Baby skin care products enjoying boom in China

05-Jul-2016 - Last updated on 05-Jul-2016 at 12:48 GMT

Thanks to the relaxing of its historic 'one-child policy' in January this year, China is set to see a boom in its baby and child-specific markets, with baby personal care one of the segments set to lead the charge.

China changed its one child policy effective from this January in light of the ageing population in the country, allowing couples to now have two children, and brands and markets have been leaping to make the most of the opportunity this will pose.

Sales of baby and child-specific products as a whole is predicted to record a CAGR of 18% between 2015 and 2020, with this strong forecast growth also boosted by rising household incomes.

Looking specifically at personal care, China is projected to make up 45% of demand for global packaging for baby products by 2020, with commentators predicting this will be down to the demand for baby and child-specific skin and hair care.

Analyst predictions

Euromonitor’s Rob Walker has predicted a few of the key features likely to emerge with the change in policy, with the market research firm having predicted that the change in law could lead to an additional 10 to 30 million babies over the next five years.

Many of these families are likely to come from the middle classes, and with salaries on the rise, significant spending in the baby and child markets is likely.

“A change in the law, no matter how small, is a big deal for any company with a footprint inChina’s baby and children’s consumer base,” Walker confirmed.

Making preparations

Brands in China have been quick to respond to the growth potential of the new new policy, including Shanghai Jahwa, a leading cosmetics group in the country.

The beauty giant recently confirmed its acquisition of British baby brand Tommee Tippee, in a move which suggests Jahwa will be looking to expand its reach past cosmetics in the coming years.

"Following China's new policy that encourages married couples to have two children as against one in the past, we are bullish on the long-term growth of the baby products sector in the China market," Jahwa stated of the move.

“The acquisition is a combination of strengths,” the company explained. “The two sides will be able to create an international business platform of baby care products.”