The Corona Babies Are Coming


By Luke Burgess, Energy & Capital, Tuesday, May 26

I'm willing to bet you know someone who recently got pregnant.

And if not, you know someone who knows someone who recently got pregnant.

How would I know that? Well, it's pretty simple...

The combination of months-long lockdowns and disruptions to health services and access to contraceptives during the COVID-19 pandemic has created a perfect storm for new pregnancies.

You know how it works: isolated adults – contraceptives = baby. (See the birds and the bees for reference.)

This won't be the first time the world experiences a baby boom following a natural disaster. The scenario has played out many times before.

In the months following the Ebola epidemic in 2016, there was a spike in births in West Africa. Likewise, the SARS outbreak in 2002 initially led to a decline in new babies being born in Hong Kong, but what followed was a +30% increase in birth rates compared to the previous year.

And it's not just viral pandemics that lead to increased numbers of pregnancies. A 2008 paper published in The Journal of Population Economics found that some hurricane and tropical storm advisories “are associated with a positive and significant fertility effect.”

So how will the coronavirus lockdown affect birth rates?

Well, according to recent data from the United Nations, the COVID-19 pandemic could result in as many as 7 million unintended pregnancies. The UN says:

Globally, around 450 million women across 114 low- and middle-income countries use contraceptives... If health services remain disrupted and lockdowns continue for six months, some 47 million in these countries may not be able to access modern contraceptives, resulting in around seven million unintended pregnancies.

Of course, not everyone agrees we'll see an increase in birth rates. A recent study published in the Journal of Psychosomatic Obstetrics and Gynecology suggests the lockdown may not lead to more pregnancies. Its study shows that nearly 82% do not intend to conceive during the pandemic crisis.

However, there's one thing we absolutely know for certain about pregnancies: About 50% of all pregnancies in the U.S. are unplanned. So it really doesn't matter whether or not people intend to conceive. Fertile adults will make babies. Nature doesn't care about our intentions.

What this all means is sometime next year, I think we should expect an increase in child births. And investors should position themselves accordingly.

Baby Stocks

The baby care products market is currently worth approximately $80 billion. So we're not talking about a burgeoning market by any means. Even without consideration of the COVID-19 effect on birth rates, forecasts estimate the baby care product market to be valued at nearly $110 billion by 2026.

Baby Care Products Market Valuation (2018–2026)

babymarket20122026

Leading the baby market today are major companies like Johnson & Johnson (NYSE: JNJ), Procter & Gamble (NYSE: PG), Kimberly-Clark Corporation (NYSE: KMB), and Nestlé (OTCPK: NSRGY).

JNJ is, of course, well-known for its baby products including shampoos, powders, and lotions. The company has an entire website dedicated to its baby products.

Meanwhile, Procter & Gamble and Kimberly-Clark are leading providers of diapers with brands including Pampers and Huggies, respectively. Both companies (and JNJ) also manufacture a multitude of baby care products like baby wipes. Meanwhile, Nestlé is the largest provider of baby formula in the world.

Other major baby stocks include Natus Medical (NASDAQ: BABY), maker of birth center equipment, and companies like The Children’s Place (NASDAQ: PLCE) and Carter's (NYSE: CRI), which are specialty retail companies that sell apparel for children.

As one of the world's largest toy manufacturers, Mattel (NASDAQ: MAT) is another major baby stock. The company's Fisher-Price division makes baby gear products, including baby monitors, booster seats, bouncers, car seats, high chairs, strollers, baby swings, tubs, and potties.

[URGENT] Google just poured $4 billion into THIS... [sponsor]

Companies all over the world are funneling as much money as they can into what Bill Gates calls, “the holy grail” of modern technology.

It’s fresh out of a highly secretive lab in Boston, Massachusetts, and it’s poised to make early investors billions.

It’s NOT cannabis. It’s NOT bitcoin, or some other blockchain-related technology. It’s NOT 5G.

And it could be bigger than all of those. You could be looking down the barrel of 5,000% profits or more.

Click here to see this brand new tech in action.



 
 

The Corona Babies Are Coming | www.RediNews.com | Copyright © 2013 - 2024, All Rights Reserved

Nothing in RediNews.com is intended to be investment advice, nor does it represent the opinion of, counsel from, or recommendations by BNK Invest Inc. or any of its affiliates, subsidiaries or partners. None of the information contained herein constitutes a recommendation that any particular security, portfolio, transaction, or investment strategy is suitable for any specific person. All viewers agree that under no circumstances will BNK Invest, Inc,. its subsidiaries, partners, officers, employees, affiliates, or agents be held liable for any loss or damage caused by your reliance on information obtained. By visiting, using or viewing this site, you agree to the following Full Disclaimer & Terms of Use and Privacy Policy. Video widget and market videos powered by Market News Video.