Cotton wool market analysis in India
The relevance of research
The subject of this marketing research is the cotton wool market. The cotton wool market is understood as a set of enterprises that form the supply of the market, the number of consumers that form the demand in the market. Cotton wool is an integral element in the production of furniture, clothing, medical, cosmetic, hygiene products.
Purpose of the study
Analysis of the state of the cotton wool market, assessment of the market volume, analysis of competitors, as well as identification of factors affecting the cotton wool market
Content
Part 1. Overview of the Indian cotton market
1.1. Main characteristics of the market
1.2. Dynamics of cotton wool market volume in 2016-2020 Potential market capacity
1.3. Assessment of factors affecting the market
1.4. Cotton wool market life cycle stage
1.5. Competition from substitute products
Part 2. Competitive Analysis in the Cotton Wool Market
2.1. Major players in the market
2.2. Market shares of the largest competitors
2.3. Profiles of major players
Part 3. Cotton wool production analysis
3.1. Volume and dynamics of domestic cotton wool production
3.2. Share of exports in wool production
3.3. Segmentation of cotton wool production by regions
3.3.1. Production by Union Territories of India
3.3.2. Production by states of India
Part 4. Analysis of foreign trade supplies of cotton wool
4.1. The volume and dynamics of cotton wool imports
4.2. Structure of imports by countries
4.3. The volume and dynamics of cotton wool exports
4.4. Structure of exports by countries
Part 5. Cotton wool consumption analysis
5.1. Cotton wool consumption dynamics
5.2. Analysis of the results of tenders for the purchase
Part 6. Price Analysis
6.1. Average Producer Prices by Union Territories of India
6.2. Average consumer prices by states in India
Part 7. Assessment of factors of investment attractiveness of the market
Part 8. Forecast for the development of the cotton wool market until 2025
Part 9. Recommendations and conclusions
Research excerpt
Part 1. Overview of the Indian cotton market
1.1. Main characteristics of the market
The subject of this marketing research is the cotton wool market. The cotton wool market is understood as a set of enterprises that form the supply of the market, the number of consumers that form the demand in the market, as well as the relationship that arises between sellers and consumers.
For the purposes of this study, the category “Wood” includes:
Cotton wool medical. Such cotton wool is divided into eye, surgical, hygienic. Eye and hygienic cotton should be made from cotton fiber. Medical surgical cotton wool is made from cotton fiber or a mixture of cotton fiber and viscose staple fiber. Eye cotton is made from cotton fiber of the 1st grade. Surgical cotton wool is produced from grade 3 cotton fiber, with the inclusion of grade 1 viscose fiber no more than 30%, it is used as a material that absorbs blood and liquid secretions (pus, ichor) when dressing wounds over layers of dressing gauze. Hygienic wadding is made from cotton fiber of the 5th grade and cotton lint of the 1st grade (not more than 25%), used for hygienic women's dressings, etc. Cotton wool is well combed, retains the connection between the fibers and easily delaminates into parallel layers of arbitrary thickness. Medical cotton is produced sterile and non-sterile.
Cotton wool for clothes and furniture. It is a fibrous product that was obtained in the process of mixing raw cotton of low grades, as well as lint, waste and waste from cotton and textile production. Clothes wool is divided into types: ""Lux"", ""Prima"" and ""Sewing"". Furniture wool is divided into types: ""Combed"" and ""Tuff"". Cotton wool is produced in harsh or melange. Mineral-oil pollution is not allowed in cotton wool. Cotton wool should not have a putrid odor. Cotton wool for clothes and furniture (combed) should be well-combed, retaining a connection with each other, and easily delaminate into parallel layers. Mattress cotton should be well loosened. Cotton wool is produced in harsh or melange.
