Baby and Child-Specific Products in Thailand

PRE-COVID-19 PERFORMANCE

Manufacturers respond to declining birth rate

The birth rate has been declining in Thailand for many years and is expected to continue this trend throughout the forecast period, which is clearly a potential threat to sales of baby and child-specific products. However, manufacturers are countering this threat by increasingly positioning their products as beneficial for adults, and the elderly population in general.

Premiumisation drives value growth

Baby and child-specific products recorded stronger current value growth than volume in 2019, with premiumisation playing a key role in this. Although Thais are having less babies as a whole, many parents seek to provide the best products for their children that they can afford and are choosing gentle formulas, higher-quality, innovative and safe products for their babies.

Parents increasingly turn to natural or organic products

Thais continued to voice concerns over the chemical ingredients used in the manufacture of many beauty and personal care products in 2019, including the majority of baby and child-specific products, with many becoming more willing to abandon their long-term favourite brands in favour of more natural and organic products. The increasingly positive attitudes of Thais towards natural and organic baby and child-specific products place them far ahead of the populations of the region’s other developing countries such as Indonesia and in fact closer to the APAC average.

2020 AND BEYOND

COVID-19 impact

Sales of baby and child-specific products are now expected to grow by 4% in 2020 in 2019 constant value terms in light of the impact of COVID-19. This compares to an expected 5% 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

Although sun care was unique in baby and child-specific products in that it recorded a constant 2019 value decline over the review period, this was largely due to price declines as these products were already the most expensive in the category. However, sun care is anticipated to witness accelerating constant 2019 value declines in 2020, given the strict restrictions on travel and the seclusion of most children in their homes.

Recovery and opportunities

Baby and child-specific products is likely to take a number of years to recover from the COVID-19 outbreak. Although the category is still expected to record constant 2019 value growth over the forecast period, annual growth rates will likely be lower than those envisaged in the research conducted at the end of 2019 before the spread of COVID-19.

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