Baby and Child-Specific Products in Georgia

PROSPECTS

The performance is connected to the currency situation

In 2018, volume sales of baby and child-specific products continued to be hindered by the pressure of the diminishing birth rate and past currency fluctuations, which led to strong demand for products on offer and discounted items. The unstable currency situation over the review period brought uncertainty to Georgian consumers.

The emerging baby skin care category sees the best performance

Baby and child-specific skin care saw the best performance in both volume and current value terms in 2018, due to heightened interest in different baby and child-specific products. Baby and child-specific skin care products gained popularity amongst Georgian parents as they are becoming increasingly aware and educated about maintaining their baby’s natural skin barrier to protect their skin from potentially harmful germs or irritants.

Future development will be affected by the low birth rate

Sales of baby and child-specific products are expected to increase in the forecast period in both volume and current value terms, driven mainly by the improved living standards of local consumers. However, the negative outlook for the birth rate in Georgia is predicted to cause a population decline towards 2030; this leaves little room for hope regarding robust growth in baby and child-specific products over the forecast period, with the exceptions being skin care and sun care, due to the influx of inbound tourists.

COMPETITIVE LANDSCAPE

Two brands compete for the leading position

Johnson’s Baby by Johnson & Johnson was the leading brand in baby and child-specific products in value terms in 2018, closely pursued by Bübchen from Bübchen-Werk Ewald Hermes Pharmazeutische Fabrik (Nestlé). Both brands are widely available, trusted by consumers, and have a long-standing presence in Georgia.

International companies dominate

Well-established international brands continued to lead baby and child-specific products in 2018, including Johnson’s Baby by Johnson & Johnson, Pampers by The Procter & Gamble Co, Huggies from Kimberly-Clark Corp and Nivea Baby from Beiersdorf. This is thanks to strong consumer loyalty towards international brands, both premium and mass, and their long-standing presence in the country.

The development of modern retail channels increases product availability

Modern grocery retailers are expanding and cannibalising sales from traditional channels such as independent small grocers and open markets. The expansion of modern grocery retailers and the growth of international brands are supporting the widening availability of various baby and child-specific products.

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