toc & synopsis indian personal hygiene market - 2017

Indian Personal Hygiene Market - 2017

Disclaimer: All information contained in this report has been obtained from sources believed to be accurate by Gyan Research and

Analytics (Gyan). While reasonable care has been taken in its preparation, Gyan makes no representation or warranty, express or

implied, as to the accuracy, timeliness or completeness of any such information. The information contained herein may be changed

without notice. All information should be considered solely as statements of opinion and Gyan will not be liable for any loss incurred by

users from any use of the publication or contents.

Indian Personal Hygiene Market-2017

2 | P a g e © Gyan Research and Analytics Pvt. Ltd., 2013

Table of Contents

Executive Summary

1. Overview

1.1 Indian Personal Care Market

1.2 Indian Personal Hygiene Market

2. Product Consumption Pattern

2.1 Consumption in Rural & Urban Areas

3. Market Segmentation

3.1 Oral Care Market

3.2 Bath & Shower Market

3.3 Antiperspirants & Deodorants Market

3.4 Hand Wash Market

3.5 Antiseptic Liquid Market

3.6 Feminine Hygiene Market

4. Major Brands and Their Market Shares

5. Growth Drivers & Market Trends

6. Consumer Behaviour in Personal Hygiene Market

7. SWOT Analysis

8. Policy, Rules & Regulations

8.1 Excise Duty

8.2 Service Tax

8.3 Value Added Tax (VAT)

8.4 Import Duty

8.5 Others

9. Comparison of Promotional Expenses of Major Companies



10. Awareness Programmes by Major Companies

11. Investments

11.1 FDI

11.2 Domestic

11.3 Key Mergers & Acquisitions

12. Issues & Challenges

13. Key Players

14. Outlook

No. of Charts

Chart 1: Indian Personal Hygiene Industry, 2008-2012

Chart 2: Outlook - Indian Personal Hygiene Industry, 2013-2017

Chart 3: Oral Care Products Market in India, 2008 - 2012

Chart 4: Segment-wise Oral Care Market in India, FY2012

Chart 5: Outlook - Oral Care Products Market in India, 2013 - 2017

Chart 6: Bath & Shower Products Market in India, 2008 - 2012

Chart 7: Outlook- Bath & Shower Products Market in India, 2013 - 2017

Chart 8: Antiperspirant & Deodorant Market in India, 2008 - 2012

Chart 9: Outlook - Antiperspirant & Deodorant Market in India, 2013 - 2017

Chart 10: Hand Wash Market in India, 2008 – 2012

Chart 11: Outlook - Hand Wash Market in India, 2013 - 2017

Chart 12: Antiseptic Liquid Market in India, 2008-2012

Chart 13: Outlook- Antiseptic Liquid Market in India, 2013-2017

Chart 14: Per Capita Income in India, FY2009 - FY2012



Chart 15: Urban-Rural Distribution & Urbanization Rate in India, 2011

Chart 16: Segment-wise Cumulative FDI in FMCG Sector, FY2001 - FY2012

No. of Tables

Table 1: Population Distribution of India (in million), 2011

Table 2: Rural – Urban personal Hygiene Product Penetration in India, 2011

Table 3: Major Brands and Their Market Shares

Table 4: Comparison of Advertisement Expenses of Major Companies

Table 5: Mergers & Acquisitions Deal in Personal Hygiene Sector in India, FY2012

No. of Figures

Figure 1: SWOT Analysis of Personal Hygiene Market in India



Executive Summary

Historically, personal hygiene has implied and was confined to just bathing and cleaning oneself.

However, this perception has been fast changing in the wake of increasing literacy levels, robust

economic growth, increasing concerns over health, beauty and grooming, and evolving lifestyles.

Moreover, steady increase in disposable incomes, coupled with an enhanced willingness to spend,

has driven consumers’ demand for higher priced, better quality products.

The Indian personal hygiene sector is dominated by multinational companies (MNCs) which have

been operating in the country for a number of years. With the liberalization of foreign direct

investment (FDI) policies, more such companies are expected to enter the sector, resulting in

increased competition from many new foreign players. Besides, major Indian companies are on an

expansion drive and are seeking opportunities in other emerging countries.

The personal hygiene segment in India is witnessing a trend of premiumization, primarily in the

urban market segment. Consumers are more inclined towards buying the best available products.

This up-trading in personal care was a predicted phenomenon given the contemporary reach of

media and emphasis on grooming.

There is a general perception that Indians do not take serious care of their oral health. The bleak

scenario indicates that about one-third of the Indian population does not have access to modern

Oral Care. A case in point is the per capita consumption of toothpaste, which is about X gm – one of

the lowest in the world.

