Most significantly, many couples have continued to defer having children as a result of significantly lower levels of disposable income. The resultant decline in birth rate has, obviously, had a negative effect on all sectors of the market.

For those couples who have had babies, many have been forced to make economies. For example, the baby meals market has been deleteriously affected as parents opt for either home-made meals or for the less expensive dry meal products. Similarly, in the nursery equipment market, there has been little growth as usage of second-hand equipment becomes  increasingly commonplace.

In 2011, the total market for baby products was valued at £1.645bn. The fastest-growing sector in the market is that of baby wipes, which have rapidly become perceived as commodity items by parents. Key
Note estimates the total market in 2013 to be worth £1.65bn.

The supply structure has seen a shift towards own-label products — a trend which is predicted to magnify in 2014. In the distribution of baby products, the trend towards grocery multiples is also

expected to continue.

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