Baby and Child-Specific Products in New Zealand

PRE-COVID-19 PERFORMANCE

Targeted and natural products in demand in 2019

Millennial parents are constantly looking for products that specifically cater to different problems and there was consequently a growing trend of using targeted products rather than generic ones in 2019. Due to the abundance of resources online, parents are usually very educated in terms of what best suits their babies and therefore have a clear understanding of which products they require.

Lower fertility rate to influence long-term demand

Although demand for baby and child-specific products remained stable in 2019, fertility levels are expected to negatively impact demand in the longer term. According to Statistics New Zealand, the country faced its lowest fertility rate in 2017 down to 1.

Constant innovation ensures Johnsons & Johnson maintains its lead in 2019

The multinational Johnson & Johnson remained the clear leader of baby and child-specific products due to its constant innovation. In 2019, the company introduced Aveeno Baby Calming Comfort for bedtime, which contains lavender and vanilla to calm and relax babies.

2020 AND BEYOND

COVID-19 impact

Sales of baby and child-specific products are now expected to grow by 2% in 2020 in 2019 constant value terms in light of the impact of COVID-19. This compares to an expected 1% 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

Baby wipes is expected to see growth strengthen in 2020 as a result of the COVID-19 pandemic. These products are benefitting from a growing focus on hygiene, not only being used for infant care but also being used by adults to sanitise hands and surfaces, both at home and on-the-go, with these often viewed as a more natural and gentle alternative to general purpose wipes.

Recovery and opportunities

Baby and child-specific products is set to register further growth over the forecast period and COVID-19 is not expected to have a significant long-term impact on sales. Value growth at constant 2019 prices over the forecast period will be on a par with that of the review period.

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