Baby and Child-Specific Products in Switzerland

2020 IMPACT

Parents reduce purchases of non-essential baby and child products

Due to the outbreak of COVID-19 in Switzerland, sales of baby and child-specific products recorded a value decline of 2% in 2020, compared to growth of 1% the previous year. With the outbreak of the virus impacting working life – with many consumers working from home and others out of work – financial insecurity rose in the country.

E-commerce grows as consumers appreciate the convenient form of retail

With a strong focus on local retailers that were not impacted by lockdowns, supermarkets and drugstores managed to gain shares during 2020, with drugstores sales benefiting from consumers not being able to shop across borders due to COVID-19 restrictions. As many consumers limited in-store shopping altogether, e-commerce sales also recorded significant growth, with consumers appreciating the platform for offering a safer form of retailing.

Private label continues to lead, with Migros increasing its growth due to high price sensitivity

The strong position of private label in Switzerland is thanks in large part to leading player Migros Genossenschaftsbund. Migros continued to benefit from its vast store network in 2020, as well as its online store, leading the player to see an uplift in share during the year.

RECOVERY AND OPPORTUNITIES

A return to travel and tourism boosts sales of baby and child-specific sun care

Following a decline in sales in 2020, both value and volume sales of baby and child-specific products are expected to recover from 2021. Sales will benefit from a recovery seen in areas that were previously deemed non-essential, such as baby and child-specific sun care, toiletries and skin care.

Premium products focus on natural ingredients, driving growth over the longer term

As the country recovers over the longer-term forecast period, premium products, including natural and green products, are expected to contribute to growth and become popular once more. This is especially the case within baby and child-specific skin care and toiletries, including specific baby bath and shower products.

Falling birth rates challenge the baby and child-specific products landscape

The declining birth rate in Switzerland and the trend for postponing motherhood is expected to continue creating a challenging environment for baby and child-specific products over the forecast period. However, as older parents tend to have higher incomes and, with fewer children to care for, they are likely to spend more per child, helping to drive current value growth in baby and child-specific products.