CAGR: 5.2%Current Market Size: USD 19.20 BillionFastest Growing Region: North America
Largest Market: APACProjection Time: 2022-2029Base Year: 2021
Global Baby Care Products Market- Market Overview:
The global Baby Care Products market is expected to grow from USD 19.20 billion in 2021 to USD 28.19 billion by 2029, at a CAGR of 5.2% during the Projection period 2022-2029. An increase in demand for fortified baby food, owing to parents' increasing knowledge of the importance of meeting their kids' nutritional needs, has primarily driven the growth of the global market.
A range of baby care products comprises baby shampoos, baby powders, baby powders, baby Wash & baby oils, and baby creams, among others. Such products are mainly intended to be used on infants and babies till the age of three years. Most baby care products are commonly made of hydrating and mild ingredients, including shea butter, aloe vera, almond oil, milk cream, jojoba oil, and butter. Such ingredients help in moisturizing and softening the skin of the baby.
Moreover, the outer skin layer of a baby is comparatively 30% thinner than that of adults. Hence, there is a significant increase in the popularity of organic baby care products. Such products are a good source of healthy nutrients that helps in the consistent development of skin.
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Market Dynamics:
Drivers:
There has been a significant increase in the demand for fortified baby food, owing to parents' growing knowledge of the importance of meeting their kids' nutritional needs. An increase in demand for organic baby food products, in particular, is driving the market's growth. For instance, Nestle SA launched new products responding to the demand for fortified baby food in India with goods, such as Nestle Cerelac Fortified Baby Cereal with milk multi grain & fruits. Iron, zinc, and vitamins are among the minerals added to infant food during the fortification process. The most frequent dietary shortfall among children is iron insufficiency. As a result, fortified infant food items that are high in iron and folic acid are being introduced into the baby care products market for the baby's physical and mental development.
Online retail platform is the major driver for baby care products. Presently, numerous retailers are associating with or have their own web-based retail stores where consumers can gain information about the organization and their products. There is an increase in the number of online shoppers, owing to the availability of varied product options and price comparison on online shopping sites.
This is useful for retailers due to zero expenditure on physical outlets or stores. One of the major reasons behind consumers preferring online shopping online is that consumers can read reviews provided by other users and compare various stores, products, and the price of different sellers. According to the World Bank, as of 2018, approximately 88.5% of the population in North America are internet users, followed by Europe and Central Asia, accounting for around 72.9% of the population internet users. In addition, access to the internet and online baby care products have provided consumers a platform where they can easily compare assorted products and prices and shop comfortably. Some of the popular online retailers in the baby care products market are Amazon.com, Walmart.com, and others.
Restraints:
Lack of awareness about baby care products among consumers operates as a major hurdle for expanding the baby care business. Many people live in rural areas globally, with inadequate internet access and fewer opportunities for advertisements to reach them. People who are not familiar with the ingredients or the applicability of the products are also hesitant to trust these baby care brands, fearing that they would harm their newborn children.
Rather than purchasing baby care products, they prefer to use natural homemade food, soap, and talcum powder, which restrain the baby care product market growth. Many baby care product manufacturers have shifted to organic and natural products. Still, some brands continue with chemical-containing products, which also makes some parents believe that no product is safe in the market. Parents globally are becoming more careful when it comes to buying baby products, whether it is baby food, baby cosmetics, hygiene, or baby safety and convenience. The rise in awareness of several health risks caused by synthetic baby products and toiletries, such as fungal and bacterial infections, acts as a restraint for the market growth.
Opportunities:
The inclination of parents to organic and natural products is the major trend nowadays. Extravagant advertisements or giant names no longer appeal to educated parents. They are vigorously watching for innocuous ingredients in the product. Parents are attracted to natural baby-care recipes as they are harmless. In addition, internet penetration has made information accessible to consumers, which helps them make buying decisions.
Moreover, consumers are more inclined to purchase natural and organic items for their newborns to avoid artificial perfumes and chemicals found in many baby care products. Manufacturers in the baby care products market are concentrating on product innovation and quality, which will drive the growth of the market for baby care products in grow upcoming years.
Challenges
The market's expansion is limited as the usage of some chemicals can be detrimental to babies. Competition from local competitors is another significant challenge for the main international players in the global baby care products market. Due to the high cost of manufacturing infant products, local businesses produce low-priced, low-quality goods, hurting the entire industry's demand.