Cotton wool from textile materials. It is made by superimposing several layers of combed or pneumatically laid textile fibers one on top of the other, followed by pressing them to increase the adhesion of the fibers. The wadding is sometimes lightly punched in order to increase the cohesion of the fibers and in some cases to fix the layer of wadding on a backing of fabric or other textile materials. Wool takes the form of a flexible, spongy, high-volume web of uniform thickness, the fibers in which are easily separated. It is usually made from cotton or chemical fibers. Low grade wadding is made from carding or plucking waste and usually contains knots or yarn waste. Cotton wool is bleached or not bleached, printed or not printed. It can also be cotton wool, which has been sprayed with a small amount of adhesives in order to improve the adhesion of the outer fibers. It is actively used as a stuffing, cushioning, packaging or hygienic material (with the exception of medical cotton wool).
According to the method of obtaining cotton wool, they are distinguished into natural and artificial.
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There are several objective reasons for this - countries that have a strategic advantage in the global cotton wool market receive:
production of raw cotton and, accordingly, low raw material cost,
technological and inexpensive production of chemical fibers,
huge production volumes, allowing to reduce the cost of cotton wool due to economies of scale,
high-quality manufacturing process, which excludes getting cotton wool that creaks when touched
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1.2. Dynamics of cotton wool market volume in 2016-2020 Potential market capacity
Market size in physical terms = production + imports - exports.
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The development potential of the cotton wool market is determined by several factors:
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The main part of the production and sale of cotton wool is carried out by enterprises of the Central Federal District ...
Diagram 3. Revenue (net) from the sale of cotton wool by the union territories of India for 2016-2020, %
1.3. Assessment of factors affecting the market
Let's consider the main factors influencing the cotton wool market, including demand parameters. Demand for medical, hygienic, cosmetic, interlining products, clothing, furniture, bedding most directly affects the volume of cotton wool consumption.
social factors.
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Economic forces.
Real disposable income of the population in 2016-2017 decreased, and in 2018-2019. showed a slight increase at the level of statistical error.
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The cost of raw materials significantly affects the economy of Indian cotton wool.
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Technological factors.
The e-commerce segment in India is developing dynamically, but the progress so far has been modest.
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political factors.
Cotton wool is an integral element in the production of furniture, clothing, medical, cosmetic, hygiene products, therefore, Rospotrebnadzor of India and Roszdravnadzor of India regularly monitor the conditions of production, storage, transportation of cotton wool in factories, wholesalers, retailers, pharmacies, medical institutions.
Cotton wool is practically not used for the production of dual-use goods, it is not an object of high promising technologies, therefore, it is highly likely that it will not be included in international sanctions lists. The main trading partners in the Vata product group are countries with which India has favorable political and economic relations (even Lithuania and Poland are actively cooperating with Indian manufacturing and trading companies).
Table 6. STEP analysis of factors affecting the cotton wool market in P
It is important for a cotton manufacturer (especially for factories specializing in the production of medical cotton wool) to observe technological and production discipline, sanitary and hygienic standards of production and quality of finished products. This will help win consumer loyalty and establish comfortable working relationships with government oversight organizations.
In the cotton wool market, any Indian manufacturer has to deal with:
tough competition from foreign factories,
low income business
the need to constantly search for more favorable conditions for the purchase of raw materials, which are produced in India in small volumes,
to hedge currency risks,
complexities of initial and additional listing in pharmacies, cosmetics and conventional chains,
the difficulties of participating in state tenders for the purchase of cotton wool,
the need to effectively manage accounts receivable.
In general, macro-environment factors have a moderate negative impact on the market development. The raw material factor has the strongest influence. The sustainable development of the consumer segment of the cotton market requires growth in the number and income of consumers, which will stimulate the production, import and consumption of cotton in India.
1.4. Cotton wool market life cycle stage
The cotton wool market is in the “Product Maturity” stage. Cotton wool is a cheap and popular product that has been successfully used by manufacturers of furniture, clothing, medical, cosmetic, hygiene products, and bedding for many decades. All factories understand how to control the quality when receiving raw materials, have established relationships with suppliers and buyers. Vata as a product category has a limited product range.
