It is no secret that the birth of the royal baby is finally here and in that joyful spirit, the analysts over at IBISWorld have decided to find out: how much does it cost to raise a baby from birth to four years old in Australia? Basically, while you change smelly nappies, who is cashing in on your baby?
Well, according to their findings, Aussies will spend well over $11.3 billion on nappies, clothing, food, furniture, toys, footwear and childcare for their little ones.
When you break this down, it works out at $3,037 per child annually – excluding childcare. Throw childcare into the mix and that figure shoots to about $7,098.
Childcare is by far the biggest expenditure for new parents and takes the lion’s share when it comes to baby spending. Half the children aged up to four years go to day-care.
The increase in the number of working parents is the primary reason why demand and childcare revenue are on the rise and this is expected to reach over $6.6 billion in 2013-14. This is an 18.9 per cent increase from 2008-09.
Childcare aside, clothing, food and nappies are the next biggest revenue earners from tots, while other merchandise and furniture round out the top five product expenditures.
For the average Australian parent, rising home-safety awareness has been the key spending driver in readying the nursery and home to welcome a new baby.
Looking at the trends, food and nutrition, and specialised merchandise have seen the most growth areas, with revenue in these markets expected to increase by 44.9 per cent and 84.8 per cent, respectively.
“When it comes to food, parents are becoming more conscious in ensuring their young ones consume optimal nutrition, driving a surge in premium baby food,” said IBISWorld General Manager (Australia) Ms Karen Dobie.
“Alongside this, mothers are breastfeeding for shorter periods due to their busy schedules and lifestyle pressures – such as returning to work shortly after birth. This is driving sales in alternatives, including organic infant formula, milk-free and gluten-free ranges,” Dobie added.
So, if you’re in the baby business, even without the Royal arrival, there’s a market there that is ever expanding.
