PUBLISHER: Knowledge Sourcing Intelligence | PRODUCT CODE: 1256578
PUBLISHER: Knowledge Sourcing Intelligence | PRODUCT CODE: 1256578
Baby products are commodities developed for infants and children under the age of three. Baby products are designed to be gentle and non-irritating, with ingredients chosen precisely for these qualities. The popularity of baby body care products is growing due to rising concerns about baby skin issues such as skin irritation, redness, and diaper rashes. Furthermore, as a result of the growing trend toward natural and eco-friendly products, companies in the European region are developing products that are safe and organic in nature, driving demand for eco-friendly baby products and propelling the growth of the baby body care market in this region. The improvements in disposable income followed by the introduction of effective projects such as the "European Standards of Care for Newborn Health" are a few factors that are said put emphasis on baby care products, thus driving the growth of the German baby care products market over the projected period.
With increased social media engagement, brand awareness, and penetration of smartphones and the internet, the e-commerce segment is expected to witness rapid growth, thereby propelling the market for baby care products in Germany. According to a report released by the International Trade Administration in August 2022, e-commerce sales in Germany were USD 127.5 billion in 2021, which was a 24% growth from 2020. Also, the same article mentioned that the online population in Germany would increase substantially from 2020 to 2025, with an e-commerce penetration of 77% in 2021. Some popular e-commerce websites that operate in the baby care products market in Germany include major e-commerce players like Amazon, while also including baby products-specific sellers like Otto and Babymarkt, among others. The presence of these e-commerce players along with the growing e-commerce penetration is thus expected to drive sales and boost market growth.
Moreover, the government subsidies provided to low-income parent groups for child admissions in daycare facilities are also aiding in the growing baby care product demand during the forecast period. The government passed a bill in 2019, to invest EUR 5.5 billion in 16 German states for daycare facilities until 2022.
By type, the German baby care products market is analyzed into baby food, body care, and safety and convenience. Growing nutrition awareness, increased structured retail marketing, urbanization, and a significant increase in the number of working mothers are all factors propelling Germany's baby food segment forward. Additionally, the demand for packaged baby food in the country is increasing as the number of working mothers increases, fueled by worries about the nutritional content of baby food. According to the European Institute for Gender Equality, women have a 76 percent employment rate (between the ages of 20 and 64).