Everyone is probably very familiar with this day, because the second Saturday of January is none other than National Children's Day. So today, HelloAds will introduce a great market that every marketer should invest in: the mother and baby products market.
Did you know that the birth rate in Thailand is currently declining significantly? The reasons are often related to economic conditions, the social environment, changing values, or drastically shifting mindsets. Data clearly shows a continuous decrease in the average birth rate between 2012 and 2021, contrasting with the rising average death rate. In 2021, there were only 544,570 births, compared to 587,193 births in 2020 – a twofold decrease.
China's population is also experiencing a decline in birth rates. According to the National Bureau of Statistics of China, in 2021, the birth rate hit a historic low of 7.52 births per 1,000 people, with 10.62 million new births. This compares sharply to 2020, when the number of births was 12 million, averaging 8.52 births per 1,000 people.
Although China implemented a one-child policy in 2016, it switched to a three-child policy in 2021 to increase the birth rate. The declining birth rate has long-term consequences due to economic factors and changing social values that influence family decisions.
While global birth rates are declining, the mother and child market continues to experience steady growth.
Let's take a look at the growth of the mother and baby products market.
The market for mother and baby products remains a highly promising market. Although it's a niche market for children, these specific products are experiencing continuous growth. In 2021, the overall mother and baby product market continued to grow, reaching a value of 40.3 billion baht in Thailand.
In addition to the increasing number of children worldwide driving the growth of the mother and baby products market, the behavior of modern parents also influences market expansion. Modern parents tend to seek improved and developed products that best meet current needs and prefer imported products, especially infant formula and snacks that have been reformulated with higher quality using advanced technology, leading to rapidly increasing unit prices.
Another important factor is that most families plan and prepare more before having children, including allocating larger budgets for childcare. At the same time, the changing behavior of modern families who increasingly raise their children themselves has led to a higher demand for convenient and safe childcare assistance.
One of the most noteworthy trends in the Asia-Pacific region is the import and export of mother and baby products. From this year to 2026, the mother and baby product market in the Asia-Pacific region is expected to experience continuous compound annual growth of over 7.69%, reaching a market size of over US$47.71 million, or approximately 1.68 trillion baht, representing a 59% increase compared to 2019.
Data from K SME FOCUS indicates that the mother and baby products market has good growth potential, even though growth may have slowed somewhat recently due to decreased purchasing power. Compared to other markets, the mother and baby products market is considered a significant opportunity for SMEs. It's crucial for entrepreneurs aiming to target this market to understand that 92% of Thai families, whose purchasing decisions are made by mothers, rely heavily on this insightful consumer group. Therefore, successfully penetrating this market requires a thorough understanding of their consumer insights.
- Factors influencing modern mothers' purchasing decisions include quality and safety, reliable information, product variety, as well as price and value for money.
- Modern mothers use online shopping for baby and children's products. A survey by The Asian Parent shows that the most influential promotion is free shipping, while a buy-one-get-one-free offer is more impactful than a 50% discount.
- Mothers use the internet most frequently between 6:00 PM and 10:00 PM. The most popular social media platforms used by mothers are: 1st place: Facebook, 2nd place: YouTube, and 3rd place: Instagram.
- Cash on delivery is the most popular payment method, followed by mobile banking, and then credit or debit cards.
- Recommendations from doctors or experts have the greatest influence on a mother's purchasing decision, while influencers or celebrities help mothers become aware of brands.
- A survey by iPrice indicates that feeding equipment, including pacifiers, bottles, and milk containers, are the most popular items ordered online. This is because these products have a limited lifespan, are easily damaged, and need replacing as the child develops.
Furthermore, it's not just the mother and baby products market in Thailand that has seen growth; international markets have also experienced expansion over the past year.
The growth of the mother and baby products market abroad.
- Australia and the surge in birth rates during lockdown.
Australia is another country where the outlook for maternity and baby products is bright, driven by a surge in birth rates during lockdowns. Data indicates that maternity and baby products are likely to see future growth. A statistical assessment of Medicare data shows that in 2021 (January-July), the number of 12-week pregnancy scans increased by 6% compared to the same period the previous year.
Furthermore, data from Medicare shows that in 2020, there were 67,872 prenatal checkups (12-16 weeks gestation) (an increase from 10,000 in 2019), reflecting the impact of the COVID-19 pandemic in Australia from 2020-2021 on increasing birth rates. Based on the above, these factors are positive for the mother and baby products business in this market.
- The Philippines is an interesting mother and child market in ASEAN.
While ASEAN countries like the Philippines, which saw lockdown measures implemented to control the COVID-19 pandemic in 2020, are projected to have nearly 2 million births in 2021, representing the highest birth rate since 2000 when it stood at 1.79 million births.
The more than 2 million births this year are a shocking figure, reflecting the impact of COVID-19 restrictions on movement and travel, which have reduced access to contraception. This raises an interesting point: birth rates in emerging markets, low- and middle-income countries, tend to be higher during the COVID-19 lockdowns than in developed countries. For example, from 2019 to the present, countries in the Americas, Europe, and Japan have all experienced declining birth rates.
- China: A giant market for mother and baby products.
Although China currently has a relatively low birth rate of around 5%, compared to its population of 1.4 billion, it is considered one of the most attractive markets for mothers and babies right now. According to the Tmall Global platform, in collaboration with CBN Data, a leading Chinese market research firm, the 2021 Tmall Global report on the mother and baby product market trends in China, which surveyed the development of cross-border and online mother and baby product markets, has shown continued growth in recent years.
Furthermore, it is projected that China's mother and baby product market will surpass 4 trillion yuan in value by 2021, and the industry will continue to expand into online commerce channels in the future.
We can see that even though the birth rate is decreasing, the cost of raising one child is increasing. Some families are buying five or even ten items instead of one, respectively. This is driving the growth of the mother and baby product market against the backdrop of declining birth rates. Modern parents, particularly GenX and GenY, tend to be more sophisticated, demanding premium, branded products to ensure they and their babies receive only the best and highest quality items.
With these statistics and data, it's clear that the global mother and baby market is a very attractive investment opportunity. For anyone interested in having us help market their child and baby products but doesn't know where to start or needs more information, please feel free to contact us. You can contact HelloAds.
