Baby Care Products Market (By Product: Baby Skin Care, Baby Toiletries/Hair Care; By Buyer Type: Institutional Buyers, Residential Buyers; By Distribution Channel: Online, Offline) - Global Industry Analysis, Size, Share, Growth, Trends, Regional Outlook, and Forecast 2023-2032

The global baby care products market was valued at USD 94 billion in 2022 and it is expected to hit around USD 158.29 billion by 2032 and register at a notable compound annual growth rate (CAGR) of 5.4% from 2023 to 2032.

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Key Takeaways

• By product, the baby toiletries/hair care segment accounted market share of around 66% in 2022.
• The skin care segment is expanding at a CAGR of 5.4% from 2023 to 2032.
• By distribution channel, the hypermarket and supermarket segment captured 46% market share in 2022.
• The specialty store segment is anticipated to reach a CAGR of 4.9% from 2023 to 2032. 
• Asia Pacific region has reached 41% market share in 2022.

The need for baby care products has increased drastically in the recent years as many patients across the world find these products extremely easy and simple for use. Apart from the benefits are associated with the usage of such products the functionalities are also great. The need for these products has increased drastically due to the increasing population of working women.

The health care professionals and doctors are also recommending such products to the parents and this has been instrumental factor which has helped in creating more demand for such products. As the parents are busy the need for these products will increase as they help in maintaining and monitoring the health of the baby. All of these factors will provide good opportunities for the growth of the market in the coming years. There are many types of health issues that are experienced by the children which are sometimes associated with the complications that arise during the process of birth. Skin rashes, respiratory illnesses and many other issues have increased the need for such products.

Growth Factors

As the awareness regarding the availability of the baby care products has increased in the recent years which help in maintaining the hygiene as well as the health of the babies across the world the need for these products will continue to grow in the coming years. The application of these products which play a significant role in the growth of the market.

Most of the manufacturers present in the market are constantly engaged in making efforts to provide innovative products with an increase in the number of investments made in the research and the developmental activities. The need for organic products has also increased and this will provide the best of the opportunities for the growth of this market in the coming years. The demand for these products has increased across the globe as the purchasing power of the consumers has increased and there is a presence of dual income households even in the developing nations.

Outbreak of the COVID-19 pandemic has also created more demand for these products in order to increase the immunity of the children. The manufacturing companies which are based in various regions across the world which are of the medium as well as the small scale are making investments in order to enhance their market presence. These organizations are making efforts to provide natural and safe products which are equally efficient for the babies.

• Baby products which are offered in the market and provide nutritional benefits are also seeing a great demand in the market.
• The nutritional requirements or the babies are also met with the consumption of such products.
• They provide good protection for the skin of the baby and they also reduce the chances of contracting any types of diseases.

Baby Care Products Market Scope

Baby Care Products Market Dynamics

Key Market Drivers

Busy lifestyles and increase in the disposable income 

• As most of the couples across the world lead a busy lifestyle as the number of women employees have also increased. Dual income households and an increase in the disposable income will play a significant role in the growth of the baby care products market in the coming years. Good amount of health benefits which are associated with the use of these products and their efficiency which is proven over the years will play a significant role in the growth of the market.
• These products are all tried and tested products and the reliability of these products has increased over the years. Presence of the organic products in the market will also play an instrumental role in the growth of the market. In order to maintain the health and hygiene of the babies the need for these products will continue to grow and the purchases will also increase as the purchasing power of the consumers has grown to a great extent.

Variety of baby care products

• There are many different types of baby care products available in the market ranging from baby food diapers, lotions, moisturizer, baby oil, baby creams and other consumables. Constant research and development in the field will play an important role in creating more demand for these products as innovative products are being launched in the market. The demand for the organic and natural products has also increased in the recent years in order to reduce the use of artificial fragrances which could harm the skin of the baby or cause some allergies.
• Manufacturers are also concentrating on providing good quality products for the babies in order to prevent any harmful effects. The use of natural components in the production of these products will drive the market growth as this has become a popular choice across various nations in the world. This market is expected to show a rapid expansion as many promotional campaigns are organized in order to create more demand for these efficient and natural products. The need for the products in the hair care range and the skin care product range will also have a significant growth.

