INDUSTRY REPORT
Baby Products market resilience in Q2 2025
The Baby Products market showed unexpected strength in Q2 2025. Despite economic headwinds and tariff pressures, our analysis reveals remarkable resilience in this essential category. While industry forecasts predicted price increases and conversion declines, the data paints a different picture—one where meticulous operational execution and strategic cost management drive success.
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Key takeaways
- Inventory management: Aggregate on-hand inventory increased 23% in Q2, indicating improved planning but requiring careful monitoring
- Consumer price sensitivity: Average selling prices declined year-over-year as discounting increased, reflecting heightened price sensitivity
- Traffic & conversion dynamics: Category traffic declined 6.7% year-over-year in Q2, while category sales dropped by 7%
- Margin performance: Unit margins hit 18-month highs despite sales challenges
- Supply chain concerns: Revenue loss due to out-of-stock issues surged by 123% year-over-year in Q2, highlighting significant supply chain inefficiencies
- Revenue loss due to OOS: Revenue Loss Due to OOS increased 123% YoY in Q2 as RepOOS% declines
