Since 2005 there has been a baby boom, with higher birthrates helping fuel demand for baby equipment. But, over the next five years, the number of babies born each year is forecast to stabilise. Mintel looks at the implications of a steady birthrate for today’s suppliers.
- Consumer spending on baby and nursery equipment grew by a third over 2005-10 to reach £753 million. This translates into £195 for every child aged 0-4 in the UK. Much of the spending is lavished on the first child.
- The extended family plays a huge role in funding the spending spree. Mintel’s research found that for more than four in ten parents of 0-4s, grandparents and close relatives had contributed to the cost of buying baby and nursery equipment.
- Fashion and design have become a feature of the market for baby goods and this is behind the 13% rise in spending on wheeled goods (prams, pushchairs, buggies and travel systems) over 2008-10. In 2010 the market for wheeled goods reached £225 million - 30% of all spend on baby and nursery goods.
- Sales of car seats grew by 12% over 2005-10 to reach £120 million. The rise in demand for the newer Isofix seats and bases has played a large part in driving up typical spending, while additional safety demands, such as better side impact protection and high-back seats being required for older children up to age 12, will help to continue the upwards price trend.
- Today’s web-savvy mother has more information at her fingertips than ever before. Mintel's research shows that the internet is seen a source of good advice for parents of 0-4s (38%) and a half shop around in stores and on the internet to find the cheapest prices.
- Increasing the level of competition, Tesco, the UK’s largest grocery retailer renowned for everyday low prices, has announced that it will roll out an in-store chain of nursery shop-in-shops.