Why Investing In Babycare Industry is a Profitable Business Decision

Sneha Santra
Sneha Santra May 14 2019 - 3 min read
Why Investing In Babycare Industry is a Profitable Business Decision
The Baby Care market in India is expected to grow significantly at a CAGR of 17 percent in terms of revenue by 2019

The Indian economy is witnessing major demographic changes. There has been an increase in literacy level and working-class population, along with rising disposable incomes. Millennial parents have become more conscious and aware of the products they use for their baby. Undoubtedly, the penetration of babycare industry will get deepen in both rural and urban areas of the nation.

The baby care market in India is expected to grow significantly at a CAGR of 17 percent in terms of revenue over the period 2014-19.  Most young parents want to be sure that they are investing in the safest and most secure products for their babies. The babycare segment is also one of the only industries that have seen a higher number of repeat purchases, with over 50 per cent of the shoppers being repeat buyers.

Increasing Birth Rate

India is home to the largest number of children in the world, significantly larger than the number in China. Although the number of births is expected to gradually go down in the coming years, the relative load of India in the world in terms of child population is not going to lessen significantly for a long time to come. India is, therefore, emerging as an important world market for baby products.

Increased Urbanization

Earlier, majority of the Indian families were part of a joint family with grandparents and had never considered baby products as anything essential since using home-made food and conventional methods for baby needs were the norm. But with increased urbanization and a growing number of nuclear families, new parents are inclining towards ready-to-eat infant foods and baby care products due to lack of time and abundant products available in the market.

Increasing Disposable Income

Increase in disposable income has empowered Indian parents to spend more on baby care products. Rapid economic growth leads to a rise in income levels of people and in turn the purchasing power to has increased remarkably.

Working Mothers

With the increase in employment and female workforce, the number of women entering into the mainstream workforce has increased considerably all across the globe. The female labour participation rate has increased by 4.1 per cent globally over the last three decades. Women have moved from managing households to managing jobs and therefore they get less time for caring for their babies with traditional methods and this fact has created an opportunity for the babycare products’ market.

Increased Concern for Babycare

Parental care is an essential part of human nature. Parents, regardless of their level of wealth, always want to give the best to their babies. Parents in India are willing to purchase popular brands with high prices for their trustworthy quality. Hence, the scope for babycare market has widened as most Indian parents have put quality before price and usually do not want to try out products with unknown standards on their children.

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