BABY AND CHILD BEAUTY MARKET
(Baby and Child Personal Hygiene Products)
Even without having to survey it, one of the few certain things in life is that parents want the best for their child, specially on newborn and kids.
Children are treated very gently and with high care.
Parents will likely try to do everything they could to be able to provide the best they can. They definitely prefer to use products that are as precious as their kids.
They are very particular on the ingredients and effects and have high demands regarding functionality, comfort and many other factors.
And they’re willing to spend for it.
The global market is largely driven by increasing birthrates in developing countries and also due to increasing awareness of consumers about child hygiene and safety.
This is further supported by increasing disposable income and changing lifestyle of consumers in developing countries. Better informed parents, smaller average size of the families, and more women coming out to work are other factors favorably impacting the baby products market demand.
The rise in the organized retail sector offers avenues for the baby products market growth as well. Furthermore, couples married and parenting while in their mid-thirties to mid-forties are considered to be more financially stable, thus resulting in higher spending capacity for baby care products.
Additionally, increase in number of working mothers globally is also driving the market. This growth is attributed to increased purchasing power and hence, substantially higher spending on baby care products.
DEMAND AND GROWTH
The growth in the global consumption of baby hygiene products can be attributed to the improving lifestyles and growing concerns regarding child hygiene and safety. The growing awareness among parents and their increasing preference for superior-quality products are driving the global baby hygiene products market.
The latest trend observed in the market is a rise in the dual household income due to the increased number of women entering the workforce. This has improved the financial conditions of parents and, in turn, has increased their disposable income.
This has boosted the demand for baby hygiene products, thereby promoting the growth of the global baby hygiene products market. Other than these factors, the increasing number of research demonstrations and innovative product lines will continue to encourage consumer spending on baby care products.
Globally, growth in 2010 was boosted by Latin America. Baby care in Latin America increased 17% and it was once again the largest market region, accounting for over $2bn of total baby care sales. In addition, two of the world’s most successful brands in the baby care sector – Natura and Hipoglós – hail from Brazil.
In mature markets, the emergence of a generation of older, wealthier mothers has helped drive market expansion, as Ricky Lakhani, consumer analyst at Mintel explains. “Consumers are becoming more career-driven, working longer hours and pursuing further educational training courses outside of work, in order to boost their career prospects,” he tells SPC. “Due to added work pressures and lifestyles becoming more and more hectic, women are delaying starting their families until later in life, which is having a bearing on their ability to spend more on products for their babies and children.”
Meanwhile, according to Euromonitor, China will present the sector’s best opportunity for future growth, spurred on by the consumer tendency to prioritise skin care over other products.
Euromonitor beauty & personal care analyst Carrie Lennard comments: “The boom in baby skin care is part of an overarching trend among consumers to prioritise the purchase of skin care over many other areas of beauty and personal care. China is set to be a main driver of this growth, anticipated to account for 51% of total global growth in baby skin care.”
Possible growth drivers for this market increase can be attributed to the fact that baby care products are used for longer periods by the infants as well as the fact that parents want the best available products for their babies, regardless of the cost.
Demand has grown due to a rising number of babies to be catered for, partly because people are starting families later. Product innovation and development has allowed retailers and manufactures to widen the market, using new technologies and advanced marketing approaches.
1. Bath Products
2. Hair care
3. Skin care
4. Toiletries and other Cosmetics
Among all segments of the baby personal care products market, the baby skin care products and toiletries segments collectively contributed the highest share in terms of revenue in 2011. Furthermore, these two segments are expected to witness double-digit growth in terms of revenue by 2017. Baby personal care products comprising organic ingredients is also expected to contribute to growth of the baby personal care products market during the forecast period. However, growth of this product type is expected to be relatively slower compared to that of other types. This is attributed to the fact that organic baby care products fall under the premium class range, and cost comparatively more than regular products.
Despite a highly conducive industry, the global market presents high entry barriers to new entrants. The high product development cost and stringent regulations associated with the commercialization of baby care products are a significant impediment in the growth trajectory of the global baby hygiene products market.
Demographic factors play an imperative role in the development of baby care products worldwide. Parents residing in developed nations are more inclined towards the consumption of baby hygiene products than those living in developing and under-developed countrie
In terms of revenue, the U.S. market is expected to hold a significant share in the baby products market over the forecast period. This can be attributed to the adults waiting longer to have children and thereby being financially stable and hence making higher investments in their baby’s health and safety. The key safety and convenience products in the market include natural & organic baby care products, baby strollers, and baby car seats. Asia Pacific is expected to witness a considerable growth rate in the baby products market on account of the increase in the birth rate, improving economic conditions, and rapid urbanization.
