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Korea showing signs of baby bump in premium products market

Published: 10 Mar. 2026, 12:55 Updated: 10 Mar. 2026, 14:14

Kids' clothes are displayed at a Shinsegae Department Store branch in Seocho District, southern Seoul, on Feb. 23. [YONHAP]

The market for baby and children’s products is regaining momentum as births in Korea are showing signs of rebounding. Demand for premium products for babies and children is growing in particular, and companies are expanding related businesses in response.

Sales of premium baby products at Lotte Department Store have increased by an average of 25 to 30 percent each year over the past three years, according to the company on Monday.

Sales of imported children’s products at Shinsegae Department Store, including luxury brands, also rose at a double-digit rate during the same period. Sales in January and February this year jumped 36.6 percent from the same period last year, the company said.

At Hyundai Department Store, sales of baby and children’s products rose about 12 percent last year from a year earlier. Sales of luxury baby and children’s products rose about 25 percent over the same period. That was more than double the growth rate of the overall category, the company said.

The trend is interpreted as reflecting both the “Gold Kids” and “Very Important Baby” trends, in which parents spare no expense for a single child, along with the recent rebound in the birthrate.

Korea’s total fertility rate stood at 0.8 last year, according to the Ministry of Data and Statistics. The total fertility rate refers to the average number of children a woman is expected to have in her lifetime. The figure hit a record low of 0.72 in 2023. It then rebounded from 2024 and showed an upward trend.

Kids' clothes are displayed at a Shinsegae Department Store branch in Seocho District, southern Seoul, on Feb. 23. [YONHAP]

The average monthly childcare cost per household with infants and young children reached 1.51 million won ($1,020) in 2023, according to a survey on childcare costs and childcare service use conducted by the Korea Institute of Child Care and Education under the Korea Institute for Health and Social Affairs. That marked a 31 percent increase from 1.15 million in 2018.

Korea’s market for children’s products reached $43.76 billion last year, U.S. market data firm PitchBook estimated.

“Compared with the past, families now tend to have fewer children but concentrate spending on one child,” said Hwang Jin-joo, an adjunct professor of consumer science at Inha University. “As a result, demand for high-end baby and children’s products is likely to continue, meaning the premiumization of the kids market could persist for some time.”

Companies are responding to the trend in several ways.

Musinsa opened a children’s fashion select shop called “29 Kids Seongsu” in Seongsu-dong, Seongdong District, eastern Seoul, last year. It also launched a Musinsa Standard store in Gangseo District, western Seoul, in January this year and strengthened its lineup of children’s products there.

Kids' clothes are seen on display at a large supermarket in Seoul on July 29, 2025. [NEWS1]

Offline sales of Musinsa’s kids line products last year increased 6.7 times from the previous year, according to the company.

Korean children’s clothing and baby products that emphasize premium quality, safety and design are also moving beyond the domestic market and targeting overseas consumers.

Exports of baby products to Southeast Asia have grown by an average of 13 percent a year since 2018, according to the Korea International Trade Association.

Suhyang Networks, which owns children’s clothing brands such as Blue Dog and Minkmui, has entered overseas offline distribution channels including Orchard Road in Singapore.

Visitors crowd a kids fair at an exhibition center in Daegu on Dec. 4, 2025. [NEWS1]

Elyssia, owner of infant product brands including Moyuum, is also expanding overseas with a focus on premium childcare products.

The share of overseas sales at Elyssia was about 4 percent in 2020. It increased to 19 percent last year, or about 22 billion won ($14.89 million). The share of private brand sales also rose from 51.6 percent to 88.8 percent during the same period.

“Baby and children’s products were previously distributed mainly through imported premium brands, but the results of our private brand development capabilities began to emerge during the Covid-19 period,” said Pyo Soon-kyu, CEO of Elyssia. “Based on product competitiveness tailored to the expectations of Korean caregivers, we plan to promote the strengths of K-baby products in overseas markets as well.”

This article was originally written in Korean and translated by a bilingual reporter with the help of generative AI tools. It was then edited by a native English-speaking editor. All AI-assisted translations are reviewed and refined by our newsroom.
BY NOH YU-RIM [[email protected]]