Based Formulas

For babies with galactosemia or lactose intolerance, soy-based formulas are a suitable alternative. Soy formulas contain proteins isolated from soybeans rather than dairy. Brands include:

• Similac Soy Isomil
• Enfamil Prosobee
• Store brand soy formulas

Pricing runs similar to standard cow’s milk formulas, around $15 to $25 per container.

Extensively Hydrolyzed Protein Formulas

Babies with more sensitive food allergies often require hydrolyzed protein, or hypoallergenic, formula. In these formulas, the proteins are broken down into smaller parts so they are less likely to cause reactions. Well-known brands include:

• Similac Alimentum
• Enfamil Nutramigen
• Gerber Extensive HA

Due to specialized sourcing and manufacturing, these hypoallergenic formulas cost notably more, around $25 to $50 per container.

Amino Acid-Based Formulas

The most hypoallergenic formulas are made from individual amino acids, the most basic protein building blocks. These elemental formulas are recommended for babies with severe cow’s milk protein allergies or multiple food protein intolerances. Two examples are Neocate Infant and PurAmino Toddler.

The extensive processing and exotic ingredients involved make these specialized formulas by far the most expensive, ranging from $50 to $75 per container.

Organic Formulas

In recent years, organic baby formulas have grown in popularity. Made from organic varieties of cow’s milk and plant-derived nutrients, these formulas appeal to families wanting to minimize pesticide and hormone exposure. Leading options include:

• Earth’s Best Organic Infant Formula
• Similac Organic
• Parent’s Choice Organic

Organic certification and sourcing increase prices to $25 to $35 per container for these formulas.

Specialized Medical Formulas

Finally, there are ultra-specialized formulas for rare metabolic conditions, severe food allergies, premature infants, and other scenarios. These include Elecare, Neocate Infant, PurAmino, and Similac Neosure. Prices range widely based on the custom sourcing and production methods used.

You might also like our articles about the cost of diapers, pacifiers, and food for a baby.

Comparing Brands and Prices

The specific brand and particular formula product selected has a very large impact on the final price paid by parents. Here is an overview of cost differences across the major formula brands:

Leading Name Brand Formulas

Well-established formula brands carried widely in stores include:

• Similac – 20 oz containers from $25 to $40
• Enfamil – 20 oz tubs from $28 to $42
• Gerber Good Start – 19.8 oz cans for $22 to $30

These manufacturers also offer specialty formulas for digestion, allergies, and other needs that can cost up to $50 per container.

Store Brand and Generic Formulas

Retailers also offer “house” brand formulas modeled after name brands but sold under their own label. These include:

• Target’s Up & Up – 20 oz for $17 to $25
• Walmart’s Parent’s Choice – 22 oz at $14 to $20
• Amazon’s Solimo – 20 oz around $18
• Kroger’s Comforts – 22 oz for $16 to $20

Going with store brand rather than big name formulas can save families $5 to 15 per container.

Online Brands and Formula Subscriptions

Newer online brands like The Formula Mom and European labels like Hipp now ship directly to U.S. parents. Prices are mixed but deals can be found.

Formula subscription services like Bobbie and Cerebelly ship containers monthly, simplifying shopping. Plans range from $16 to $30 per 20 oz container, with the ability to customize servings and frequency.

Costco, Sam’s Club, and BJ’s Club Brands

Bulk retailers offer further discounted pricing on their Kirkland, Member’s Mark, and Wellsley Farms formula brands. At around $17 to $22 per can, this can yield big savings for families able to buy larger quantities.

Factors Affecting Formula Costs

Why do different baby formulas cost different amounts? Several factors affect the prices both among brands and sub-types:

Brand Reputation and Loyalty – Well-known brands leverage loyalty and familiarity to maintain premium pricing. Lesser-known brands must compete on price.

Organic and Conventional Formulas – Organic ingredients sourcing and handling requirements justify the 20-40% price premium seen with organic formulas.

Specialized Formulas and Medical Needs – The extensive R&D and regulated processing of specialty formulas necessitate their higher prices.

Package Sizing and Unit Pricing – Larger packages (24+ oz.) and multi-packs offer better per ounce pricing vs smaller containers.

Formula Quality and Nutritional Profiles – Higher quality ingredients and nutritional add-ons contribute to cost differences between brands.

Country of Manufacturing – Domestic vs imported formula can impact supply costs and retail pricing.

Reseller Markups and Discounts – Each sales channel like grocery stores, pharmacies, and online add different margins.

Geographic Region and Logistics – Local wages, rents, transportation costs, and competition levels factor into local pricing.

Budgeting for Formula Costs

New parents must account for formula in their family budget.

