Transcript Mallyah Marimuthu, INDA - Textile Conference IIT, Delhi

Baby Diapers & Wipes Market
In India
M.Mallyah
INDA - USA
Representative - India
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
Disposable Nonwovens - Retail Sales M $
Absorbent hygiene
Year
Product
2002
2007
2012
CAGR
02-07
CAGR
07-12
Baby Diapers
14
38
79
21.4
15.6
Training Pants
0
Small
10
NA
Moderate
Feminine Care
56
154
386
22.2
20.8
Tampons
<1
<1
1
Low
2-5
Adult Incontinence
9
20
60
High
20-25
Total
80
213
536
21.6
20.3
Source: India Nonwovens Outlook, INDA
Ian Butler, India
Disposable Nonwovens–Production M Units
– Absorbent Hygiene
Year
Product
2002
2007
2012
CAGR
02-07
CAGR
07-12
Baby Diapers
57
150
310
21.4
15.6
Training Pants
0
Small
15
NA
Moderate
Feminine Care
950
2650
6680
22.8
20.3
Tampons
<5
6
14
Adult Incontinence
5
23
70
High
20-25
1017
2829
7089
22.3
20.1
Total
Source: India Nonwovens Outlook, INDA
Ian Butler, India
Consumption of Nonwoven Fabrics
In India (M $)
2007
2012
Growth Rate
Disposable
Durables
29.9 64.9
184.1 325.0
17.9
12.0
Total
214.0 390.0
12.7
Disposable Nonwovens Fabrics – Value
M$
Year
Product
2007 (M$)
2012 (M$)
CAGR
Baby Diapers
5.5
11.3
15.6
Training Pants
0
0.3
NA
Feminine Care
8.9
22.4
20.2
Adult Incontinence
1.7
5.3
24.9
Sub.Tot Absorbent Hygiene
16.1
39.3
20.1
Wipes
1.0
1.8
12.8
Medical
4.8
9.7
15.1
Other
8.1
14.1
11.8
Total
29.9
64.9
17.9
Source: India Nonwovens Outlook, INDA
Ian Butler, India
Others include Fabric softener substrate, Sorbants,
courier envelopes, sterile / nonsterile packaging materials
Disposable Nonwovens Fabric– Volume
M,m²
Year
Product
2007
(Mm²)
%
Share
2012
(Mm²)
%
Share
Baby Diapers
82
33
169
30
Training Pants
0
0
5
1
Feminine Care
71
29
177
32
Adult Incontinence
26
12
79
14
Sub.Tot Absorb hygiene
179
72.5
430
76.5
Wipes
6
2.4
11
2.0
Medical
43
17.4
85
15.2
Other
20
8.0
35
6.2
Total
247
100
562
100
Source: India Nonwovens Outlook, INDA
Ian Butler, India
Volume of Nonwoven Fabrics in India
(Tons)
Year (Tons)
2002
2007
2008
Disposables
3,300
6,508
7484
Durables
13,600
40,458
97,516
Total
16,900
46,966
105000
Source: India Nonwovens Outlook, INDA
Ian Butler, India
Market Potential For Baby Diaper In
India
2007
2012
Total Population ( Billion)
1.11
1.19
Births ( Million)
24.4
26.0
Total Infant Population ( Million)
57.1
60.9
28213
30080
Estimated Diaper Consumption (M)
150
310
Penetration (%)
0.5
1
Ave Retail Price / Diaper US$
0.255
0.255
Retail Sales ( M$)
38.3
79.1
Potential Market Size For Diapers ( M)
Source – INDA Estimates
Baby Diaper Market Share In India -07
Major Participants
Sales M S
Share
%
Brand
Name
Made
in
India
Kimberly Clark
20.7
50-55
Huggies
X
Proctor & Gamble
9.2
20-25
Pampers
Others
8.1
20-25
Import
X
X
Actifit
Nappies
X
Godrej
Snuggy
X
Hygiene Wear Intl
Koochees
Infantino
Infantino
X
Nobel
Teddyy
X
V-cintA Intl
Lollas
X
Wipro
Total
Source – INDA Estimates
Baby Soft
38.0
100
X
X
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
Reduction 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
Nonwoven Consumption Rises as
GDP per Capita Increases *
Kg/capita
4
N. America
Taiwan
E. U.
3.5
3
Japan
2.5
Korea
2
Trend Line
Turkey
1.5
Czech Rep.
1
Latin America
0.5
INDIA
0
$0
$10,000
$20,000
$30,000
$40,000
$50,000
* PPP in US$ equivalents
Source: INDA Estimates
Market Progression as
Industry Develops
(kg per capita consumption)
2.5
Developed Industry
2
Higher disposables
1.5
Early Development
Higher durables
1
0.5
0
h
Hig
d
ze
i
l
tria
s
u
I nd
Source: INDA Estimates
o
xic
e
M
na
i
t
n
ge
r
A
il
az
r
B
C
bia
m
olo
Disposables
Durables
Production Capacity of Nonwoven Fabric India
(MT)
Estimated
Capacity 2002-3
Capacity
installed/under
installation 2006-7
Spunlace
Nil
27500
Spunbond
9000
39000
Needle punch
10000
20000
Chemical bonding /
thermal bonding / stitch
bonding
3000
15000
Total
22000
101500
Type of
Nonwoven
2007 Nonwoven Consumption By Diaper
Component
(MT)
Square Meters
M m²
Tons
Top Sheet
21
370
Back Sheet
21
370
Barrier Leg Cuff
8
150
Other Materials
32
590
Total
82
1480
Component
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 baby’s health
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
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
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
Major Participants in disposable
wipes market in India
Major Participants
Brand
Name
Made in
India
Import
Kimberly Clark
Huggies
X
Proctor & Gamble
Pampers
X
Anakku
Anakku
X
Godrej
Snuggy
X
Grasim
Kara
X
Nobel Hygiene
Teddyy
Premier Aryco
Teddy Soft
Patterson Intl
Soft Love
Tainwala Personal care
Pristine Care
Source – INDA Estimates
X
X
X
Fresh ones
X
Clarus
X
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
What Drove the Consumer
Market Globally? 1997-2007
 New Household Products
– 􀂾Electrostatic and Floor Cleaning (Swiffer -P&G, 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
What Drove the Consumer
Market Globally? 1997-2007
 New Household Products
– 􀂾Electrostatic and Floor Cleaning (Swiffer -P&G, 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
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, Pond’s 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
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
Thank You