Fewer babies, smaller market: How Singapore baby-care brands are adapting

The decline in Singapore's birth rate, with the resident total fertility rate falling to a historic low of 0.87, presents a fundamental challenge for the baby-care sector. This demographic shift means that even if fertility rates slightly recover, the shrinking pool of women of childbearing age suggests a sustained reduction in the child-related market size over time. This trend intensifies competition among brands for a smaller customer base, as exemplified by Hegen, which has observed a "very slight" decline in its Singapore business.

Despite the shrinking customer volume, the market's retail value has increased, suggesting a shift in consumer behavior. Parents, particularly those with fewer children, appear to be spending more per child, prioritizing niche, premium, safe, convenient, and multi-functional products. This allows companies to capture a larger share of spending from each customer, partially offsetting the impact of fewer overall purchases, according to retail experts.

Businesses are responding to these pressures by diversifying their offerings and seeking growth beyond Singapore's borders. Widening product ranges and adding services aim to meet the evolving demands of discerning parents, while international expansion provides access to larger markets. This strategy is also influenced by rising operational costs, including raw materials, freight, and oil, which have led to price adjustments and ongoing concerns about mitigating financial pressures, as noted by Hegen's co-founder Leon Bock.