While recent data from global research platform Macrotrends shows that the birth rate has declined from 1,67% in 2020 to 1.3%, the country’s birth rate remains steady, with about 1 million births recorded annually.
This influx of new families into parenthood highlights the significance of the market and the impact babies have on the economy and society at large.
Income dynamics are fluctuating
Despite the statistics, Ronald Govender, the Fast-Moving Consumer Goods (FMCG) executive at Dis-Chem Baby City said as income dynamics are fluctuating and living costs are rising, consumers, especially parents, are mindful of their spending.
This has pushed up sales for private labels, also known as generic brands or no-name brands.
“The no-name brands are increasingly taking space in most mothers’ grocery baskets and baby essentials,” he said.
Govender stated that most parents agree that raising children comes with significant financial implications, which vary depending on their ages.
“With expenses evolving over time, there are substantial costs during the first 18 months. These are followed by a levelling off after two years, with gradual yearly increases thereafter.”
New parents enter the baby market each year
He said in the fast-paced world of parenting, brands must recognise that each year ushers new parents into the baby market.
“Understanding the dynamics and shifts in their consumption behaviour is crucial for brands.”
He highlighted that there has been an uptake for private labels, especially nappies. Sales for established brands have taken a dip.
“Babies hold considerable sway in shaping household decision-making. Whether it’s selecting a pram, a baby-friendly car or prioritising nutritious foods for a well-rounded diet.”
Safety is paramount
“Safety is paramount for parents. As such, brands need to create a ‘safe space’ for parents to make informed purchasing decisions. Brands can do this by aligning their messaging with the values.
“At the heart of this trend are vigilant mothers whose concerns increasingly revolve around their babies’ gut and overall health.
“Brands should heighten their awareness of the critical nature of maternal health. Particularly during the prenatal and postnatal periods,” Govender said.