The key baby products market players include Procter & Gamble, Abbott Nutrition, Johnson & Johnson, Dabur, Kimberly-Clark, Wipro, Marico and Nestle. Procter & Gamble is a significant share holding company in the baby diaper market with its diaper brand “Pampers”.
Asda Group Ltd.
Johnson & Johnson
Oral B Laboratories Ltd.
Procter & Gamble Company
CHALLENGES & OPPORTUNITIES
The baby care market presents a wealth of challenges for brand owners.
While gaining trust in mothers may be the driving ambition of one brand, another will be striving to attract the attention of boys, or be cool in the eyes of stylish tween girls.
Competition is very stiff as competitors are already well known and established on the market. The leading companies include Procter & Gamble (P&G), Kimberly-Clark and Johnson & Johnson. P&G owns the popular Pampers brand and was estimated to hold a global market share of over 41 percent in 2014. Pampers directly competes with Kimberly-Clark's Huggies brand.
Western economies are struggling under declining birthrates. In the U.S. for example, the birthrate decreased to 13 per 1,000 of the population in 2010 compared to 16.7 in 1990*. Despite these shrinking birthrates, the global baby care market is expected to increase its total sales to 66.8 billion U.S. dollars by 2017. Possible growth drivers for this market increase can be attributed to the fact that baby care products are used for longer periods by the infants as well as the fact that parents want - and are willing to buy - the best available products for their baby.
However, the category continues to be a rewarding one. Euromonitor figures show that baby care grew 7.7% to reach just under $7.6bn in 2010, making it one of the more recession-proof categories and, if recent activity is anything to go by, one in which brand owners and retailers remain keen to invest. Avon, for example, acquired the Tiny Tillia brand, which makes bath products, toys and clothing for babies. In November 2010, Amazon took ownership of US web-based retailer Diapers.com as part of its acquisition of Quidsi Inc.
But for baby care manufacturers, there’s plenty at stake in the battle
for baby bucks. Globally, births are declining across all regions.
Between 1960 and 2013, birthrates around the world declined 45%
on average, according to the World Bank. In addition, parents’ hearts
and minds are not easily won. Competition in the baby care market
is stiff, and numerous branded and store-brand products at various
price points compete for moms’ attention. Moreover, the window for
purchasing baby care products is relatively short. For example,
in developed markets, babies spend an average of three years in the
diaper market. In some developing markets, like China, where potty
training begins earlier, the timeframe can be even shorter: 14 months
on average, according to a 2015 Ad Age report.
“Despite challenges, opportunities in the baby care market remain
sizeable,” said Liz Buchanan, director, Global Professional Services,
Nielsen. “Consumers are deeply invested in these categories, and
they are highly discriminating about the products they buy for their
children. However, to achieve a competitive advantage in a space
dominated by only a few major brands, a deep understanding of what’s
driving product choice is critical.”
To better understand why consumers select one baby food or diaper
brand over another, and to determine what motivates brand-switching
behavior, Nielsen polled online respondents in 60 countries who have
made a baby care purchase in the past five years. The findings reveal
important insights about the path to purchase and identify the online
and offline sources most influential in the process. Finally, areas of
opportunity and the strategies necessary to win in the global baby care
market are identified.
According to a recent market research report published by Transparency Market Research, the global baby care products market is estimated to expand at a Compound Annual Growth Rate (CAGR) of 7.0% during the period between 2007 and 2017. The report, titled “Baby Care Products Market - Global Industry Analysis, Market Size, Share, Growth and Forecast 2007 - 2017,” projects the global baby care products market to be worth US$66.8 bn by 2017, from US$44.7 bn in 2011.
In the baby products segment, baby toiletries is expected to gain a substantial share owing to the introduction of milder products such as diapers and baby wipes. The baby care diaper segment is expected to face certain challenges due to high priced products and several social & environmental issues. Issues related to slow rate of bio-degradation and adverse health effects due to the presence of the toxic chemicals such as toluene, and xylene in the diapers may also hinder market growth over the next few years. Consumers are sensitive to chemical exposure from personal care products and opt for organic products as a healthier and safer alternative.
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Public - 9/19/16, 12:39 PM