The national epidemiological study on the status of oral health in the country reveals that dental

caries (tooth decay) is prevalent among X percent in the 0-15 year age group, while in the age group

of 35-44 years it is around X percent. Further, periodontal diseases (gum diseases) are widespread in

X percent in the 0-15 year age group, while it is close to a serious X percent in the age group of 35-44

years.

The soaps and shower gels segment is observing an uptrend towards shower gel & face wash

products. These are premium products and offer better margins. This is the primary reason that

companies are pushing these products to improve their sliding profit margins in traditional soaps.

Though the antiperspirant and deodorant market is dominated by the male segment, this category



has immense possibilities of expanding into the female segment. Further, the industry believes that

some male products are also used by females as they considered to be stronger deodorants.

Finally, the Indian feminine health care market has been growing rapidly. However, the penetration

levels of feminine health products are very low. The rural population needs to be educated to

increase awareness about feminine hygiene. Consequently, this sector has immense untapped

potential for the companies who want to diversify into this category as well as for new entrants.

Indian Personal Hygiene Market

An ever-increasing middle class – the key target - along with increasing demand from the rural areas

offers a massive opportunity for the Indian personal hygiene sector. The sector was estimated at

USD XX billion in 2012. It is growing at X percent CAGR and is projected to reach USD XX billion by

2017.

The industry is dominated by MNCs such as Hindustan Unilever Ltd (HUL), Procter & Gamble India

Ltd (P&G), and Johnson & Johnson. These companies have a well-organized distribution network.

The country is a favorable destination offering as it does cheap and skilled workforce with easy raw

material availability. Further, the major

players are constantly under pressure

from the unorganized sector to keep

operational costs low so as to remain

competitive in this price-sensitive market.

Tapping the rural market has been the

priority for most of the companies in this

sector and they have expanded their

distribution reach mostly in rural India.

For example, HUL has tripled its rural

penetration in the last two years.

There is always a trade-off between value-growth and volume-growth. Interestingly, over the years,

these companies have managed to balance these two factors well. However, in the near future,

consumer demand will be inclined toward up-trading.

xx

xx

x

2013F 2014F 2015F 2016F 2017F

USD

Bill

ion

Outlook - Indian Personal Hygiene Industry, 2013-2017

Source: Gyan Research & Various Published Reports



An earlier research by ET Intelligence Group reveals that companies registered a rapid growth in

revenues and profits during high inflationary periods as against periods of low inflation, as bigger

companies can take advantage from economies of scale and reap the benefits of established brands.

Market Segmentation

Oral Care Market

The global Oral Care market was estimated

at USD XX billion in 2012. Around X percent

of the global population uses at least one

variety of toothpaste and X percent of this

population brushes twice daily in the

developed countries. In stark contrast, only

X percent of the population in India uses

any kind of toothpaste. This implies the

existence of a huge dormant market

waiting to be explored.

XX

XX

X

0

200

400

600

800

1000

1200

2008 2009 2010 2011 2012E

USD

Mill

ion

Oral Care Products Market in India, 2008 - 2012




The Oral Care market in India was estimated at around USD XX million in 2012 and is expected to

reach XX million by 2017.

Bath & Shower Market

The Bath & Shower gels market in India

was estimated at around USD XX million

in 2012.

India’s Soap market is dominated by the

personal care giant Hindustan Unilever

Ltd’s (HUL) two flagship brands - LUX and

Lifebuoy. While LUX has always been

positioned as a brand for the fairer sex,

Lifebuoy at one time had a very male-

centric imagery. However, since the early

x

x

x

x

x

118

120

122

124

126

128

130

132

2008 2009 2010 2011 2012E

USD

Mill

ion

Bath & Shower Products Market in India, 2008 - 2012


x

x

x x

Segment-wise Oral Care Market in India, FY2012

Toothpaste Toothbrush

Toothpowder Mouthwash


xx

x

x

x

2013F 2014F 2015F 2016F 2017F

USD

Mill

ion

Outlook - Oral Care Products Market in India, 2013 - 2017




2000’s, Lifebuoy has made the shift into a family soap slot with the value proposition of protection

and care.

The brands Dove and Pears from HUL

and Cinthol from Godrej Consumer

Products Ltd. dominate the premium

soaps category. However, there is

intense competition among brands from

companies such as Henkel India Ltd,

Wipro Ltd, Reckitt Benckiser (India) Ltd,

Nirma Ltd as well as HUL and Godrej.

Antiperspirants & Deodorants Market

The deodorants market in India was

estimated at about USD XX million in

2012 and the products were mostly in

the men's grooming category.

