Indian baby care products to touch 4,200 crore by 2014

21 Aug '12

6 min read

Despite slowdown, the Indian baby care products continues to grow at a compound annual growth rate (CAGR) of over 20% and expected to reach Rs. 4,200 crore by 2014 as against the current size of Rs. 3,000 crore including baby food, skin care, toiletries/ diapers, baby soap, oils, shampoo and creams, reveals the The Associated Chambers of Commerce and Industry of India (ASSOCHAM) paper.

Factors that have fuelled this industry's growth are rising income levels, fewer children per household and increasing aspiration levels among parents to provide the best for their children and so on, says an industry specific analysis of The Associated Chambers of Commerce and Industry of India (ASSOCHAM).

The baby care products in India currently poised to Rs.3,000 crore according to a study titled “Rising Demand of Baby Care products in India” released by The Associated Chambers of Commerce and Industry of India (ASSOCHAM).

While releasing the paper its Secretary General, Mr. D S Rawat said, “baby care market in India has experienced stupendous growth over the past few years due to changing consumer mindset and increasing penetration of baby care products. Others reasons are rising income level, better product availability and increasing awareness have significantly transformed the baby care products industry”.

“India has emerged as the most preferred market for the companies involved in baby care product manufacturing and marketing. The growing segment of population in the age group of 0-4 years has been providing tremendous opportunities as compared to any other baby product market worldwide”, adds the ASSOCHAM report.

“The market consists of baby hair and skin care products, toiletries and diapers. The hair care market for babies is valued at Rs 40 crore for 2012, and is growing at a CAGR of 5 per cent. The skin care market is valued at Rs 400 crore for 2012 and is growing at a CAGR of 15 per cent. The baby toiletries market is estimated at Rs 380 crore for 2012 and is also growing at 20 per cent annually”, mentioned the paper.

The paper further mentioned that the estimated online market for baby products around Rs 200-250 crore range and tends to double in within a year. Online baby-care market comprises of segments such as baby food, skin care, toiletries/ diapers, toys, gears and baby nursery.

The paper also said that around 30 million babies are born every year in India. Considering that even 10-15 percent of babies are born to parents who would spend annually a conservative figure of Rs. 6,000 to 8,000 on baby products (diapers, lotions, strollers, toys, gears etc), the potential is huge.

In a ASSOCHAM recent survey on “Rising Demand of baby personal care products in India” is based on responses from 2,000 representative joint and nuclear households because many consumers in metros lead time-pressured lifestyles and have less time available as a result of which demand remains high for these products.

Over 82% working couples prefers for these products as changing lifestyles, convenience factor and quality standards are taking up the priority in deciding for the baby care products in cities like Delhi, Mumbai, Kolkata, Ahmedabad, Chennai, Bangalore, Hyderabad etc.

The survey highlights that baby foods are preferred mainly by nuclear families where both husband and wife are working who do not have time, patience or the expertise to prepare in a traditional method.

According to survey, metropolitans are the largest consumers of baby care products because of their ever increasing per capita income and lifestyle which is also changing very rapidly.

Major metropolitan cities in which respondents were interviewed by ASDF (ASSOCHAM Social Development Foundation) include Delhi, Mumbai, Ahmedabad, Cochin, Bangalore, Hyderabad, Indore, Patna, Pune, Chandigarh and Dehradun and it was observed that there has been a surprising rise in the demand of baby care products with increasing trend among Indians of having one or two kids, parents today make every possible effort to provide the best to their kids.