Create a Formula Budget

• Track ongoing formula expenses
• Estimate future monthly needs
• Factor in brand preferences and baby’s health
• Allow for flexibility as needs change

Ways to Save Money

• Choose store brand or generic formulas
• Buy in bulk or multi-unit packages
• Use coupons, rewards programs, and alerts for deals
• Buy during sales and promotions
• Purchase formula in advance when possible

Financial Tips for New Parents

• Begin saving early for formula costs
• Reduce discretionary spending
• Lower costs in other baby care areas
• Discuss formula expenses with financial planner
• Agree on formula budget limits as a couple

Recent and Future Formula Price Trends

Formula prices fluctuate over time, so tracking historical and future estimated trends is prudent.

Baby Formula Price Changes Over the Past Decades

• Prices have risen an average of 2-5% annually over the past 30 years.
• More recently, prices have spiked 10-15% higher due to shortages and supply chain issues.
• Name brands have increased prices faster than generic labels.

Potential Future Formula Price Increases

Looking ahead, prices may rise due to:

• Rising ingredient sourcing and transportation costs
• Ongoing supply chain disruptions limiting availability
• New government quality and safety regulations
• Labor wage growth increasing manufacturing costs
• Shifting consumer preferences requiring new R&D

Impact of Market Volatility

• Economic inflation or deflation alters consumer purchasing power.
• Shifting consumer preferences influence brand pricing decisions.
• Unforeseen shortages cause ripple effects on availability and affordability.

Staying flexible helps families adapt to formula market fluctuations.

Regional and Online vs. In-Store Price Differences

Geographic location within the country can significantly impact what parents pay for baby formula.

Variances Between Urban and Rural Areas

Population density affects local prices. In urban areas, costs run 10-15% higher than rural regions. Real estate, labor, marketing, and distribution expenses in crowded cities and metro areas contribute to their premium pricing.

Regional Pricing Across the United States

Regional pricing differences emerge based on competition, brand dominance, and logistical factors:

• Northeast – High cost of living yields formula prices 5-15% above national average
• Southeast – More affordable rural areas bring lower prices
• Midwest – Mix of major cities and farm towns create wide price range
• Southwest – Hot competition between Mexico imports and domestic brands
• Northwest/California – Premium on organic and specialty formulas

Online vs Brick-and-Mortar Pricing

Across most brands, online prices tend to run 5-10% less than in-store. But convenience stores and mini-marts are often cheaper than online. Comparing local retailers against internet options identifies the best deals.

Health Insurance Coverage

Health insurance provides little help with routine formula costs but may cover medically-required specialty options.

Health Insurance Typically Excludes Formula

The majority of standard health insurance plans do not cover basic infant formula purchases. It falls outside regular medical coverage. However, insurance will often cover extensively hydrolyzed, amino acid, and metabolic formulas if a doctor verifies medical necessity.

Public Assistance Programs for Low-Income Families

Government resources like WIC and SNAP provide substantial formula assistance for qualifying families. Eligibility is based on:

• Federal poverty level
• State Medicaid status
• Nutrition risk factors

Additional local charities and food banks also frequently supply free or discounted formula to needy families and infants. These programs provide vital savings.

Final Words

For new moms and dads, choosing a baby formula and budgeting for the significant recurring expense can feel extremely daunting. But having an in-depth understanding of the pricing differences between brands, types of formulas, package sizes, and venues removes the guesswork.

Executing cost-saving techniques like buying larger quantities, selecting cheaper yet quality brands, and redeeming coupons further eases the formula cost burden. And exploring government and nonprofit resources as needed ensures your baby gets the best nutrition you can provide.

While not inexpensive, formula feeding your infant can absolutely be affordable with the right knowledge. So, breathe easy knowing that the essential formula your little one needs will always fit into your family’s budget.

Frequently Asked Questions

What are the rules for baby formula?

Main rules include always following label instructions, never diluting formula, properly cleaning/sterilizing all equipment, never using microwave to heat bottles, always holding baby upright when feeding, and strictly adhering to can or bottle usage time limits. Also check with your pediatrician about recommendations specific to your baby.

How long can formula milk stay in a bottle?

Prepared baby formula left sitting at room temperature should be discarded after 1-2 hours maximum. Leftover formula milk stored in the refrigerator is good for up to 24 hours. The timeframe can vary based on the specific ingredients, so always follow label guidelines.

What not to do with baby formula?

Avoid heating bottles in the microwave, as this can create hot spots that burn baby’s mouth. Never use formula past the expiration or “use by” date. Never make formula with non-sterile water. Do not freeze prepared liquid formula or reuse leftover formula from a feeding. Only mix formula as directed.