A projected fall in births due to the pandemic will hit baby-product manufacturers hard.
According to The Wall Street Journal, with already record low birth rates in America and China, companies which produce infant products have been forced to shift their focus on other areas. For example, the maker of Enfamil formula is expanding its repertoire to include health and nutrition foods for seniors to buoy sagging sales.
According to CNBC, the Brookings Institute predicts U.S. births could shrink by as much as half a million next year. That means sales of Pampers and Huggies diapers will drop even further. The economists at Brookings say COVID-19 has led to "tremendous economic loss, uncertainty and insecurity," which is why birth rates are tumbling and will continue to stay low even after the pandemic subsides.
Some manufacturers have turned to creating premium products for kids, thinking if parents have fewer children, they might want to spend more money on them. Industry giant Walmart is upscaling its baby department despite declining births, determined to lure in customers. They are carrying an assortment of stylish strollers, designer diapers, and organic products both in their retail sores and on their website.
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