ROCKVILLE, Md., Oct. 12, 2016 /PRNewswire/ -- Being equally mysterious, magnificent, and maligned, Millennials are one of the most overanalyzed—and yet underappreciated—consumer segments. This is especially true when it comes to Millennials' role as parents and their influence on products designed for children. Millennial parents (ages 18-34) account for roughly 42% of all households with children, making these young adults an extremely important segment of the parenting demographic, according to market research firm Packaged Facts in the new report Infant, Toddler, and Preschool Furnishings and Durables, 5th Edition.
Packaged Facts forecasts Millennials will continue to represent a growing share of households with children because the Millennial generation spans nearly two decades—some are still in school and dependent on their parents and have not yet reached the childrearing stage. Millennials also comprise a larger share of lower-income households.
On the surface, this would imply that Millennials are on strict budgets and that affordability is a significant purchase decision influence. While this may be true, it's also important to consider the Millennial mindset toward spending: Millennials are willing to spend extra for perceived higher quality products and services. Notably, they value transparency, authenticity, and brands that represent them and their lifestyles.
All this equates to a silver lining for the mature and challenged market for infant, toddler, and preschool furnishings, accessories and durables. Included in Packaged Facts definition of this market are products such as cribs, bassinets, bouncers, swings, baby monitors, car seats, and strollers, among many others items. Furnishings are defined as products used in the home to help parents perform basic childcare tasks and outfit the nursery and toddler, pre-school children's rooms. Accessories are defined as portable products used by parents to take care of kids when outside of the home or on the go.
Packaged Facts estimates total retail sales of this market at $7 billion in 2015. As mentioned, the market is mature with sales growing by a compound annual growth rate (CAGR) of less than 2% since 2011. Sluggish sales are partially the result of stagnant and declining number of births. At about 4 million a year the number of births in the U.S. vary little year-to-year, thus limiting overall market potential. Also impacting sales of new products is the fact that sales of used products have been growing with estimates they could be at least 25% of overall infant, toddler, and preschool product purchases. Consumers are increasingly purchasing infant, toddler, and preschool products from second-hand stores or consignment shops, sites like Craigslist and eBay or from other consumers. People are also being given some products as hand-me-downs for free or borrowing items, thus taking consumers out of the market for purchase of some new products.
The good news is that new infant, toddler, and preschool product sales have rebounded in the last couple of years due partially to an uptick in births and the continued popularity of higher-priced products like convertible car seats and cribs, travel systems, jogging strollers and high-end, designer-oriented products. This is in addition to the rising influence and presence of maturing Millennials who have become parents.
Looking ahead, Packaged Facts projects retail dollar sales of the infant, toddler, and preschool furnishings, accessories and durables market will grow by a CAGR of 2% to reach almost $8 billion in 2020. Future growth as in the past will be influenced greatly by the number of births and the economy. Recent indications are that both the birth rate and economy are increasing, albeit still at a slow rate, and it remains to be seen if the increases will continue. These positives for the market could be supported by a impending baby "boomlet" started by Millennial parents.
More About Infant, Toddler, and Preschool Furnishings and Durables, 5th Edition
This report presents a detailed analysis of the U.S. consumer market for infant, toddler, and preschool durable furnishings and accessories suitable for children from infancy through age five. Products included are sold to consumers through U.S. retail channels including "bricks and mortar" stores as well as Internet sites, catalogues and others. Packaged Facts' sales estimates only include purchase of new products by parents or gift-givers, not purchase of used or second-hand items.
Find additional information about Infant, Toddler, and Preschool Furnishings and Durables, 5th Edition, including purchase options, the abstract, table of contents, and related reports at Packaged Facts' website: http://www.packagedfacts.com/Infant-Toddler-Preschool-10330889/.
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About Packaged Facts – Packaged Facts, a division of MarketResearch.com, publishes market intelligence on a wide range of consumer market topics, including consumer demographics and shopper insights, consumer financial products and services, consumer goods and retailing, consumer packaged goods, and pet products and services. Packaged Facts also offers a full range of custom research services. Reports can be purchased at www.PackagedFacts.com and are also available on www.marketresearch.com and www.profound.com.
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SOURCE Packaged Facts