Taking Baby Steps Into Sustainability To A Secure Future
“Herbal care for a tiny tot’s well-being ensures that no harsh chemicals with harmful side effects affect its body and delicate skin. Some of the products even possess healing, medicinal properties to unlock substantial sustainable value for babycare,’ writes Pramita Bose.
The baby care market seems to be brimming with eco-friendly commodities as sustainability scores high on the corporate agenda as a topmost priority. Makers are happily tapping prospects galore to achieve ESG goals as well as net profits.
It is so important to breathe and grow in a sustainable environment given the amount of pollution accumulating on earth and environmental issues like global warming and climate change perennially plaguing the planet. So why not start the process right from the crib after birth?
To keep malnutrition and contamination with toxic wastes and emissions at bay, a clean environment or a germ-free atmosphere is vital for a child’s all-round development. Kids are entitled to both physical and mental progress with organic tools and edibles. Eyeing teeming prospects on this front, babycare brands in the market are flooding their inventories with a vegan, cruelty-free product line constituting natural ingredients like ashwagandha, meswak, castor oil, ajwain, malai, Kesar, honey, Triphala etc. These wholesome elements are used in making a childcare kit containing cream, body oil, powder, soaps, shampoo, hair oil, lotion, combs, towels, diapers, et al.
Toddler care biggies like Johnson India, Mamaearth, Himalaya, Maate, Herby Angel, Chicco among others are manufacturing dermatologically-tested, regulatory-agency certified and safe-to-use products to pitch their bit to the ESG (environmental, social and governance) compliances. Even components like corn starch and aloe vera are used in fashioning diapers to ensure long hours of leakage protection and comfort for the sensitive skin of babies.
Market Span
Herbal care for a tiny tot’s well-being ensures that no harsh chemicals with harmful side effects affect its body and delicate skin. Some of the products even possess healing, medicinal properties to unlock substantial sustainable value to baby care.
According to Allied Market Research, the market size of the global plant-based baby care products was estimated at USD 24.5 billion in 2021, which is projected to reach USD 80.2 billion by 2031, witnessing a CAGR of 12.9 per cent during the 2022-2031 forecast period.
Steering a revolution in child skincare, the essential items now pack in plant-based products to be used for the right kind of nourishment. Skin is specifically susceptible to allergies and infection and therefore, gentle care is highly recommended by paediatricians.
Butter, aloe vera, avocado, tomato, sunflower, dark cumin, cranberry and raspberry seeds are blended in products to boost baby health and the sustainable market. Allied Market Research statistics reveal that increasing awareness of green products and their resultant benefits in infant care are driving the category’s economic viability and spurting its noticeable demand among parents and caregivers.
The spike in e-commerce sales is also prompting major manufacturers to tap online distribution channels to market their product menus. Finance experts also view that there is a visible rise in the disposable income of shoppers to spend on ethical purchases for their wards to secure their bright future.
As per Mordor Intelligence, the market size of babycare products in India is anticipated at USD 4.42 billion in 2024 and is envisioned to touch USD 7.71 billion by 2029, seeing a CAGR of 11.76 per cent from 2024 to 2029. The domestic market for sustainable baby care products is reportedly thriving with an expanded range of products that became more affordable now with the burgeoning segment of working mothers fortifying its demand. The market is further reinforced by innovative organic packaging to promote carbon neutrality.
Product Profile
Natural tender foaming baby wash, gentle foaming shampoo and natural moisturising baby balm are standout products in the sustainable category of baby product maker CITTA. “These formulations are crafted with natural ingredients and are free from harmful chemicals. The lathering wash and shampoo require significantly less water to rinse off, encouraging eco-friendly usage, while the balm boasts a zero-water formulation, ensuring maximum hydration as well as sustainability,” informs Akanksha Sharma, the company co-founder and CEO.
