Holistic and Organic Baby / Kids Products

Part
01
of three
Part
01

Purchase Drivers: Holistic Baby Medicine & Supplements

The recognition of proactive preventive primary care as a more effective health care approach for pediatrics, combined with the resurgent criticism of western medicine, drives the purchase of holistic baby medicine and supplements, which are considered to be more cost-effective, safer and in some cases have no alternatives.

Primary Purchase Drivers

  • Shift from reactive to proactive primary care for pediatrics: Parents are attracted to preventive solutions when it comes to their children's heath care. A study on complementary and alternative medicine use by children in the United States showed that 83% of parents use complementary and alternative medicine on their babies for disease prevention through strengthening and supporting the baby's immune system.
  • Lack of effective medicines to treat certain conditions: For example, the cause of colic in babies is still not well understood, and there are no known effective treatments that a parent can get from a doctor. This then pushes parents towards holistic baby medicines as there are no other competing alternatives.
  • Need to relieve pain and or distress: A higher percentage of parents dealing with pain conditions are likely to consider holistic baby medicines compared to those without. A study conducted in the US showed that 21.3% of parents dealing with pain conditions used complementary and alternative medicine compared to 8.1% of children without pain conditions. Teething, abdominal pain and colic pains affect almost all babies, and as a result, parents may resort to holistic baby medicines and supplements for pain relief.
  • Rising criticism and skepticism of western medicine: Western medicine is said to rely on the use of drugs, radiation, or surgery to treat symptoms; and this approach is said to have many side effects on the patients. Holistic baby medicines and supplements are perceived to be safer as they are time tested, natural and also target the cause instead of symptoms of observed ailments, leading to more willingness to purchase holistic baby medicines and supplements
  • Lower Cost: This approach to health care is perceived to be more cost-effective compared to the alternatives, which makes it accessible to all income groups. It also makes parents feel more empowered to make health care decisions that fit their lifestyle.


Part
02
of three
Part
02

Demographics: Purchasers of Organic Baby / Children's Products

The demographic profile of people who purchase organic baby products such as food, clothing, skincare, and other children's products in the United States includes mostly millennial moms who are aged between 20 and 35 years and have one child. Most of these millennial moms are employed in a full-time job.

People Who Purchase Organic Baby Products

  • According to a market report published by Adroit Market Research, the demand for natural and organic baby products is being driven by millennial parents who are primarily concerned about the ingredients that are used in baby products such as for skincare. It was found that over 30% to 40% of these millennial parents get influenced by the organic ingredient mentioned on the product labels.
  • According to the Organic Trade Association survey report, 25% of the American millennials are parents and are currently the largest consumer group in the country. This demographic with over 75 million in population have "billions of dollars to spend". Millennial parents are leaning more towards organic baby and children's products than products without natural ingredients.
  • The report revealed that respondents consider baby food to be the most important category for organic ingredients. They are driven by the belief that choosing organic products for their children makes them better parents.
  • According to an article published by Vox, the natural baby care products market is flourishing mainly due to millennial parents. It is observed that millennial moms have taken a different approach to choose and purchase the right products for their children, especially bath and soap products. They are more focused on buying products that are organic or contain naturally sourced ingredients and prefer to cut down on the use of chemicals as much as possible.
  • According to Forbes, mothers currently control over 85% of household purchases and have $2.4 trillion in spending power in the United States. There are "tens of millions of millennial moms" in this particular segment.
  • Based on the above findings, it is considered that millennial parents, specifically millennial moms with more purchasing and decision-making power are the primary purchasers who prefer to buy organic baby products in the United States.

Demographic Profile

  • Age: People who purchase organic baby and children's products are millennial parents in the United States aged between 20 and 35 years.
  • Sex: While the organic baby market is driven primarily by the country's millennial parents, millennial moms are found to hold larger purchasing power in the United States.
  • Home Ownership: According to a report published by the National Retail Federation, over 52.7% of millennial moms own their own homes.
  • Income Level: For most millennial moms, their total household income falls within the range of $100,000 to $149,999 per annum.
  • Education Level: Most millennial moms are found to be highly educated holding at least a graduate degree.
  • Children: Over 64% of American millennial parents have one child.
  • Employment: About 53% of the country's millennial mothers work full-time while 17% of this generation's mothers work part-time.
  • Location: According to the State of Motherhood survey, 26% of millennial mothers are located in the South and over 22% of them are located in the West, including 11% in California, 5% in Texas, and 4% in Florida.

