Eco-friendly nappies made from premium biodegradable bamboo, organic baby snacks and food, playdough made from 100% kid-safe ingredients, and sustainable baby clothes and essentials are only some of the many environmentally-friendly choices parents are opting for from small and medium Australian businesses when it comes to their babies and young children.
According to Global Markets Insights (GMI), the baby care products market was valued at over US$98 billion in 2022 and is estimated to reach US$168 billion by 2032.
The data shows an increased demand in the market for natural and organic baby care products, including organic baby food, skincare items and eco-friendly nappies, as parents continue to grow concerned about chemical-free options.
At the same time, more baby brands are offering eco-friendly baby products and product packaging and many small businesses in the industry are starting out with sustainability front of mind.
SmartCompany spoke with a range of Australian businesses about the current and future trends in the baby industry.
Sydney-based nappies and wipes baby brand Comfy Koalas Eco Nappies was launched in 2019 by co-founders Natalie Tsirimokos, her husband Mo Majam, and Christopher Haughton.
Comfy Koalas now has a growing team of eight employees and has sold almost 20 million nappies since 2019, with the business also donating more than 50,000 nappies to families in crisis through its charity partner The Nappy Collective.
Tsirimokos told SmartCompany she was pregnant and working for an environmental organisation when ‘the problem’ came to her in the form of a video; it’s reported to take more than 400 years for the average plastic nappy to break down in landfill.
“As overwhelmed expecting parents, we were appalled, to say the least,” she says.
“At the same time, the country was in drought and I was suffering from prenatal anxiety. The thought of washing cloth nappies or even leaving the house to buy nappies was overwhelming.
“New parents shouldn’t have to choose between plastic disposables or committing to reusables, but at the time, there were no other options on the market.”
Tsirimokos says she and her husband took the leap and partnered with a bamboo specialist to create a nappy made from mostly plant-based materials, which also performed better than plastic disposables.
“Because we were in the trenches ourselves with a newborn, our desire to make life a little easier for other parents was strong — making our automated ‘subscription’ service an important feature,” she says.
“My son has always been our muse and his entire life, we’ve used our parenting experience to perfect the nappy and our service. And as technology advances our products are and always will be a constant evolution.
“Last year we co-created our new compostable Eco Baby Wipes with 100 of our customers, which was as exciting as it sounds. It resulted in a product that everyone loves, right out of the gate. We’re really proud.
“In the last 12 months, we also became the nappy of choice for many Australian hospitals, including The Royal Hospital for Women and John Hunter Children’s Hospital. Their goal was to deliver more positive outcomes for vulnerable babies in special care, so they made the switch.”
Comfy Koalas nappies and wipes are designed with children’s skin in mind, and contain no chlorine, alcohol, perfumes, latex, PVC, TBT, antioxidants, phthalates or preservatives.
Bamboo is naturally antibacterial and has powerful moisture-wicking abilities, making it ideal for a baby’s delicate skin.
Seventy percent of the Comfy Koalas nappy is proven to break down in just 45 days, which is a huge improvement on the estimated more than 400 years it can take for the average plastic nappy.
Tsirimokos says the baby market is an absolute minefield for new parents.
“So our intention was to keep things simple,” she says.
“We set out to create a business that made life a ‘lil easier’ for parents and we do that through our subscription.
“Our nappies and wipes are sold in genuine one-month supplies based on your baby’s weight so you don’t run out because as any parent will tell you, running out of nappies or wipes at 2am? Nightmare.”
When it comes to the current trends in the industry, Tsirimokos says it’s all about utility and convenience.
“Baby products and services are no longer centred solely around the baby — there’s a push for a family-centric view,” she says.
“How can brands help reduce the mental load? Parents want products that work well for their intended use, with services that make life a little easier.
“When it comes to sustainable choices, parents are more aware of their consumer power and environmental impact than ever before, they’re more curious and educated, they’re reading ingredient lists and asking questions.
“But it’s more complex than this, research shows that at scale, parents won’t choose ‘environmentally friendlier’ products if it means sacrificing performance or convenience.
“And I get it, modern life means that parents are less willing to make these trade-offs, due to time and or budget constraints.”
Little Bellies founders Clive and Steven Sher officially founded the Sydney-based organic baby and toddler snack food brand in 2011, after Steven’s son and Clive’s nephew was diagnosed with severe food sensitivities.
With 45 products currently in their portfolio and 25 staff members across the board, Little Bellies is currently sold in Australia, New Zealand, the US, Canada, South East Asia, the Middle East, Europe and South Africa.
In 2020, Little Bellies’ annual Australian and New Zealand retail sales were nearing $40 million and its products were stocked in about 2,500 Coles and Woolworths supermarkets in Australia.
Speaking with SmartCompany, Clive Sher says their personal experience has made them acutely aware of the impact food has on a young child’s health.
“We couldn’t find organic, better for you, products available in the mainstream and we started an organic food business, which was originally more around generic organic foods. But we then started to focus more on kids products, especially with the launch of Little Bellies in 2011,” he says.
“Primarily the core of our brand is in the baby and toddler snacking space and within that space we do a number of different snacks for different ages and stages.”
Sher says for a long time there have been brands that thought they could put organic on anything, that it would sell, and that being ‘organic’ made it healthy.
“What we’re seeing is that parents are gravitating to brands that resonate with them, that they can trust, that go beyond organic, and that offer a holistic solution for their children to use as they go through the different developmental stages and milestones,” he says.
