High income households fueling sales while households under $74,000 pull back from $30 Billion baby care products market; Walmart and Target lead all retailers in overall sales
Shelton, CT – April 26, 2017 – U.S. baby products sales have declined at least $3 billion (approximately 10 percent of the baby product market) compared to 2016 according to TABS Analytics’ 2017 Baby Products Study which was released today. According to the annual baby products study, 57 percent of high income households with incomes of $150,000 or more made at least one baby product purchase in the last year compared to just 24 percent of households with incomes between $75,000 to $99,000. Although the online share of baby products sales increased from 20 percent in 2016 to 22 percent in 2017, the actual online sales dropped, mirroring the overall drop in sales of the entire U.S. baby products market.
“What was most surprising about this year’s baby study was the dramatic division of baby products purchasing among the income groups,” said Dr. Kurt Jetta, CEO and founder of TABS Analytics. “Drilling into the data, we found that the only income group that actually increased their purchasing was high income consumers while all the other income groups decreased their purchasing compared to 2016. We certainly expect to see gains in purchasing for luxury products by high income buyers but not for baby essentials such as diapers and baby food. My concern is that in baby products the income disparity in purchasing behavior is a microcosm of the major shifts we already see in retail, in politics and in our economy.”
The baby products study, conducted in April 2017 by Toluna, surveyed 2,000 geographically and demographically dispersed consumers between the ages of 18 and 75. The study analyzed the outlet shopping patterns of the buyers, with a focus on comparing online to brick-and-mortar, and measured non-tracked channels such as Babies”R”Us.
The study analyzed the five major infant and baby needs product categories: 1) baby seat and safety products (car seats, strollers, baby monitoring devices); 2) baby feeding (cups, bottles, plates); 3) diapers and accessories; 4) baby formula and food; 5) baby care needs (powders, ointments, lotions). This year’s study also cross referenced consumer purchasing across nine consumer sectors: baby, books, clothes, electronics, beauty, pet, office, jewelry and sports.
Here are nine key findings from the study:
“Clearly the baby products category is under duress and retailers and manufacturers need to understand what factors are in play,” said Jetta. “The decline in lower-income household penetration is an important factor that manufacturers should research to understand why it is happening and what the longer-term implications are for the category.”
Throughout 2017, TABS Analytics will be conducting six studies across the consumer packaged goods industry including personal care, baby, vitamin (VMS), food and beverage, household products, and beauty. More information about previous TABS studies is available at http://www.tabsanalytics.com/resources.
About TABS Analytics
Operating since 1998, TABS Analytics, formerly TABS Group, based in Shelton, Conn., is a technology-enabled analytics firm. Its mission is to simplify and improve the way analytics are conducted in the consumer products industry. TABS offers cloud-based software analytics and applications solutions, including TABS Market Insights™ and TABS Total Insights™, for CPG manufacturers that integrate, harmonize, and analyze sales and marketing data. Additional services include TABS CatMan Advantage™, an outsourced category management solution, TABS WorldView™, a global business intelligence tool, and TABS Promo Insights™, a cloud-based software and consulting service that helps companies measure, plan and optimize trade spending. For more information, please call 203-446-8837, email robertbaldwin (at) tabsanalytics (dot) com or visit www.tabsanalytics.com