GfK

GfK’s client solutions consultant, Emma Wade, takes a look at the stroller product category and how it is bouncing back after the pandemic.

ON A STROLL

As suspected, 2022 is proving financially trying for many and that is no exception when looking at the baby care market. With inflation running at its highest for 30 years and energy prices driving up the cost of production, this has caused many retailers and brands to raise their prices. It has been feared this was going to drive away customers, but at the end of the first quarter of the year, many baby care product areas are managing to hold their ground. When looking at volume sales for the first quarter the total baby care market grew 1% when compared to the same period in 2021. However, when we look at value this is where we start seeing the impact of those price rises as in the same period the market grew by 30%. That extreme growth translates over to the average price of a baby care product as this grew by 29%. When we start looking at individual product areas there are some categories that have outperformed like Strollers.

LET’S TALK STROLLERS

Strollers was an area that had been hit hard during the pandemic. With several lockdowns and travel restrictions in place it meant that people weren’t travelling as much and the need for strollers disappeared. However, with the world opening back up parents once again need strollers, leading to growth for this category. In the first three months of the year, we saw volume sales grow by 45% outperforming the rest of the baby care market versus the same period last year. Value was also up by 75% reflecting the rise in prices we are seeing. However, when we compare this to the pre-pandemic market of Q1 2020, we see a different story. Volume was down 12% and value down 4%.

So, how much has the price increased on a stroller? In the first quarter of the year the price grew by 21%, however, prices during the 2021 lockdown period were low in comparison to 2020. When we compare against 2020 instead, the average price in 2022 is 10% higher. When looking in-depth at these price rises, we see all types of strollers saw a price increase. The price increase also did not suddenly happen, and it has been a gradual increase over the last 12 months.

If we switch to look at the premium end of the stroller market at £1,000+, this has continued to grow over the last three years - in the latest quarter volume alone grew 98% on 2021 and 60% on 2020 (value was up 111% on 2021 and 74% on 2020). The move to premium during the pandemic was partly because people had more disposal income so could spend a little bit more. As we have moved into 2022 premium is still performing well which may be surprising. However, with sustainability issues and the ‘buy once, buy well’ mindset becoming more important to consumers, they are willing to trade up if they know the product they are investing in is both more sustainable and durable. Today’s consumers don’t want to buy a product that is going to need replacing within a few months of purchase. Another key draw of a stroller and more premium end strollers is that sometimes they will be bundled with attachments like Car Seats and Carry Cots which boosts the appeal as now consumers don’t need to separately purchase those items.

Looking forward into 2022, the premium end of the market for strollers has a high chance of surviving with stable sales as those that can afford these prices are not being hit as hard by the current squeeze on the costs of living as those on mid to low incomes and will still prioritise having the ‘best for their baby’. This won’t just be the case for strollers though as many product areas in baby care are likely to see the same sort of trends. More essential products like bottles or soothers are unlikely to see big drops in value or volume that other categories will.

What we may see is those who were buying in the mid to lower price bands may move over to buying second hand rather than new.

Strollers outperformed in the first quarter of 2022 after a rough start in 2021

Great Britain – Baby Care

Volume Growth of Quarter 1 (Jan-Mar) 2022 vs 2021

Average price of a Babycare product grew +29%

In the first quarter of 2022, compared to the same period in 2021.

For strollers average price grew +21%

Compared to 2021 and +10%

Compared to 2020. 98%

1% 45%

Total Babycare Market Strollers Strollers over £1,000

Value Growth of Quarter 1 (Jan-Mar) 2022 vs 2021

30% 75% 111%