Health and Beauty We examine the trends underlying the growth of the global marketplace in health, beauty and hygiene. Our analysts will point the way forward by highlighting critical innovations and behaviours that are driving industry evolution.

What's Different About India's Nappies Market?

8/10/2019
Anjali Jain Profile Picture
Anjali Jain Bio
Share:

Euromonitor estimates that India’s nappies/diapers/pants market to double and reach US$ 1.7 billion in 2023. This growth will be driven in part by time-pressed, convenience-seeking parents looking for an alternative to traditional cloth nappies. Additionally, discounts offered by the retailers will attract price-conscious Indian consumers. The internet further facilitates sales as consumers are more aware of the products available in the market and how to use them.

Nappies Diapers Pants Retail RSP From 2018 To 23 1024X596

Favourable demographics aid further growth

In 2023, two in five babies aged zero to two years in the APAC region will be born in India –a huge potential target consumer base.

With more responsibility and lack of time, workings parents are expanding usage from only night time to during the day as well. Increased usage means increased sales, however, Indian consumers are known to be price sensitive. Though mindful of spending, they are more willing to spend on better products for their children.

According to Euromonitor Lifestyle Survey 2017, about one in five (19%) consumers are willing to pay when buying children’s products that are convenient to use. Increased disposable income also has a role to play. As the disposable income of Indian consumers grows, consumer spending on nappies/diapers/pants is expected to grow at CAGR 15% (2018-23).

Why are pants dominant in India?

Nappies 1.2 1024X653

Disposable pants have a higher market share in India than nappies/diapers in total sales. In fact, pants have a mammoth share of 90% in the category. The disproportionate share can be attributed to the convenience of use they offer in comparison to tape-style diapers. Additionally, the unit price of tape-style and pant style diapers are almost the same unlike in other countries where pant style are premium products. Consumers usually upgrade to disposable pants after using tape-style diapers.

Mamy Poko pants triggered growth in pant styles diapers

Pampers (P&G) and Mamy Poko (Unicharm) continued to be the two dominant brands in terms of value sales in 2018. Over the years, the category grew due to better availability of products courtesy distribution channels, affordability and marketing efforts of the top players.

Until 2012 brands like Pampers (P&G) and Huggies (Kimberly Clark) had decent distribution, but limited sales. The market gained momentum with the entry of Mamy Poko (Unicharm) in 2010, which launched disposable pants in India.

The initial offerings of Mamy Poko were priced relatively lower than tape style diapers. With their marketing efforts, they were able to establish a strong foothold. The growing popularity of disposable pants, due to the price point and convenience of use, caused other players to invest in this sub-category with competitive offerings. This saw the category grow with exponential growth in pants since 2014.

As a result, before the tape style diapers became prominent, pants outpaced them. In the category, the pants are priced at par with tape-style diapers. In 2018, the share of nappies/diapers and disposable pants in the category is 11% and 89% respectively. The growth will come primarily from pants and nappies/diapers will degrow.

Nappies 1.3 1024X639

Consumers shift towards internet retailing

The majority of consumers from smaller cities still prefer to buy smaller unit sizes from local stores and have less familiarity with eCommerce platforms. Store-based retailing remains the most preferred channel for consumers to purchase nappies/diaper/pants.

However, internet retailing is gaining popularity, especially among urban consumers. These consumers know the product and brand that suits their needs and prefer to buy bigger pack sizes online.

To carter to this group of consumers, the eCommerce retailers like Amazon, Firstcry and Flipkart offer massive discounts on diapers packs with the option of convenient home delivery. To compete against internet retailers, the modern grocery retailers, particularly supermarkets and hypermarkets, have been offering discounts and run promotions regularly to keep consumers engaged.

Internet penetration is expected to rise from 39% in 2018 to 89% in 2023. This paired with the convenience offered by eCommerce platforms in terms of savings, discounts, and delivery, online retailing sales for diapers/pants is expected to more than double to contribute 25% of the overall sales by 2023.

Interested in more insights? Subscribe to our content

Explore More

Shop Our Reports

Spotlight on Asia Health and Beauty Consumers

In Asia Pacific, key factors of digitalisation, industry upgrades, and demographic shifts are collectively reshaping the landscape and consumer behaviours. This…

View Report

World Market for Retail Tissue and Hygiene

As demand for tissue and hygiene products further recovers, key demographic fundamentals and lifestyle factors are back as drivers of category performance. With…

View Report

Where Consumers Shop for Tissue and Hygiene

Sales of tissue and hygiene are dominated by offline retailers, mainly driven by supermarkets, pharmacies and hypermarkets. Since the onset of the COVID-19…

View Report
Passport Our premier global market research database with detailed data and analysis on industries, companies, economies and consumers. Track existing and future opportunities to support critical decision-making across all functions within your organisation Learn More
;