Stand out to win moms’ hearts
Baby categories have remained buoyant in recent years, with overall growth of 5% in both 2021 and 2022. Looking in more detail within the sector, nutrition has grown faster than personal care and diapers. The value growth is higher than the price increase, indicating an opportunity to drive premiumisation in the category. However, the price of diapers is rising more rapidly than growth of the sector, which suggests that shoppers be might be trading down to value alternatives to help save money.
The majority of spend in the baby sector goes on nutrition and diapers and is relatively consistent across different groups of consumers. Upper-class shoppers seem to spend more on nutrition as they buy more premium/super premium brands. Lower-class shoppers tend to spend more on diapers since they tend to purchase mostly in sachet packs with a higher price per unit compared to larger packs.
The basket size for personal care across consumer groups varies alongside the cash outlay. Upper-class shoppers who have higher disposable incomes shop in more categories, while the middle- and lower-classes only maintains their basket size. As such, the functionality may be more relevant to middle- and lower-class shoppers, while some extended benefits may help to attract upper-class shoppers.
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The favoured channel to purchase products varied across categories. Online stores are preferred when buying personal care products, such as Telon Oil, while Diapers are more likely to be purchased in specialty stores. Minimarket and GT remain the backbone for all categories, but as consumers adopt a more omnichannel mindset, it’s important that brands tailor their route to market for each different category across the relevant touchpoints.
Despite price rises, which prompted some shoppers to adjust what they spend, some categories - mainly within essentials - have still managed to grow volume. Growing up milk powder (GUMP) has become one of the most resilient categories. Some brands in the category have been able to tempt in new shoppers by offering affordable options within their portfolio. The brands with a price index of 80-90 provide a more affordable option without neglecting their efficacy. As a result, mums can save money without compromising too much on product quality. Some brands with convenient pack sizes in the personal care category offer better affordability for mums looking to rationalise their spending.
Brands can secure their spot in shoppers’ baskets by not only offering better affordability, but also delivering product efficacy that encourages repeat purchases and allowing them to keep growing. `
Mums with a newborn baby (up to 1 year old) are willing to spend more and shop in more baby categories so this offers brands an opportunity for premiumisation. In fact, some premium brands have recruited new shoppers by offering extra benefits, such as sensitive skin care for the personal care sector, and clearly explaining the product benefits within the nutrition sector. It’s important for brands to move swiftly seize this short window of opportunity to win shoppers.
As restrictions have been eased post-pandemic, the personal care category has gained ground. In the baby wipes category, the demand for big and small packs is on the rise and demand of both is being driven by upper-class consumers with higher disposable incomes. We’ve also seen this trend in baby biscuits where there has been growth in convenient pack sizes alongside larger ones.
Having that said, it could be that the pack sizes are used for different occasions, for example big packs are used in-home and the small, convenient packs are used on the go. Brands can leverage this trend by optimising their assortment and targeting each pack size to different occasions.
FOOD FOR THOUGHTS Life post-pandemic is different with what we had in pre-pandemic times. To navigate through the changes, our experts can help your brands to identify opportunities and challenges from your shoppers. Read more
Even with the pressure of rising inflation, baby products remain priority spends for mums - especially those with infants (<1 year old). Retain your space in shoppers’ baskets by offering value for money, tackling squeezed household budgets - especially among the less affluent - and matching product benefits to what mothers want and need.
Mothers want what’s best for their children, so there is an opportunity to drive premiumisation with clear product benefits and to stay top of mind.
As life returned to normal after the pandemic, smaller pack sizes gained relevancy which suggests an opportunity to optimise assortment and meet the need of on-the-go occasions.
This chapter uses Kantar's panel FMCG data per Oct 2022.
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