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27 million babies & Indian disposable diapers market

, August 23, 2015, 0 Comments

india-diapers-market-marketexpress-inIndians give birth to around 27 million babies each year, yet the penetration rate of disposable diapers remains at less than two percent! Contrary to popular belief that traditional factors prevent usage of disposable diapers in India, the growing middle class is increasingly conscious of baby hygiene and is keen on adopting healthier and more convenient alternatives.

The existing gap between supply and demand of baby hygiene products can be contributed to inadequate distribution channels and the fact that diaper packs occupy excessively large storage space vis-à-vis their price. The result is sheer lack of accessibility toward the desired product and a subsequent compromise by the consumer limiting them to an ad-hoc purchase of readily available baby hygiene products and brands that are at times pushed by the seller, thereby directly influencing the purchase. This deprives the end consumer of better choices and other benefits that are otherwise passed on by sellers for most FMCG products.

Parents switch to disposable diapers between the third and the sixth month of the baby’s life. The most important question at that time is, “What type, variant, brand etc., should I choose for my baby?” The choice of brand completely depends on what suits the baby best. Usually parents try out smaller packs of one or two pieces easily available at any local store and finalize on the brand and variant.

Open diapers and pant style diapers are the only types currently available in India. Pant style diapers grip firmly on the waist and are convenient to pull up and pull down; they’re mostly employed when physical activity is expected by the child or while traveling. When the baby’s movements are limited, for e.g., sleeping or when in a cradle, open diapers are preferred.

Though disposable diapers are ideal in today’s world to manage baby hygiene, the bulk pack sizes make the shopping experience undesirable. The average diaper pack is bigger in size compared to a 10kg rice pack and there actually isn’t any picking and choosing (unlike rice) when buying a pack of diapers. Once a baby is suited to a particular brand and type, parents seldom switch. Hence, there is no need for an in-mall touch and feel experience when buying diapers.

Thanks to the growing popularity of online shopping in India, such hassles are well-nigh eliminated today. What more could the parent of a newborn ask for than the convenience of purchasing from the place and time of their comfort.  All they need to do is visit the online store via the website using either a PC, laptop or mobile device or better still call the toll-free number where available and voila! – The order is placed.

And if that’s not exciting enough, the great discounts with free home delivery adds to the lucrative offerings, making the online experience convenient, hassle-free and even more rewarding! The purchases are delivered at their door steps within a couple of days with the security of Cash on Delivery.

There are several options available online for fulfilling diapering and baby care needs, and each of these options come with unique benefits. However, when it comes to specific baby products related shopping; it is always advisable to stick to a specialist with the focus on baby care and hygiene. Hence, buying from a niche baby products’ online store is always a wiser option.

Though there are several online stores catering to baby care products, one that stands out as purely focused on baby hygiene and specifically diapers is ‘Diapers4Baby’ – who empowers Indian parents with the right to choose from a wide variety of quality diapers at competitive prices. In comparison to other bigger players in the market, this unique site stands out with its wide range of diapering products, great discounts and incredibly quick delivery. Their roaring success in catering to young parents across Mumbai for the past couple of years has now given them the impetus to expand their service offerings to Hyderabad and Bengaluru.

With a large middle-class population and ever increasing disposable incomes, the Indian market is forecasted to grow much faster than any in the world, estimated at 20% CAGR compared to the global rate of 6.6%. The rapid pace of urbanization and the increasing number of modern nuclear families with both parents working will only add to the growing demand of disposable diapers in India.

The potential of the industry in India can be gauged by the entry of global giants like Unicharm (Mamy Poko Pants) in 2009 and SCA (Libero) in 2013. Even existing players such as P&G (Pampers) & Kimberly Clark-Lever (Huggies) are busy scaling up their production capacities in India to match the growing needs and demands of the Indian market.

The opinions expressed in this article are the author’s own and do not reflect the view of MarketExpress – India’s first Global  Analysis & Sharing Platform or the organization(s) that the author represents in his personal capacity. All facts and figures mentioned within this article were researched by the author and is extracted from various reliable sources across relevant industries.