What Parents Need to Know About the Baby Formula Crisis in Canada (2025 Update)

If you were a parent or parent-to-be during the formula shortage, you probably remember the stress of scanning store shelves, calling multiple pharmacies, or asking friends to check their local stores for you. Even now, many families still wonder: Are we past the crisis? Could it happen again?

What Actually Caused the Formula Shortage?

1. A major U.S. factory shut down

In early 2022, Abbott Nutrition’s Sturgis, Michigan plant (one of the largest producers of infant formula for North America) closed after a product recall. Because Canada depends heavily on imported formula—especially specialty formulas—this caused immediate ripple effects in Canadian stores.

2. Canada relies on imports

Nearly all of our supply comes from abroad, mostly from the U.S. When one major supplier stopped production, Canada didn't have enough alternatives to fill the gap quickly.

3. Strict regulations slow down new formula products

Canada has high safety standards for formula—and that’s a good thing. But it also means bringing new products into the country takes time. When shelves started to empty, it was difficult for foreign manufacturers to get approval quickly.

Who Was Hit the Hardest?

Families who rely on specialty formulas—such as hypoallergenic formulas for allergies or formulas for metabolic conditions—faced the most stress. These products are less widely stocked, and many infants can’t safely switch to a regular formula.

Parents also experienced:

  • Higher prices (up more than 20% during the peak of the crisis)

  • Limited availability of lower-cost brands

  • Anxiety about switching formulas

  • Difficulty finding medical formulas used for very specific health needs

Even now, some stores experience intermittent shortages of hypoallergenic or specialty options.

What Is the Canadian Government Doing?

1. Allowing more formula options into Canada

Health Canada introduced a temporary import policy that allows certain international formulas to be sold here even if they don’t fully meet Canada’s usual packaging or labeling requirements. The goal: safely increase supply.

This policy has now been extended through December 31, 2025, giving families and healthcare providers more stable access while longer-term reforms are underway.

Currently, more than 70 products—including metabolic formulas and human milk fortifiers—are allowed under this special framework.

2. A long-term plan to diversify supply

Health Canada created a Transition Strategy, which outlines how these imported formulas can eventually become fully approved, permanent options on the Canadian market.

They’re also working on modernizing the regulations themselves—making it easier for new, safe formulas to enter Canada without long delays.

3. Supporting domestic manufacturing

Canada is beginning to build more local capacity. For example, Canada Royal Milk (CRM) has started producing infant formula domestically. This isn’t enough to meet all national demand yet, but it's an encouraging step toward long-term stability.

Is the Formula Crisis Over?

The worst of the shortage has passed, thanks to increased imports and improved supply. Most grocery and pharmacy shelves look much better today than they did in 2022 and 2023.

However, experts still describe the situation as fragile:

  • Canada still relies heavily on foreign suppliers.

  • Specialty formulas are still more vulnerable to disruption.

  • Prices remain higher than pre-crisis levels.

  • Regulatory changes are slow and ongoing.

This is why the government keeps extending temporary measures—they want to ensure families remain protected.

What Parents Can Do Right Now

Here are evidence-based tips from Health Canada and pediatric dietitians:

1. Talk to your healthcare provider before switching formulas

Especially if your baby relies on a specialty or medical formula.

2. Do not dilute formula or make homemade versions

These practices can lead to serious medical complications. Stick to safe, tested, commercial products.

3. Be flexible—but check labels carefully

If your usual brand is out of stock, many of the temporarily approved international products are safe alternatives. Just be sure to follow the preparation instructions—they may differ slightly.

4. Ask your pharmacist for help

Pharmacies often have access to supply channels that grocery stores don’t.

5. Stay informed

Health Canada regularly updates the list of temporarily approved formulas and posts supply updates.

The Bottom Line

Canada’s baby formula crisis revealed how vulnerable our supply chain is—but it also led to important changes. Today, shelves are fuller, more products are available, and the government is actively working to prevent future shortages.

Still, the system isn’t perfect. Until Canada expands domestic production and modernizes formula regulations, parents may continue to see occasional shortages—especially in specialty products.

For now, staying informed, working with healthcare providers, and understanding your safe options can help you navigate formula feeding with confidence.

References

Health Canada – Infant Formula Shortage
https://www.canada.ca/en/health-canada/services/infant-care/infant-formula/shortage.html

Health Canada – Interim Policy on Importation of Infant Formula
https://www.canada.ca/en/health-canada/services/food-nutrition/legislation-guidelines/policies/interim-policy-importation-sale-infant-formula-human-milk-fortifiers-metabolic-products.html

Health Canada – Transition Strategy for Infant Formula
https://www.canada.ca/en/health-canada/services/food-nutrition/public-involvement-partnerships/notice-stakeholders-transition-strategy-prepare-expiration-interim-policy-mitigate-infant-formula-shortages/document.html

Health Canada – Regulatory Modernization Notice
https://www.canada.ca/en/health-canada/services/food-nutrition/public-involvement-partnerships/notice-stakeholders-strategy-manage-shortages-modernize-regulations-infant-formula-other-foods-special-dietary-purpose.html

Canadian Manufacturing – Barriers to Domestic Production
https://www.canadianmanufacturing.com/manufacturing/baby-formula-manufacturing-barriers-in-canada-prevalent-290940/

Canada Royal Milk Production Update
https://search.open.canada.ca/qpnotes/record/aafc-aac%2CAAFC-2025-QP-00035

Eastern Ontario Health Unit Guidance
https://eohu.ca/en/article/2022-05-30

Statistics Canada Price Increases
https://beta.arabcanadanews.ca/en/article/increase-in-baby-milk-prices-by-more-than-20-during-one-year-amid-shortage-crisis-48381
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