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1.5. Competition from substitute products
Cotton fillers have a number of advantages: soft, warm, elastic, quite cheap. The disadvantages include: the ability to fall off - over time, cotton wool falls off and forms lumps; instability to decay - since the raw material is natural and absorbs well, but does not remove moisture well, bacteria can multiply in the products, leading to decay; quite a lot of weight. Cotton filler is warm and cheap, but, given its shortcomings, it is in demand in the low-price segment in the production of bedding (blankets, pillows, mattresses) and special clothing for hospitals, military units, dormitories, camps, construction cabins.
According to the characteristics described above, cotton filler is inferior to other natural and synthetic materials that are becoming very popular in the Indian market:
Spray bonded wadding refers to natural materials. It is made from cotton or cotton wool. The technical and operational characteristics of spray-bonded cotton wool are close to those of bio-fluff. The advantages of this material include: high wear resistance, high thermal insulation qualities, hypoallergenicity, does not crumple, breathable, environmentally friendly, light weight, resistant to deformation, retains its properties even when wet.
Primaloft is made of thin polyester fibers. Insulation fibers are as thin as possible, soft, have a hollow structure. Having a small weight, the material has excellent thermal insulation properties. Thanks to a special production technology, the fibers form a dense surface tension. It prevents the penetration of moisture through the layer of insulation, keeps the wind, but does not prevent the removal of fumes. This material was developed for the production of gloves. In these products, the ability of the material to compress, to retain heat when wet, was considered the most important.
Thermolite is developed on the basis of polyester. The structure of the fibers is hollow, which provides high thermal insulation even in a humid environment. The material perfectly conducts moisture into the outer layers of warm clothing. At the same time, it does not absorb moisture.
Thinsulate. The diameter of the fibers of this insulation is not less than 10 microns (10 times thinner than the thickness of a human hair). The specified material is able to retain more air inside, having a smaller volume than other fillers. An important advantage of the material is considered to be excellent ventilation. It does not absorb moisture, so it provides excellent thermal insulation in wet conditions. Fine, but very expensive material.
Sintepon. A well-known non-woven synthetic fiber with a three-dimensional structure. The thickness of the material is uniform throughout the entire web. The synthetic winterizer gives a uniform slight shrinkage. It is widely used when sewing warm clothes, as a shaping material. It is impossible to bleach, soak the material.
Hollofiber is obtained by adding other materials to the synthetic winterizer. Hollofiber is a synthetic winterizer with a high silicone content. Its fibers are twisted, multidirectional. It is also called holofan, fibertek, thermofiber. This material is widely applicable in the production of children's clothing. Its consumer qualities are the highest. Advantages: high thermal protection, low density, low weight, high degree of recoverability. The material practically does not absorb moisture.
Isosoft. The specified synthetic filler is made of fibers made in the form of a ball. The balls have cavities, the fibers do not communicate with each other. Therefore, the clothes keep their shape perfectly. The advantages are also: high coefficient of heat retention, plasticity, breathability, softness, small volume, hypoallergenicity.
Eye, surgical, sanitary and hygienic cotton wool is an indispensable material in medicine, used as a basic raw material in the production of cotton swabs, cotton pads, cotton balls.
Part 2. Competitive Analysis in the Cotton Wool Market
2.1. Major players in the market
The table shows the total revenue of companies in 2020, which includes both income from the production and sale of cotton wool, and income from other product groups (special clothing, bedding, medical, cosmetic, hygiene, gasket materials, etc.).
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2.2. Market shares of the largest competitors
The following shares of the largest competitors in the market are calculated taking into account the total revenue of enterprises and the share of the object of study in the total assortment of these firms, that is, from the revenue associated with the production and sale of cotton wool.
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Diagram 5. Shares of the largest competitors in the wool market in 2020
The cotton wool market belongs to ... type - Herfindahl-Hirschman index (HHI) = ...
2.3. Profiles of major players
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Part 3. Cotton wool production analysis
3.1. Volume and dynamics of domestic cotton wool production
In 2016-2020 indian cotton wool production in kind...
There are 12 factories in India, but the lion's share of cotton wool production in India is provided by 7 enterprises. All leading manufacturing companies are diversified: they produce not only cotton wool, but also cotton fiber, non-woven materials, cotton cosmetic and hygiene products, bedding, workwear. Some enterprises specialize in the production of only medical and sanitary cotton wool.