Research Strategy:

To obtain the key insights on the demographic profile for people who purchase organic/natural baby products in the United States, we began our search by examining multiple industry-specific research reports from websites such as MarketWatch, Grand View Research, and Adroit Market Research and consumer survey reports from websites such as the National Retail Federation, Organic Trade Association, and Pew Research. The idea behind this search was to explore these sources for the primary purchaser/consumer segment driving the demand for organic baby products along with their attitudes and preferences.

Additionally, multiple news articles covering consumer insights and preferences towards organic/natural baby products through websites such as Vox, New York Times, CNBC, and Forbes were examined. A thorough search through these channels revealed that millennial parents, specifically millennial mothers are the primary purchasers with a high purchasing power, decision-making power, and prefer to buy organic products for their children. We then focused our search on millennial mothers and presented a demographic profile of this segment.
Part
03
of three
Part
03

Sustainability's Role in Purchase Decisions

Consumers are increasingly aware of social and sustainability issues and expect brands and companies to adhere to these values and to offer sustainable and eco-friendly products. Millennials are ready to spend more and are more loyal to brands that offer sustainable products. Millennial parents want their kids' toys to be biodegradable and their clothing to be made from sustainable material.

The Importance of Sustainability for Consumers

  • A survey by Futerra targeting 1,000 consumers from the U.S. and the U.K. found that 88% of respondents would like companies and brands to help them make a positive difference in terms of sustainability.
  • The same survey found that 43% of respondents felt that companies made it hard for them to make a positive difference, either by using polluting packaging, exploiting children, and using confusing or incomplete labels.
  • Research from the New York University Center for Sustainable Business (CSB) has found that most of the growth in all categories of packaged goods products (CPG) comes from sustainable brands and products.
  • Sustainable products were responsible for half of the growth in sales of CPG products between 2013 and 2018, despite accounting for only 17% of the total CPG market.

Sustainability and Millennials

  • The majority of new parents in the U.S. are millennials, with 82% of births coming from millennial mothers in 2016, and they tend to care deeply about social and environmental causes. This attitude is reflected in the kids' products they buy and the brands they choose to purchase from.
  • Half of American children have millennial parents, and these contribute a large share of the $1 trillion spent every year on children's products in the U.S.
  • Millennials tend to favor sustainable brands that are ethical, voice pro-social messages and use sustainable manufacturing techniques.

Preference for Sustainable Kids Products

  • Millennials expect the stores that sell children products to supply eco-friendly products.
  • A report from Brands & Stands found that 86% of consumers want brands to voice their concern for social issues and 64% would buy from companies that do so.
  • Modern parents are looking to purchase safer toys that do not contain toxin, but also safer baby products such as diapers.
  • Millennial parents consider factors such as climate change and sustainability when they decide to purchase their children's clothing.
  • A Lifestyle Monitor Survey found that 57% of millennial mothers would keep buying children products from a sustainable brand, and 64% of millennial parents would ignore other brands if they found a sustainable brand to be loyal to, even if they were cheaper.
  • According to the editorial director of The Toy Book and The Toy Insider, millennial parents value sustainable toys higher than disposable ones and are willing to pay more for those products.
  • The Toy Association has also published a report in May 2019 with conclusions that millennial parents sought to purchase eco-friendly games for their children, such as biodegradable toys.
  • As millennials are becoming parents, the trend of switching to a more sustainable diet is growing amongst Americans, with a preference for plant-based foods. This choice has an influence on their kids, who will develop a taste for this type of food such as vegetarian meats.
  • A study has found that 72% of millennials with children tend to consume plant-based meat.
  • These parents also tend to teach their kids about sustainability.


Sources
Sources

From Part 03
Quotes
  • "88% Of Consumers Want You To Help Them Make A Difference"
Quotes
  • "Millennials, which make up the majority of new parents, care about social and environmental causes, and they’re looking for brands that speak to their values."
Quotes
  • "According to Nielsen’s 2015 Global Corporate Sustainability Report, 66% of consumers would spend more on a product if it came from a sustainable brand. Up to 73% of the surveyed millennials had a similar view. And according to Horizon Media’s Finger on the Pulse study, 81% of millennials expect companies to declare their corporate citizenship publicly. "
Quotes
  • "While parents increasingly insist on safe, toxin-free toys, diapers and other baby products, not all let conscious consumerism guide other purchases"
Quotes
  • "And the values and concerns they picked up along the way, such as climate change and sustainability, are shaping their choices when they shop for their kids’ clothes."
Quotes
  • "Millennial parents are more aware than previous generations of their impact on the environment,” said Jackie Breyer, editorial director of The Toy Book and The Toy Insider. “They feel the need to teach by example that they can make the world a better place. They are willing to pay more for sustainable quality toys than for cheaper toys that end up in a land fill."