Baby and child-specific products continued to record strong growth in Asia Pacific in 2019, driven by the popularity of these products among parents for use on their offspring. While 2020 will see significant societal disruptions due to Coronavirus (COVID-19), the pandemic is unlikely to have any major impact on baby and child-specific products, aside from providing a boost to sales of baby wipes. Further strong growth is expected in the region over the forecast period.
Baby and child-specific products saw strong growth throughout the historic period in Asia Pacific. Sales were particularly dynamic in China, which accounted for three quarters of the new retail value generated in 2014-2019. Japan was registering declining sales, largely due to the falling birth rate. It is experiencing a significant population decline, with the dwindling number of newborns having a direct negative impact on demand for baby and child-specific products.
While half of baby and child-specific product sales are made online in South Korea, in terms of shaping the overall region’s internet retailing share, the advances made by e-commerce in China are having the biggest impact. With online sales seeing strong growth in China, leading players are putting increasing efforts into improved collaboration with e-commerce platforms to expand their business. Cross-border e-commerce in particular is now considered one of the best ways for brands and companies to enter the Chinese market.
Parents are increasingly looking for natural products or ingredients in baby and child-specific products. This saw Johnson & Johnson (India), losing value share to new companies with organic and natural product offerings, focus on removing chemical dyes and adding natural ingredients in its baby product line in 2019. Pigeon launched a new baby and child-specific skin care line in Japan in 2019 under the filbaby brand, using natural ingredients for soft and moisturised skin.
Although growth will slow in 2020 as a result of the COVID-19 pandemic, it will remain strong, and will also quickly return to higher rates from 2021. As in the historic period, baby and child-specific products is expected to record a retail value CAGR of 9% over the forecast period.
If you purchase a report that is updated in the next 60 days, we will send you the new edition and data extract FREE! Home Page