According to a recent report from market research company The NPD Group, since 2007 there has been a decline from 47% to 40% in the number of US consumers who buy gifts for kids ages zero to two in an average year.

According to the Juvenile Products: 2010 Edition report, which provides an updated view of the juvenile products market among gift givers and moms of young kids, while the percent of the population buying gifts in a typical year has declined, the amount spent on the two of the most popular gifting occasions, baby showers and holidays, has slightly increased, with new baby gifts experiencing the most growth from US $26 to US $29.

The report also found that grandparents are spending the most on new baby gifts, with an average of US$72. The NPD says that grandparents are less likely to buy off a registry and report having a hard time deciding what to purchase for their grandchildren, which makes them a crucial target market for juvenile products.

Presumably driven by the poor economy, when it comes to parents using juvenile products with other kids besides their first-born child, there are more parents borrowing or buying used clothes now than in 2007.

Another trend is the shift in influence from ‘health professional’ to ‘word of mouth’ in terms of product information, with an increase from 39%in 2007 to 42% in 2010 for ‘word of mouth,’ and a decrease from 31% in 2007 to 28% in 2010 for ‘health professional’ buying influence.

For the entire juvenile product category, clothing and layette is the most popular juvenile product category purchased in the past year, followed by toys, and then books/music/video.

Mass merchants continue to be the most popular channel for juvenile product purchases among gift givers, while baby stores have the highest average amount of money spent on gifts. Out of all channels, discount stores showed the most dramatic increase for buyers, increasing from 8% in 2007 to 11% in 2010, while toy stores showed the most dramatic decline, from 23% in 2007 to 17% in 2010.