Baby Diapers & Wipes Market In India

1. Baby Diapers & Wipes Market In India M.Mallyah INDA - USA Representative - India

2. 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

3. Disposable Nonwovens - Retail Sales M $ Absorbent hygiene Source: India Nonwovens Outlook, INDA Ian Butler, India

4. Disposable Nonwovens–Production M Units – Absorbent Hygiene Source: India Nonwovens Outlook, INDA Ian Butler, India

5. Consumption of Nonwoven Fabrics In India (M $)

6. 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

7. Disposable Nonwovens Fabric– Volume M,m² Source: India Nonwovens Outlook, INDA Ian Butler, India

8. Volume of Nonwoven Fabrics in India (Tons) Source: India Nonwovens Outlook, INDA Ian Butler, India

9. Market Potential For Baby Diaper In India Source – INDA Estimates

10. Baby Diaper Market Share In India -07 Source – INDA Estimates

11. 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

12. 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

13. Market Progression as Industry Develops(kg per capita consumption) Developed Industry Higher disposables Early Development Higher durables Source: INDA Estimates

14. Production Capacity of Nonwoven Fabric India

15. 2007 Nonwoven Consumption By Diaper Component

16. 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

17. 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

18. 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

19. 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

20. Major Participants in disposable wipes market in India Source – INDA Estimates

21. 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

22. 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

23. 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

24. 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

25. 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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