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Three Million Reasons to Get Excited About the Baby Care Category

There are three million children under the age of four in the UK. You can turn parents and carers of these children into some of your most loyal shoppers… if you can offer them what they’re looking for.

Matt Stanton

6 Minutes

/ 18th March 2022
  • Sales & Distribution
  • Category Insight

Three Million Reasons to Get Excited About the Baby Care Category

There are three million children under the age of four in the UK. You can turn parents and carers of these children into some of your most loyal shoppers… if you can offer them what they’re looking for. 

The Baby category comprises baby feeding (baby milk and food), nappies, wipes, toiletries and children’s medicines. With such a wide range of products and brands, how do you know which are the right ones to stock? Read on and find out…

Young families spend 38% more than the average UK shopper[1], so they’re a valuable bunch to attract into your store or to your website. Supermarkets and discounters realised this many years ago and started accepting very low margins on certain products to get these shoppers through their doors. Competition is still intense in some areas, but persevere and you will find that the rewards include higher basket spend and improved shopper loyalty. That should offset the annoyance of an occasional screaming baby in your store…

Baby care shoppers are amongst the most brand loyal. When these shoppers can’t find their usual product on shelf, 62% of them will switch to another store[2]… and they’ll take their entire basket with them. UK shoppers are still making fewer shopping trips compared to before the pandemic, and therefore looking to get as much as they can all in one place. What’s more, families with young children are busy, and 86% of them plan their shopping missions in advance[3], so they will plan to shop in-store they know stocks their usual brands. Put these facts together and it becomes clear why it’s so important to stock a comprehensive core range of baby care products.

How Much is the Baby Care Category Really Worth?
Young families with children spend
38 %
more than the average UK shopper
When shoppers can't find their usual brand
62 %
will move to another store
Families with young children are busy
86 %
plan shops in advance at stores they know stock their brands

 

Baby Feeding

Baby Feeding is the largest part of the market, making up 48% of the total Baby category. Of this, just over half is baby milk, with the remainder being baby food[4]. 

Baby milk is the most brand-loyal segment, with 70% of shoppers more likely to switch stores rather than switch brands[2], so it’s important to have the top brands on shelf otherwise shoppers will go elsewhere. Aptamil is the number 1 brand with 46% share, followed by Cow & Gate with 31%, then SMA at 15% and HiPP Organic with 6%[4]. The good news here is that you can cover 92% of a very brand-loyal market just by stocking Aptamil, Cow & Gate and SMA. 

Stage 1 is the most important, followed by Stages 2 and 3, and larger stores should stock the ‘hungrier babies’ variants too. 83% of sales are milk powder[4], but bottles of ready-to-feed milk are important too, especially for impulse or distress purchases in more transient locations such as fuel forecourts. 

Baby food is more focused on age stage than on brand, so a product range that covers all the ages in multiple different formats will sell the best. A good range comprises pouches, jars, snacks and porridge (or baby rice). The biggest brands are Ellas Kitchen, Organix, Heinz, Kiddylicious and Cow & Gate. It’s worth remembering snacks for slightly older children too, such as Sunny raisins.

 

Baby Nappies

The nappies market is highly competitive, with discounters and supermarkets using their own label products to attract as many young families into their stores as possible. This means margins on nappies can sometimes be quite low, which makes commercial sense for large stores because the rest of the shopper’s basket makes up for it, but it can be a challenge for smaller stores with a lower breadth of range. That said, in the convenience channel there are Pampers £5.49 PMPs available that are attractive to both wholesalers and retailers, and these help Pampers to an 88% share of the convenience market[5].

In the wider UK market, Pampers is still by far the dominant nappies brand despite the intense own-label competition, with 54% of the total UK market[5]. The biggest trend in the nappies market is the shift from taped nappies into untaped or ‘pants’. For very small stores, taped nappies are still the core recommendation, but if you have enough space you should definitely range pants alongside the regular taped nappies. Start at Size 6, then 5, 4, 3 and 2. Pants are slightly more premium than standard, taped nappies, so you’ll grow your basket value by tempting shoppers to trade up.

Baby Wipes

The baby wipes category is quite straightforward… mostly. Huggies and Pampers are the two leading brands, and both offer good value products coming in at around £1 or even less for multipacks. Both brands also offer trade-ups to more premium options. Price is the first thing a shopper considers in their buying decision, followed by brand and whether they want a sensitive or a fragranced product.

That said… the third-largest brand in the UK is Waterwipes, whose products retail at a much higher price (usually around £3 or more). They have a highly loyal base of shoppers and they’re a great way to grow incremental sales if you have space for them on shelf.

Baby wipes aren’t just for babies – they’re used for many different purposes. As such, they have a relatively high rate of sale, and even stores with no baby care category at all should still consider having wipes in stock.

 

Baby Toiletries

Johnson’s Baby is synonymous with baby toiletries and unsurprisingly it’s the biggest brand in the UK, with a 37% share. There are trade-up options available too, however, including Childs Farm and Aveeno Baby, which are ranked 2 and 3 in the market respectively and combined together they match Johnsons’ market share[6].

Remember that baby toiletries aren’t just for babies. Cotton buds are multi-purpose, baby shampoo, baby bath and baby moisturiser are popular with some adults with sensitive skin, and baby powder and baby oil are both popular with grown-ups too (don’t use them at the same time though – they make a paste…).

Nappy and healing creams are important too, with Sudocrem and Bepanthen being the leading brands.

Children’s Medicines

Lots of products to talk about here, but by far the most important are Calpol Infant, Calpol Six-Plus, Nurofen for Children and Calprofen. Calpol is paracetamol-based, whilst Nurofen for Children and Calprofen are both built around ibuprofen, so it’s important to have both types in stock. 

Aside from these key SKUs, there are children’s versions of a number of different medicines, most notably Benylin cough remedies. Large and specialist stores can stock these alongside other range extensions including Vicks Vaporub, Calpol saline nasal spray, Calpol vapour plug, and other common children’s health care products such as gripe water, teething gel, head lice shampoo and children’s vitamins.

If you’re a DCS customer, you’re eligible to attend our Baby Care virtual event on Wednesday 23rd  March. Just get in touch with your DCS account manager for more details.

 

Sources:

1: IRI – Total Market – Value Sales – 52we 18/01/2020

2: Supplier manufacturer data (MSL Study, Danone)

3: Shopper IQ Advantage Data

4: IRI – Total Market – Value Sales – MAT: 18.09.2021

5: IRI – Diapers – Value Sales – L12M to Jan 2022

6: Nielsen – Baby Toiletries – Value Sales – MAT we 5th Feb 2022