Furthermore, when it comes to baby care products, parents' first concern is safety. Baby's skin is considerably more delicate than an adult's. Thus, it is more susceptible to allergies, infections, chemical exposure, and so on. They may be more susceptible to infections and rashes due to these factors. Chemicals are included in baby creams, oils, wipes, and other similar goods. These difficulties prevent parents from acquiring baby care products since they become unsuitable for their skin. As parents are becoming more aware of the health of their babies, they are avoiding the usage of products with high amounts of chemicals. This factor is projected to pose significant challenges to the market players.
Segmentation Analysis:
The global Baby Care Products market has been segmented based on product, price, distribution channel, and regions.
By Product
The product segment includes baby skin care, baby toiletries/hair care, baby food, and baby safety & convenience. The baby toiletries/hair care segment led the Baby Care Products market with a market share of around 45.31% in 2021. A growing number of parents and a rise in birth rates are driving up demand for baby items, particularly hair care products. Because there are more newborns everywhere every day, it is important to use shampoos made specifically for babies to care for hair properly. Consumers' rising knowledge of numerous healthcare issues, such as skin allergies, has prompted businesses to concentrate on introducing new natural or organic brands with fewer chemicals that may be used by babies as well. Such factors have boosted the growth of this segment.
By Price
The price segment includes low, medium, and high. The low segment led the Baby Care Products market with a market share of around 40.6% in 2021. The baby care products from the low segment are expected to have a great growth opportunity, mainly in developing economies such as China, India, and Brazil. These developing nations are characterized by growing health consciousness, rapid urbanization, growing health awareness, and a rise in disposable income. Moreover, the trend of consuming natural products at low prices is expected further to boost the growth of the baby care products market.
By Distribution Channel
The distribution channel segment includes hypermarket & supermarket, pharmacy & drugstores, specialty stores, online, and others. The hypermarket & supermarket segment led the Baby Care Products market with a market share of around 46.98% in 2021. Supermarket/hypermarket is gaining popularity due to the availability of a broad range of consumer goods and food & beverages under a single roof, in addition to ample parking space and convenient operation timings. Consumers prefer to buy products that are on sale. Moreover, products are arranged nearby, which aids buyers in easy comparison among similar products, thereby helping consumers to decide which product to buy. In addition, an increase in urbanization, a rise in working-class population, and competitive pricing boost the popularity of supermarkets/hypermarkets.
By Regional Analysis:
The regions analyzed for the Baby Care Products market include North America, Europe, South America, Asia Pacific, and the Middle East, and Africa. The Asia-Pacific region dominated the Baby Care Products market and held the 40.22% share of the market revenue in 2021.
Global Baby Care Products Market- Country Analysis:
Germany's Baby Care Products market size was valued at USD 1.73 billion in 2021 and is expected to reach USD 2.52 billion by 2029, at a CAGR of 5.1% from 2022 to 2029. In the Europe region, Germany is one of the leading shareholders in the Baby Care Products market. In addition, the huge spending power of the population in this country has been a major contributor to market growth.
Moreover, the upsurge in daycare facilities in the country and government subsidies for enabling admissions of children in daycare facilities will further boost demand for baby care products in the country. On the other hand, the demand for baby care products, especially natural and organic baby care products, is rising due to consumers' growing awareness of the importance of baby care. This is one of the main drivers of Germany's baby care products market's growth.
China's Baby Care Products market size was valued at USD 3.84 billion in 2021 and is expected to reach USD 5.52 billion by 2029, at a CAGR of 4.9% from 2022 to 2029. The factors such as the aging population, increasing consumer income, and government initiatives have driven the growth of the China Baby Care Products market. In addition, there are more than 300 million mobile internet users in the country who have children with age under 12 years. This has caused a significant demand for e-commerce sales of baby care products in the country.
On the other hand, in February 2021, Babycare, the Chinese baby care brand raised about $108.4 million in a series B round led by CDH Investments. This trend of baby care investments in the country is opportunistic for the growth of the market.
India's Baby Care Products market size was valued at USD 0.96 billion in 2021 and is expected to reach USD 1.46 billion by 2029, at a CAGR of 5.6% from 2022 to 2029. India is one of the highest growing economies in Asia. Increasing population, rising middle-class population, ongoing upsurge in awareness about baby’s wellbeing, and changing lifestyle in the country are mainly driving the growth of the baby care products market.
