Baby Products Industry ESG Thematic Report, 2023

Baby Products Industry ESG Thematic Report, 2023

Compliance, ESG Challenges & Framework, ESG Trends

  • Published Date: Nov, 2022
  • Report ID: Astra-100177
  • Format: Electronic (PDF)
  • Number of Pages: 68

Environment, Social and Governance (ESG) in the Baby Products Industry

Increasing expansion in consumer preferences have resulted in growth of many industries. This is a direct threat to sustainability and ESG related precautions. One such consumer extensive industry is that of Baby Products. Companies have tried innovation in this market from food products to baby skin care products. The question that arises here is, are all these products that are being produced in the name of babies safe? Also, from the lens of Sustainable Development Goals it becomes essential to delve into this market through the lens of ESG.

Baby products producers have successfully encased the feeling of the motherhood. The producers in this industry understand that a mother will always try to get the best possible product based on financial situation. Therefore, a huge spectrum of product lines has been made available for the parents to choose from. But similar to other utility-driven markets, expansion of this market also is a threat to environment. In baby products industry packaging and irresponsible use of ingredients can prove to be a threat to Sustainable Development Goals. Directly affected SDGs due to this market are- Responsible Consumption and Production (12), Climate Action (SDG 13), Life Below Water (SDG 14), Life on Land (SDG 15).  Therefore, it becomes important delve into this market which can directly affect the upcoming generations of human kind.

Adversities necessitating ESG in Baby Products Industry

As much as baby products have given a convenient living to the care takers, it is important to address the negative impacts too. Fake labeling and use of toxic ingredients is the major threat to pupil’s health. It is recently seen in the case of Johnson and Johnson (J&J) where tens of thousands of law suits claiming cases of ovarian cancer has forced the company to stop the production on the product line of baby talc powder. Toxicity of synthetic flavors, artificial colors, carminic acid and sodium benzoate can harm the baby’s health to large extent.

The other biggest challenge that is standing strong is the issue of packaging waste and end of life waste. Consumerism and fast change in market inclination has encouraged families to jump from one product to another resulting in shelves full of multiple baby products of the same kind. It becomes important to mention here that last decade has seen the increase in consumerism in this sector rising exponentially which is directly proportional to the waste generation that ends up in the land-fills.

Baby toys as a product has captured a big market space posing the biggest threat to environment and health. Vast ecosystem of baby toys has resulted in use of third grade plastics and other toxic material. Direct-contact with these toys can affect the immune system and disruption of endocrine systems of the babies.  Therefore, it becomes inevitable to think from the perspective of sustainability to ensure quality life for coming generations.

ESG Trends

The question of health, landfill full of non-degradable packaging material, polluted water and soil have given an opportunity to new players to think out of the box. Sustainable baby skin products range have started showcasing in the shelves of super markets. Awareness amongst consumers have given an open space to companies like MamaEarth and Khadi Earth to innovate in this space of product line. For the consumers who have concerns for the environment have helped companies to shift to eco-friendly packaging.

Companies like Miniware, Plan Toys, Bumpadum and many more are on the journey to ensure safe products for kids. Similarly, to answer the issue of toxins in the food, companies have started using natural ingredients in place of chemically made ingredients. For example, jaggery powder is replacing saccharine. Other major replacement that can be seen in the market is that of replacing Palm Oil with sunflower oil or rapeseed oil.

ESG Challenges

With increasing inclination towards utility products, this sector has a huge consumer base. The extent of consumerism makes it difficult to manage the resources that go in the making of these products as well as the end-life waste of the product that is dumped.

Growth of the Baby Products Market

The global baby products market size was valued at USD 214.13 billion in 2021 and is expected to expand at a compound annual growth rate (CAGR) of 5.7% from 2022 to 2030. On the other hand, Indian market is predicted to grow at a CAGR of 11.11% from 2020-2025. The increasing consumerism in this sector needs to be challenged to ensure effective sustainable measures.  

Key Companies in this theme

    • Johnson & Johnson

    • Kimberly-Clark Corporation

    • The Procter & Gamble Company

    • Unilever

    • Britax

Scope of the Baby Products Industry ESG Thematic Report

    • 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

Key Benefits of the Baby Products Industry ESG Thematic Report

    • Developing a comprehensive understanding of macro-economic, Policies & Regulations and innovations affecting the sector, globally

    • Key insights into environmental developments and ESG issues affecting the theme

    • Identifying ESG risks and opportunities to business among leading players in the 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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