Online Retailing Business Opportunities for Baby Care Products

Online Retailing Business Opportunities for Baby Care Products

By Knowledge Sourcing Intelligence Blog

Baby care products are specifically formulated to be mild and non-irritating and use ingredients that are not harmful for infants and children under the age of three. Growing parental concerns over baby hygiene is expected to drive the growth of the market during the forecast period.

Growing internet penetration in various parts of the world is anticipated to drive the growth of the market during the forecast period.

Developing countries like China and India which holds substantial share in the world in terms of population and is also represented by a huge base of young people who are the driving force of the country’s economy. The growth of the online retailing business in these country has been driven by the structural change of the overall economy and the key characteristics are the availability of low-cost smartphones and the internet which has created a wider penetration and enabled the local population to use e-commerce platforms. According to the World Bank data, individuals using internet as the percent of the total population in China, India, and Indonesia has increased from 10.52%, 2.80%, and 4.76% in 2006 to 54.3%, 34.45%, and 32.29% in 2018.

online baby care products market

Source: The World Bank, Knowledge Sourcing Intelligence Analysis

Furthermore, COVID-19 impact on the online supply-side indicates that the necessary baby products are currently witnessing massive adoption while others are suffering due to short-term discretionary spending and uncertainties. Besides, in the long-term market is expected to see a catalytic positive impact due to COVID-19 as it is expected to increase the number of internet users. However, the further growth of the online segment depends on the quality of infrastructure facilities, and the quality of logistic services as country’s logistics industry lacks in latest technologies and due to absence of large logistics coverage networks and inconsistent quality, the online retail business may face certain challenges in the coming future.

online baby care products market

United States of America Is Holding Significant Share in the Global Market

The USA is one of the leading countries in terms of average expenditure on babies, with the expenditure projected to rise further in the coming years. Food is estimated to hold a significant share of this expenditure on account of its necessity and higher frequency of consumption, thus making the country a significant shareholder in the global online baby care products market. Furthermore, baby food consumption in the country is estimated to increase further on account of rapid product launches and innovations in the market fuelling its growth. In October 2019, Serenity Kids, a food company based in the United States providing quality baby foods launched their newest baby food blend, the Pasture-Raised Turkey, which is the first baby food made by Global Animal Partnership (GAP) certified meat. In addition to this, in July 2019, the company also closed a US$1.5 million round funding round led by Wild Ventures. Moreover, food allergy is one of the most common types of allergies affecting approximately 6 million children in the country. As a result, recent investments and launches done by the key players are providing the necessary impetus to the baby care products market growth. For instance, in August 2018, Happy Family Organics launched ten organic baby foods in glass jars to expand its presence in the United States.

Furthermore, increasing focus in various developing countries like China, India, and Brazil among others towards the promotion of child healthcare has also resulted in increased consumption of higher-quality other baby food and beverage industry products. For instance, in 2017, UNICEF saw a notable increase in the coverage of Argentina’s Universal Child Allowance. In the province of Salta alone, UNICEF assisted in the inclusion of 4,060 children in the program.

Recent Updates

May 2020, the Mama’s Bond announced the official debut of their new website, which features every information that parents need to know about some of the market’s best baby products. Since new parents often face certain challenges in finding the best baby products for their child as there used to be so many products available to choose from, it can be difficult to find the perfect products for babies. A company set out to make shopping for baby products easier by offering their insight into some of the market’s best baby products and help their parents.

April 2020, India’s leading homegrown wellness brand The Himalaya Drug Company, launched new line of Gentle Baby care product in the category of Laundry Wash which is specially formulated for baby clothes. The product is derived from natural herbs with antibacterial properties and can effectively kill up to 99% of germs.

February 2020, India’s leading natural and plant based baby care products company Mother Sparsh launched online campaign #PlantAndPure and reviled the new range of plant based baby care products.

September 2019, one of the leading researches and product development company Amyris, launched its baby care brand Pipette in collaboration with Rosie Huntington Whiteley. The seven offerings include products like shampoo, oil, and locations.

July 2019, Serenity Kids, a baby food company closed a US$1.5 million funding round led by Wild Ventures. Investment is expected to support the operations, inventory, research, and development, and will extend the national presence for the high-fat, low-sugar baby Food for the company.

February 2019, one of the biggest retails in the world Amazon launched new baby skill activity API so that all the baby apps and care devices get updated and can also be checked through voice commands by their signature product Alexa and Alexa-powered devices. It will initially include the potential to track weight, sleep, feeding and diaper changes.

April 2018, the organic personal care brand Azafran Innovacion Ltd based in India, debut in the baby care industry with the launch of products including massage oil, gentle body wash, shampoo, nourishing cream, and moisturizing soup. All the products offered by the company are organic and use only non-toxic ingredients designed to be soothing for sensitive baby skin.

February 2018, Indian based company Mama Earth launched new products for babies aiming to expand its market share through both online and offline retail channels.