Baby Care Market - India

July 2009
Executive Summary

Total baby care market in India valued at INR XX bn in 20--; Estimated to reach INR YY bn
Market
Market dominated by unorganized sector with organized sector making up a% of total market

Market comprises of four segments baby food, skin care, toiletries & diapers and hair care

Market is presently restricted to urban areas and fast expanding to rural areas

Drivers:
–
PLE
Increase in disposable income
Challenges:
– Competition from cheaper substitutes

M
Drivers & – Birth rate – Cultural aspects
Challenges –
–

SA
Increasing working women population
Introduction of innovative products and
reduction in prices

Introduction of organic baby product

– Regulations on Infant Food Promotion

Trends
Introduction of premium range of baby care products

Expansion of market in rural areas
• Company 1 is the market leader in total baby care market with about b% market share
• Major players in different segments are -
Baby Food Skin Care Toiletries & Diapers Hair Care
Competition
•Company 2 •Company 4 •Company 6 •Company 8
•Company 3 •Company 5 •Company 7

BABY CARE MARKET – INDIA . PPT 2

•Market Overview
•Drivers & Challenges
•Trends
•Competition
•Key Developments

BABY CARE MARKET – INDIA . PPT 3

Baby food is the largest segment

Segment Products Penetration Size (20--)

Baby Milk
PC
Baby Food Baby cereals INR XX mn
Gaming
Baby Snacks

Soap
Massage Oil
Powder
Skin Care INR YY mn
Creams
Lotions
Baby Wash (liquid)

Toiletries & Diapers

INR ZZ mn
Diapers Wipes

Hair Oil
Hair Care INR AA mn
Shampoos

High Medium Low

Source:

BABY CARE MARKET – INDIA . PPT 4

 Baby food segment is dominated by Company 1 while Company
2 dominates the skin care segment
Baby Food Market Market Size and Growth
•Baby food market comprises of products like
INR mn
baby milk , cereals and snacks
6,000
Infant Milk Substitutes (IMS) Act

PLE
•In India the baby food industry is governed by

•Baby food Industry is dominated by Company

4,000
U
a% V

M
2,000
1 and Company 3

Baby Skin Care Market

SA 0
2008

Market Size and Growth

2012

•Market comprises of products such as soaps, INR mn

massage oil, powder, creams, and lotions 4,000
b% W
•Major players in this segment includes
Company 2, Company 3 and Company 4 V
2,000
•Products like soap and massage oil have high
penetration with year round usage
0
2008 2012

Source:

BABY CARE MARKET – INDIA . PPT 5

 Company X leads in toiletries and diapers segment while
Company Y dominates the hair care segment
Baby Toiletries & Diapers Market Market Size and Growth
•Market comprises of products such as wipes
INR mn
and diapers
3,000 a% V

with extremely low consumption

PLE
•Disposable diaper market is at a nascent stage,

•Leading players in this segment include

2,000

1,000
U

Company U, Company V, Company W

AM
•Majority of Diaper brands are imported

S
0
2008 2012

Baby Hair Care Market Market Size and Growth

•Market comprises of products such as hair oil INR mn
and shampoos
400 b% X
•Leading players in this segment include
300 W
Company A, Company B, Company C
200
100
0
2008 2012

Source:

BABY CARE MARKET – INDIA . PPT 6

Drivers & Challenges

Challenges

Drivers Availability of cheaper substitutes

Increase in Disposable Income

Cultural aspects

Birth Rate
Regulations on Infant Food Promotion
Increasing Working Women
Population

Introduction of Innovative Products

BABY CARE MARKET – INDIA . PPT 7

Trends

Introduction of Organic Baby Products

Trends ` Introduction of premium range of baby care products

Expansion of market in rural areas

BABY CARE MARKET – INDIA . PPT 8

 Baby care market is dominated by Company 1

Competition Overview Market Share - Overall

•Company 1 is the market leader in total baby 0thers
care market with about a% market share c%
Company 2
•The leading brands in the baby food market

E
b%

L
includes Company U,V and W

MP
•In baby toiletries segment, the diapers are
primarily dominated by imported brands
•Market comprises of mainly urban areas a%

focusing on rural areas

Market Share - Baby Food Market SA
however baby product companies are now

Market Share - Diapers

Company 1

Others Company 7
Company 4 w% z%
v%

Company 6 y%
x%
u%
Company 3
Company 5

Source:

BABY CARE MARKET – INDIA . PPT 9

 Players (1/7)

Company Name Food Skin Care Toiletries Hair Care Business Description

Company P • The company is based in Mumbai

 • The company manufactures and exports, baby diapers,
adult diapers and other hygiene products

Company Q • It manufactures baby milk powder which is sold under the

brand name X
• Q is planning to increase its production capacity it is
 planning to setup additional processing facilities in Delhi
and Mumbai

Company R • R’s baby range of products made with Ayurvedic herbs and
plant extracts
• Baby products include U,V and W
 
• R is targeting rural areas for expansion
Financial Performance:
• The company reported total income of INR XX bn and a net
loss of INR YY mn in FY- -

Source:
SAMPLE BABY CARE MARKET – INDIA . PPT 10