Rising disposable incomes, awareness on sanitation, ecommerce platform to fuel growth
CMR today released the CMR Initial Market Guidance (IMG) report on the baby diapers sector that construes the big picture and captures current demand and supply drivers; opportunities and challenges.
The market for baby diapers in India will reach US$707 Million by 2020, growing at an impressive CAGR of 21%, from US$303 Million in 2016.
The penetration of disposable diapers stands at 3%, and >80% of the diapers market is controlled by the top three market participants.
The key business driver for baby diapers in India is increasing disposable incomes, coupled with increasing awareness on sanitation. The rising proportion of working urban population, currently at 160 million with an annual average wage of US$3000, is driving the growth of the diapers market. Another factor for rising diaper consumption is the ecommerce channel, which is increasingly being used by the millennial population.
According to Saikat Mookherjee, Head- Research and Consulting, CMR, “Greater convenience and lower costs are driving diaper sales on ecommerce platforms. As it stands, millennials are driving the sales for premium, imported diapers online.”
In rural India, the increasing literacy levels have contributed to adoption of baby diapers. As a result, rural India is seeing more uptake than before. There is an ever-growing awareness about baby’s health. More women in the workforce, growing at 5.6% annually, are also boosting the growth of the baby diapers market.
Lastly, technology has been instrumental in development of new, novel baby diapers that have positively impacted the India market. The market is benefiting from new technological advances resulting in novel baby diapers with superior properties.
The baby diapers market has benefited from improved supply-side infrastructure; thrust on technology-led cost-efficiencies; and from the awareness campaigns run by market participants.
The baby diapers market in India comprises of market leaders, niche brands and eco-friendly brands. The leading players include Unicharm, P&G, and Kimberly-Clark.
According to Prabhu Ram, General Manager, CMR Industry Consulting Practice, “For capturing the leadership position in a market, one has to rewrite the rules of the competition by spotting new, untapped opportunities, and capitalize on them. Unicharm has done that precisely in India by introducing new innovations into the market. They focused on both new market development and market expansion, and in the process, made the competition follow suit.”
In terms of raw materials, there is a continuous challenge for non-woven suppliers to deliver cost competitive diaper fabrics with the specific functional performance and aesthetic properties. Suppliers have secured flexibility from diaper manufacturers to change raw material formulations to accomplish cost efficiencies while maintaining high performance standards.
About CyberMedia Research
A part of CyberMedia, South Asia’s largest specialty media and media services group, CyberMedia Research (CMR) has been a front runner in market research, consulting and advisory services since 1986.
CMR offers research-based insights and consulting services – market intelligence, market sizing, stakeholder satisfaction, growth opportunity identification, incubation advisory and go-to-market services – covering the Information Technology, Semiconductors, Electronics & Smart Infrastructure, Government, Energy & Utilities and LifeSciences sectors, as well as the large enterprise, SMB and consumer user segments.
Cyber Media Research & Services Ltd. is an institutional member of the Market Research Society of India (www.mrsi.in).
CMR’s core value proposition encompasses a rich portfolio of syndicated reports and custom research capabilities across multiple industries, markets and geographies. CMR’s forthcoming studies include stakeholder satisfaction surveys, mega spender assessments and market mapping studies for these domains.
For more details, please visit http://www.cybermediaresearch.co.in or https://www.cmrindia.com/
Contact
Prabhu Ram
CMR Industry Consulting Practice
pram@cmrindia.com
+91 9899440380