Citing examples of products that belong to its sustainable section, TERRA’s global marketing head Tapasya Sharma highlights that “our biodegradable baby wipes and plant-based nappies attained wide global recognition. The products witnessed exceptional consumer responses in the key international markets like the USA as well as the home market of New Zealand. TERRA is recognised for its commitment to sustainability and eco-conscious practices.”
Climate crusaders rue that given the rising concern worldwide, above 60 per cent of our traditional personal care disposable products are said to end up in landfills, thus burdening the global biodiversity. The thoughtfully-crafted special wipes and nappies lead to faster biodegradability, assures Sharma. “This makes them ecologically friendly irrespective of whether they are composted in the user’s backyard or disposed of in the landfills. They cause no harm to the environment and get decomposed in the soil in an eco-friendly way,” she shares.
Varun Jairath, founder of Herbal Chakra, confirms that the whole of Herby Angel (its reputed brand) product pipeline is sustainable “because we use natural cosmos (COSMOS certification permits organic or natural cosmetics to be commercialised worldwide) and Ecocert (ECOCERT is an organic certification organisation, founded in France in 1991, conducting inspections in more than 80 countries)-approved ingredients in all our items.”
The brand’s bamboo wet wipes consist of a sustainable fabric that is biodegradable and bamboo plants in the form of a woody grass are easy to grow. Ingredients like 98 per cent water and 2 per cent sustainable mixtures of herbs and natural preservatives structure the wet wipes for sensitive baby skin.
“Furthermore, we have products like Bala Ashwagandha body butter and Bala Ashwagandha oil for kids wherein organic substances like plant butter, natural emulsifiers and fragrances as well as ashwagandha oil (Indian ginseng or winter cherry) and almond oil are used to make the products sustainable in nature,” reports Jairath.
Target Group and Consumer Optimism
The target age group of babies could be diverse for many babycare brands. “Ours is from 0 to 16 years, encompassing a broad range. We begin at a nascent stage and navigate the growing years until the child turns 16 utilising our products,” chips in Jairath.
The good news is that Herby Angel’s insect repellent cream in the market won rave reviews as it has a very natural citronella and lemon grass fragrance, unlike other repellent creams, which reek of strong smells. These fragrances repel the insects, thus preventing them from damaging the skin with bites.
“Many parents told us that their offspring don’t mind using it regularly because of the amazing aroma. They never complained about it or felt irritated by its scent. Even Ashwagandha body butter is very beneficial for the kids’ skin, especially in arid winters. There is absolutely no need to use anything else in a child’s daily skincare routine during a dry spell. We advise kids to apply the body butter before taking a shower so that it leaves the skin moisturised, plump and supple. The effect is long lasting and stays for 12-14 hours. This is because it has natural plant butter, which is more easily sucked up into the skin than the synthetic ones,” Jairath narrates some positive feedback from a couple of use cases.
CITTA caters to newborns and kids belonging to the bracket of 0 to 10 years. “I remember a much worried mother’s favourable response after she noticed a significant improvement in her little one’s eczema post using our natural moisturising baby balm. Another guardian shared how our diaper rash cream provided a quick relief to her infant, validating the effectiveness of our carefully formulated products,” Akanksha fondly recounts consumer reactions.
Catering to toddlers and kids aged up to 14, TERRA’s products promise to be environmentally-friendly and benign for children of all ages. “We have several use cases posted on our exclusive blog page where we always update tales of mothers sharing how they can provide the best possible care to their children with our quality product line. Besides, the biodegradable properties of the products are enumerated on the site that become so relevant right after their use,” corroborates Tapasya about upbeat customer sentiment.
Tests to Pass the Best
After procuring the raw materials from nature, their treatment or correct processing becomes highly crucial to validate that they don’t contain pesticides or any sort of chemical fertilisers. Optimal level of testing is therefore mandatory before launching the green products in the market that claim to be 100 per cent organic.
“As mentioned above, our well-equipped labs are at the forefront of scrutinising the raw materials in real time to cherry-pick the finest quality. Plus, TERRA’s products are globally approved by regulatory authorities including SGS (certifies both consumer and commercial products), FSC (forest management certification sticking to strict environmental, social and economic standards), Dermatest, Intertek and New Zealand’s FernMark accreditation,” volunteers Tapasya.
