Baby and Child-Specific Products in Bosnia and Herzegovina

PRE-COVID-19 PERFORMANCE

Baby and child-specific products boosted by positive economic conditions and consumers’ growing product awareness

Current value growth for baby and child-specific products in Bosnia-Herzegovina in 2019 was driven partly by the positive state of the country’s economy. While some products within the category are seldom considered as essential purchases, demand for baby and child-specific products has nevertheless tended to rise at times of stable economic growth.

Drugstores/parapharmacies is largest channel due to a wide product range and continued store expansion

Drugstores/parapharmacies was the largest retail channel for baby and child-specific products in 2019 and also recorded the strongest current value growth. This was largely due to the wide range of baby and child-specific products carried and the continued expansion of leading German private retail chain dm-Drogerie Markt.

Leader Violeta faces growing challenge from both private label and dermocosmetics brands

Category leader and baby wipes specialist Violeta won awards in 2019 for products under its Double Care brand and participated in the Trebaju Nas (They need us) campaign in which it donated money to organisations working with the families of children facing developmental problems. This is thought to have contributed to the reversal of Violeta’s previously negative current value growth by helping to boost its image and awareness among consumers.

2020 AND BEYOND

COVID-19 impact

Sales of baby and child-specific products are now expected to decline by 3% in 2020 in 2019 constant value terms in light of the impact of COVID-19. This compares to an expected 4% rise forecast for 2020 during research conducted at the end of 2019 before the spread of COVID-19.

Affected products within baby and child-specific products

While economic concerns will negatively impact most categories across baby and child-specific products, nappy (diaper) rash treatments is expected to be the sole area of growth in 2020, remaining largely unaffected by the COVID-19 pandemic. However, the resilience of nappy (diaper) rash treatments in 2020 will be insufficient to offset retail value and volume declines elsewhere as consumers focus their spending on the narrower range of products they deem to be essential.

Recovery and opportunities

Most product areas are expected to rebound in the wake of the COVID-19 pandemic, with returns to volume and value growth over the forecast period. Baby and child-specific skin care, sun care and toiletries are expected to rebound sharply in 2021 as consumers travel and spend more time outdoors.

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