If you are a businessman or an investor scouting for a new area to invest in, maybe you should take a look at the baby care industry. In the past few years, almost all companies, products, and services in the baby care industry have seen a significant boom.
A small, yet gradual industry like this one has been growing steadily post the 2000s. This has created many lucrative and niche opportunities for small and medium businesses, which are present in the baby care industry.
In this article, we speak to leading business experts and financial analysts and try to find out reasons why the baby care sector is slowly expanding and growing at double-digit rates.
What Explains the Rise of the Baby Care Industry Post-2000?
According to financial experts, the growth of baby care the industry should be seen as something, which is connected to the rising affluence levels in millennials.
The millennial population of the world has slowly been seen spending on areas, which they themselves had been affected in as kids. This is one reason why millennials when they become parents are willing to not compromise when it comes to the needs and requirements of their kids.
The growth of eCommerce and online sales to have played a significant role in increasing presence and revenues in the sector. Given that there are so many specialized start-ups operating in the niche, buying online seems to be a great option for millennials who are in the first place, pro-ecommerce and tech-savvy.
What does the Baby Care Industry Comprise of?
In this section, we will look at some major sub-areas, products, categories, and services that can claim to be a part of the overall baby care industry.
1. Baby Foods-
Given how millennials are too busy to create natural and specialized meals for kids, there is a huge growth and demand for processed baby food. This includes the #1 Milk booster & Breastfeeding Supplements which are sought after by mothers to help them in feeding. Given the busy lives, everything from rice to green vegetables can be found in processed form.
2. Baby Clothes-
A ton of quality manufacturers, retailers, and online platforms offer you the latest, trendiest, and most fashionable baby clothes you can find. From baby dresses to onesies, millennial parents are spoiled for choice when it comes to shopping for baby clothes in 2020. This also includes many themes and superhero stuff, which are very Instagrammable by millennial parents.
3. Baby Cleaning Accessories-
Babies, as we all know do not have completely developed digestive and excretory systems. They burp, poop, fart, and throw up almost on an everyday basis. The growth of the cleaning products industry has seen a significant rise. Powders, tissues, baby oils, and shampoos are quite expensive. Plus, they have to be kept on using for a very long time (until the child is 3 years).
4. Baby Supplements-
There are many companies, which only specialize in creating supplements for babies. Bear in mind, that we are talking about turnovers in the millions simply manufacturing vitamin and calcium supplements for babies. This is a growing industry expected to see growth in the future. While big medicine manufacturers operate in this space, there is still a lot of promise.
5. Baby Services-
The growth of specialized nanny services especially for millennials that are professional moms, day-care centers, kindergartens, and Montessori has seen a mushrooming of sorts in different parts of the world. Countries like India and China are seeing a boom in these areas. Experts think that the baby education sector, which includes learning is a great area of investment.
The Final Word
There is no doubt that this sector will see huge growth once the pandemic dust settles. However, experts point out that this is one area of investment, which is in many ways, recession, and inflation proof. Parents are not going to compromise on the needs and requirements of their children, even if they cut corners on themselves.