Baby and Child-Specific Products in Germany

PROSPECTS

Demographic developments expected to continue to support growth

In the past, Germany had a relatively stagnant birth rate, which naturally translated into a smaller population aged between 0-4 compared with previous generations. However, mostly due to the impact of immigration, the birth rate increased in recent years, reaching a 43-year high in 2016, with a new record expected to be set in 2017.

Warmer and longer summers motivate consumption

2018 was an exceptionally warm and long summer, which translated into higher consumption of baby and child-specific sun care and skin care products, and higher unit prices due to demand for higher-quality products. Increasing temperatures and greater sun exposure leads to demand for better products which can last longer and protect babies’ and children’s skin better.

Increasing prioritisation of quality will drive up unit prices

Parents increasingly value the health of their children. They tend to opt for more expensive products if this translates into higher quality.

COMPETITIVE LANDSCAPE

Leading brands carried by consumer trust

When it comes to quality, German parents are highly risk-averse. Over recent years this trend favoured the category leaders Johnson & Johnson and Nestlé Deutschland and their brands Penaten and Bübchen respectively.

Discounters, supermarkets and hypermarkets set to compete for share

The number of permanently listed products in the baby care sections of grocery retailers is increasing strongly, driving some of the volume growth in baby and child-specific products. This approach, led by Aldi Nord and Lidl, aims to attract more consumers to their outlets.

Internet and new brands: a perfect alliance

Internet retailing is performing well within baby and child-specific products, taking advantage of consumers’ increasing awareness, and the ease of use and predisposition for internet usage via many different devices. Therefore, such conditions create the perfect environment for the commercialisation of new brands and products.

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