Baby and Child-Specific Products in Canada

PRE-COVID-19 PERFORMANCE

The natural trend is growing, while Canadians’ budgets are tightening

The trend for natural ingredients and formulas continued to gain momentum in 2019. Parents are increasingly concerned over the effects of chemical ingredients in baby and child-specific sun care, shampoo and bath products, in respect to possible allergic reactions on a child’s skin as well to environmental impact.

Multinationals dominate sales, while Hello Bello greets Canada

Procter & Gamble, Kimberly-Clark Canada Inc and Johnson & Johnson (Canada) Inc remained the leading players in baby and child-specific products in 2019. 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.

Low birth rate limits scope for growth

Despite increased immigration levels, Canada’s population is ageing and the birth rate is low and slowly falling, presenting strong obstacles to dynamic category growth. However, women are having children at a later age, with birth rates rising for women in their 30s more so than among women in their 20s.

2020 AND BEYOND

COVID-19 impact

In 2020, sales of baby and child-specific products are now expected to grow by 1% in 2019 constant value terms, in light of the impact of COVID-19. A 1% rise was also 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

Slight shortages of baby wipes in outlets that have stayed open have been observed. This is the largest category in baby and child-specific products, and it is likely that its usage for adults as well as for children has increased given higher hygiene vigilance among consumers.

Recovery and opportunities

As non-essential distribution channels reopen in Canada, the availability of premium products in the category will resume to regular levels in 2020. However, it is likely that given that the significant erosion in purchasing power, driven by the economic impact of the pandemic in the country, will lead to some consumers switching to mass baby and child-specific products.

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