Baby and Child-Specific Products in Canada

PROSPECTS

Natural and organic baby and child-specific products continue to make inroads

Natural and organic baby and child-specific products continue to move into the mainstream, with brands such as Live Clean Baby finding shelf space at mass retailers such as Walmart, indicating the growing consumer demand for healthy and environmentally-friendly products. Parents in Canada remain cautious over product safety, and an increasing number of baby and child-specific products carry “free-from” claims, and are marketed as suitable for babies of all ages and skin sensitivities.

Continued demographic trends deliver challenges and opportunities

The demographic trends of an ageing population, later marriage and strong increases in immigration will deliver challenges and opportunities for baby and child-specific products. Canada’s overall population has been growing steadily at an average rate of 1% per year, with immigration being the key driver behind overall population growth.

Baby wipes witnesses the launch of products containing more natural ingredients

Traditionally, growth in baby wipes was driven by consumer demand for convenience, with few major product innovations. Baby wipes are considered a hygienic option, suitable for the busy lifestyles of parents.

COMPETITIVE LANDSCAPE

Procter & Gamble, Kimberly-Clark Canada and Johnson & Johnson dominate

Procter & Gamble, Kimberly-Clark Canada and Johnson & Johnson (Canada) remained the leading players in baby and child-specific products in 2018. Procter & Gamble’s lead and Kimberly-Clark Canada’s second position are supported by their strong shares in baby wipes, with their Pampers and Huggies brands respectively leading this category.

Distribution remains highly concentrated

Sales of baby and child-specific products continued to be dominated by hypermarkets, supermarkets and drugstores/parapharmacies in 2018, with these three channels accounting for close to three-quarters of overall value sales. Retailers such as Walmart, Loblaw and Shoppers Drug Mart provide convenient locations and budget-friendly promotional prices, which are critical factors in parents’ purchasing decisions.

The growth of internet retailing

Internet retailing continues to experience strong growth in baby and child-specific products. Amazon.

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