India's Baby Goods Market Shows Growth Signs, Luxury Demand Also Expanding

Indian infant and toddler product companies are seriously expanding their product lineups to prepare for market growth. The penetration of online sales, particularly among young parents, and rising demand for premium brands are accelerating these companies' moves. This was reported by NNA, which distributes Asian economic information.

"We're moving beyond the efficacy of 'baby skincare' products to appeal to the broader parenting mindset of 'baby care,'" stated Scott Bordley, President of Johnson & Johnson (J&J) for Asia Pacific, the US pharmaceutical and consumer goods giant that dominates India's infant and toddler products market.

The company is running its "SO MUCH MORE" campaign, emphasizing the importance of baby care, across seven global markets, primarily emerging economies like India. The campaign focuses not just on promoting product features like shampoo and soap, but also on educating parents about the benefits of infant bathing. Bordley stressed, "We are shifting from being a company focused on healthy skin for infants to one involved in developing their sensory abilities."

Local company Brain Bees, which operates physical stores and an online shopping site under the name "First Cry," began a partnership with global baby products brand Fisher-Price in December last year, followed by collaborations with five other local children's brands, including Pine Hill and Ed Hardy. In addition, the conglomerate Mahindra Group acquired the online shopping site for infant products, Baby Oi.

In India, there is a strong tendency to value traditional child-rearing methods, such as using cloth diapers, but the market for related products, such as disposable diapers, is steadily expanding due to rising income levels. In particular, wealthy people in large cities such as Delhi and Bengaluru tend to prefer purchasing high-end products, such as the Italian brand "Kikko" for daily necessities for infants and young children, through online shopping.

Local Brands Hold Their Own in Rural Areas

According to UK research firm Euromonitor, India's infant care products market is projected to grow gradually from 8.956 billion rupees (approx. ¥17 billion) in 2014 to 9.4637 billion rupees in 2018. By product category (2014), skincare (4.0482 billion rupees) accounted for nearly half of the total market. Next, toiletries like soap and toothpaste (3.4323 billion rupees) had a high share. In terms of growth rate, while the scale is small, baby wipes are projected to expand by about 1.5 times, from 265.1 million rupees in 2014 to 415.8 million rupees in 2018.

Looking at manufacturer share over the past five years, J&J dominates with over 70%. Local brand Dabur holds about 10%, while Wipro maintains around 3%. Euromonitor notes, "This is a rigid market with little change. J&J's overwhelming brand power stands in the way of growth for new domestic brands like Himalaya Drugs, which are gaining strength."

However, the situation differs in rural areas. Consumers in these regions tend to be price-sensitive, favoring local brands like Dabur and Wipro over J&J.