In the past few years, the consumer buying pattern for baby products has seen a paradigm shift. It has been observed that peer advice influences consumers more than parental advice. The new-age millennial parent is hyper-aware of what to buy for their kids and often prefers a brand with organic and sustainable product lines that reflect similar social and ethical values.
The premium baby products demand has seen significant growth due to rising parental concerns about the baby’s hygiene and health which has made parents aware of the potential risks of using low-quality or harmful products on their babies. Parents have access to content and global trends which has further fueled the demand for premium baby products. A recent report also indicated the rise in the industry – India Baby Care Product Market to reach USD 24.27 Bn by 2027, emerging at a CAGR of 14.35 percent and forecast (2021-2027). The increase in India’s Income and consumption rate among the upper-middle class has created a conducive environment for premium brands to thrive. The Upper-middle class is expected to constitute more than 50% of overall spend by 2030. This will pave the way for premium brands to tap a large and underserved segment of consumers. With the emergence of various trends and drivers, lets deep dive into what makes this market a promising segment:
High disposable income and changing lifestyle of parents
The crucial aspect of the premium baby products demand is the rising disposable income and changing lifestyles of parents. Parents are now becoming aspirational consumers who are on a look-out for brands that offer 360-degree experience with their product or a service. With more economic opportunities and social mobility, parents can afford what’s best for their babies. Further, digitalization of the baby care industry has made it easy for brands to penetrate deeper into the market by making products available to online shoppers on their Ecommerce platform.
Demand for organic products
The trend towards choosing organic products is not limited to adults but is also becoming increasingly popular among baby care products. New-age parents favor products that are mild and gentle for their babies. This shift towards natural and organic baby products is driven by a growing awareness of the potential health benefits of using such products. Vegan and cruelty-free baby care products have grabbed the attention of customers today who are not just concerned about their baby’s health but also the health of the environment. Parents are now making informed decisions and are willing to pay a premium for sustainable baby products. Increasing availability and accessibility of organic products through online platforms, specialty stores, and supermarkets that offer a wide range of organic options for different categories of baby products has also accelerated the adoption of these products.
Influencers driving the narrative
For a socially connected world, it is natural to seek solutions within the social community. This also applies to the new age parents, who are always relying on experience-based parenting within their peer group. In this emerging era of Influencer marketing, mom influencers play a huge role in persuading parents to go along with trends. When it comes to advice, a parent trusts only another parent’s experience. AllThingsBaby recently partnered with Masoom Minawala for their consumers to leverage from her experience as a new mother. Parents are influenced by the trends and preferences of celebrities, influencers, peers, and media that promote premium baby products as a sign of luxury and sophistication. By trusting and following such influential people, purchasing baby products recommended by them becomes a satisfying investment.
Technological Advancements in Product Development
A further driver of the premium baby products demand is the technological advancements in product development that enable manufacturers to create innovative and specialized products that cater to the specific needs and preferences of customers. Working parents are now looking for convenience through innovative products that eradicates the need to follow the time-consuming traditional ways of parenting. This segment has also drawn attention from international brands as they witness large potential in the premium baby care segment in India.
They opt for products that are easily accessible, user friendly, high-performing and quality driven. Like at AllThingsBaby, we are dedicated to making parenting simpler by offering innovative products. Some of our popular products include the Babycook food maker, BABYZEN stroller, CYBEX car seat, and Snuz sleep solutions. Our aim is to provide parents with practical and reliable solutions that enhance their everyday lives.
Conclusion
To conclude this, I would say that the segment shows significant potential and increasing adoption of organic and natural baby care products act as an opportunity for the market progression. Besides these factors, omnichannel presence, availability of international brands and innovation in baby care products are also some of the key drivers pushing the growth and poses a vast untapped opportunity.
Disclaimer
Views expressed above are the author’s own.
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