India, with 1.32 billion (132 crores) people in 2016, is the second most populous country in the world, after China. About 10% of this population are children below 4 years. Further, there are over 25 million (2.5 crores) annual births and a fertility rate of 2.2 children per woman.
It is clear that in 2014, India inspite of being 7% less populated than China, still has 29% of the population between 0-14 which is more than that of China’s 18%.
The baby care market in India is expected to grow at an annual rate of over 17% in terms of revenues during the 2014-2019 period to reach over $31 billion (Rs. 200,000 crore approx), from $14 billion (Rs. 90,000 crore approx), according to a report by TechNavio.
- The Indian baby diaper market which is around USD 800 million (Rs. 5,500 crores approx), is clocking double digit growth year on year.
- Malnutrition in India continues to be at a high level with 42.5% children below the age being underweight and almost 70% being anaemic. 22% children are born with low birth weight. Food safety incidents, coupled with rising living standards, have led to many parents becoming increasingly concerned about the safety and quality of food for babies and children.
- The global toy market is about USD 85 billion and the Indian toy market is less than 1% of global toy market at aboutUSD 500 million (Rs. 3,200 crore approx) which makes India a promisingmarket.
- The Indian toy industry is one of the fastest growing in the world and presents a huge potential.
- Parents in India are starting to recognize the importance of play time and are increasingly looking to foster their children’s creativity. This theme focusses on giving children a creative play experience.
- A large chunk of mothers are still unaware of the benefits of correct nursing wear. Indian women have started accepting maternity wear not as a luxury, but as a basic need.
Increase in Literacy levels
Increase in Working Women
Desire to provide superlative care to children
Fewer Children per household
Rising Disposable Income
Increased expenditure on Baby Care Products
This market does not get impacted by recession
- Parents across metros, tier I, II and III cities are becoming aware of the baby care products.
- Rising disposable income, fewer children per household, increase in working women population, desire to provide superlative care to the children and increased expenditure on baby care products with strong brand awareness – cause the educated and vigilant parents acknowledge the importance of choosing the right product for their kids.
- As of today, in India, over 90% people still prefer buying offline.
- Companies are aggressively looking to expand their reach through online channel and retail network franchise agreements.
- This is one market that doesn’t get impacted by recession.
Present Challenge = Future Business Opportunities
The baby care market is still very much niche. Currently, the sector is highly unorganised and we see a lot of scope in building an ecosystem in this niche.
In a country like India, there is one core challenge which needs to be addressed. The Indian baby care market is restricted to majorly the urban areas. Despite accounting for majority sales, the urban areas are still yet to be fully penetrated when compared to other developed and developing markets in the Western countries. Thus, the area needs to be worked upon and this state of under-penetration needs to be overcome by the country.
Mommy & Baby Fair provides the ideal platform for international manufacturers to establish contact with the decision-makers from the wholesale and retail trade chains and the specialist trade.