Profitability of Diaper Making Business in India


Diapers Across the World

While browsing through your Facebook newsfeed, how many times have you stumbled upon a baby video and simply loved it? Uncountable times, that’s quite guessable! I Not only for kids, the contemporary lifestyle has identified diapers as a crucial part of old age as well.

The global diapers market size was worth USD 75.9 billion during 2020. It can be anticipated to develop at a CAGR of 4.6% by 2028. The market is expected to experience increased demands in the near future as people get more aware of their children’s health factors. The favourable inclination towards eco-friendly and high-quality has led to the major boost of demand for diapers, especially the biodegradable ones.

Studies show that one-third of the families in the United States struggle to purchase enough diapers for their kids. Thankfully, with the inception of The End Diaper Need Act of 2021, underprivileged and low earning families would get access to diapers for their toddlers and babies. This indicates that diapers are being considered with seriousness by the administration since these are the foundations for a nation’s future. 

Diaper Market in India

The Indian diapers market reached an estimated worth of USD 1.06 billion during 2020. The market is anticipated to expand at a compound annual growth rate of 14% throughout 2021 and 2026, Maharashtra being the leading diapers market in India, followed by key regions such as Tamil Nadu, Delhi NCR, Gujarat, and Karnataka. The markets in these areas are widely fuelled by the soaring purchasing power of the buyers, in addition to a vigorously upscaling middle-class population. The rise of distribution channels like hypermarkets and supermarkets in these areas have also supported the flourishing diapers market, as they extend access to innovative and diverse products to the consumers. Moreover, the increasing awareness about hygiene has been playing a significant role in the growing need for diapers. These factors are convincing enough for the investors who are planning to put their money in a diaper making machine.

Profitability of Diaper Making Business

In the diaper making industry, the variable cost of production involved with the diaper making machine is more crucial than the investment capital. Owing to this factor, it is justified to make higher payment for equipment if the investor is convinced that he will be capable of producing the exact same product paying a lower unitary price and/or with improved quality. This is the generally considered rationality behind people wanting to discard their obsolete equipment in exchange for an upgraded one. For instance, a high-speed machine having 3% better conversion ability in comparison to a similar, downgraded equipment, operating according to the number of working shifts or for just a few extra minutes, may pay for itself within a span of 1.5 years.

How Tough is the Rivalry? 

The only way to compete in a diaper manufacturing business is to know what the customers need while making an excellent network with the various wholesale traders, clinics, hospitals, and retailers. The diaper manufacturing industry runs on two key factors, hygiene and skin safety. Any entrepreneur planning to purchase a diaper making equipment must ensure that these factors are met.

Final Thoughts! 

As India strives to attain the developed country stature, focusing on the country’s health and hygiene has been of prime importance. This scenario leads to a strong foundation for the diaper making businesses as well as the diaper making machine manufacturers. Hygiene, machine efficiency, and skin safety sets the standard for the quality of diapers to be produced, hence the investors are advised to check out these factors prior to investing. 

If you are convinced with this study, then check our product range in Diaper Making Machines.