BABY food, diapers, wipes and talcum powder are dominating millennials’ shopping baskets this year, according to Kantar Worldpanel, the data investment management division of WPP Plc.
In a statement, the market-research firm said millennials are said to have contributed significantly to the percent value share of these baby products in the fast moving consumer goods (FMCG) market in the Philippines.
Around half of baby food (51 percent) and diapers (49 percent) and more than a third of wipes (40 percent), milk powder (34 percent) and talcum or baby-powder sales (31 percent) can be attributed to millennials, Kantar Worldpanel said.
Otherwise known as Generation Y, millennials are those born between 1980 and 2000. About 27 percent of households in the Philippines are currently headed by “millennial moms,” according to Kantar Worldpanel. A significant number of local households, at 80 percent, have millennial members, as well. Data also show that the majority of the millennial households in the country reside in the rural areas, particularly in South Luzon and Mindanao. They fall under “Class E” with three to four family members, that include a child below 3 years old.
Go-to brands
ACCORDING to Kantar Worldpanel, which tracks the shopping behavior of 3,000 homes in urban and rural areas across the country, millennial households’ total FMCG purchases grew by 7.7 percent in 2016.
Kantar Worldpanel notes that Cerelac and Nido are the top brands with highest contribution coming from millennials. These brands are closely followed by beverage brands, such as Absolut (40 percent), Refresh Mineral Water (38 percent) and Royal Tru Orange (37 percent).
Diaper brands, namely, Happy (59 percent), Pampers (48 percent), Twins (45 percent) and EQ (45 percent) occupy the top 4 slots. The presence of beauty brands Kojie San (39 percent), Maxi Peel (35 percent) and Ever Bilena (33 percent) highlights that millennials also prioritize personal-care products during their shopping trips.
Purchasing power
BABY needs are not the only items that are booming in the millennial shopping basket, Kantar Worldpanel said. The company’s data show that Filipino millennials increased purchases across all megasectors this year: personal care (11.2 percent), home care (10.1 percent), food (5.5 percent) and beverage (9.7 percent).
“Dental hygiene is important to this age group as their value sales for toothbrushes and toothpaste have risen by 25 percent and 21 percent, respectively,” Kantar Worldpanel said. “The same can be said with personal and household cleanliness evidenced by the 35-percent increase on toilet tissue [purchase].” Pest-control purchases also rose by 21 percent closely followed by dishwashing agents, which increased by 20 percent.
Convenience is also key for millennials in the food-and-beverages megasectors as shown by the 58-percent value sales increase of meal mixes and 27 percent rise of deep fry coating. Alcoholic beverages similarly increased by 42 percent which was more than double the rise in water value sales, which rose by 20 percent.
“Our data highlights the great purchasing power of millennials that marketers can take advantage of. Understanding who the real millennials are, what stage in life they are in and their value system can guide brands as they develop products and strategies to drive growth in sales,” Kantar Worldpanel Account Director Diwa Manila was quoted in a statement as saying. “Not only are they the top baby-needs buyers, it is interesting to note that they are driving significant growth in the oral care, meal mixes and beverage categories.”