Is there a particular reason why he is still having formula? After 12 months it is not necessary, and it is common for toddlers to not eat enough when they are still drinking formula. It really fills them up and can stop them eating well, and this is a problem because despite the ads, formula does not contain the nutrients kids need after 12 months - solids are far more important.
This can happen with cows' milk too, but often it is easier to cut back on cows' milk than formula. Would you consider weaning from formula to cows' milk? The recommended maximum amount of milk at that age is 3 cups per day - so three lots of 200mls is still in that range, but you might find that with less, over time, the solids intake increases. This certainly worked for me with DS1 - he was having too much cows' milk as I replaced each breastfeed he dropped with cows' milk and he was drinking lots of milk and not eating much. Luckily cutting back on the milk worked - it took about 2 weeks and then he suddenly became a much better eater.
If the eating doesn't improve, rather than giving formula as a substitute, perhaps giving him some vitamin drops like pentavite might be better. This actually stimulates appetite rather than filling them up like formula, and the vitamins in pentavite are better absorbed than those in formula. Of course neither of these options are as good nutritionally as food, but the drops might give you some reassurance.
I do also agree that at that age many kids seem to live on fresh air and do just fine. Kids nearly always eat what they need - it's just that sometimes filling up on formula/milk can get in the way of that. If the milk intake drops and the eating doesn't improve, I would suggest that he probably just doesn't need to eat much just now. Appetite does seem to come and go with toddlers.
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