Report predicts baby care emerging as a lucrative market

The report was presented at South Asia's first Child, Baby and Maternity Expo (CBME), India 2013, an event organized by UBM India whereby market analysts indicated growth driving factors in this segment as an increasing spending power and awareness about baby health and nourishment.

According to RNCOS, the Indian baby and child care segment comprised of baby cosmetics amongst other goods, has substantially grown during the past few years and caught the attention of many international players.

The majority of the market is children and baby apparel at INR 586.1 billion (US $10.78 billion); however, the cosmetics market is valued at INR 7.9 billion for 2013 (US $140 million), which is growing at a CAGR of 12 per cent.

'Emerging as a lucrative market'​​

"The Indian baby care industry is emerging as one of the most lucrative markets and has been witnessing phenomenal growth in comparison to the other emerging markets. The market, hitherto considered as a niche segment in the Indian perspective, is now ready for the metamorphism; into a highly potential & fully fledged industry​," explains Joji George, managing director of UBM India.

Meanwhile; Shushmul Maheshwari, chief executive of RNCOS adds that as per their analysis, a high birth rate in India, rapidly growing Indian economy and the resultant increase in disposable income, along with the changing socio-economic status of women are the key factors driving growth this segment.

"Along with this trend, various other strong fundamental drivers discussed and analyzed in the report will enable this industry to sustain its upward growth trend in the coming years​."

The research report also mentions that the baby and children care products market is growing fast in line with the retail industry, while it is also expected that large number of companies from the United States and Europe will target India to expand their operations and capture the untapped market.