The US "Millennial Baby Boom" is coming, which will stimulate the growth of baby products

Millennials have surpassed baby boomers to become the largest generation in the U.S. , according to the U.S. Census Bureau . The group is about 72.1 million people , ranging in age from 25 to 40, according to the Pew Research Center .

One of the leading indicators of a potential "millennial baby boom" is the rise in sales of pregnancy tests , which are up 13 % this year compared to June 2020 , according to Nielsen data and Bank of America research . That compares to an average annual growth rate of 2% from 2016 to 2019 .

If this happens , it would reverse the trend of declining birth rates during the pandemic. According to research from Bank of America, live births increased by 3.3% year-on-year in June 2021 , the highest growth rate since 2013.

In a monthly survey of 1,000 people conducted by Bank of America in October , 11.3% of respondents said they were looking forward to or trying to have children in the next 12 months , the highest level since the bank launched the survey in December 2020 .

That could be good news for grocery stores and big-box stores that sell diapers, strollers and other baby products, said Robby Ohmes , an equity research analyst .

According to Statista , diapers were the best-selling baby product category in the United States in the year ending October 2020 , with sales of approximately $4.86 billion. Among them, disposable diapers are the most popular and are expected to generate approximately $10.25 billion in revenue by 2022. Cloth diapers are second, with an estimated market revenue of approximately $2.3 billion.

In the list, the second place is baby feeding /care and safety/travel accessories, with sales of approximately US$2.42 billion; followed by baby wipes ($1.54 billion), baby gifts/toys/furniture ($687 million), fertility products, baby soap, baby cream, talcum powder, baby shampoo, etc.  

Today's young parents are the Internet generation, and they have promoted the popularity of baby products in the e-commerce market. It can be said that the e-commerce market for baby products is still quite promising.

However, it should be noted that many countries, including the United States, have higher safety standards for baby products than for general goods. In a year, there are quite a few baby products recalled by the U.S. Consumer Product Safety Commission, most of which involve suffocation and pinching risks. This also warns sellers to be more cautious when selecting products, after all, this involves the safety of babies.

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Baby Products