Key Market Challenges

• Strict legislations - when it comes to the entry of new market players in the baby care products market these entrants face a major barrier of the stringent rules and regulations that are guiding this industry. The development cost of these products is high and the marketing of these products also happens to be expensive. As the need for investments in order to come up with innovative products is also high the market will face a major challenge when it comes to the growth of such new entrants. Another challenge that this new entrance face is that of adhering to these rules and regulations when it comes to the clinical trials. The cost of production of these products is high and it hampers the profit earned by these new entrants.

Key Market Opportunities

Introduction of natural products

• In the recently years the demand for natural and organic products has grown to a great extent. Increased awareness which is associated with the use of chemical-based products or other products that have proven to be harmful for the skin and the hair of the babies will play a major role in the growth of the organic products market. Many market players are investing huge amounts in order to come up with innovative products that will make use of natural materials for production and they are also concentrating on providing these products at affordable rates.
• The cost-effective nature of these products will be instrumental in the growth of the market. The use of natural ingredients in the manufacturing of the organic products is expected to gain maximum popularity during the forecast period and shall provide good number of opportunities for the growth of this market during the forecast period.

Product Insights

On the basis of the type of products, the hair care and toiletry segment hit maximum share in terms of revenue which was about 67%. This trend shall continue in the coming years. The demand for baby wipes, baby washes and baby shampoos and conditioners or some of the products that are used on a large scale across the world. As most of these products are extremely skin friendly the need for these products will increase in the coming years. They provide benefits like maintaining the moisture in the skin and provide instant hydration due to which the need for these products will increase in the coming years. As these products are extremely easy for use and they provide quick solutions for treating diaper rashes, dryness as well as infection in babies the need for these products will continue to grow in the coming years.

The skin care segment is expected to grow with the highest compound annual growth rate which shall be about 5.4% in the coming years. Various products that come under this segment are the powders, massage oils, face creams and moisturizers and the need for these products has increased in the recent years in order to maintain the health of the scale. The demand for these products that provide antibacterial and antioxidant properties will drive the market growth period the lead for antifungal products will also increase in order to treat various conditions of sensitive skin in the babies.

Distribution Channels Insights

On the basis of the distribution channel, the supermarket and hypermarket segment dominated the market in the past with a share of about 46% and it shall continue to dominate the market in the coming years. There are many advantages which are associated with the purchases made through the stores as they provide lower prices and better options for selection. Better visibility is provided by these stores as dedicated shelves are provided for these products with better arrangements. The presence of the international brands at the supermarkets and hypermarkets will also help in meeting the needs of varied customers. As the stores help in meeting the needs of different types of customer groups the purchases through these stores will grow significantly even in the coming years.

The segment of the specialty store will also show a significant growth and it will expand at a compound annual growth rate of 5.2% in the coming years. Consumers that make purchases of a particular product repeatedly are the consumers that buy from the specialty stores. The availability of natural organic as well as herbal products in the specialty stores is an advantage which helps in the growth of this segment.

Baby care products Market Share, By Region, 2022 (%)

Regional Insights

A share of about 42% was held by the Asia Pacific region in the past and it will continue to grow well in the coming years. Growing population in most of the regions like India as well as China will play a significant role in the growth of this market. In the coming years it is estimated that the population in these nations of the Asia Pacific region will grow to 270 million and this is one of the major factors driving the growth of the baby care products. Considerable growth will also be registered in the North American region due to the presence of various market players like Unilever, Johnson and Johnson.

Key Market Developments

• The technology of tablet production was used for the production of formula milk in tab formats Biden and in the year 2021 for which this organization has entered into a partnership with Meji.
• 310 million U.S. dollars were invested by P&G in the year 2020 for the expansion of its business and establishing a manufacturing plant in Utah.

Segments Covered in the Report

By Product

• Baby Skin Care
  • Baby Moisturizer
  • Baby Face Cream
  • Baby Massage Oil
  • Baby Powder
  • Diaper Rash Cream
• Baby Toiletries/Hair Care
  • Shampoo
  • Conditioner
  • Hair Oil
  • Baby Body Wash
  • Baby Wipes

By Buyer Type

• Institutional Buyers
• Residential Buyers

By Distribution Channel

• Online
  • E-commerce Websites
  • Company Owned Websites
• Offline
  • Hypermarkets & Supermarkets
  • Specialty Stores
  • Others

By Geography

• North America
• Europe
• Asia-Pacific
• Latin America
• Middle East & Africa (MEA)