(Source: Sector Capsule: Nappies/Diapers/Pants Market in India – Euromonitor International, provided by EMIS/CEIC)

KEY DATA FINDINGS

Retail value sales increase by 5% in current terms in 2023 to INR 7270 Crore

• Disposable pants is the best performing category in 2023, with retail value sales rising by 5% in current terms to INR 6780 Crore

• Procter & Gamble Home Products Ltd is the leading player in 2023, with a retail value share of 46%

Market Size Nappies/Diapers/Pants

Retail Value RSP in 2023 – INR 7,272 Crore

DEVELOPMENTS

Overall nappies/diapers/pants recorded positive performances in both retail volume and current value terms in India in 2023. This was mainly attributable to disposable pants, which dominates sales in the category in India. This is in part due to the shift in preference amongst young parents, as they demand convenience, and want to give their children the opportunity to develop mobility skills earlier in their life. Unlike in many other markets, there is little price difference between disposable pants and nappies/diapers in India, and as such, parents generally prefer disposable pants, as they are easier to use than tape-based nappies/diapers.

The growth in nappies/diapers/pants in 2023 was driven by factors such as the return of travel and out of home activities, increasingly time-pressed parents, and greater awareness regarding these products. As parents returned to offices and led increasingly busy lives, there was strong demand for products which could provide greater convenience, benefiting sales of nappies/diapers/pants. These parents were also willing to pay a premium to avoid the hassle of using cloth nappies. The increase in travel also supported growth for the category during the year, as many parents prefer to use nappies/diapers/pants in such circumstances, due to their disposable and fuss-free nature. On the other hand, factors such as the preference for cloth nappies, limited innovation, and the relatively discretionary nature of nappies/diapers/pants continued to limit growth. Amidst the growing cost-of-living crisis and pressure on consumers’ disposable incomes, some parents diverted their spending from discretionary products to only necessities.

PROSPECTS AND OPPORTUNITIES

According to Euromonitor International’s Economies & Consumers data, by the end of 2028, India’s population of babies/infants aged up to two years will reach 66.8 million. The growing infant population and improving economic conditions will therefore continue to bolster retail volume and current value growth in nappies/ diapers/pants in India in the forecast period. With increasing disposable incomes, greater awareness, and higher willingness to get the best products for their children, more parents will adopt products that are fussfree and provide better sleep conditions for their babies. Previously, a large segment of the population would only use these products while travelling or during social gatherings, but this trend is changing as the standard of living improves, people become increasingly timebound, and prefer to reap the convenience that disposable nappies/diapers/pants offer.

While nappies/diapers/pants as a whole is set to grow moving forward, there are significant differences expected between the different categories. Strong growth is forecast for disposable pants, while nappies/ diapers is set to see retail volume and current value declines throughout the forecast period. Disposable pants are much valued amongst Indian consumers for their convenience and perceived comfort. They allow babies to be active and play around without the fear of a nappy/diaper coming undone. Most new launches in the category are also in this format. Furthermore, there is a small price difference between the two, prompting parents to purchase the pants format as opposed to nappies/diapers, since the former is easier and faster to put on, and encourages independence from an early age.