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More than 80% of the world's people live in less-developed nations, and while births have fallen consistently over the last 55 years in all areas and at all business and industry level, they are highest in less-developed states. Moreover, fast-paced urbanisation, the emergence of the lower classes and the increasing labour market share of women in many emerging economies have promoted the introduction of convenient living styles that make infant food and processed infant food more attractive.
Today, 49% of infant nutrition revenue comes from Asia Pacific, 27% from Europe and 19% from North America, but Latin America and Africa/Middle East are expanding more rapidly. Infant nutrition revenues in the 12-month period to December 2014 were up 4.9% year on year in Africa/Middle East and 2.1% in Latin America.
Selling results varied in the Asia-Pacific region. Whereas value turnovers increased in Indonesia (4.6%), India (3.8%) and Taiwan (1.6%), they decreased in China (-5.1%), mainly due to the shift of consumer to e-commerce and specialised shops for babies, which are not included in this dataset. Infant food was an even more exciting sector in terms of development markets expansion.
Latin America (37.3%), which excludes inflation, and Africa/Middle East (16%), where value-added revenues increased at double-digit rates over the 12-month period to the end of December 2014. They also have some of the most rapidly expanding prescription product market segments. The value of turnover in Europe rose by 7.3%, with double-digit percentage increases in Germany, mainly due to export to China.
As far as packing is concerned, cup and jar based infant nutrition represents the major share (87%) of worldwide infant nutrition turnover in 16 selected countries. However, when it comes to growing, bags (containers with top side spout plastics from which to drink food) are the trend, with value-added turnover rising by 28% between December 2013 and 2014.
Indeed, bags recorded three-digit growth in Ukraine (916%), Brazil (528%), Portugal (316%), Russia (264%), the Netherlands (184%) and Spain (125%). Turnover in the USA - by far the biggest bag procurement sector - rose by 7% year-on-year. However, turnover with bathtub and jar-packed goods remained unchanged globally and decreased in most of the analysed countries, as well as in the USA (-2%).
Worldwide value-added turnover in the last two years in the 16 investigated countries rose by 26%, while non-biological goods fell by 6%. The North American region is the biggest organically grown country, contributing 72% of total revenue in the last 12 month. Oral propaganda is the most frequently mentioned resource for information about infant nutrition and formulas.
Fifty one per cent of nappy turnover comes from North America and Europe, but the fastest growing markets are emerging. Asia Pacific is the world leader among those who say they buy babies' grooming online. Among those surveyed worldwide, the most important aspects when buying diapers are dermatological safety and convenience.