The baby market has split in two, and conscious is the growth half

Our category is no longer one market. Toys are up around 8% while baby and nursery is down around 4%, yet sustainable baby and children's products are the fastest-growing part of the whole market. It is not that there are fewer babies to sell to. It is that parents are spending differently on them.

The numbers make the shift hard to argue with. 65% of Gen Z and 63% of Millennials, the parents and parents-to-be buying your product right now, will pay more for a conscious brand, and one in four research the brand before they buy. They are not looking for the cheapest option or the loudest one. They are looking for the one that can show its work.

So the real risk is not the falling birth rate, it is standing still while the growth half of the market moves on without you. Fewer babies is not the threat. Choosing not to use sustainable materials, ethical practices and designing for circularity is. The brands that lean into that now are the ones the next generation of parents will choose, and keep choosing.

FREQUENTLY ASKED QUESTIONS

Is the baby products market growing or shrinking?

It is splitting. Overall baby and nursery is down around 4% and toys are up around 8%, but sustainable baby and children's products are the fastest-growing part of the market.

Do parents really pay more for conscious brands?

Yes. 65% of Gen Z and 63% of Millennials say they will pay more for a conscious brand, and one in four research the brand before they buy.

How do baby brands compete as birth rates fall?

By meeting the shift in how parents spend: sustainable materials, ethical practices and design for circularity, then showing the proof behind each claim.

The Nest News lands every Tuesday: three insights shaping maternity, baby and children's products, and the actions you can take. Sign up at thenest.uk.com

Build BETTER. Grow CONSCIOUSLY.