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Baby products sales to grow

Update: September, 01/2015 - 08:40
A customer buys food for her baby at a Co.op Mart in HCM City. Rapid urbanisation, growth of the middle class and rising rates of women's participation in the labour force are expected to stimulate global growth in baby food and diaper sales. — VNA/VNS Photo Pham Hau

HCM CITY (VNS) — Rapid urbanisation, growth of the middle class and rising rates of women's participation in the labour force, especially in developing markets, are expected to stimulate global growth in baby food and diaper sales, according to a report released last week by global performance measure-ment company Nielsen.

The 2015 Nielsen Global Baby Care Report, which explores trends in categories such as baby food and diapers and why consumers choose one brand over another, shows that more than one in 10 consumers in Viet Nam have a baby below the age of one in their household, the highest level in this region and double the global average of 5 per cent.

A further 19 per cent have children aged one to two in their household compared to 9 per cent globally.

Half of respondents in Viet Nam say good nutrition is important when deciding which baby food to purchase.

Good price/value and trusted brands are also important for more than a third of consumers (38 per cent), along with safe ingredients/processing (36 per cent) and flavour/taste (32 per cent).

Organic and all-natural foods are also an important purchase consideration, cited by 27 per cent of respondents in Viet Nam.

"When it comes to caring for their little bundles of joy, parents are highly discerning from the food they put in their mouths to the diapers they put on their bottoms; there is little room for compromise, and they're willing to spend more for quality," Connie Cheng, head of shopper insights for Nielsen in Southeast Asia, North Asia and Pacific, said.

"Greater awareness of the importance of health and nutrition is leading consumers to look for natural, minimally-processed foods, and when it comes to their babies, consumers are especially particular — even if their demands come at a premium.

"In developed markets, where birthrates are lower and baby care categories are highly saturated, growth will be spurred by innovation and premiumisation while in developing markets, increasing demand will be the biggest growth driver."

When it comes to attributes in choosing the brand and type of diaper to buy for their babies, more than half of consumers in Viet Nam identify skin protection/good for sensitive skin (53 per cent) as key factors influencing their purchase decisions.

Around a third identify price/value and overnight dryness (33 per cent) as the second most important attributes, along with good fit /comfortable to wear (27 per cent) and trusted brand (26 per cent).

The Nielsen report highlights the importance of recommendations from family and friends and TV advertising as sources of information for new parents in learning about which baby food to buy for their babies for the first time.

For nearly three in five Vietnamese consumers (56 per cent), recommendations from friends/family have the most effect on their purchase decisions related to baby food, followed by seeing an advertisement on TV (50 per cent) and recommendations from baby health experts (47 per cent).

Online influences from parenting websites (41 per cent), parenting magazines (39 per cent) and social media (33 per cent) also have a big influence on their first-time purchase decisions.

When it comes to influencing purchase of diapers, close to half of consumers (49 per cent) say recommendations from family and friends have the most significant influence on their purchase decisions followed by recommendation from baby health experts (32 per cent) and TV advertising (29 per cent).

Nielsen estimates the global baby food/formula sales to reach nearly US$30 billion in 2015, and the global diaper market to exceed $29 billion.

The Nielsen Global Baby Care Survey was conducted online between February 23 and March 13 this year, and polled people in 60 countries around the Asia-Pacific, Europe, Latin America, the Middle East, Africa and North America who have made a baby care purchase in the past five years. — VNS

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