Baby and Child-Specific Products in Switzerland

PROSPECTS

Demand for natural formulations is set to be a key driver of growth

In 2018, most manufacturers of baby and child-specific products focused their innovation efforts on the natural and organic segments, launching a number of new products, as Swiss parents continued to scrutinise the composition of products and favoured natural and/or organic products. Over the forecast period, growth in baby and child-specific products is expected to be driven by products which are free from harsh chemicals and which feature naturally-derived ingredients.

Baby wipes continues to account for the highest sales

The convenience of baby wipes is likely to remain the main feature stimulating sales in the forecast period. Indeed, these products are considered a convenient and hygienic option for cleaning babies, and they suit parents’ busy lifestyles.

Growth expected despite the challenging environment

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

COMPETITIVE LANDSCAPE

Private label is set to remain the biggest player

The strong position of private label in Switzerland is the result of the lead of Migros Genossenschaftsbund, which is putting strong price pressure on baby and child-specific products in general; constricting value growth. Besides, the continued expansion of German discounters Aldi and Lidl has further helped private label to infiltrate several categories within baby and child-specific products, such as sun care; a trend that is expected to continue over the forecast period.

The leading brand manufacturers

Galderma Schweiz (Nestlé) was the leading non-private label player in baby and child-specific products in value terms in 2018, with its Excipial brand. Beiersdorf (Switzerland) followed with its Nivea Baby and Nivea Sun brands, which benefit from a high-quality image, wide availability and interesting price point.

Niche alternative brands are projected to gain popularity

As the trend is moving away from synthetic products to those containing no artificial preservatives, colours or fragrances, small alternative brands which take care of babies’ daily needs in a soft and natural way are expected to flourish over the forecast period. Start-ups such as Mabyen, which created the first baby spa in Germany, and boep, which offers natural and vegan baby lines, are expected to continue developing product lines that address Swiss parents’ ongoing safety concerns.

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