Baby health & beauty market in China set to boom
today Mar 13, 2019
In 2018, China recorded nearly 15 million births. Despite the fact that the country’s birth control policy was relaxed in 2015, the figure was equivalent to a 15% downturn compared to 2017.
Nevertheless, the market for children’s products has a rosy future, and the apparel and baby equipment sectors are not the only ones expected to boom. According to UK market intelligence agency Mintel, the Chinese baby health & beauty and skincare market is expected to post an average annual growth rate of 14.5% until 2023, reaching a value of €2.5 billion (CHY18.88 billion), compared to €1.27 billion in 2018.
“The Chinese baby health and beauty market recorded remarkable growth in the last few years, and will keep expanding at a sustained rate in the next five. The relaxation of the single-child policy and the premiumization of consumption have been contributing factors, especially since Chinese consumers are increasingly turning towards quality baby products. Though the market will be affected by a slow-down in the birth rate, the rise in expenditure on each child and the increase in product-use frequency are expected to sustain the market’s growth,” said Vicky Zhou, an analyst at Mintel China.
Last year, sales of baby skincare products accounted for 60% of the market’s total sales, followed by sales of soaps and bath products with 31% and by those of haircare products with about 10%.
Notably, sun creams came last in the ranking of the most utilised products, as 65% of Chinese parents of children aged 0 to 3 did not buy sun creams for them in 2018. The figure shows how, in the sun screen segment, brands still have a big role to play, especially in terms of product information. Conversely, insect repellents topped the sales-rise chart in 2018 according to Mintel, underlining the growing appetite of Chinese parents for outdoor activities with their small children.
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