India's childcare market is expected to grow on the back of macro drivers
- IBEF
- January 19, 2024
Despite India having one of the highest global birth rates, childcare product spending remains significantly lower compared to developed nations. In 2022, the average expenditure per child in India stood at US$ 96.21 (Rs. 8,000), in stark contrast to US$ 553.21 (Rs. 46,000) in China and US$ 28,983.76 (Rs. 24.1 lakh) in the US. The birth rate per thousand in India in 2021 was 16.4, 7.5 in China, and 11 in the US.
However, propelled by macroeconomic factors, the childcare product market is poised for robust growth. The draft red herring prospectus filed by Brainbees Solutions, backed by Softbank and the first pure-play childcare product company seeking an Indian listing, offers a comprehensive market overview. The market is projected to witness an annualized growth rate of 14%, reaching US$ 60 billion (Rs. 4.8 trillion) by 2027 from approximately US$ 31 billion (Rs. 2.5 trillion) in 2022, per a Redseer consultancy study cited in the prospectus. Concurrently, the average spend per child in India is anticipated to double by 2027, reflecting the evolving dynamics of the childcare product industry.
Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.
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