Manufacturing enterprises actively cooperate with their current and prospective customers: they can order product samples for laboratory research and test production, get acquainted in detail with the production technology, the quality control system for input raw materials and finished products, visit the factory, order the release of a private label.
Manufacturers of medical cotton wool, cotton swabs, cotton pads, cotton balls and other medical and sanitary products develop their own brands, pack products in small consumer packaging, sell goods in pharmacies, cosmetics and ordinary retail chains. And under these conditions, they invest money in the development of the range, numerical and weighted distribution, active trade marketing.
Below is the combined revenue of the top five Indian cotton wool manufacturers. This revenue includes the total revenues of these companies from the sale of the entire range of goods and services, and not just wool.
3.2. Share of exports in wool production
Exports have a very significant impact on the business performance of Indian cotton wool producers.
Developing export sales is critical for Indian businesses because it allows them to:
to develop production in the face of reduced effective demand in India,
hedge currency risks (receive the currency that is used to purchase raw materials and semi-finished products abroad).
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3.3. Segmentation of cotton wool production by regions
3.3.1. Production by Union Territories of India
In India, the geography of cotton wool production is limited to the Central, Volga, Siberian, Southern, North-Western federal districts.
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3.3.2. Production by states of India
The Leningrad agglomeration specializes mainly in the production of medical cotton wool, the Ivanovo and Vladimir regions produce significant volumes of cotton wool for the production of special clothing, gaskets, hygiene materials, pillows, blankets, and furniture.
Part 4. Analysis of foreign trade supplies of cotton wool
4.1. The volume and dynamics of cotton wool imports
Import deliveries of cotton wool from chemical fibers are gradually reduced.
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4.2. Structure of imports by countries
Uzbekistan is No. 6 in the world ranking of raw cotton producers. Favorable natural and climatic conditions and cheap labor ensure the production of inexpensive raw cotton fiber. This country has been a leader in this field since Soviet times.
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4.3. The volume and dynamics of cotton wool exports
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For well-known political and economic reasons, in 2016-2020. the volume of exports to Ukraine decreased ...
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Part 5. Cotton wool consumption analysis
5.1. Cotton wool consumption dynamics
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Diagram 16. Dynamics of cotton wool consumption in monetary terms, 2016-2020
5.2. Analysis of the results of tenders for the purchase
The amount of tender purchases in 2020, early 2021 exceeded ...
Part 6. Price Analysis
6.1. Average Producer Prices by Union Territories of India
The average price of a cotton wool mix for each manufacturer depends on a group of factors:
transport proximity to foreign sources of raw materials and places of concentration of solvent demand,
sales structure by sales channels, including the share of sales to pharmacies, cosmetics and conventional retail chains. The structure of production and sale of cotton wool by types of packaging depends on this: large-format industrial packaging and consumer packages,
the structure of production and sales by types of cotton wool with different price levels, due to the technologies for the production of the material and its packaging: medical, sanitary, cosmetic, clothing, furniture, gaskets, etc.,
currencies of contracts for the purchase of raw materials (for example, someone buys raw materials from Uzbek enterprises with payment in US dollars, and someone manages to agree on contracting in Indian rupees).
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6.2. Average consumer prices by states in India
Table 19. Average consumer prices in the cotton market by state of India in 2020
Part 7. Assessment of factors of investment attractiveness of the market
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The resulting final score of 1,2 indicates the low investment attractiveness of this industry (production and sale of cotton wool) for business owners, potential investors, lending banks, leasing companies. The cotton wool market is represented by the products of a large number of Indian and foreign factories, there is a high level of competition and periodic price wars. A significant share of the cotton wool presented on the Indian market is of foreign origin, but at the same time, export is a significant source of income for Indian factories. The cotton wool market is highly dependent on exchange rate fluctuations. The profitability of the business for the production and sale of cotton wool is below the average Indian level, although this business generates a stable cash flow (medical, hygienic cotton wool are regular consumption goods, they have a relatively low price elasticity of demand, which is very important during the period of stagnation of the Indian economy and a decrease in household income ). In the segment of industrial wool used in the production of special clothing, furniture, bedding, cushioning materials, the level of demand reacts painfully to the fall in household incomes and the reduction in government purchases.
