India Baby Food Market Outlook, 2021

IN SPITE OF DECLINE IN BIRTH RATE, INDIA'S BABY FOOD MARKET REACHES NEW HIGH WITH THE CAGR OF MORE THAN 14 PER CENT: BONAFIDE RESEARCH

Growing young girl's population with changing preference, increasing proportion of working women population, rising child population aged between 0-5, increasing concerns regarding fulfilment of nutrition and vitamin in baby food are driving the demand for commercial baby food products in India.

Child birth rate has been declined in India to 19.89% at present from 21.76% in 2009, although, the child population aged between 0-4 is growing. India baby food market is reaching a new phase where the demand for these products has increased than ever. Increasing awareness about the benefits of baby food products and parent's inclination of providing high nutritional and vitamin containing baby food are fuelling the demand for commercial baby food products. Mainstream of working mothers who needs to return their work after maternity leaves generally give up breastfeeding at baby's age of 6 months. Hence, working mothers are the key end users (purchasers) for commercial baby food products in the current scenario. Moreover, the baby food such as infant milk formula and follow-up formula are preferred when mother suffers from low breast milk supply or some maternal illness or in case of maternal death. Thus, these are the key demand growth factors for baby food market in India.

The key players focus on further widening their distribution network across India to increase the reach of products. Increased availability of various kinds of baby food products and variants are attracting new mothers to try them for their babies as every mother wish to feed quality food to their infant. Also, easy purchasing sources such as shop from online portals, general and modern retail chains, pharmacies, etc increases the accessibility of baby food products which ensures fast adoption of these products.

According to recently published report of Bonafide Research "India Baby Food Market Outlook, 2021", baby food market is anticipated to showcase the CAGR of more than 16% during the forecast period. Earlier the baby food market was limited to basic baby milk and food products, which is now extracted to new flavours and variants along with convenient packaging. Infant milk formula based baby food products is a large segment in baby food market, followed by baby cereal products. The demand for follow-up formula based baby food products is steadily increasing. Ready to mix (powder based) baby food products have highest adoption in India. Prepared (ready to eat/drink) baby food segment has small market, which is huge segment in developed countries at global level. South and North India are contributing for the highest demand for baby food products across the country, while Western India baby food market is developing.

The baby food market is mainly driven by the consumers from metro-urban areas of the country. In fact, the market is limited to these developed parts of India. Affordability is the biggest issue for the consumers belong to lower-middle class group and rural parts. Even upper-middle class consumers purchase baby food for the intention of travelling or while outing. Furthermore, government of India has tough legislation on promotional activities such as advertisements for baby food products that affects the marketing strategies of baby food manufacturing companies. What is more, Government, Word Health Organisation, NGOs, Health advisors, etc are promoting breastfeeding and appeal not to feed commercial baby food and formula based milk to infants.

"There are numerous challenges that negatively affect the growth of commercial baby food market in India. Moreover, Indian parents’ hearts and minds are not easily won where they have been following strong tradition of feeding breast milk. But, changing preferences and busy schedules of working parents are expected to boost the demand for baby food products in India. Hence, despite challenges, opportunities in the baby food market remain ample," said Zalak Bhavsar, Research Analyst at Bonafide Research.

Major companies operating in the baby food market of India are Nestle India Ltd, GCMMF (Amul), Nutricia International Pvt. Ltd. (Danone Nutricia India), Abbott India Ltd., Manna Foods Pvt. Ltd., Pristine Organics Pvt. Ltd., Mead Johnson India Pvt. Ltd., Raptakos Brett & Co.

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India Mattress Market Outlook, 2022

RISE IN HOUSING DEMAND DUE TO DEMONETIZATION WILL GENERATE A NEW WAVE OF OPPORTUNITY FOR HOME FURNISHING PRODUCTS LIKE MATTRESSES: BONAFIDE RESEARCH

In India, the real estate market is artificially inflated due to the circulation of black money in the sector. As a result, current demonetization affected the real estate sector majorly and is expected to bring down the property prices. This, along with lower interest rates, will increase the demand for housing which in turn would generate the demand for home furnishing products like mattresses.

On the same day that Donald Trump was elected as president of the United States, India also received an unexpected, momentous announcement. On November 8th, India’s Prime Minister Mr. Narendra Modi announced that on the stroke of midnight all 500 and 1000 rupee notes, which mean 86% of the currency in circulation, would cease to become legal tender. The plan to demonetize the Rs. 500 and Rs. 1000 bank notes began six to ten months prior, and was kept highly confidential with only about ten people aware of it completely. The government's demonetization plan was a tactic to dismantle the cash-centric black market, cleanse the counterfeit notes, digitize the economy and get more of the population onto the formal taxable economic grid. A new redesigned series of Rs. 500 banknote, in addition to a new denomination of Rs. 2000 banknote is in circulation since 10 November 2016. People were given 50 days to redeem their canceled banknotes and this period came to an end on December 30th 2016.

According to recently published report of Bonafide Research "India Mattress Market Outlook, 2022", residential mattress market of the country constitute about 78% of the total mattress market. Residential mattress market is directly linked with the housing demand in any particular country. The current demonetization in India has decreased the prices in the real estate sector, thus spurring the demand for new homes which is expected to provide opportunities for the mattress industry. Demonetization is likely to improve government tax collection by broadening the tax base and enabling them to take up development and infrastructure projects on a war footing and boost the growth of the economy. The government would also be in a position to fast track the initiatives such as 'Housing for All by 2022' and 'Development of 100 Smart Cities'. This influx of money into the monetary system will also put more money into the pocket of home purchasers through lower tax burden and incentives for home ownership. Hence, there are plenty of opportunities for mattress manufacturers and retailers to work together to propel the growth.

Globally, the mattress industry has advanced and there are many international brands with technologically superior products available in the market. But, the Indian mattress industry is still far behind. This is primarily because Indian consumers are unaware about the significance of using a mattress or they are ignorant about the fact that an investment in the mattress is an investment for one's health. India is still an emerging market for mattresses as people here look for good quality products at lower prices. Moreover, the technological advancements have still not managed to catch the consumer’s attention. Mattress is predominantly an unorganized market in the country with many regional players operating in it. However, organized brands are now reporting bullish growth and aren’t endangered by the unorganized players as they are trying their best to reach consumers of all the cities across India.

Major Indian companies operating in the mattress market of India are Kurlon Enterprise Limited, Sheela Foam Limited, Peps Industries Pvt. Ltd., Springwel Mattresses Pvt. Ltd., Coirfoam (India) Private Limited, Duroflex India, Godrej Interio (GI) and Springfit Marketing Inc. Major international companies operating in the mattress market of India includes Sealy India Trading Pvt. Ltd., Emirates Sleep Systems Pvt. Ltd. and Simmons Bedding & Furniture (India) Pvt. Ltd.

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