Market Overview

The baby related business market size for 2022 has risen by 0.5% from the previous year to 4,353.7 billion yen.

In the situation where number of new births having continued decreasing still in 2022, steady increase in the daycare center market has supported the growth of concerned market. Many of baby related products (supplies, food, clothing, etc.,) have minimized the decreasing market size or even to boost the market due to steady demand recovery from shrinkage during the COVID-19 crisis as well as price revision (price rise) effects.

Noteworthy Topics

Application Trends by Product Category

The baby formula and baby foods markets used to steadily grow until 2019 but downturned in 2020 when people stayed longer hours at home amid the COVID-19 crisis, because of increased demand for timesaving and decreased outing opportunities. The demand to value timesaving or convenience and recovery of outing demand after 2021 and ubiquitous price revisions in 2022 have led the markets to be on the expansion once again. Further increase in demand has been projected hereafter, due to more men expected to participate in childcare.

The market for feeding products (feeding bottles and infant nipples) has shown a downswing due to disappearance of inbound demand during the COVID-19 crisis, in addition to decreased number of domestic new births, but in 2022 the market has upturned because of revitalized replacement demand caused by renewed product releases. Hereafter, the market is likely to improve its fundamental strength because of value-added product releases and price revisions and to see gradual recovery caused by returning inbound tourism demand and more childcare participation by men.

The market of prams/strollers that has been inflicted negatively from the pandemic is projected to rise again, because of gradually relaxed behavior restrictions from 2021 that is to increase the opportunities to use prams/strollers. The price revisions are also expected to affect the market to gain its strength.

Future Outlook

Many of baby related business is likely to continue being severe because of decreasing demand base due to waning number of new births, but the entire market is projected to steadily grow, supported by the steadfast daycare center market. Meanwhile, for baby and childcare products (supplies, foods, clothing, etc.,) the challenge is to minimize the decline in demand base through capturing inbound and external demand and introducing further value-added products, though the market has temporarily been boosted by the effect of price revisions.

As for daycare center market, though slowdown in growth rate is observed, it has preserved steadfast growth stemming from organized and improved childcare systems, and from continuous public capital in the measures against declining birthrate and for child rearing, and it expects further growth for the future contributed by the measures against declining birthrate and that for childcare. Still, acceleration of declining number of new births may affect negatively, such as to peak the new establishment of daycare facilities or to close such facilities and to decreasing users.

Research Outline