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United States baby products market: Johnson & Johnson the leading player in 2012
Baby and Child-Specific Products in the US - a new market research report on 2014-04-21 16:52:01
The United States baby products market and child products industry is currently led by Johnson & Johnson Consumer Products with a 17% value share in 2012. The company is synonymous with baby care, and has had a strong presence in bath products, hair care and skin care for decades. Many parents grew up with Johnson´s products, and consider them to be safe and of high quality. The standard Johnson´s Baby brand is the number two brand in baby and child-specific products, and benefits from being used by hospitals and other health professionals. Johnson & Johnson also benefits from being recommended by the medical community, which remains the best form of advertising and promotion for baby care products. The company also invests in extensive advertising support for its products.
Despite recovery in the US economy, the birth rate in the US continued to decline in 2012, as the 2008/2009 recession continued to impact Americans´ thoughts about parenthood. Consumers of all income levels were worried about their ability to spend on larger homes and day care costs after having children. In particular, pessimism about future economic prospects affected lower-income consumers. While Americans of all income groups remain concerned about the economy, the higher-income groups have generally not seen a decline in income and have seen a rise in housing prices. At the other end of the spectrum, lower-income consumers who "live paycheck to paycheck" were disproportionately affected by the "Great Recession" and resulting high unemployment. The number of live births in the US declined by 1% in 2011, after declining by 2% in 2010, according to the Centers for Disease Control and Prevention.
Baby and child-specific products is expected to increase by 6% in constant value terms over the forecast period, to reach US$2.5 billion by 2017. This represents an increase from the 4% constant value growth experienced over the review period. With the US economy showing signs of recovery, and a rising stock market, affluent consumers have begun to resume spending on discretionary items, albeit more cautiously than in pre-recessionary times. The birth rate is expected to remain virtually flat, leading to limited growth opportunities for baby-specific products outside the premium natural/organic offerings. The growth prospects for products geared towards older children are expected to be better.
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