Integrating ESG into decision making and business strategies contributes to an effective due diligence and a better investment decision for the company as well as relevant stakeholders. Companies in the baby care product market have been disclosing ESG data and strategies.
The baby care products market has been a crucial sector for many communities round the globe, especially disposable diapers which contributed around two third of the global market back in 2020. However, many communities across the globe still cannot have access to baby care products due to rising medical costs. For instance, the cost of access to quality medical care in Denmark is higher than it is in the U.S. In terms of the Environment, management of baby care product packaging waste is also a rising concern where companies are starting to develop circular models to support this. There has been room for innovationfor baby care products like sustainable plant-based baby oil with eco conscious packaging. Toxic/ Chemical usage in baby care products has also been a major issue, which led to transition to use vegan, gluten free products. Unlike how other markets were affected during the COVID-19 pandemic, the baby care products’ market did not have a significant negative impact from sales as the need for healthier and sustainable baby care products continued to be relevant.
The United Nations’ Sustainable Development Goals (UN SDGs) is a comprehensive framework that helps companies in this market obtain a perspective on the impact of their products and operations on ESG parameters.
Baby care products space has various areas of concerns inclusive of both social and environmental areas. These companies are also emphasizing on sustainable packaging that affects progress towards UN SDG 12 Responsible Production and consumption. For example, one of the companies in this sector prioritizes identifying opportunities for integrating sustainability in the early part of product design and development to prevent environmental impacts arising from product lifecycle. Another leading company in this sector has stated switching to 100% post-consumer recycled plastic for packaging material to reduce product packaging waste.
Companies are now focusing on bringing out eco-friendly plant based sustainable products like baby oil with 100% eco-conscious packaging. This product is sulfate free, non-GMO and geared to adapt sensitive skin. Furthermore, these companies conduct various community awareness initiatives on a global scale for educating communities on their product but also general healthcare for infants and children alike. This promotes the SDG 4: Access to education. These companies are also monitoring climate transition action plan or environmental targets with regards to respective countries agenda to cope up with Paris agreement or attaining carbon NetZero and /or Carbon neutralityand positively influence SDG 13- Climate Action.
Major challenges faced by Baby care products market is to offer products at affordable prices, manage waste from product life cycle as well as packaging waste and prevent the usage of toxic chemicals in products. Baby care products are quite expensive for a low-income family sector, to cope up with that many legal acts and subsidies have been introduced. We cannot assess the projection on a long run as diapers are extensively used, availability and impact on business due these acts can be drastic. This hinders progress to UN SDG 10: Reduced Inequalities. Waste management for baby care products has been a most discussed topic, as waste disposal of products and packages sets a grave danger to the environment as such, to cope up with that challenge sustainable products have been introduced. In terms of legal aspects, companies must focus and ensure safety standards like CPSC, CPSIA and FDA standards to sustain in the market. This will help promote SDG 16: Peace Justice and Strong institutions. Consumers are very much inquisitive of safety certifications and publications to use such products
The global Baby care products Sector size has been valued at USD 18.35 billion in 2022 and is expected to expand at a compound annual growth rate (CAGR) of 4.3% from 2021 to 2028. The market is projected to portray higher demand over the coming years owing to the rising awareness regarding child health. The companies are now focusing on sustainable products and safe to use or certified products to satisfy savvy buyers, with a sustainable business model and product this segment can prolong in the market.
• Johnson & Johnson
• Procter & Gamble (P&G)
• Kimberly-Clark (KCWW)
• Honasa Consumer Pvt. Ltd.
• The Himalaya Drug Company
• Citta World
• Sebapharma GmbH & Co. KG
• Beiersdorf; California Baby
• Macro-economic and ESG-variable analysis of the industry, including regulatory, policy, and innovation landscape
• Key insights on infrastructure developments and ESG issues affecting the theme
• Identify key initiatives and challenges within the industry
• Identify ESG leaders within the industry
• Understand key initiatives and the impact of companies within the sector to fuel an informed decision-making process
• Analysis of industry activities based on multi-media sources, including significant controversies and market sentiment
• Developing a comprehensive understanding of macro-economic, Policies & Regulations and innovations affecting the baby care products market space, globally
• Key insights into environmental developments and ESG issues affecting the theme
• Identifying ESG risks and opportunities to business among leading players in the baby care products market
• Obtaining a clear and relevant understanding of company actions, progress, and impact and find opportunities for investment into the sector
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