Baby and Child-Specific Products in Vietnam

PRE-COVID-19 PERFORMANCE

Demand limited by slowing birth rate and rising maturity

Growth continues to slow within baby and child-specific products, mainly because of Vietnam’s falling birth rate and rising maturity. Moreover, the low birth rate is also a significant factor affecting demand in this category.

Growing interest in more natural products among health concerned parents

Rising health awareness is highlighted by various scandals involving products made from toxic chemicals, with more and more Vietnamese moms preferring to buy natural and organic products imported from developed countries such as Japan, the US, Australia and New Zealand. In the future, demand for these products is predicted to increase gradually, despite higher pricing, following the trend towards ecological goods among Vietnamese consumers.

Strong brand name and trust key to attracting consumers

Famous international brands such as Johnson & Johnson Vietnam, Bübchen-Werk Ewald Hermes Pharmazeutische Fabrik and Pigeon Corp continue to lead value sales on the strength of their product quality, wide distribution networks and reliable brand names in Vietnam. Meanwhile, the presence of domestic players continues to be limited due to low financial capacity.

2020 AND BEYOND

COVID-19 impact

Sales of baby and child-specific products are still expected to rise by a healthy 7% in 2020 in 2019 constant value terms, despite the COVID-19 pandemic. The lasting impact of COVID-19 is expected to be linked to the economy, with the pandemic impacting macroeconomic stability and growth.

Affected products within baby and child-specific products

While economic concerns will negatively impact most categories across baby and child-specific products, baby wipes is expected to see growth strengthen in 2020 as a result of the COVID-19 pandemic. These products are benefitting from a growing focus on hygiene and not only being used for infant care, but also by adults to sanitise hands and surfaces, both at home and on-the-go, with these often viewed as a more natural and gentler alternative to general purpose wipes.

Recovery and opportunities

With sharp declines expected for many areas of baby and child-specific products in 2020, most products will slowly return to growth in the wake of the COVID-19 pandemic. Baby and child-specific hair care and skin care will continue to suffer somewhat from changing consumer priorities.

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