What Singapore's historic low fertility rate means to homegrown baby-care brands

SINGAPORE: After homegrown baby-care brand Tollyjoy announced in mid-September that it was winding down after 55 years in the industry, attention has turned to what Singapore’s record-low fertility rate could mean for the city-state’s baby-care brands.

While Tollyjoy said its decision was not driven by financial considerations, its announcement came as Singapore’s total fertility rate hit a historic low of 0.87.

The good news is fewer babies do not necessarily mean less spending from parents, retail experts told Channel News Asia.

According to Nanyang Business School’s head of the marketing programme, Associate Professor Lau Kong Cheen, who cited data from market research firm Euromonitor, Singapore’s baby and mother-care retail value sales rose 7% to S$117 million in 2025, even as the city-state’s TFR hit a historic low of 0.87, down from the previous low of 0.97 in 2024.

He noted that parents are becoming more discerning, with niche and premium products giving companies opportunities to capture more spending from each customer, an observation shared by Dr Lynda Wee, an adjunct associate professor of marketing at the same school, who said parents are increasingly looking for products that are safe, convenient, and multi-functional.

Still, concerns remain as Professor Jean Yeung, director of social sciences at A*STAR’s Institute for Human Development and Potential, pointed out that fewer women of childbearing age could mean fewer births in the years ahead, regardless of whether the TFR somewhat recovers.

While parents with fewer children may spend more on each child, this may not make up for the smaller market, which means tougher competition for businesses, Professor Yeung said.

According to homegrown baby-care and breastfeeding brand Hegen co-founder and chief operating officer Leon Bock, the cost of doing business is also climbing, with higher raw material, freight and oil costs squeezing margins. The company has raised prices twice in its 11-year history, each time by about 10%, but Mr Bock said costs “still continue to rise.”

For other baby-care businesses, automation has been one way to manage costs. Freshening Industries, which makes wipes and diapers under its Zappy brand, has automated repetitive and labour-intensive work to improve productivity without adding manpower, helping the company manage prices.

NUS Business School’s Centre for Governance and Sustainability director Professor Lawrence Loh said premiumisation could help companies grow their revenue even as births fall.

This strategy, he said, shifts demand towards higher-value, higher-margin products.

Another strategy, which Hegen is pursuing, is to keep existing customers for longer by developing products and services for a wider age range.

Assoc Prof Lau also suggested that companies deepen customer relationships through a mix of online and offline marketing, consistent engagement and turning customers into brand advocates as more purchases shift online.

Besides baby-care brands, another area hit by the city-state’s historic low fertility rate was the steep decline in childcare job postings. /TISG

Read also: Will Singapore finally get more ‘crowded’? New support measures to help families thrive ignite questions