Akanksha confirms that “the company’s raw materials undergo rigorous processing to eliminate any traces of pesticides or chemical manure hidden inside. We conduct extensive filtering, including microbial and allergen testing, to ensure that our products are 100 per cent natural and okay to use. Each batch is scanned with eagle-eye sharpness before it hits the store shelves.”
On obtaining organic raw materials at Herbal Chakra, the same is put through hawk-eyed inspection wherein heavy metal analysis, pesticide testing analysis and study of aflatoxins (a family of toxins produced by certain fungi that are found on agricultural crops, such as maize (corn), peanuts, cottonseed and tree nuts. The fungi breed in warm and humid regions across the world) are done to make sure that it is good to go in the manufacturing stages at the factory site.
“Once the product is ready, we again run the aforesaid assessments to be doubly sure of the results and only then place it in the market to offer to the public. For every manufactured product lot, we get it tested at NABL (The National Accreditation Board for Testing and Calibration Laboratories is an autonomous body under the Ministry of Science and Technology, Government of India. It provides accreditation to testing and calibration laboratories in various fields)-accredited laboratories and publish it on our website, thus setting a tough benchmark for study with maintenance of transparency,” sums up Jairath.
Top Line & Profit Margin
CITTA has hitherto observed substantial growth in sales and revenues, with a significant portion coming in from its sustainable product suite. “Approximately 60 per cent of our revenues, amounting to 70 lakhs, are derived from eco-friendly products. Our profit margins have also augmented over the years as more consumers seek sustainable options with growing environmental awareness,” imparts Akanksha.
While lending ballpark figures, Jairath renders that Herby Angel’s “CM1 margin (contribution margin: It accounts for the gross profit after deducting the variable costs directly associated with production) is approximately 14 per cent, while around Rs. 1 crore is earned from its sales plus revenues.”
India and Rest of the World Picture
The Indian baby and mother care market is dominated by several key overseas players who have established their goodwill in the space for decades now. However, a gap that every small and bigtime enterprise intends to fill in is the unattended organic zone of tender products made with nature-borne ingredients that are appropriate for both consumers and the planet. This gives the companies with sustainable orientation an edge over their peers in the industry to revolutionise the domain with a green product range to fulfill the unmet need.
“In the overseas market, we enjoy a leading position with hordes of sensitised end-users being integral to our clientele, who are genuine takers for sustainable goods. But India as a market still needs more education and fiscal feasibility in the recyclable arena, especially in the Tier-3 and 4 cities, to help potential buyers engage in quality organic baby and mother care products,” espouses Tapasya.
There is a soaring demand for organic baby food, biodegradable diapers and natural skincare items. In Indian context, this trend is gaining traction, particularly in urban sectors where literate parents are more knowledgeable of the environmental impacts and child health. On foreign shores, the market is flourishing fast with major participants and start-ups innovating to meet consumer demands.
“Official stamp of acknowledgement for sustainability and eco-conscious branding are becoming essential to compete with the rivals in a fragmented marketplace. Overall, the stress on sustainability in baby care is preparing the industry to be future-ready,” views Jairath.
Decarbonisation Plan
By transitioning to sustainable practices, the corporate world aims to curb the carbon footprint over the next few years. For instance, CITTA avows to use recyclable packaging and continue with sustainable sourcing of its raw materials, while Herby Angel spokesperson insists that all the company’s products are natural and organic, which eventually help minimise the carbon emissions.
Eye on Modi 3.0
After the Narendra Modi (NDA’s third term) government assumed power post-Lok Sabha polls, expectations of corporate outfits with green initiatives skyrocketed in terms of reaping incentives from the central administration. But will they be granted any special benefits for their inclination towards sustainability?
Companies with sustainable programmes do have high expectations of winning rewards from the ruling regime with the latter’s supportive policies and enticing aids.
