When it comes to caring for their babies, parents only want the best—from the food they put in their mouths to the diapers they put on their bottoms, and they’re willing to spend for it. In a report released by Nielsen, growth in baby food sales is estimated to reach nearly US$30 billion in 2015 around the world while diaper market is projected to exceed US$29 billion.
In Southeast Asia’s developing countries such as the Philippines, one in 10 consumers report having a child below the age of one in their household, double the global average of 5%. A further 12% of Filipino respondents in the report have children aged 1 to 2 years old in their household compared to 9% globally.
However, for baby care manufacturers, the battle for baby bucks come with a fair share of challenges. Competition in the baby care market is fierce and numerous branded and store-brand products at various price points compete for attention. Moreover, the window for purchasing baby care products is relatively short.
“Despite the challenges, opportunities in the baby care market are substantial, “states Stuart Jamieson, managing director of Nielsen in the Philippines. “To achieve success in a space dominated by only a few major brands, it is critical to have a deep understanding of what is driving product choice.”
For Filipino respondents who admitted to have bought baby food in the last five years, trusted brand, good overall nutrition, good price/value, and safe ingredients/processing are the most important criteria when deciding which brand and type of baby food to purchase. Respondents in the Philippines also cited organic and all-natural as an important purchase consideration.
When it comes to attributes in choosing the brand and type of diaper to buy for their babies, consumers in the Philippines identify skin protection/good for sensitive skin as their top consideration, followed by good price/value and good fit/comfort.
When it comes to advice about the best baby food /formula and diapers for their babies, new Filipino parents turn to TV advertising, recommendation from friends/family, and recommendation from baby health experts. However, recommendation from a baby health expert takes precedent overall sources of information in deciding which baby food to buy. When it comes to their decision in purchasing diapers, recommendation from friends/family wields the most influence while TV advertising also influenced purchase decisions followed closely by recommendations from baby health experts.
“While recommendations from friends/family and experts and TV advertising outweigh all other sources of information as a trusted adviser and most influential in purchase decisions, we are seeing the emergence of online sources such as parenting websites and social media in the circle of trust of Filipino parents,” Jamieson comments.
Consumers of baby care products in the Philippines show greater preference to brick and mortar stores compared to online channels.
“Filipinos love the experience of shopping in brick and mortar stores but there are consumers who are shopping online because of the convenience that it provides to busy parents,” states Jamieson. “They have the option to conveniently shop whenever, wherever they desire, often with free delivery to their front door.”
 Based on Nielsen retail sales data for infant nutrition, infant cereal and infant formula categories in selected countries, which cover an estimated 95% of global baby food and formula sales.
 Based on Nielsen sales data for baby diapers and wipes in 63 countries, which account for an estimated 90% of global value sales.
Insights contained in this article are based on results from the 2015 Nielsen Global Baby Care Survey.
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