Kid stocks: Which ASX stocks have children as their consumers?
The majority of ASX stocks are business to business or have adults as their consumers, but kids have not been completely left behind.
Australia’s bourse is home to a number of stocks that make products for kids; typically food or technology.
There are several dozen ASX stocks that produce and distribute food consumed by both kids and adults but a handful are just for kids.
The majority of these specialise in dairy products such as infant formula or baby food. Prominent examples include Bubs Australia (ASX:BUB), A2 Milk (ASX:A2M), Nuchev (ASX:NUC), Keytone (ASX:KTD) and Synlait (ASX:SM1)
Some of these stocks also serve baby foods and even child vitamins, with Bubs being one prominant example.
One unique stock is Nutritional Growth Solutions (ASX:NGS) which makes health foods, including its Healthy Height range which is a range of shakes and protein bars for kids 3-9 years of age.
The Israeli-headquartered company exports it to five different markets in North America, India, Israel, China and Italy.
Speaking with Stockhead yesterday, CEO Liron Fendell noted while many of these markets had specific targets, her company had to be focused not just on end consumers (kids) but their parents as well. And, as a health food company, also align with doctors.
She also noted China was not a problem, unlike for many other ASX stocks.
“Luckily we’re an Israeli company and we’re manufacturing in New Zealand so we haven’t had issues like diplomatic issues – both Israel and New Zealand are on very good terms with China,” Fendell said.
Another kids’ food stock, and one that has listed in recent months, is Forbidden Foods (ASX:FFF) which specialises in organic food.
One of its businesses has been working on a baby food range which it launched in China only last month, selling on Alibaba’s consumer marketplace Tmall.
There are two stocks specialising in tech that is directly used by kids.
One is SpaceTalk (ASX:SPA) which makes smartwatches for kids that act as a mobile phone and GPS tracker.
Another is San Francisco headquartered Life360 (ASX:360) which similarly helps parents know where their kids are, through a GPS location and tracking service. It has several other niche services such as alerting emergency services if users were involved in car crashes.
This company has also seen an improved 12 months from a revenue and user perspective and has 27.2 million monthly active users. However it has remained below its $4.93 IPO price since it listed in May 2019.