Disclaimer: this article was originally published by Maternal and Baby Industry Observers. Sources: https://mp.weixin.qq.com/s/rpZg7hvTR5EdhLmsFTcj_A
Over the past year, one clear perception is that despite uncertain and difficult circumstances, no one has given in to complacency; everyone is still working hard. As time moves into 2025, what is the overall “picture” of the industry? Which trends and directions are becoming increasingly clear?
No AI, No Easy Childcare
The year 2025 kicked off with the spectacular emergence of the native AI model DeepSeek, igniting a new wave of intelligent childcare. In fact, from products to services, AI has already accelerated the rise and application of smart parenting to some extent over the past two years.
In terms of smart hardware, intelligent diapers interact with smartphones to provide instantaneous feedback to users about usage and excretion data, with unique selling points such as “instant wetness, instant change.” The intelligent sleep monitor uses high-definition cameras and cry analysis technology to monitor the baby’s sleep in real-time. The distinction in cries helps to determine the baby’s needs, such as hunger, thirst, or the need for a diaper change. Smart bottles often come equipped with high-precision temperature sensors, allowing real-time monitoring of the milk’s temperature and accurately recording the baby’s feeding volumes and times, giving parents a clear understanding of the baby’s eating patterns and intake.
On the service side, a host of maternity and baby companies have made strategic entries into the AI industry this year. For example, Kidswant announced integration with the Deepseek series, Mama.com fully integrated with DeepSeek, and Babytree completed deep integration with DeepSeek, among others. Additionally, Qinbaobao claimed its parenting model was the first in China to be officially recorded. In summary, without exception, all are committed to using AI for more precise parenting support, reshaping a more convenient, efficient, and personalized parenting service experience.
Rational Consumption, Premium Must Have Value
In the past two years, under economic downturn pressures, the term “consumption downgrade” has been frequently mentioned. Manifesting at the consumer end, Chinese consumers are becoming more cautious and rational about overall spending and price, scrutinizing whether each product really offers good or even exceptional value for money. Especially in choosing mother and baby products, there is a focus on product safety, quality, and practical features.
For instance, in milk powder consumption, which has always been dominated by the belief in big brands and imports, the younger generation of parents now exhibit high rationality when selecting milk powder. They no longer simply base their decisions on whether the product is imported or swayed by price tags. Instead, their selection criteria are clear: they demand pure and natural milk sources, nutritionally rich and balanced ingredients, and scientific and synergistic formulations.
Similarly, for diapers, rationality also means scientific and pragmatic. Alongside growing demands for essence skin care, sensitive care, and bare skin feel, young parents’ choices in diapers are no longer limited to the basics of breathability and leak prevention. “Special problems require special solutions” is not just a user demand upgrade, but also a new direction for brands to break through the homogenization and move towards innovative differentiation, such as products specifically for sensitive skin, special care use, and antibacterial capability.
From Brands to Channels, Top Players Dominate
At a certain stage in the development of any industry, especially after maturity, there is an inevitable trend for market share, scale, and advantage resources to concentrate among the leading enterprises, and the mother and baby industry is no exception. In recent years, there has been a high concentration of brands, acceleration in offline channel integration, and the first-tier camp has already become more stable.
Looking at the brand level, the “siphon effect” is evident. According to Magic Mirror Insight data, in 2024, combined on the Tmall + Taobao platform, the market share of the top baby milk powder brands reached 79.14%, and the top 10 diaper brands held 62.93%. Turning to the nutrition products still in their golden age, although no absolute leading enterprise has emerged, communication with practitioners reveals a consensus that nutrition products will not be dominated by just a few traditional brands but will see high brand concentration within each subdivision in the future.
Looking at channels, the integration trend is violently surging, moving from local to national and from national back to local. For instance, Aiying Room’s acquisition of Beibeixiong, Kidswant’s acquisition of Leyou, and the integration of several chains by Yunying World and Zhongyi Maternity and Baby in areas like Sichuan, Chongqing, Yunnan, and Guizhou. Analyzing the expansion of major maternity and baby chain enterprises reveals two major trends in channel integration: from single stores to quality chains, the scale and magnitude of maternity and baby channel integration are continuously increasing; and a tide of collaborative construction and shared quality resources is rising, where direct acquisitions were more common before, now attempts are being made to integrate advantageous resources through partnerships.
Industry at the Crossroads of Transformation, Instant Retail a Must-Choose Question
According to the “2023 Maternal and Baby Instant Retail Industry White Paper,” the market size of maternal and baby instant retail is expected to exceed 100 billion by 2026, with a compound annual growth rate of 74%. Focusing on the maternity and baby market, there is considerable room for exploration in typical consumption scenarios such as emergency rigid demands, saving time and effort, enjoying the outdoors, social gifting, trying new things, and one-stop shopping.
From the demand side, consumers’ habits and views are changing, chasing the immediacy and convenience of shopping. Currently, the consumer mindset for instant retail among maternal and baby users has matured, especially among young parents accustomed to buying milk powder as easily as ordering a milk tea. Market feedback is the strongest proof; once consumers experience the speed and peace of mind brought by instant delivery, they are more likely to shift to instant retail platforms.
Looking at the channel side, due to challenges such as low foot traffic, difficulty in attracting and activating new customers, and spatial and temporal limitations, investing in instant retail has developed from an optional to a mandatory choice. On visiting offline channels, we find that instant retail is no longer exclusive to large chains. More single stores and small-to-medium chains are also targeting growth through instant retail. For brands as well, amid intense industry competition and rapidly changing consumer demands, venturing into instant retail has become the inevitable choice to keep up with market trends.
In summary, the maternity and baby industry still has substantial creative scope in 2025. By identifying the correct strategic directions, there are opportunities for growth.
Keywords:
1. Maternity and Baby Industry
2. CBME 2025 children’s toys and games
