Italy’s historic baby-product heartland in Bergamo has contracted from more than a dozen family-owned factories in the 1970s to just two survivors today. Plummeting birth rates—down over one-third since 2008—have decimated demand for cribs and highchairs, prompting makers like Foppapedretti to diversify into household goods and now to eye a booming senior market. With Italy recording just 370,000 births in 2024 and a fertility rate of 1.18, manufacturers confront a shrinking youth demographic alongside a rapidly aging population, whose spending on incontinence and home-healthcare products is growing by over 4 percent annually. Against this backdrop, companies are weighing product lines for the elderly—from reclining chairs to assistive devices—while grappling with regulatory, capital and competition hurdles.

A Collapse of Cradle Demand

Over the past four decades, Italy’s birth tally has collapsed from roughly 560,000 births per year in the early 1980s to just 370,000 in 2024, a decline exceeding 34 percent since 2008. The national fertility rate has plunged to 1.18 children per woman, far below the 2.1 needed for population replacement. In Bergamo province—once home to over a dozen small-scale factories producing cribs, prams and toys—this seismic demographic shift has driven most operations to bankruptcy or closure, leaving only Foppapedretti and Cam – Il Mondo del Bambino still operating.

In the 1970s and 1980s, the district churned out over 100,000 highchairs and 80,000 baby beds annually. Today, selling 30,000 cribs in a single year is hailed as a “golden” result by Foppapedretti’s chairman, Luciano Bonetti. But the volume plunge has forced drastic measures: Foppapedretti diversified into furniture and gardening products in the 1980s, and Cam has explored novel niches such as pet strollers to stay afloat.

Demographic Tailwind for Senior Products

While cradle markets shrink, Italy’s silver generation swells. The country now has the highest median age in the European Union—48.7 years—and nearly one in four Italians is over 65. Projections indicate that by 2030, adults over 50 will represent more than 35 percent of the population, underpinning a “silver economy” expected to double in scale globally by mid-century.

Consequently, demand for incontinence products in Italy reached USD 321.6 million in 2023 and is forecast to expand at a compound annual growth rate of 4.2 percent through 2030. Similarly, the home-healthcare market—including mobility aids, respiratory devices and personal-monitoring systems—is set to grow at over 10 percent annually, targeting revenues above USD 17 billion by 2030.

Foppapedretti, founded in 1946 as a wooden-toy maker, sensed the demographic shift early and broadened its portfolio into household and nursery items by the late 1980s. Today, the company is evaluating a line of retractable seating and reclining armchairs engineered for seniors—products leveraging its expertise in Italian craftsmanship and durability. “Our elderly customers grew up with our cribs and highchairs; they trust our brand,” says Bonetti, highlighting brand loyalty as a competitive edge.

To succeed in the senior sector, Foppapedretti is conducting market studies in Lombardy and Tuscany, collaborating with occupational therapists to refine ergonomics and ensuring compliance with consumer-safety standards. Initial prototypes for lift-assist chairs and modular shelving tailored to reduced mobility are scheduled for launch in late 2025.

In contrast, Cam – Il Mondo del Bambino, the only other remaining crib maker in Bergamo, faces starker limits. With annual revenues under €8 million, the company lacks the capital to fund major R\&D or acquisitions. Recent talks with unions led to 35 voluntary redundancies, reflecting strained finances. Management considered pet-pram production and elderly frames but balked at medical-device regulations and established competition.

Cam’s CEO acknowledged that entering the senior market would require navigating CE-mark medical approvals for mobility aids and securing partnerships for distribution in pharmacies and home-care outlets—steps beyond its current capabilities.

Italy’s Policy Push and Market Support

The Meloni government has declared the birth crisis a national emergency, boosting family benefits and launching housing incentives for young parents. Yet analysts say these measures are unlikely to reverse a fertility rate stuck at historic lows. Instead, industrial policy is shifting toward the silver economy, with grants for SMEs developing age-friendly products and tax credits for accessibility upgrades in manufacturing.

In April, Italy’s Ministry of Economic Development published guidelines for “silver-tech” incubators, offering seed funding to projects that improve senior mobility, safety and social engagement. These programs could help smaller firms like Cam to co-develop products with tech startups specializing in sensors, robotics and user-interface design.

Italy’s senior market is already crowded with multinational players in incontinence care—such as Fater, which reported robust double-digit growth in adult hygiene segments last year. Similarly, global medical-equipment suppliers dominate home-healthcare devices. Italian SMEs must therefore emphasize niche craftsmanship, eco-friendly materials and customization to stand out.

Foppapedretti hopes to capitalize on its “Made in Italy” cachet and sustainable wood sourcing certifications to command premium prices. Its proposed reclining chairs will feature FSC-certified frames, breathable textile covers and modular refill systems for easy maintenance—traits aimed at health-conscious seniors and assisted-living facilities.

As Italy’s population matrix tilts ever older, crib makers face a crossroads: innovate toward senior solutions or risk obsolescence. Foppapedretti’s early diversification and brand capital offer a roadmap, but success depends on mastering medical compliance and distribution within healthcare channels. For Cam, collaboration with state-backed incubators and design partnerships may provide a lifeline.

Ultimately, the demographic forces reshaping Italy—anemic birth rates coupled with record longevity—are rewriting the playbook for manufacturers once defined by nursery aisles. In the race to profit from aging, only those who adapt product lines, forge strategic alliances and navigate regulatory hurdles will continue Bergamo’s centuries-long tradition of Italian furniture craftsmanship.

(Adapted from MarketScreener.com)

Categories: Economy & Finance, Entrepreneurship, Strategy