Industry Overview
India is one of the most attractive retail destinations around the world and hence represents a high potential and untapped market for Mother and baby care products. With growing awareness, surging income levels, and shifts in consumer behavior, the country's nascent Mother baby care market is fast transforming into the world's fastest growing Mother baby care market. In addition, vast population base in the age group of 0-4 years and parents' preference to spend more on baby products will further boost the demand for baby care products in the country.
According to various reports this segment of the Indian Industry has substantially grown over the past few years and caught the attention of many international players. It showed impressive performance last year (2009), which indicates to the non-existence of economic slowdown effects. Aggressive marketing strategies and consumer acceptance of branded premium products (especially in baby food and skin care segments) will enable the industry to register a CAGR of more than 11% during 2010-2013.
The market will witness a dramatic change in the competitive landscape. A large number of international companies will foray into the lucrative Indian market with their diversified product portfolio. This will lead players to invest heavily on product innovation and development to capture a significant share of the overall market. The large untapped market in the rural areas is anticipated to witness concrete market developments, which will provide further impetus to the baby care market.