The Baby Care market in India is expected to grow significantly at a CAGR of 17 per cent in terms of revenue by 2019
There is a wave of going natural &using natural products all around. It all started with natural food, and now it has made its way into almost every industry. However, more significant growth can be seen in the beauty & baby care industries.
A growing number of literate parents and transparency in information has created an absolute need for natural products. Parents prefer to use baby care products with lesser or no chemicals and preservatives.
Growth & Future of Natural & Organic Products
Based on reports by Assocham and Ernst & Young, the organic products’ market in India has been growing at a CAGR of 25% and it is expected to reach ₹10,000-₹12,000 crore by 2020. The current market size is of ₹4,000 crore.
What could be the reasons for the exponential growth rates? Natural products are increasingly becoming the choice of the day. People are growing aware of the benefits of these products. In the past few years, there was an explosion of chemicals based products. This was a drastic shift, as the earlier generations were more inclined to homemade and natural products. There were many instances where it was found that cheaper varieties of the products used harmful chemicals that resulted in disastrous results. As a result of which people contracted life-threatening problems. This has created ripples of awareness across the globe and there was a need felt for some regulatory and monitoring bodies to keep such malpractices in check.
People now are again opting for natural products unless those are beyond their reach. Other reasons for the popularity are shifts in lifestyles, such as the growing culture towards nuclear families where most women in families these days work, resulting in more disposable incomes for that extra expenditure for better health.
The increased awareness has contributed to consumers understanding and appreciating the connection between health and natural products. They realise—through their experiences or others—that using safe natural products can save them a lot of pain and expenses on medical treatments.
Rise of Natural Products in the Babycare Market
The Babycare market in India is expected to grow significantly at a CAGR of 17% in terms of revenue over the period 2014-2019. Most young parents want to be sure that they are investing in the safest and most secure products for their babies. According to Mintel’s research study, the below numbers indicate the concern of parents:
This clearly indicates to the huge market potential for trusted natural baby care products. Given the favourable outlook for such a market and the demographic wave, many startups have emerged that promote this concept. These startups are using natural, non-toxic, chemical-free, Ayurvedic substances in the products that are suited not only for green parenting but they also take care that the production process and use of these products leave minimum carbon footprints on the planet earth.
Today, there are natural versions of almost all baby care products from skincare to food. Mamaearthhas diapers made out of bamboo plants; Mother Sparsh has water-based baby wipes of different varieties i.e. 98% water-based, 99% water-based for cleaning the body and face and hands of babies respectively. Most of these products do not use any chemicals, preservatives, parabens or alcohol. They are SLS free. Natural substances such as plant cellulose are used to make the fabrics. Some of these products don't even have any fragrance to avoid the use of chemicals.
Some of these companies are using innovative and cutting edge technologies based on robust research, for example, Bey Bee water wipes are made from spun lace, non-woven fabric that is extremely smooth. These products are being certified by international bodies to ensure the credibility of the products not only in terms of the composition but also the processes being used to create the final product.
Other products such as coconut oil, the baby powder that is talc free, use no chemicals and employ natural processes for creation. The fabric and dyes used for waterproof sheets and toys are natural. To further reassure the end consumers, not only are these products certified but are often dermatologically and clinically tested for their effects to ensure that they don't cause any infections, rashes, irritation, allergies to the baby's extra sensitive skin.
Benefits of Expanding Distribution of Natural Products
The other challenge that customers face is that these natural products may not be easily available everywhere. In the case of families travelling or relocating to other areas, these products may not be easily accessible. So, switching to another product may not be the best course of action as babies take some time to get used to the changed products. Also, mothers will need to do some research and carefully select new products that will suit their home as well as their budget. The process of switching may not be a very comfortable one for both parents and babies, which is why a strong distribution network by the companies will provide confidence to the young parents and thereby gain their loyalty.
There is undoubtedly a very visible shift towards the usage of natural products, which has even been confirmed by the market forecasts. Easy accessibility and reassurance to the consumers in terms of the product quality are the key drivers that can lead to the acceleration of these market trends.
This Article Is Written By Rishu Gandhi, Founder & Head- Brand Strategy, Mother Sparsh