The Australian baby care products market is estimated to grow at a CAGR of 6.62% to achieve a market size of US$4,441.778 million by 2027, from US$2,836.289 million in 2020.
The market in Australia is projected to surge at a steady pace with the growing expansion of retail sales for baby care products. The growing e-commerce industry has further had a positive impact on the sales of baby care products online. Hence, with the growing internet penetration, a significant proportion of the population are preferring the online mode of purchase for their babies, offering a diverse range of baby care products.
Furthermore, as disposable income grows, young parents are willing to spend more on premium baby care products without sacrificing product quality. The presence of regulations regarding the safety of babies is further driving the sales of baby care products, specifically, child restraints. This is because the fact that the supply of child restraints in Australia is regulated by mandatory safety standards. Furthermore, the growing adoption of organic baby care products is providing an opportunity for the market to thrive in the upcoming years.
Baby food is estimated to hold a significant share of the market
By type, the baby care products market in Australia is segmented into baby food, baby care, and safety and convenience. Baby food is expected to hold a significant share in the market on account of growing awareness of nutrition coupled with the increasing number of working women in the country. In addition, with the changing lifestyle and rising online e-retail business in the country, the market for baby care is anticipated to witness substantial growth over the forecast period.
Growing awareness regarding child nutrition and paediatrics is expected to be the prime driver for the growth of the market during the forecast period.
The expanding online e-retail business in the country, along with the growing working population, has led to a gradual shift towards packed baby foods in the country. According to The Department of Education, Skills, and Employment of the Australian Government, in January 2019, women employed in the country increased by nearly 2.4% from 2018 to reach 5,983,900. Furthermore, an increasing number of product launches in the organic baby food category is also anticipated to propel the market’s growth opportunities in the coming years. For instance, in 2019, Wattle Health Australia. in partnership with Organic Dairy Farmers of Australia, announced its new organic baby formula range under a new brand name Uganic, formulated with 100% organic milk sourced. Besides, in the same year, Bellamy's Australia also launched a baby formula with twice the omega-3 of the existing products on the market. Such competitive strategies by big market players in the form of innovative and healthy product launches are expected to boost the baby food market in the country during the forecast period.
Impact of COVID-19
Baby care product sales were affected by the COVID-19 outbreak in a mixed manner. Globally, prolonged lockdowns and reduced manufacturing activities negatively impacted the baby care products market. The baby care products market was driven by bulk purchases of diapers and baby food during the pandemic. The distribution of baby care products was hindered for certain companies. Among types of baby care products, wipes and baby diapers have witnessed a decline in spending indices. However, parents around the world have become more careful when selecting baby-related products, whether they are selecting baby food, baby cosmetics, or baby safety and convenience products. As awareness about various health-related issues, such as fungal and bacterial infections, caused by synthetic baby products and toiletries has increased, the demand for chemical-free and harmless baby care toiletries has risen. After manufacturers increased the production of baby care products to meet the surging consumer demand, the market is booming.
Pigeon Australia (Havenhall Pty Ltd.)
Bubs Organic, LLC.
Johnson & Johnson
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