Baby Diapers

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• Baby Diapers Wipes Market In India

M.Mallyah INDA - USA Representative - India
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Presentation Structure

• Disposable Nonwovens Retails sales, Fabric
  consumption and Value
• Disposable Nonwovens Growth rate predictions
• Market potential of baby diapers and market share
• Growth driving and impeding factors for baby
  diapers
• Disposable wipes market and market share in India
• Growth driving and impeding factors for wipes
• Disposable wipes Global trends

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Disposable Nonwovens - Retail Sales M
Absorbent hygiene
Source India Nonwovens Outlook, INDA
Ian Butler, India
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Disposable NonwovensProduction M Units
Absorbent Hygiene
Source India Nonwovens Outlook, INDA
Ian Butler, India
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Consumption of Nonwoven Fabrics
In India (M )
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Disposable Nonwovens Fabrics Value M
Source India Nonwovens Outlook, INDA
Others include Fabric
softener substrate, Sorbants, Ian
Butler, India
courier envelopes,
sterile / nonsterile packaging materials
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Disposable Nonwovens Fabric Volume M,m²
Source India Nonwovens Outlook, INDA
Ian Butler, India
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Volume of Nonwoven Fabrics in India (Tons)
Source India Nonwovens Outlook, INDA
Ian Butler, India
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Market Potential For Baby Diaper In India
Source INDA Estimates
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Baby Diaper Market Share In India -07
Source INDA Estimates
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Growth Drivers for Baby Diapers
GDP Increase, Disposable Income Std of
living Increase in Literacy rate Awareness of
Hygiene among lower middle class and country side
women Increasing Working Women Population Reductio
n in Raw material particularly the high
performance absorbent core Overall reduction in
the cost per unit at the retail level Increase in
retail outlets Mall Culture Marketing Drive by
Multinationals in the country side
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Nonwoven Consumption Rises as GDP per Capita
Increases
Kg/capita
N. America
Taiwan
E. U.
Japan
Korea
Trend Line
Turkey
Czech Rep.
Latin America
INDIA
PPP in US equivalents
Source INDA Estimates
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Market Progression as Industry Develops(kg per
capita consumption)
Developed Industry Higher disposables
Early Development Higher durables
Source INDA Estimates
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Production Capacity of Nonwoven Fabric India
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2007 Nonwoven Consumption By Diaper Component
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Growth Impeding Factors for Baby Diapers
Launderable Cloth Nappies, Nappy pads and Liners
at cheaper price than Diapers High cost of
diapers Rs 9 to12 per diaper Cost Conscious
parents using cloth diapers in the day and
Nonwoven diapers in the night giving both baby
and parents the option for peaceful sleep
Cultural aspects Cloth diapers are often
viewed as the better choice, cooler in summer and
does not cause rashes A misconception Kimberly
Clark began to address some of the misconceptions
by educating mothers through their pediatrician
program about the benefits of disposable diapers
and the importance of dry skin with regard to
babys health
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Disposable Wipes Market in India

• Wipes market in India is in embryonic stage.
• Retail statistics are unreliable due to its small
  size
• INDA estimates US 9 M as the total value of the
  fabric used by wipes Industry in 2007
• Nonwoven materials consumed in 2007 by disposable
  wipes including imports is around 6M m²
  equivalent of 300 tons or 0.3
• Wipes market grows at around 12 per annum
• Baby wipes market account for 80-85 of the total
  wipes market
• Baby wipes market expand at a much higher rate at
  20 per annum due to the presence of
  multinationals and their marketing drive
• INDA estimates the total retail sales of wipes at
  US 16M by 2012 with a consumption of 11 M m²
  fabric or 550 tons

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Factors impeding wipes market growth in India

• Cultural ethic to use cotton Launderable wipes
• Not in favor as they are disposable Waste of
  money to use a wipe once throw it.
• Expensive around Rs 2 to 3 per wipe
• Most disposable wipes are imported from Malaysia,
  Indonesia China
• Till last year, most of the spunlace material
  used for wipes was imported
• Household wipes and Industrial wipes are yet to
  pick up
• Many local regional players without a
  manufacturing base and marketing drive

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Growth factors driving wipes market in India

• Two new spunlace manufacturing units in india and
  more to join
• More convertors are getting into the market
  making wipes available at affordable prices.
• With fall in oil prices, fibre prices are bound
  to fall making the manufacturing cost cheaper
• Growth in organized retail, increase in
  disposable income and working women or urban
  populace
• Household Industrial wipes will hit the market
  soon

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Major Participants in disposable wipes
market in India
Source INDA Estimates
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Disposable Wipes Global trends

• High Consumption in North America, Europe, Japan
  and other high GDP nations.
• America consumes 14 and Europe 16 of their
  Nonwoven fabric production in wipes
• Strong Growth in South America, Eastern Europe,
  Middle East and China as GDP grows
• In Asia, Japan uses a high volume of wipes at
  62787 tons or 17, China produces more volume at
  92000 tons or 8 and Korea 6912 tons or 3.2
• First market developed globally is baby wipes
  Import then production
• Annual Growth rate is 15 per year
• Household wipes constitutes 46, baby wipes 31
  and personal wipes 23 of the total wipe
  production

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What Drove the Consumer Market Globally? 1997-2007

• New Household Products
• ??Electrostatic and Floor Cleaning (Swiffer -PG,
  Pledge SC Johnson, Scotch Brite-3M) Swiffer is a
  billion dollar product line for Procter Gamble
  worldwide.
• ??Disinfecting / Hard Surface wipes by Clorox,
  Lysol, Scotch Brite. This is a half billion
  dollar market in N.A.
• ??Furniture polishing Window cleaning (Pledge
  and Windex by SC Johnson)
• ??Automotive interior cleaning, tire wipes, bug
  removal, leather protection, waxing

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What Drove the Consumer Market Globally? 1997-2007

• New Household Products
• ??Electrostatic and Floor Cleaning (Swiffer -PG,
  Pledge SC Johnson, Scotch Brite-3M) Swiffer is a
  billion dollar product line for Procter Gamble
  worldwide.
• ??Disinfecting / Hard Surface wipes by Clorox,
  Lysol, Scotch Brite. This is a half billion
  dollar market in N.A.
• ??Furniture polishing Window cleaning (Pledge
  and Windex by SC Johnson)
• ??Automotive interior cleaning, tire wipes, bug
  removal, leather protection, waxing

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What Drove the Consumer Market Globally? 1997-2007

• New Personal Products
• ??Feminine Care Always, Fresh n Up, Playtex
• ??Cosmetic/Facial Cleaners Biore, Neutrogena,
  Oil of Olay, Ponds Dove These are relatively
  expensive (20-25 cents each)
• ??Toilet Wipes Charmin, Cottonelle, Wet Ones,
  Fresh n Up
• ??Bath, General Purpose, Incontinence Comfort
  Personal, Splash n Go, Wet Ones

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What Drove the Consumer Market Globally? 1997-2007

• Baby Wipes
• ??Was the first market to have considerable
  volume
• ??Volume grew during the past decade as product
  was used for more than just wiping babies. Used
  in many other areas and led to the Personal and
  Household wipes growth
• ??Volume now static
• New Product
• ??Flushable Training wipes

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Thank You