Deodorants started out as men's

merchandise but as the demand from

women grew, it gradually entered the

latter category. Today women’s

deodorants account for X percent of the

market and is growing.

Interestingly, the deodorant market in

India is dominated by males, contrary to

the norm in Indian society where

women chose the personal care

products and men are surrogate users. Moreover, the market share of male to female is X:Y in this

segment.

x

x

x

x

x

0

50

100

150

200

250

300

2008 2009 2010 2011 2012E

USD

Mill

ion

Antiperspirant & Deodorant Market in India, 2008 - 2012

Source: Gyan Research &Various Published Reports

xx

xx

x

2013F 2014F 2015F 2016F 2017F

USD

Mill

ion

Outlook- Bath & Shower Products Market in India, 2013 - 2017




Primary reasons for this dominance can

be attributed to the physiological

differences of men and women and the

general climatic conditions in India

which induces men to sweat more.

Having identified this important

opportunity, the major players are

setting their sights on this segment. For

example, HUL is planning to extend its

LUX brand into the deodorant segment.

However, the segment is already

cluttered with the presence of major

players such as Wipro, Yardley, Vini

Group, Fogg and 18. The market leader in this segment is the AXE brand from HUL.

Feminine Hygiene Market

Feminine hygiene is one of the least discussed issues in Indian society. The awareness levels about

menstruation and its consequent biological & physiological changes among Indian women are very

low. Further, the inaccessibility of sanitary hygiene products, especially in rural India and remote

areas of the country makes it even worse. Compounding the problem is the lack of sanitary facilities

and the availability of quality products.

The subject of menstruation is taboo in Indian society and is not discussed openly. This behaviour

has created a dark void of ignorance about this significant biological phenomenon. Adolescent girls

are not adequately informed about the hygienic procedures to be followed during menstruation

even after reaching menarche.

According to a 2010 survey by AC Nielsen, only X percent of menstruating women use sanitary

napkins in the country. The remaining X percent use unsanitary materials such as old rags, husk,

dried leaves and grass, ash, sand or newspapers every month, leading to Reproductive Tract

Infection (RTI). Around X percent women in India are infected.

Chart 1

xx

x

x

x

2013F 2014F 2015F 2016F 2017F

USD

Mill

ion

Outlook - Antiperspirant & Deodorant Market in India, 2013 - 2017




A UNICEF report implies that more than X percent of adolescent girls in India are underweight - the

highest in the world. The report also states that X percent of this number is anaemic and X percent

are married before the age of 18; of these X percent become teenage mothers.

However, the biggest barrier to using sanitary napkins is affordability. Around X percent of women in

India cannot afford to buy a sanitary napkin.

The government, on its part, initiated the National Rural Health Mission (NRHM) in 2005, to deal

with the health situation and infrastructure of the country. Several schemes have since been

launched to address the issue of menstrual hygiene and nutritional health of adolescent girls under

NRHM. In 2010, the Ministry of Health and Family Welfare, Government of India, launched the

Menstrual Hygiene Management scheme in X districts across the country to provide sanitary napkins

at subsidized rates (INR X per pack of X pads) to adolescent girls in rural India. The scheme is

projected to cover around X million girls in the age group of 10-19 years.



Outlook

With over X percent of the population of India living in the villages, the Base of the Pyramid seems to

be the focus area for personal hygiene companies. An increasing per capita income coupled with

rising literacy rates in rural areas is expected to spur the consumption of personal hygiene products.

Given the inherently essential nature of personal hygiene products, recessionary pressures are

unlikely to affect the industry at large. The phenomenal growth of the industry in the last decade in

consonance with growing urbanization, changing lifestyles and buying behaviours of consumers are

indicators of the industry’s bright future.

A Price Waterhouse Coopers (PwC) study suggests that countries like India, China, Indonesia, the

North African countries and Latin America represent a new consumer base termed as the Global

Emerging Markets (GEM). PwC expects purchasing power of these geographies to rise from the

current USD X trillion to USD X trillion by 2021, with the Indian FMCG segment set to contribute

atleast USD XX billion.

Further, changing demographics of consumers will place emphasis on beauty, health, and wellness.

This will lead to increased requirements for more customized and relevant products. Government

initiatives such as the implementation of the Goods and Services Tax (GST) and opening up of the

retail market to FDIs will also give the industry a much required boost. Finally, the government is

considering modernizing labour laws, which will improve the efficiency of services.

toc & synopsis indian personal hygiene market - 2017

Healthcare

market segmentation

feminine hygiene market

indian personal care

market shares table

bath shower market

outlook hand wash market

fy2012 chart

personal hygiene sector