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

KEY DATA FINDINGS

• Retail value sales rise by 18% in current terms in 2023 to INR 1,115.7 Crore

• The Himalaya Drug Co is the leading player in 2023, with a retail value share of 24%

• Retail sales are set to increase at a current value CAGR of 17% (2023 constant value CAGR of 11%) over the forecast period to INR 2,332.6 Crore

Developments

In 2023, wipes maintained dynamic double-digit retail volume and current value growth in India. Sales of home care wipes and floor cleaning systems remained negligible in 2023, therefore all sales were accounted for by personal wipes. The surge in sales in 2023 was primarily driven by a combination of factors, including the improving standard of living, and rising consumer awareness of such products. The growing emphasis on personal hygiene, sanitisation, and cleanliness also bolstered demand for products in the category. Consumers increasingly seek the convenience that these products oer, both at home and while on the move.

Their compact and disposable nature has made them particularly popular amongst travellers, providing an efficient means of staying clean and fresh on-the-go. In addition, the category benefited from higher purchasing power in 2023. According to Euromonitor International’s Economies & Consumers data, disposable incomes increased by 13% from 2022-2023. Although these products are somewhat discretionary, the category is slowly experiencing widespread adoption, as a growing number of Indian consumers recognise the utility of such products.

Baby wipes accounted for more than 90% of value sales of all wipes sold in India in 2023. This is due to the long- standing presence of key brands in the category, which ensure strong distribution, and growing awareness of these products and their benefits amongst parents. These products are becoming popular in India, where they are used in conjunction with nappies/diapers/ pants to prevent skin rashes and allow for a quick and hassle-free cleaning experience. The growing number of innovations in the category means that a lot of brands are launching products that are organic, chemical free, and biodegradable, thereby making them safe for babies and infants. This helps reduce the concerns that some parents might have about these products. Furthermore, as travel and mobility increase, more consumers are relying on these products as an efficient way to maintain hygiene and remain clean.

PROSPECTS AND OPPORTUNITIES

In the forecast period, wipes is expected to continue to record double-digit retail volume and current value growth rates. Personal wipes will continue to dominate, and within this, baby wipes. Factors such as the growing population, urbanisation, wider reach, and aordability are expected to drive growth for personal wipes in India. Habit persistence, which indicates product stickiness, will be another strong factor in the projected sales increase. Consumers who have used wipes in the past and find their convenience appealing, are likely to continue using these products in the forecast period. The penetration rate and per capita consumption of personal wipes were still quite low in India in 2023 compared with other countries in the Asia Pacific region, leaving huge growth potential for existing players and new entrants to tap into in the country. Increased competition amongst category players will also result in products becoming more aordable, which will further aid growth for wipes in India.

One of the key developments expected for wipes in the forecast period is an increasing focus on sustainably produced eco-friendly products which incorporate natural ingredients. Consumers are becoming aware of the impact that their lifestyle choices have on the environment, and are therefore trying to minimise their ecological footprint. According to Euromonitor International’s Voice of the Consumer: Lifestyles Survey 2023, fielded January to February 2023, 18% of consumers agree that they are willing to pay more for products that are sustainably produced, up from 11% in 2017. Although this trend is still in its nascent stage, several new players have been seen to introduce products that align with consumers’ natural ethos. For instance, in 2023, Ginni Filaments launched ultra-pure water wipes that contain 99.9% water and are free from any kind of chemicals or artificial fragrance. These wipes have no added alcohol, parabens, chlorine, SLS, SLES, sulphates, or fragrances, making them amongst the gentlest available in the market. Terra, a leading premium eco-conscious and organic personal care products manufacturer, has also expanded into the Indian market with the launch of its biodegradable baby wipes range. Terra wipes are 100% biodegradable and break down 10 times faster than regular wipes, making them a sustainable and eco-friendly choice. They are also free from any latex, lotion, fragrance, or harsh chemicals.