Part 8. Forecast for the development of the cotton wool market until 2025
Market analysis is carried out based on methods based on identifying trends over time, adjusted for expert opinion in the industry.
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Cotton wool will remain an indispensable product in medicine and cosmetology, as a raw material in the production of medical, sanitary, and gasket materials. But in the markets of clothing, furniture, and bedding, cotton wool will continue to be squeezed out by more effective natural and synthetic materials. Cotton wool as a cheap semi-finished product will be in demand in the production of special clothing, bedding for the army, law enforcement agencies, the Federal Penitentiary Service of India, educational and healthcare institutions.
Part 9. Recommendations and conclusions
The Indian cotton wool market is quite capacious - the market volume in 2020, according to preliminary estimates, was ...
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Indian factories will try to actively develop export markets.
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Components of success:
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Diagrams
Diagram 1. The ratio of imported and domestic products in the cotton wool market (%), 2016-2020
Diagram 2. Dynamics of the cotton wool market volume in real terms, 2016-2020
Diagram 3. Revenue (net) from the sale of cotton wool by the union territories of India for 2016-2020, %
Diagram 4. Product life cycle
Diagram 5. Shares of the largest competitors in the wool market in 2020
Diagram 6. Dynamics of cotton wool production for 2016-2020
Chart 7. Dynamics of the total revenue of the largest producers (TOP-5) of cotton wool, 2016-2020
Diagram 8. The share of exports in production for 2016-2020
Diagram 9. Volume and dynamics of cotton wool imports in physical terms in 2016-2020
Diagram 10. The volume and dynamics of cotton wool imports in monetary terms in 2016-2020
Diagram 11. Dynamics of cotton wool export in physical terms, 2016-2020
Diagram 12. Dynamics of cotton wool export in monetary terms, 2016-2020
Diagram 13. Structure of exports in physical terms by purchasing countries in 2020
Diagram 14. Balance of exports and imports in physical terms, 2016-2020
Diagram 15. Balance of exports and imports in monetary terms, 2016-2020
Diagram 16. Dynamics of cotton wool consumption in monetary terms, 2016-2020
Diagram 17. Forecast of cotton wool market volume for 2021-2025
Tables
Table 1. Resident population of India, 2016-2020
Table 2. Income of the population of India, 2016-2020
Table 3. Volume of shipped goods in India (million Rs.), 2016-2020
Table 4. Exchange rates, 2016-2020
Table 5. Share of online sales in total Indian retail sales, 2016-2020
Table 6. STEP analysis of factors affecting the cotton wool market in India
Table 7. The main companies participating in the cotton wool market in 2020
Table 8. Profiles of cotton wool market participants in 2020
Table 9. Dynamics of cotton wool production by union territories of India for 2016-2020
Table 10. Dynamics of cotton wool production by states of India for 2016-2020
Table 11. Imports in India in physical terms by types of cotton for 2016-2020, tons
Table 12. Imports in India in monetary terms by types of cotton for 2016-2020, thousand $
Table 13. Structure of cotton wool imports by supplying countries in 2020
Table 14. Export from India in physical terms by types of cotton for 2016-2020, tons
Table 15. Export from India in monetary terms by types of cotton for 2016-2020, thousand $
Table 16. Structure of wool exports by purchasing countries in 2020
Table 17. Average import and export prices in the wool market, 2016-2020
Table 18. Average Producer Prices in the Cotton Wool Market by Union Territories of India, 2016-2020
Table 19. Average consumer prices in the cotton market by state of India in 2020
Table 20. Assessment of factors of investment attractiveness of the cotton wool market
Table 21. Forecast of socio-economic development of India for 2020-2023, the base version of the Ministry of Economic Development of India
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