Baby and Child-specific Products in Western Europe

Strategy Briefing

About This Report

Nov 2017

Baby and child-specific products in Western Europe stagnated over the 2011-2016 period, which mirrors the flat population growth of the under 12 years old age group in the region. Although baby wipes generated the majority of regional growth in the category, value-added categories such as medicated products and nappy rash treatments posted the most dynamic growth. International brands are coming under pressure from labels with strong pharma-positioning and functional claims.

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Baby and Child-specific Products in Western Europe

Stagnating growth replicates flat regional birth rate

Despite the region’s relative affluence, in absolute value terms it only contributed 2% of the global sales gain over 2011-2016. The low absolute growth in the region was largely caused by the market value contraction of major markets. The market value stagnation in the region mirrored the flat population growth of the under 12 years old age group.

Baby wipes remain strong category leader across the region

Baby wipes saw fast value growth not just due to the convenience aspect but also the variety of purposes for which these products can be used, besides cleaning the baby. For example, consumers use these to remove make-up and stains from clothes, or clean the surroundings where the baby is eating or playing.

Latent opportunities in value-added categories

Although baby wipes generated the majority of regional growth in baby and child-specific products over 2011-2016, value-added categories such as medicated baby and child-specific products and nappy rash treatments posted the most dynamic growth, albeit from a smaller base. These categories were holding up positive performance even in markets with overall market value contraction, such as Italy or the Netherlands.

High category sophistication facilitates channel diversity

Baby and child-specific products in most Western European markets are still most commonly purchased via hypermarkets/supermarkets or drugstores and chemists. The highly diverse distribution landscape indicates high market and price fragmentation in the region. This also makes premiumisation and launching added-value innovations a necessary strategy in any category where achieving volume growth is difficult, given the consistently low birth rates.

Specialist brands steadily closing the gap to leading, mainstream labels

Although the top three labels in the region maintained the status quo over the last 10 years, their value shares have been eroding at different rates. The competition is more intense among the mid-tier, pharma-positioned, specialist brands with Mustela, Huggies and Bepanthen leaping ahead in the regional ranking.

Introduction

Scope
Key findings

Regional Overview

Stagnating growth replicates flat regional birth rate
Improving but still sluggish performance
Baby wipes remains strong category leader across the region
Diverse category performance in smaller regional markets
Latent opportunities in value-added categories
Strong growth concentration on Turkey, Germany and the UK
Growing demand for natural formulations a key growth driver
Low level of channel diversity
High category sophistication facilitates channel diversity

Leading Companies and Brands

Intensifying market fragmentation across the region
Shifting competitive dynamics in major regional markets
Regional top two remain unchallenged but ….
…specialist brands steadily closing gap to leading, mainstream labels

Forecasts

UK remains the largest and one of the most dynamic markets
D emand for naturally-derived ingredients the sole growth driver
Population stagnation the key constraint on future performance
Demographics and pricing the key challenges in the region

Country Snapshots

UK : Market context
UK : Competitive and retail landscape
Italy : Market context
Italy : Competitive and retail landscape
France : Market context
France: Competitive and retail landscape
Spain : Market context
Spain : Competitive and retail landscape
Germany : Market context
Germany : Competitive and retail landscape
Turkey : Market context
Turkey : Competitive and retail landscape
Portugal : Market context
Portugal : Competitive and retail landscape
Netherlands : Market context
Netherlands: Competitive and retail landscape
Greece : Market context
Greece : Competitive and retail landscape
Switzerland : Market context
Switzerland : Competitive and retail landscape
Belgium : Market context
Belgium : Competitive and retail landscape
Austria : Market context
Austria : Competitive and retail landscape
Sweden : Market context
Sweden : Competitive and retail landscape
Ireland : Market context
Ireland : Competitive and retail landscape
Norway : Market context
Norway : Competitive and retail landscape
Denmark : Market context
Denmark : Competitive and retail landscape
Finland: Market context
Finland: Competitive and retail landscape

Appendix: Competitor Analytics

Competitor Analytics tool
Overview
Competitors
Market Overlap
Treemap
Overlap Matrices

Appendix: Industry Forecast Model

About Euromonitor International’s Industry Forecast Model
Soft drivers and the Industry Forecast Model
Growth decomposition explained
Significance and applications for growth decomposition
Key applications for Industry Forecast Models