Procter & Gamble's Success in China's Baby Care Market
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1h ago
0mins
Source: Fool
- Declining Birth Rate: China's birth rate fell to 5.6 births per 1,000 people in 2025, down nearly 13% from 2023, with only 7.9 million babies born, indicating a worsening fertility crisis that impacts the consumer market.
- Premium Product Growth: Procter & Gamble has achieved double-digit growth in its baby care segment over the past 18 months by launching premium products that resonate with Chinese culture, demonstrating its adaptability in a shrinking market.
- Silk Material Usage: The Pampers Prestige line utilizes real silk, catering to Chinese parents' high-quality demands, resulting in premium diapers accounting for 35% of the market, with sales growing nearly four times faster than standard diapers.
- Long-term Innovation Strategy: The CEO stated that Procter & Gamble is undergoing a long-term business reinvention, planning to leverage productivity gains to fund innovation and demand creation while addressing cost pressures from tariffs and inflation.
Analyst Views on PG
Wall Street analysts forecast PG stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for PG is 164.50 USD with a low forecast of 150.00 USD and a high forecast of 180.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
17 Analyst Rating
10 Buy
7 Hold
0 Sell
Moderate Buy
Current: 150.150
Low
150.00
Averages
164.50
High
180.00
Current: 150.150
Low
150.00
Averages
164.50
High
180.00
About PG
The Procter & Gamble Company is focused on providing branded consumer packaged goods to consumers across the world. The Company’s segments include Beauty, Grooming, Health Care, Fabric & Home Care and Baby, Feminine & Family Care. The Company’s products are sold in approximately 180 countries and territories primarily through mass merchandisers, e-commerce, including social commerce channels, grocery stores, membership club stores, drug stores, department stores, distributors, wholesalers, specialty beauty stores, including airport duty-free stores), high-frequency stores, pharmacies, electronics stores and professional channels. It also sells direct to individual consumers. It has operations in approximately 70 countries. It offers products under brands, such as Head & Shoulders, Herbal Essences, Pantene, Rejoice, Olay, Old Spice, Safeguard, Secret, SK-II, Braun, Gillette, Venus, Crest, Oral-B, Ariel, Downy, Gain, Tide, Always, Always Discreet, Tampax, Bounty and others.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
