Baby and Child-Specific Products in Belarus

2020 IMPACT

COVID-19 impacts categories differently in 2020 with sales of baby wipes outperforming others

Thanks to the outbreak of COVID-19 in Belarus in 2020 and its subsequent home seclusion, Belarusians spent more time with their children and much of this time was spent outdoors. Consequently, demand for baby and child-specific hair care, skin care and toiletries was stimulated.

Price discounts and promotions flourish to attract consumers in 2020 but demand for baby and child-specific products maintained thanks to essential nature

The pandemic wrought havoc on the Belarus economy and combined with the uncertain political environment, consumers were price sensitive during 2020 as disposable incomes decreased. Consequently, demand for baby and child-specific products slowed in volume terms, with this consumer behaviour affecting the competitive landscape.

Multinationals retain leading positions in 2020

Multinationals retained by far the largest share of baby and child-specific child care in 2020 leaving little scope for local players; however, local player Belita-Viteks SPB OOO managed to retain its second ranked place while increasing its value share. Johnson & Johnson Inc led the overall category benefiting from its global renown and high trust consumers have in its brands.

RECOVERY AND OPPORTUNITIES

Sales growth likely to be similar to that of the review period thanks to parents prioritising children

Over the course of the forecast period, it is likely that constant retail value sales of baby and child-specific products will see a similar performance than that of the review period, with the constant forecast CAGR being marginally lower than that of the review period. Belarusians are impelled to buy the best products they can afford for their children and thus a further decline in disposable income is unlikely to have a large negative affect on the category in the short term.

Demand for natural and healthy baby and child-specific products expected to resume over the forecast period

More parents began showing an interest in healthy living and became increasingly interested in the ingredients products contain during the review period thanks to the internet and social media especially as a growing number of children have allergies in Belarus. Therefore, many parent’s interest in natural and ecological products resulted in the increasing presence and sales of baby and child-specific products with natural ingredients such as camomile, celandine and aloe vera.

Increase in VAT on imported baby and child-specific products set to decrease demand over the forecast period

From 1 January 2020, the local state levied a VAT increase of 20% rather than the 10% imposed previously on imported baby and child-specific cosmetics. This increase in addition to the depreciation of the local currency led to an increase in unit prices of baby and child-specific products.