Fewer babies, smaller market: How Singapore baby-care brands are adapting

Singapore's baby-care brands are facing challenges as fewer babies are being born, shrinking the domestic customer base. Homegrown brands like Hegen and Tollyjoy are adapting to the changing market dynamics. Hegen, the co-founder and chief operating officer of which told that they have seen a "very slight" decline in their Singapore business over the past one to one-and-a-half years. Tollyjoy recently announced its closure after 55 years, though its decision was not driven by financial considerations.

Retail experts suggest that the reduced birth rates do not necessarily mean a corresponding fall in spending, as parents become more discerning and opt for niche and premium products. These products allow companies to capture more spending from each customer. Parents today expect products to be safe, convenient, and multi-functional.

The shrinking customer base and rising costs pose significant challenges for Singapore's baby-care brands. The resident total fertility rate in Singapore fell to a historic low of 0.87, indicating fewer babies being born. Additionally, Singapore recorded 29,864 live births in 2025, down 11.4 percent from the previous year.

Hegen has had to raise prices twice in its 11-year history, citing higher raw material, freight, and oil costs. Despite this, the company continues to face rising costs and concerns about mitigating these factors. The cost of doing business is also climbing, with global supply disruptions making shipping times harder to predict.

While price competition is one factor, parents are also considering other aspects such as ingredients, quality, and safety when choosing baby products. Therefore, competing purely on price may not be sustainable in the long run. Companies like Hegen are looking for other growth strategies, such as premiumisation and keeping existing customers for longer.