Vietnam Mom and Baby Care Market Trend Report

According to statistics from the United Nations (UN), in 2023, Vietnam will have more than 26 million children under 18 years old (accounting for nearly 1/4 of the population). Of which, children under 5 years old account for more than 7 million people. At the same time, with an estimated revenue of up to 7 billion USD and an average growth rate of 30-40% (Nielsen), the mother and baby products market in Vietnam is a promising land for businesses, and will also witness fierce “competitions” between major brands in 2023 when inflation increases. Are you ready to enter this potential mother and baby market race?

Gen Z – potential mothers of the future

In this lucrative competition for market share, businesses operating in the mother and baby market must always find ways to stand out to attract the attention of target customers. One way to do this is to create products that meet the needs of Gen Z. At the same time, the product must not only meet the needs of features but also help Gen Z express themselves. Understanding Gen Z’s insights and capturing customer insights is an opportunity for businesses to penetrate and expand their market share in the mother and baby market.

While the global market growth rate of the consumer goods sector is limping, the mother and baby care sector has been growing more steadily over the past decade. According to Grand View Research, the global baby products market size is expected to reach USD 16.78 billion by 2025, with a healthy CAGR of 5.5% over the forecast period.

The mother and baby care industry is broad and includes areas such as FnB, personal care products, nursery furniture and feeding products. Part of the optimistic outlook is due to population growth in emerging economies in Asia Pacific, South America and Africa.

Global consumers’ preference for premium/value over low-cost products is another driving factor. Additionally, a new wave of young parents – Millennials and Gen Z – are embarking on their journey to parenthood. Their buying decision journey and shopping psychology both before and after the birth of a new baby is key to understanding and keeping up with the competition.

Quality first

Parents always want the best for their children – and this is especially true for Millennials and Gen Z parents. For them, a “quality over quantity” approach is important, and high-tech gadgets, organic foods, and chemical-free mother and baby products are all worth the price. In the coming decades, the brands that will succeed in this space will be those that can cater to young parents who are looking for the best for their children.

Why? Millennials and Gen Z are transferring their own consumer habits and values ​​to their children’s shopping charts. If they themselves are buying healthy organic foods and high-tech gadgets, the idea of ​​denying their children the same quality is almost unthinkable. On the other hand, children today are considered more worthy of protection and care than before – they are considered smaller versions of adults.

Therefore, businesses that want to convince these young mothers to buy should understand their needs. From there, research and adjust products/product lines, services to suit their needs, desires and even insights.

Trust, Safety and Technology

Health and wellness are always at the top of the consumer agenda, and the children’s market is no exception. With growing alarm about the consequences of environmental pollution and harmful man-made chemicals, parents today are scrutinizing ingredient lists for peace of mind.

Skincare products and baby food that feature natural and organic ingredients, non-polluting raw materials, environmentally friendly manufacturing processes, and minimal additives are gaining popularity. This trend is further reinforced by the ongoing global pandemic and behind it, parents are increasingly health-conscious and want to boost their children’s immune systems. So what do businesses need to prepare to successfully launch their products to the market? Especially when your business or product does not have a brand or reputation?

In addition, baby products that emphasize “technology” are also gaining popularity among parents. According to a survey conducted by Mintel, 48% of Chinese parents with children aged 0-3 said they “trust or have more trust in baby care products with high technology content, compared to products with detailed Nutrition Facts labels”.

In the digital age, consumers are constantly bombarded with a large number of online advertisements. Therefore, when it comes to baby products, parents can feel confused and want transparency in the facts. Today’s new parents are choosing to be cautiously skeptical and less trusting of big names – even long-standing brands like Heinz have attracted unwanted attention due to their high sugar and salt content. Today, it is important for brands to gain the trust of young parents.

Products and brands need to leverage these two aspects, i.e. ‘natural’ and ‘technology’, making them mutually supportive, guiding consumers to find product information from a ‘relevant’ set of information and make the right choice.

Products for mothers and babies

Millennials and Gen Z mothers are more independent and want to strike a balance between parenting and work, and this mentality can put them under a lot of pressure as new mothers. However, under the influence of women’s growing power and modern parenting concepts, young mothers prefer to “stand up for themselves” rather than obsessively sacrifice for their families.

And it’s no surprise that focusing on “making things easy” for mothers is a great strategy for baby care brands to start with. According to Mintel Data, from a product perspective, nearly half of new baby products launched in the past three years in developed countries such as the United States and Japan have made the claim of “convenience”, a relatively high proportion, compared to 30% in other countries. China, which shows great local market potential. Inflatable bras and hands-free baby carriers are some examples of new solutions that can ease the burden on mothers.

In addition to physical products, tech-savvy millennials and Gen Z moms are also looking to various digital platforms and online communities to better juggle work and family life. Over the past six years, investors in the United States have poured $500 million into companies operating in what could be considered the “new mom economy”—all the apps, utilities, and services that target first-time millennial parents with children under 1 year old.

Initially, utility startups like 4moms, Hatchbaby, Owlet, and Snoo were the first to attract investor interest. Since then, the space has expanded to include digital health care, community apps, and more. For example, Totally Pregnancy is a platform that provides new mothers with a portal to a community of real mothers and expectant mothers. Developed by Totally, a US tech startup founded in 2016,

In China, knowledge-sharing apps for new mothers such as Baby Tree (宝宝树), Dear Baby (亲宝宝) are gaining more and more users, reaching 80 million active users in 2019. The social media function of the app allows mothers to form their own online communities and share their motherhood knowledge and product usage experiences, creating more influence on purchasing decisions than EC platforms or industry experts.

Meanwhile, the maternity product category has also seen high growth over the past five years and is expected to continue its upward trend. Products in this category include skincare brands that help expectant mothers deal with a variety of pregnancy-specific issues, such as stretch marks, hyperpigmentation, changes in hair, nails, and blood vessels, etc. Young mothers are more health-conscious and are willing/able to spend on themselves as well as their children. Currently, the US remains the largest market for this sector, and China is rapidly catching up, with an estimated market size of CNY 120 billion, at a staggering CAGR of nearly 15%.