Baby and Child-Specific Products in Switzerland

2021 DEVELOPMENTS

Improving demand in 2021 despite declining birth rates in Switzerland

Despite heavily declining birth rates during the pandemic, baby and child-specific products recorded low single-digit retail volume and current value growth in 2021. The number of children aged between 0 and 11 years only increased marginally leading to a slight increase in per capita volume and value sales.

Increase in online research and e-commerce due to greater time at home

With greater available time during early 2021 as a result of further restrictions, many consumers started to conduct online research and became increasingly aware of the benefits of products specifically created for using on sensitive skin of babies and young children. This contributed to further growth of baby and child-specific products, despite many consumers continuing to use generally mild products with no dedicated age specification.

Retailer Migros continues to lead with private label line Mibelle

Due to its strong national presence and popularity within baby and child-specific toiletries and wipes, retailer Migros Genossenschaftsbund eG continued to lead baby and child-specific products in 2021 with its private label line Mibelle. Its highly competitive pricing combined with acceptable product quality continued to support its high level of popularity in Switzerland.

PROSPECTS AND OPPORTUNITIES

Moderate growth predicted as habits and usage stabilise over forecast period

As birth rates and the number of children that families choose to have in Switzerland are only expected to recover slowly and minimally later in the forecast period, growth rates of baby and child-specific products are likely to be more moderate compared to the upturn in 2021. Usage patterns are also likely to become increasingly moderate, certainly for more specific products, similar to pre-pandemic levels, thereby reducing overall demand, although baby wipes is predicted to remain a strong performer over the forecast period, as these are not only used by parents of younger babies but also older children, and for general cleaning and wiping inside and outside of the home for on-the-go purposes.

Rising competition from natural brands can further limit stronger growth

Another limiting factor for stronger growth for baby and child-specific products will be the growing competition from newly-emerging natural, organic and gentle products and brands – following evolving trends in Switzerland – that are suited, albeit not specifically formulated for, use by children such as Weleda and Honest. This will most likely have a strong impact, especially on baby and child-specific toiletries, while other more specialist products, such as treatments for nappy/diaper rash or cradle cap, are more difficult to substitute.

Despite further penetration of e-commerce, supermarkets will be favoured due to convenience of one-stop shopping

In terms of further development of distribution, many local consumers are likely to continue favouring their preferred supermarkets/grocery retailers, including Migros and its affordable private label products. Nevertheless, some consumers are likely to retain their newfound habit of online shopping driven by the pandemic, as they increasingly value the increased levels of convenience and comparability when searching for baby and child-specific products online.