Published on : Apr 19, 2016
The demand for baby care products depend on a number of factors such as income level, family size, awareness about hygiene, and spending habits of parents. The global baby care products market has witnessed a significant demand especially across the developing economies with the rise in disposable income among the increasing middle-class population.
The growing population of babies and decreased infant mortality rate due to better healthcare facilities in the developing economies have boosted the growth of the global baby care product market. Increase in the average lifespan of parents, coupled with increasing number of women entering the mainstream workforce has further propelled the market growth. However, the high product development cost of baby care products and the stringent regulations regarding commercialization of baby products have limited the entry of new players in the market.
Johnson & Johnson Registers Low Sales in First Quarter
Johnson & Johnson, one of the leading players in the global baby care product market is relaunching its business as its shampoos and talcum powders are being ditched over more expensive organic alternatives. J&J is the latest brand to wither under the changing preferences of younger, health-conscious consumers who prefer organic constituents over chemical ones. The sales of Johnson & Johnson’s baby care products in the U.S., including its bedtime lotions and ‘no more tears’ shampoos, dipped 14% year-on-year in the first quarter. This has been the company’s lowest sales in a decade due to parents switching to all-natural baby products made by smaller firms. In February this year, J&J lost a legal battle in Missouri where the state jury has asked the company to cough up US$72 mn and pay to the family of a woman whose died of ovarian cancer. The family had blamed that her cancer was linked to the usage of J&J’s baby powder for years.