Baby Apparel Market Growth – Ensuring Nouveau Sartorial High Notes for Infants
The increased availability of disposable income, a growing pool of working women, a rapid rate of urbanization, a forecasted growth in population across the world, the proliferation of the eCommerce coupled with high internet penetration in tier 2 as well as tier 3 cities and also in rural areas are fundamental to the growth of the baby apparel market. With respect to eCommerce, one example during the past few years was the launch of the Online Baby Clothing Store by Amazon Fashion that is Amazon India’s fashion marketplace for babies up to two years of age during March 2018.
This strategic investment was also done to capture a significant share of the Indian eCommerce market. Brands like United Colours Of Benetton, Mothercare, Gini and Jony, and 612 League, among others, was reported to be featured in the store among an exclusive feature baby GAP product from GAP. Knowledge source intelligence has forecasted the market to grow at a CAGR of 2.97% to attain a market size of US$267.730 billion in 2025 from the market value of US$224.595 billion that has been estimated for 2019. The growth of the market is also expected to reinforced by the Baby Care Packaging Market which due to constant investments in R&D, willingness to spend on premium baby care products with special focus on the type of materials that is used for packaging which are known to protect the products intended for infants from harmful contaminants as well as from the possibilities of being damaged during transport. According to Knowledge Source Intelligence, this market is forecasted to the market to grow at a CAGR of 4.68% to attain a market size of USD15.327 billion in 2025 from the market value of USD11.646 billion that has been estimated for 2019.
Moreover, the baby apparel market is expected to grow also due to a growing demand for globally renowned brands by new parents across the world. These organizations are known to make high investments in marketing campaigns, offer attractive discounts and festive offers. Further, the increasing possibilities of baby shows and the inclination to provide babies the best and one-of-a-kind range of products are incentivizing the production of a variety of products which comprise designer baby clothes as well. Notable market development is that of the announcement of Gerber Childrenswear LLC during March 2020 about the launch of the Gerber Modern Moments baby apparel line which has been reportedly made with organically grown cotton featuring a new color palette and modern silhouettes and available exclusively at Walmart on March 2020.
Asia, Total Population at Mid-Year Estimates
Total population (thousands)
Source: UN
By Geography, the Asian continent is expected to hold a major share of the market during the forecast period
The Asian continent is comparatively more diverse and comprises more than half of the world’s population which is in the order of 4.1 billion. Moreover, the estimated growth in urbanization in which the Asian continent is experiencing is estimated to rise to 54% by 2029 by FAO. According to the United Nations, 25% of the global population is expected to be concentrated in Southern and Central Asia that is projected to add 505 million people between 2019 to 2050. In 2019 Eastern and South-Eastern Asia were the two of the most populous regions estimated in the entire world supporting a population which was in the order of 2.3 billion people, representing 30 % of the global population followed by Central and Southern Asia supporting a population which was in the order of 2.0 billion people, representing 26 % of the global population. Since the middle of the 20th century, both these regions have reportedly witnessed rapid population growth and are further expected to reach their peak population size during the next few decades. Around 2038, a maximum population size of 2.4 billion has been forecasted for the regions of South-eastern and eastern Asia which further projected to peak after approx. 27 years which would be in the order of 2.6 billion around 2065. Albeit experiencing significant headwinds East Asia remains the world’s fastest-growing region and the largest contributor to global growth.
Moreover, more accommodative monetary and fiscal policies are estimated to support domestic demand. The average growth of the region is reportedly forecasted to remain stable, despite the ongoing gradual economic slowdown in China. In South Asia, economic growth has been reportedly estimated to recover following a weaker-than-expected performance in 2019. In India, economic activity will regain some momentum as the effects of a credit crunch ease and fiscal stimulus measures come into effect. Further taking inspiration from the success of Singapore which is often monikered as one of the Asia economic miracles, a few member states of the Association of Southeast Asian Nations (ASEAN) have set their respective development ambitions. For example, Vietnam, according to The Political Bureau Resolution No. 23-NQ/TW aspires to become among the top 3 ASEAN countries in the industry by 2030, with some of its industries being globally competitive; becoming a modern industrialized country by 2045.
The Philippines according to its document Our Ambition 2040 aspires to become a prosperous middle-class society free of poverty by 2040. Thailand aims to transition into a developed country by 2037 as per the National Strategy Thailand 4.0. Myanmar as per the Myanmar Sustainable Development Plan, 2018-2030 emotions that aspirations to build a brighter future in a pluralistic and prosperous nation. Malaysia aims to elevate the country’s status to a developed economy by 2020 according to the 11th Malaysia Plan. Laos, as per its 8th Five-Year National Socioeconomic Development Plan, 2016-2020 aims to become an upper-middle-income country by 2035. Indonesia, as per its document The Vision of Indonesia 2045 aims to become an advanced and prosperous nation among the world’s largest five economies by 2045. Cambodia has emphasized its aspiration to become an upper-middle-income nation by 2030 and a developed country by 2050 as per Prime Minister Hun Sen’s statement. Last but not the least, Brunei has underscored its ambition to join the world’s top 10 in quality of life and per capita income in 2035 in its document Vision 2035. Thus, such national goals are expected to facilitate an exponential growth of the baby apparel market during the forecast period.
