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Global Baby Care: Mighty but Small

Alexander Kirillov

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  • Eastern Europe and Latin America contributed 40% of the market’s absolute growth during the past five years, and growing birth rates will continue to fuel this trend. China is forecast to be the major contributor forward, with growth of more than 7% a year.
  • Per child spending is on the rise, to the benefit of luxury and natural products.
  • Baby sun care remains one of the fastest-growing subcategories.
  • Direct sellers show strong growth, especially in emerging markets, threatening major players’ dominance.
  • The market will expand by nearly $1 billion—to $6 billion by 2012.

With global sales of $5 billion in 2007, baby care (which, defined by Euromonitor International, includes cosmetics and toiletries products for children 11 and under) remains one of the smallest categories in cosmetics and toiletries. However, with sales growing by 9% a year on average since 2002, the sector holds strong potential for further development—especially in emerging markets where increasing personal wealth and high birth rates keep the growth at double-digit levels.

Eastern Europe and Latin America Drive Growth

Eastern Europe and Latin America lead the way in growth in the global baby care product market. The regions contributed 40% of the market’s absolute growth during the past five years. On the contrary, sales of baby care in developed markets—including North America, Western Europe, Australasia and Japan—were disappointingly slow, reflecting falling birth rates in these countries.

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