“We anticipate a deepened government focus on sustainability through favourable regulations, subsidies and tax waivers for our eco-friendly projects,” states Jairath. Thus pinning hopes on an enhanced backing for renewable energy, waste management and green technologies, the companies look forward to be lent with significant growth opportunities and an immense power to stay ahead in the race.
Industry watchers are vigilant of the government’s recognition of the new-age companies that are trying to pitchfork the nation’s pursuit of attaining zero waste and carbon neutrality sooner rather than later.
“We know how the government has so far brilliantly planned the execution of making electric vehicles a reality to suppress emissions strategically. We feel the same about the personal care space that it will be looked into diligently too,” Tapasya comments about management growing bullish on the government’s probable stimulus.
Regardless of the political landscape, certain companies remain steadfast in its commitment to sustainability. “The central government’s valuable inducement definitely adds an impetus to corporate campaigns veered towards organic resources. However, a company’s own consistent efforts and movement in favour of environmentally-ethical actions can no doubt pave a long way for a brighter and stronger sustainable future,” deduces Akanksha.
Clearance Certificate
In the wake of India’s recent spice controversy—Hong Kong, Singapore and Nepal banned a few Indian spices for the alleged presence of cancer-causing chemicals in them — questions are often being raised at whether a company’s all sustainable products are clinically tested and approved by a regulatory authority to be marketed and sold domestically as well as globally.
“We make sure that our products meet both domestic and international safety standards, providing parents with a peace of mind pertaining to their little one’s safety and well-being. All CITTA products undergo rigorous clinical testing and are approved by regulatory experts before being marketed,” Akanksha vouches for.
Some of Herbal Chakra’s products are approved by AYUSH (acronym for Ayurveda, Yoga and Naturopathy, Unani, Siddha and Homeopathy and are the six Indian systems of medicine prevalent and practised in India and some of the contiguous Asian countries. This comes under the Ministry of Health and Family Welfare as the Department of AYUSH.), while and some carry cosmetic licenses to get an entry into the market.
“The products are chemically tested and we even deliver batch study reports. There are no clinical trials for personal care products as we are already using sustainable ingredients. But we do have all the necessary nods in place from the controlling and monitoring authorities. This apart, we ensure that our products are examined in NABL-attributed labs,” says Jairath, quelling the climate of controversy.
“Not only our brand is recognised by international establishments and its products are accepted by customers all over, we also abide by the necessary regulatory codes of the regions we operate in,” maintains Tapasya.
Greenwashing Tendency
Sustainability is the buzzword now and every industry is embracing it to mitigate the climate change and global warming crises. Having said that, many companies are also accused of greenwashing and are on the sustainability experts’ radar who seem to sit up and rap knuckles if any anomaly is arrested under their lens.
“Whatever be the terminology an enterprise adopts, sustainability is a complex and complicated journey with interdependences and trade-offs. There are 500 plus sustainability and ESG standards across the globe and the same continues to further evolve. Board of directors of a company do understand that ecological footprint and climate challenges are critical for their business resilience and economic moat but they may not have a systematic approach, an expert team with adequate exposure and planned investments to drive the outcome,” opines Nitesh Mehrotra, partner, ESG & Sustainability, EY (Ernst & Young) India, one of the largest professional services networks in the world.
Environmental activists believe that corporate bigwigs are trying hard to traverse this transformation journey with concerted endeavours but most organisations are struggling with applications due to lack of sufficient scientific data analysis and a firmer footing of their digital arms that must evolve with cutting-edge technologies in a volatile marketplace.
“Such allegations become more blatant when the concerned companies fall short of defending their green strategies with a solid proof of concept. Ultimately, their trumpeted actions come under a needle of suspicion and are just diminished as mere marketing ploys,” notes Mehrotra. He further apprises that to “solve this dilemma, EY came forward to forge partnership links to create an AI prototype on the greenwashing compass to eradicate all tall, fabricated talks about a company’s sustainable schemes, thus saving it from ineptly tarnishing its image.”