Baby and Child-Specific Products in the US

PRE-COVID-19 PERFORMANCE

Decline in birth rate impacts sales of baby toiletries, but baby wipes continues to grow

Overall birth rates once again declined in the US in 2019. With millennial mothers choosing to have fewer children and giving birth later in life, baby toiletries saw slower growth in 2019 compared to the previous year.

Millennial mothers contribute to growing premium segment

With notable increases in natural and organic offerings, the premium price tag that often accompanies high-end formulations was not putting mothers off at the end of the review period. As more women adopt premium products into their own beauty regimens, when they become mothers, they are looking for the same standards for their children.

Target expands private label offerings with Cloud Island toiletries

Target expanded its baby care offerings with the launch of its Cloud Island private label line in 2017. Originally limited to nursery décor and layette, Cloud Island’s 2019 expansion into baby toiletries is looking to fill the gap left in baby care following the closure of Babies ‘R’ Us.

2020 AND BEYOND

COVID-19 impact

Sales of baby and child-specific products are expected to record a 1% increase in 2020 at constant 2019 prices. This is in line with 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 was by far the most affected product by the hoarding and stockpiling behaviour. While parents did also stock up on baby toiletries, this was not to the extent of baby wipes.

Recovery and opportunities

The lasting impact of COVID-19 is expected to be linked to the economy, with the pandemic having a major impact on the country’s growth and employment levels. Consumers are already cutting back on spending, and this can be expected to continue, and likely intensify, over the course of 2020.

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