Toddlers to Tweens: Consumption Habits of Global 3-12 Year-Olds

EXECUTIVE SUMMARY

Key characteristics

Demographic trends

Chart 1 Populations Aged 3-12 Years and % Growth 2009-2014

Factors affecting demand

Consumer market trends

Outlook

INTRODUCTION

Chief characteristics

Shared cultural reference points
KGOY
Always connected
A need for excitement
Financial prowess
Less discriminatory
Children are more open

Relationships with parents

Summary 1 Children and Tweens: General Characteristics

DEMOGRAPHIC TRENDS

Number of Children

Chart 2 Global Population Aged 3-12 Years 2009-2014
Almost one third of all children located in India and China
Russia benefits from recent baby boom
Philippines has highest percentage of children
Table 1 Number of 3-12 Year-olds in Key Markets 2009-2014
Table 2 Children Aged 3-12 as a % Total Population in Key Markets 2009-2014
Falling fertility
Table 3 Fertility Rates in Key Markets 2009-2014

A multicultural cohort

Increasing diversity
Almost a third of Australian population is foreign born
Chart 3 Age Structure of Hispanic Population in the US 2013

PURCHASING POWER

Increasing economic clout
Italy leads in Europe when it comes to pocket money
Table 4 Average Pocket Money in Europe by Country 2014
Some markets affected by recession
Chinese children are less autonomous

HEALTH AND FITNESS

Levels of Activity

More sedentary lifestyles
A decline in sports participation in the US
Swimming and football top the list in Australia
Emerging markets are more competitive

Earlier onset of puberty

Childhood obesity

Levels continue to grow in developing countries
Governments and companies take action
Chart 4 Obese Population in Key Markets 2009/2014

Unhealthy diets

Tooth decay

Sugary drinks are the main culprit
Incidence highest in emerging markets
Chart 5 Children’s Dental Health in Key Markets 2014

Legislative measures

Efforts to reduce sugary food intake
Mexican government takes drastic action
Taxing sugar

AGE COMPRESSION

Growing up early
The negative side of age compression
Building tween esteem

Parental control

Helicopter parenting
Tiger moms

POP CULTURE AND CELEBRITY INFLUENCE

Tweens buy into their idols
YouTubers take over from TV celebs
Trustworthy role models
Chart 6 Leading YouTubers by Net Wealth, August 2014
Toy channels enchant the youngest YouTube watchers
Chart 7 Most Viewed YouTubers Worldwide in January 2015
Pop culture

CHILDREN AND TECHNOLOGY

Internet use

The digital natives
Almost two thirds of European children use social media
Chart 8 Online Activities Among Children (9-16) in the EU, 2010/2014
Cluster-sharing

Social media

Tweens remain secretive about social media use
Facebook loses out to “cooler” sites
Cyber-bullying on the rise
Social networking has given tweens a voice in Japan
Table 5 Tweens With Social Networking Profile in the EU 2010/2014

Online safety

Children become more vulnerable
COPPA extended
Children breach minimum age requirements for social media
Chart 9 Risk Encounters Among Children (11-13 years) in the EU 2014

Use of Smart Devices

Younger children get mobile phones
Apple tops the wish list
Tablets – a must-have for tweens
Products tailored for children
Summary 2 Selected Child-Friendly Tablets 2014

Apps for children

Children’s app use burgeons
Disney and Toca Boca dominated children’s apps market
Summary 3 Top 20 Children’s Apps on Amazon.com, May 2015

Online payment issues

Children rack up extortionate gaming bills
Google settles “family fraud” charges
New solutions are developed

CONSUMER MARKET TRENDS

Overview

Children become consumers in their own right
British children like to spend on food
iPad becomes most popular children’s brand in US
Summary 4 Children’s Top 30 Brands in the US 2014

Toys and games

Games and puzzles continue to lead the market
Lego remains the top brand
The trend towards smart toys
Interactive figurines see runaway success
Educational games
Table 6 The Global Market for Traditional Toys and Games 2009/2014

Character licensing

Licensed toys and games increase share in all markets
Gaming brands come to the fore
National mascots remain popular in Japan
Parents drawn by nostalgia
International licences have limited exposure in China
Chart 10 Licensed Traditional Toys And Games As % Total Market in Key Countries 2009/2014

Gaming

Digital games drive growth
Console gaming dominated by children
Competition from tablets
The rise and rise of mobile gaming
The trend towards free-to-play games
Table 7 The Global Market for Video Games 2009/2014

Clothing and footwear

Price pressure affects growth
Tweens have greater input in what they wear
The online revolution
Retailers develop tween concepts
A focus on experience
Customisation is in
Extending adult brands to children
An early taste of luxury
Brand licensing
The issue of safety
Table 8 The Global Market for Children’s Clothing and Footwear 2009/2014

Food and drink

Pocket money goes on impulse foods
Fast food is a favourite among families
Yale Rudd Center study highlights a slight change for the better
Fast food companies make progress with healthier options
Confectionery and breakfast cereals face sugar backlash
Table 9 The Global Market for Selected Foods And Drinks 2009/2014
Breakfast cereal strategies
Chart 11 Sugar Content of Breakfast Cereals in Germany 2012
Companies fight back
Breakfast cereals gain popularity in emerging markets
Convenience, fun and health are key
Healthier food initiatives
Back to nature
Packaging developments
Healthier drinks
Fruit juice also comes under fire
Table 10 The Global Market for Selected Soft Drinks 2009/2014

Health and Beauty

Tweens experiment with cosmetics
Concept stores booming
Natural products in demand
Make up must be affordable and fun
Nail products are a must-have

Baby and child-specific products

Catering for the younger market
Safety is paramount
Fun packaging
Table 11 The Global Market for Selected Baby and Child-Specific Products 2009/2014

MARKETING TO CHILDREN

TV and print advertising

Children are avid TV consumers
Print is still effective

Internet advertising

Children migrate from TV to internet
All about the experience

Peer-to-peer selling

In-game advertising

Brand mascots

Film tie-ins

Celebrity endorsement

Summary 5 Advertising Tactics for Children

Advertising guidelines

The need to protect children from unhealthy advertising
New WHO guidelines
Government initiatives
Brazil bans advertising to children
Companies take voluntary action
Mixed results so far

How to market to tweens

FUTURE OUTLOOK

Trends to watch

Populations will age
Table 12 Forecast Number of 3-12 Year-olds in Key Markets 2014/2019
Table 13 Share of 3-12 Year-olds in Key Markets 2014/2019
But spending and pester power will rise
Diversity is here to stay
Kids will no longer be kids
Children will help maintain demand for tablets
Chart 12 Forecast Global Sales of Tablets 2013/2018
Toys to incorporate more digital technology
Character licensing will help boost sales
Social media will remain children’s focal point
Child-friendly apps

Recommendations

Summary 6 Marketing to Children – Recommendations

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