Aussie industries to benefit from baby boom
Australia is in for a mini baby boom with the birth rate expected to rise by 6.4% over the next five years. According to the business information analysts at IBISWorld, this is good news for a number of industries that are set to grow between 3.0% to 36.2% thanks to the newborns.
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With factors like rising incomes and a boost to childcare in the latest budget, the analysts at IBISWorld predict that the birth rate will increase by 6.4% over the five years to 2019-20 to reach 332,901 births annually, compared with 2.9% growth over the last five years.
The Australian industries that would benefit from this baby boom are childcare services, preschool education, babysitting services, health insurance, fertility clinics and toy retailing.
According to IBISWorld senior industry analyst Lauren Magner, “demographic changes within Australia will fuel demand for a range of products and services catering to mums and dads of young children, leading to significant transformation within these industries as the economy adjusts to new levels of demand.”
The revenue for health insurance providers is expected to rise by 36.2%, while the fertility clinic revenue could go up by 34.7% between 2014-15 and 2019-20, according to IBISWorld.
“Often couples that are planning to have a baby will take out pregnancy health insurance, and health insurance for their child following the birth,” Ms Magner said. “It follows that an increase in the birth rate will lead to a surge in health insurance premiums and revenue.”
The demand for childcare will also naturally grow, especially given the current government assistance through childcare rebate and childcare benefit. The revenue for this industry according to IBISWorld would go up by 34.2% over the next five years.