Child and Infant care is one of the most prominently evolving markets in the world with the growth in demand for the trusted products that have been in market since ages and also for those that are being newly launched incorporated with newer technologies. The segments of this market are multifaceted including health, nutrition, safety, commute et cetera. The increasing population segment in the 0-4-year age group has created enormous opportunities in child care products as compared to other categories globally. With the rising era of internet, parents around the world are becoming much more aware of baby care products. The availability of information on the digital platforms empower parents to know about product safety standards, they know what’s healthy and what’s not healthy for the mother and child, which simultaneously is driving the development of maternity and child care products worldwide for the mothers and their babies.
The global market size for baby products was estimated at USD 78.34 billion in 2019 and is estimated to witness a CAGR of 6.1% over the next 5 years due to increased purchasing potential and changing lifestyles. Rapid urbanization and increasing middle-class population across multiple developing regions are further driving the sector. Changing lifestyle has encouraged the adoption of convenience-oriented routine, particularly in developing countries, in turn making these items more and more desirable, which will trigger the growth of the industry over the forecast period. Moreover, rising consumer awareness regarding child health is boosting the sales of these products, thereby augmenting the growth of the industry.
Various Segments of Infant and Child Care
Manufacturers have been promoting baby hygiene, with the support of government and NGOs, which in turn will also accelerate the demand for various cosmetics and toiletries such as skin, hair care, and other products. The largest segment of cosmetics and toiletries accounted for more than 45% of the global share in 2019. The category is further segmented into skin, body, hair care, and bath products providing advantages including dry skin prevention. Increasing awareness of the harmful effects of chemicals present in most personal care products has led to a high demand for natural and organic maternal personal care products such as facial cleansers and skin moisturizers. Major companies concentrated on the production of enhanced products, with advanced technology in terms of design, structure, and performance. Governments in emerging economies are conducting programs for infant care to increase awareness of the benefits of these products. These factors are expected to have a positive effect on growth in the segment over the coming years.
Baby food formula is the second-largest segment and is expected to gain significant shares in next 5 years. Different types of baby food formulae are essential for proper growth, such as milk products, frozen foods, fruits, snacks, and cereals. It is anticipated that growing awareness towards the benefits of these food products would further drive market growth over the next 5 years.
Products like monitoring devices, child proofing equipment, strollers etc. comes under the segment of baby safety & convenience, which also showed a significant growth in the past few years. The market is expected to be driven by increased acceptance of these devices among the working professionals. Companies are increasingly using the online shopping network to increase their popularity to withstand the competition.
The Global Market
If we look at the market shares demographically, Asia Pacific was the region with largest shares in 2019, and is expected to be the fastest-growing market due to the rapid urbanization and changing lifestyles over the years. Factors such as increasing per capita spending in the region’s developing countries, and a rise in marketing campaigns and product penetration are also anticipated to drive this demand growth in the APAC region. In addition, increasing rates of disposable income are expected to contribute to the growth of the region in the years ahead.
The demand in North America is expected to account for significant market share in the future. In the past the United States projected a significant dominance over the North American regional market due to the availability of high-quality products in the country. In addition, the rapidly expanding e-commerce sector in the baby product industry is expected to boost sales in the coming years. The country’s major manufacturers are committed to developing innovative items at competitive prices to meet local needs. This, too, is expected to have a positive impact on the regional market in the coming years.
Many families re-evaluated their family life routines during the COVID-19 outbreak and changed their attitude towards the baby care processes and products they use on a daily basis. This year, growing awareness of global public health protection along with the large-scale digitization of conventional offline networks boosted the market for high-quality goods for consumption. Parents have one primary question about “what brands can we trust”? while companies aim at empathising and building stronger trust bases during these uncertain times. On one hand, COVID-19 has significantly affected the Maternity and Infant Care industry, while on the other the disruption is also bringing new opportunities for market players.