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Brief Introduction of Disposable Sanitary Products Market in India

With the globalization of the global economy, emerging markets have become the target of global capital, and the Indian market in the BRIC countries has also attracted the global light. This article is based on the industry data, information, and the communications and visits that I have had with local Indian buyers in the past few years, we will discuss Sanitary Products Market in India. I hope I can provide my friends in the industry with some references.

Population and Economy

It is well known that India is now the second-most populous country with more than 1.366 billion people, slightly less than China’s 1.395 billion. The World Bank, which had predicted that India would overtake China as the world’s largest country by 2050.

According to official statistics, the birth rate in 2018 was 18.020‰, down 1.68% from 2017. And the birth rate in 2019 was 17.806‰, down 1.19%from 2018

India’s GDP in 2018 was $2.73 trillion, the seventh-largest in the world. But in terms of GDP structure, India is still, in the traditional sense of the industrial country. The below Figure is based on India’s Ministry of Statistics and Planning, which calculates the share of GDP of different industries in each major year. On a global level, India’s agricultural output is far below the global average (6.4% globally). Its industrial output is below the global average (30% globally). And its service sector is below the global average (63% globally). 

India’s economy, though considered to be the fastest-growing, in terms of gross domestic product, is also larger than Britain’s. But its GDP is less than $2,000, well below the global average of $11,000. Second, inequality and polarization in India also contribute, for example, to low levels of education and poor quality, which are major constraints on economic development. 

Indian Sanitary Products Market Situation

India, the disposable sanitary product market is fastly emerging. We will focus on women’s sanitation, baby diapers, and adult diaper market.

Because of India’s historical, cultural background, the population of cities, are still relatively low relative to rural areas. And by 2019, only about 34% of the total, and about 8 % of the total, get education, or something like that. Due to the extreme polarization, of India’s education, and its economy, some parts of India still don’t have enough consumer power. These influence the development of the market for sanitary products. Former India, the disposable sanitary products’ market has annual sales of about US $1.6 billion, mainly in cities. In these places the annual sales of women’s sanitary products are about US $700 million. The annual market for baby diapers is about $870 million, while the market for adult diapers is relatively small, with annual sales of more than $50 million.

According to Euromonitor, India has 355 million women of suitable using age, but only about 18 percent wear sanitary napkins. Although the sanitary napkin market is growing at a compound annual rate of nearly 21%, many women still refuse to use sanitary products due to cultural traditions and lifestyles. For the sake of health, the Indian government has also invested a large amount of money to provide free sanitary napkins for school-age students in some schools, hoping to educate and change people’s health habits in this way.

Local Sanitary Napkins Bid

The government regularly arranges for sanitary napkin manufacturers to bid for the basic sanitary napkin at a lower price and distribute it to the students. Now some Indian companies, in order to make full use of production capacity, will actively involved in the government sanitary napkin in project bidding. But the bid price will be much lower than the market price, such cost pressure will be passed to the upstream of the material suppliers.

At present, the major sanitary napkin brands in The Indian market are mainly multinational companies. Procter & Gamble and Johnson & Johnson hold the top two spots, with a combined market share of about 90%. Kimberly-Clark and Unicharm also build local supplies in India. In recent 5 years, the growth of the local brands in India is quite impressive, especially the RSPL, and other brands such as Shudh Plus, Sekhani, Soothe Healthcare, Bella India, K.A. Enterprises, PAN, Healthcare, etc., also have started to increase investment to participate in the sanitary napkin market competition, starting regional market layout first.

Impact of Purchasing Power

The market of baby diapers is mainly concentrated in urban high-income groups. The main brand companies include Procter & Gamble, Kimberly-Clark, Unicharm and Kao, etc. The main sales channels are cosmeceuticals (high-end brands and imported products) and supermarkets (ordinary products, large and plain packaging). The penetration of adult diapers in the Indian market is still very low. Companies sold these products through institutions such as nursing homes and hospitals.

As far as the Indian market is concerned, consumers who can afford disposable hygiene products are still very loyal to international brands that entered India earlier. Such as Procter & Gamble and Johnson & Johnson. Emerging brands are mainly focused on markets of young women and markets outside the first-tier (Mumbai New Delhi). So it is a strategic priority for these emerging brands to win over these consumers. They have the ability to consume in the future and have not yet established brand loyalty.

In addition to traditional supermarkets, stores, and grocery stores, toiletries and drug stores are also becoming the new growth points. With the development of Electricity and Commerce,. Online sales are also slowly becoming the main channel for young, generation-consuming consumers. 

Emerging online shopping platforms are also developing quite rapidly in India. However, it is only limited to the first – and second-tier cities and some third-tier cities. Market Research in India found that many Indian consumers chose, to buy mainly because of price competition, next comes convenience and other factors. India’s previous online shopping platforms have Amazon.in, eBay.in, Alibaba.com, Flippant.com, Paytm.com, Indiamart.com, Rediff.com, etc. Some International companies like Amazon and eBay have more advantages in network coverage and logistics transport.

New investment hygiene projects in India

Many related companies in the hygiene products industry have invested in India. I believe that with the development of the disposable hygiene products market in India, more companies will consider investing in India. But investing in India is fraught with challenges, especially legal and regulatory issues. Because of the Indian government’s trade protection, government workers are inefficient and regulations vary from state to state. Therefore, many foreign investors tend to look for local partners or entrust local agents to carry out the company’s early registration process.

In recent years, the Indian government has also increased the intensity of infrastructure construction. The new construction of highways, the reduction of tariffs are promoting the development of economic and trade. So many companies hope to set up in India as soon as possible, in order to enjoy the dividend of India’s economic development in the future.

In general, the market for disposable health products in India is unique. It is still in the initial stage of development relative to the total population. But the economic, educational, and income imbalance has caused some uncertainty about the pace of development of the market. Now India’s short-term market from the existing high-income people, relatively mature, consumers have relatively strong buying ability.

Market Future

The greatest growth potential in the future will come for the growth of low-income people. So the price and cost become the India of disposable hygiene products manufacturer first consider factor. Almost all Indian manufacturers require high-quality raw materials, but they also have high requirements for suppliers in terms of price. At the same time, the risk of payment method is also an issue that all suppliers must pay attention to.

But there is no denying India’s growing demand for biodegradable products. Welcome to talk to me more about how to differentiate in the Indian health products market. kelly@diapermade.com

Contact us for latest market report and product quotation. We hope to be your partner, and also hope to be a sword for you to explore the territory.

Kelly

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Raw material for baby diaper sanitary napkin and wet wipes/Audited Suppliers