Executive Summary
The recession has continued to impact on the baby products market in a
number of ways in 1992 and 1993. Most significantly, many couples have
continued to defer having children as a result of significantly lower levels of
disposable income. The resultant decline in birth rate has, obviously, had a
negative effect on all sectors of the market.
For those couples who have had babies, many have been forced to make economies.
For example, the baby meals market has been deleteriously affected as parents
opt for either home-made meals or for the less expensive dry meal products.
Similarly, in the nursery equipment market, there has been little growth as
usage of second-hand equipment becomes increasingly commonplace.
In 1992, the total market for baby products was valued at £1.645bn. The
fastest-growing sector in the market is that of baby wipes, which have rapidly
become perceived as commodity items by parents. Key Note estimates the total
market in 1993 to be worth £1.65bn.
The supply structure has seen a shift towards own-label products -- a trend
which is predicted to magnify in 1994. In the distribution of baby products,
the trend towards grocery multiples is also expected to continue.
In the last two years, the supermarkets have gained significant shares of the
baby consumables market as a result of their aggressive price discounting
policies of the leading nappy brand, Pampers. However, pharmacies may retrieve
some loss of sales as a result of the decision to transfer the baby milks
business from clinics to the pharmacy trade.
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