Furthermore, the country is seeing huge demand for natural ingredients-based baby care products. Due to this, more market players are launching natural ingredients-based baby care products in the country. For instance, in June 2022, Sanosan, a German premium baby care brand, launched Baby Care Soap in India. This baby care soap comprises natural ingredients with the active substances hydrolyzed milk protein as well as organic olive oil. This trend of natural ingredients-based baby care products in the country is opportunistic for the growth of the market.
Key Industry Players Analysis:
To increase their market position in the global Baby Care Products business, top companies are focusing on tactics such as adopting new technology, mergers & acquisitions, product developments, collaborations, and partnerships, joint ventures, etc.
Latest Development:
Scope of the Report
Global Baby Care Products Market by Product:
Global Baby Care Products Market by Price:
Global Baby Care Products Market by Distribution Channel:
Global Baby Care Products Market by Region:
The Total value of Global Baby Care Products market is USD 19.20 billion in 2021 and it is expected to reach USD 28.19 billion by 2029, at a CAGR of 5.2% from 2022 to 2029.
Asia-Pacific region dominated the Baby Care Products market and held the 40.22% share of the market revenue in 2021
U.S., South Korea, China, France, and India
Introduction of new baby care products, rising establishments of daycare centers, and rising population is projected to influence market growth in upcoming years.
Lack of awareness about baby care products among consumers operates as a major hurdle for expanding the baby care business. Many people live in rural areas globally, with inadequate internet access and fewer opportunities for advertisements to reach them.
Leading market players active in the global Baby Care Products market are Johnson & Johnson, Procter & Gamble (P&G), Kimberly-Clark (KCWW), Honasa Consumer Pvt. Ltd., The Himalaya Drug Company, Citta World, Sebapharma GmbH & Co. KG, Beiersdorf, California Baby, and Unilever among others.
Political Factors- The upsurge in daycare facilities in the country and government subsidies for enabling admissions of children in daycare facilities will further boost demand for baby care products in the country. On the other hand, the demand for baby care products, especially natural and organic baby care products, is rising due to consumers' growing awareness of the importance of baby care. The factors such as the aging population, increasing consumer income, and government initiatives have driven the growth of the China Baby Care Products market. In addition, there are more than 300 million mobile internet users in the country who have children with age under 12 years.
Economical Factors- One of the major reasons behind consumers preferring online shopping online is that consumers can read reviews provided by other users and compare various stores, products, and the price of different sellers. According to the World Bank, as of 2018, approximately 88.5% of the population in North America are internet users, followed by Europe and Central Asia, accounting for around 72.9% of the population internet users. In addition, access to the internet and online baby care products have provided consumers a platform where they can easily compare assorted products and prices and shop comfortably. Some of the popular online retailers in the baby care products market are Amazon.com, Walmart.com, and others.
Social Factor- According to Worldometer estimates, Asia alone has 4.6 billion inhabitants or around 56.7% of the global population. The baby care products market is anticipated to increase significantly in this area, which is home to the two most populous nations globally, China and India, due to the favorable demographic trends. In addition to a significant increase in population, this region has also seen a significant rise in literacy rates, which is anticipated to be a major factor in the public's growing awareness of the importance of providing good healthcare for children and, as a result, is expected to boost the market shortly.
Technological Factors- The technological factors for baby care products carry significant weight. There is a significant increase in the popularity of organic baby care products. Such products are a good source of healthy nutrients that helps in the consistent development of skin. In addition, innovations in improving the safety of these products through process improvements and technological advancements are being observed around the globe. Furthermore, product innovations play an important role in the global baby care products industry. Also, extensive research and development (R&D) activities have further facilitated the launch of innovative products in the market.
Environmental Factors- The increasing concern for the environment and rising global warming is a challenge for the market’s growth. The market's expansion is limited as the usage of some chemicals can be detrimental to babies. Competition from local competitors is another significant challenge for the main international players in the global baby care products market. Due to the high cost of manufacturing infant products, local businesses produce low-priced, low-quality goods, hurting the entire industry's demand.
Legal Factors- Johnson & Johnson (J&J) launched Vivvi & Bloom, a new baby care brand. This brand is certified by the Environmental Working Group (EWG). Procter & Gamble, an American multinational consumer goods corporation, launched Pampers’ research facility at the P&G Singapore Innovation Center (SgIC). This facility has expanded its R&D capabilities associated with the BabyCare portfolio. Sanosan, a German premium baby care brand, launched Baby Care Soap in India. This baby care soap comprises natural ingredients with the active substances of hydrolyzed milk protein and organic olive oil. This trend of natural ingredients-based baby care products in the country is opportunistic for the market's growth.
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