“There is definitely a trend to parents being acutely more aware of what they put into both their bodies and their children’s bodies.
“Hence, it’s never been more important to make sure that you’re relevant and make sure that consumers can trust what you do.”
The initial idea for small family-owned New South Wales business Kiin Baby was sparked in 2017 when founder Rose Harris was pregnant with her first daughter, Hazel.
With a background in graphic design and photography, and having spent most of her 20s exploring various creative ventures, Harris says founding Kiin Baby, with the help of her mother Merrill Bruce, felt like a natural progression.
“However, the journey wasn’t without its challenges,” she says.
“In the initial stages, I nearly gave up after losing several thousand dollars to a dishonest manufacturer.
“With support from my business-savvy mum, Merrill, we decided to persevere, refining our vision for Kiin Baby. We dedicated more time to researching manufacturers and perfecting our samples.”
At the beginning of 2019, Kiin Baby’s online boutique launched with an initial small collection of muslin swaddles and natural Moses baskets, hand-made using maize (corn husk).
The plan was to showcase their products at local markets, says Harris.
“But our online store took off and we were too busy keeping up with orders to even attend markets,” she says.
“From humble beginnings working from the spare bedroom of my small house, we’ve just made our second move to a huge 700 square meters HQ/Warehouse.”
Kiin Baby has an all-female staff of five and has sold more than 20,000 of its best-selling product — its bamboo/cotton hooded towel.
Harris says the industry trends we’re seeing aren’t just about style; they’re about making thoughtful choices too.
“There’s been a noticeable shift towards more sustainable and higher quality products — items that last longer and can be passed on,” she tells SmartCompany.
“Parents are looking for essentials that are both practical and durable.
“With the rising cost of living, it makes sense that customers are becoming more mindful about their purchases. They want products that are useful, safe for their little ones, and gentle on the planet.
“We now have easy access to information about the environmental impact of single-use and low-quality items. This awareness has made us more conscious of our footprints, and we’re all trying to make more sustainable choices for the sake of the planet.”
Wild Dough, a Melbourne-based eco-friendly and child-safe playdough brand for toddlers and preschoolers, started with a mother’s mission.
Wild Dough founder Melissa Haque created the business in late 2018 to enrich her children’s playtime and to encourage more families to engage in sensory play with their children.
Speaking with SmartCompany, Haque says the trend of parents seeking more eco-friendly options for their kids and babies is truly gaining momentum.
“At Wild Dough, we’ve seen firsthand how concerns over environmental impact and the health implications of synthetic chemicals have driven this shift,” she says.
“Parents are increasingly looking for products that are biodegradable, organic, and free from harmful substances. Sustainable packaging, ethical sourcing, and the use of natural materials are now at the forefront of consumer demand.
“The industry is evolving rapidly to meet these new demands, leading to innovation and a broader range of products. However, companies like ours must navigate the challenges of maintaining affordability while ensuring sustainability.
“The push towards transparency in ingredient sourcing and manufacturing processes is commendable and necessary for building consumer trust.”
Haque says the Wild Dough brand has been built on the promise of safety and quality.
“Our handcrafted, rehydratable playdough is made using the finest Australian ingredients, ensuring that every batch is free from harmful chemicals and safe for endless hours of imaginative play,” she says.
“As a mother, I understand the importance of providing products that are not only fun but also safe and trustworthy. This commitment has earned us the loyalty of over 300,000 families and recognition from early childhood experts.
“We’re proud to be a part of this exciting movement towards safer, more sustainable products for kids.”
Julie Mathers acquired baby brand Snuggle Hunny Kids two-and-a-half years ago after selling her eco-store business Flora & Fauna in 2021 to BWX for nearly $28 million.
Flora & Fauna was founded by Mathers and Tom Abraham in 2014.
Snuggle Hunny Kids, which sells organic baby wraps, outfits and accessories, is based in Rouse Hill in NSW and is owned and run by CEO Mathers and Abraham.
Mathers told SmartCompany she realised that she needed a new challenge when she sold Flora & Fauna
“Snuggle Hunny was a business on a great trajectory and with a lot of runway in front of it,” Mathers says.
“For me, that was key. I love building brands and community and knowing that Snuggle Hunny was still in its early years with lots of opportunity was very attractive.
“Since acquiring Snuggle Hunny we’ve evolved the tech stack to be scalable, refreshed the branding, packaging, increased our range, sizing, and number of new collections significantly, become GOTS certified organic, and also expanded internationally.
“It’s been a busy 30 months.”
However, Mathers says the industry is in a tough place at the moment.
“Our target demographic is young families, the hardest hit with the economic challenges. I see many retailers, large and small doing it tough, and I see many retailers and brands closing down. It is not easy,” she says.
“I also see a huge amount of discounting and reactive behaviour, which is always challenging and often doesn’t work out long term.”
Mathers says Snuggle Hunny Kids focuses on its community, innovation, and delivering an amazing customer experience, and offer.
“We like to keep our customers loving us with what we do and that keeps us top of mind, our retention high and acquisition strong,” she says.
“Parents are driven by many different things for their children but something that is on every parent’s agenda is safety.
“We are GOTS certified, and one of a small handful of brands that is. This means our products do not contain harmful dyes or chemicals and our clothing and wraps are organic from seed to the final garment you put on your baby.
“It meets the highest standards of environmental and social responsibility. It’s safe for your baby and better for the environment.”
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