ASSOCHAM predicts 20% growth in baby care products in India by 2014

The Associated Chambers of Commerce and Industry of India (ASSOCHAM) has predicted that the Indian baby care products market size, which is growing at a compounded annual growth rate (CAGR) of over 20%, is likely to reach Rs42bn ($756.5m) by the year 2014.

According to the study, the baby care industry in India is currently poised to about Rs30bn ($540.3m), consisting of baby food, skin care, toiletries/ diapers, baby soap, oils, shampoo and creams, while the market is fuelled by household and increasing eagerness among parents to provide their children with the best products.

The study has revealed that in 2012 the baby hair care market was valued at Rs400m($7.18m), and is growing at a CAGR of 5%, while the the skin care market growing at a CAGR of 15% is valued at Rs4bn($70.18m) for 2012, and the baby toiletries market is estimated at Rs 3.8bn ($68.4m)for 2012 and is also growing by 20% annually.

The growth rate of baby care segment has been providing good opportunities as compared to any other baby product market globally.

ASSOCHAM secretary general, D S Rawat said baby care market in India has experienced enormous growth over the past few years due to consumer’s changing 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," added Rawat.

The ASSOCHAM report has revealed that India is proving to be the most preferred market for baby care product manufacturing and marketing companies.

According to the study, it is estimated that online market for baby products is between Rs2bn ($306m) to 2.5bn ($448m) range, which looks to double within a year.

Segments of the online baby-care market include baby food, skin care, toiletries/ diapers, toys, gears and baby nursery.

The study has shown that 82% of working couples prefer these products influenced by the changing lifestyles, convenience factor and quality standards, which are the priorities in decision making for the baby care products in cities like Delhi, Mumbai, Kolkata, Ahmedabad, Chennai, Bangalore and Hyderabad.