Disposable Paper Products in Ireland
Euromonitor International's Disposable Paper Products in Ireland market report offers a comprehensive guide to the size and shape of the market at a national level. It provides the latest retail sales data, allowing you to identify the sectors driving growth. It identifies the leading companies, the leading brands and offers strategic analysis of key factors influencing the market - be they new product developments, packaging innovations, economic/lifestyle influences, distribution or pricing issues. Forecasts illustrate how the market is set to change.
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Tables: 84 | Publication date: Jul 2007
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Product coverage
Away-from-home disposable paper products; Retail disposable paper products
Executive summary
Growth in 2006 does not match growth rates from review period
In 2006, disposable paper products rose in value terms on the back of bullish economic growth witnessed during the 1990s. Growth slowed down, as consumers reduced their discretionary spending and, increasingly, value for money became the primary concern as consumers turned towards economy brands – particularly private label. Private label increased its market share because it offered consumers products of a similar quality to branded items, but at a more competitive price.
New product development drives value growth
Growth of disposable paper products was driven by new product developments launched over the course of the review period. This was especially true in sanitary protection, where the Kotex revamp drove value growth. In nappies/diapers, Pampers Caterpillar Plex and Huggies Little Walker contributed to growth. Similarly, incontinence products benefited from the brand extension for Tena Lady with Mini Magic Pads. The launch of Kleenex Anti-Viral which claimed to trap cold viruses added incremental value to the tissue category.
Multinationals dominate the market
Multinationals continued to dominate the market, with Procter and Gamble (Manufacturing) Ireland Ltd, Kimberly-Clark Ltd, Georgia-Pacific Ireland Ltd and Johnson & Johnson Ireland Ltd holding a combined share of 61% in 2006. These companies established their lead in their respective sectors over a long period of time. Over the review period, they were primarily responsible for the new product launches. Irish company Tara MSL was acquired by SCA Group in 2004, leaving only a handful of indigenous manufacturers remaining.
Discounters stealing retail distribution share
During the review period, discounters in Ireland saw substantial growth through a strategy of rapid store expansion and heavy discounting on a number of limited private label lines. Its impact was exacerbated by the economic slowdown, which saw consumers becoming more price-sensitive and the introduction of the euro, which made price comparisons with other EU markets more transparent.
Gloomy forecast
Disposable paper products is expected to see comparatively modest retail value growth over the forecast period.
Consumers are likely to continue to look for price value in their purchases and are therefore likely to buy economy ranges and private label where possible. An increased focus on the environmental impact of disposable products and the greening of Irish consumers is likely to affect the DPP industry in the future.
KEY TRENDS AND DEVELOPMENTS
Rapid economic expansion revolutionises consumer lifestyles
The Irish economy has undergone rapid expansion since the mid-1990s, particularly since the advent of the single European currency in 1999. In 2006, Ireland’s per capita GDP was significantly higher than the EU average. Large-scale foreign investment, the country’s openness to world trade and the modernisation of industry have encouraged flexibility in the labour market, while an expanding workforce has also helped to boost economic growth. Unemployment, which was over 17% in the mid 1980s, stood at just over 4% in 2006. Working patterns have also shifted, with the service industry experiencing record employment gains. This dramatic economic expansion has seen Irish disposable incomes rise to almost twice the level they were in the mid 1990s. With more money in their pockets and access to the global economy, the lifestyles of Irish consumers have changed almost beyond recognition. Consumers now have access to goods and services that were previously out of their reach. They are buying new types of products, eating new types of food, travelling to new places and experiencing new cultures.
The number of Irish residents travelling abroad annually increased from 65,000 in 1985 to 485,000 in 2004. Whereas foreign holidays used to be a rare luxury, affordable only to a small minority of the population, rising incomes and the advent of cheap airlines such as Ryanair have allowed more and more people to travel abroad each year. Many Irish families can now afford to take several holidays a year. This has had a dramatic effect on consumption habits within Ireland, as consumers often return home with a new taste for something they have experienced abroad. Coupled with an economy that is open to foreign investment, this increasing enthusiasm for trying new things has led to a proliferation in the number of foreign companies doing business in Ireland. Nowhere is this more visible than in the burgeoning café culture that has made its way from Europe and America. A quick stroll around Dublin will confirm this, with dozens of cafés in the city serving their own inimitable styles of coffee to an eager cosmopolitan population.
The increasing influence of foreign cultures has not just come back in the suitcases of Irish travellers. The internet revolution saw European and American culture imported over the phone lines at an astonishing rate between the mid 1990s and 2006. During the review period, household internet penetration in Ireland rose consistently, and it is still increasing. According to the Commission for Communications Regulation (ComReg), broadband connections represented the most commonly used internet access technology for residential customers in 2006, with 42% of home internet subscribers using a DSL broadband product to go online. As a result, many Irish consumers now have almost instant access to products, services and information from around the globe at any time of the day or night.
Current impact
Nowhere are the effects of changes in consumer lifestyles more visible than in Irish homes. Expenditure on household durables increased steadily throughout the review period. Figures from the Central Statistics Office (CSO) show that expenditure on such goods increased by over €1billion between 1995 and 2006. Consumer interest in interior design is now higher than ever before, thanks in no small part to the wide range of specialist magazines available in Ireland, as well as the broadcasting of numerous domestic, UK and US TV programmes on the subject. Together with high property prices and increased home ownership, this has made Irish people more inclined to view spending money on improving their homes as a worthwhile investment. In line with this trend, high on-trade prices for alcoholic drinks products are discouraging Irish consumers from visiting pubs and restaurants, with the result that socialising at home in the form of house parties, barbecues and dinner parties is becoming increasingly popular. Many people regard their homes as an extension of their personalities, and are thus willing to spend significant sums on making them as attractive as possible. This attitude covers the entire spectrum of household products, from expensive white goods all the way down to toilet paper and other disposable paper products. During the review period, this increasing consumer preference for quality boosted demand for premium disposable paper products, helping to drive current value sales growth across the market. To capitalise on this trend, manufacturers introduced an ever increasing variety of products in different colours and designs to accompany every conceivable style of home decoration. This applied to products used in all areas of the home, including kitchens and even bathrooms, with the result that luxury kitchen towels and toilet paper brands with added aloe vera or velvet-like softness regularly featured in the weekly shopping baskets of Irish consumers.
As Ireland has opened its arms to foreign influences, the notion of a product’s ‘Irishness’ is no longer as important a factor as it once was in most fmcg markets. While many disposable paper products sectors were once traditionally characterised by the strong presence of domestic players, during the 1990s and over the review period local companies saw their value shares eroded by the increasing penetration of foreign players, particularly multinationals. So strong was this trend that many local companies were forced out of business, or else compelled to sell their operations to multinational players. In 2006, there was practically no visible domestic presence in any of the biggest disposable paper products sectors. In fact, the only domestic company that retained a significant position was Irish Breeze Ltd, which held a sector value share of 44% in cotton wool/buds/pads. However, retail current value sales for this sector stood at just €9 million, compared to a figure of €324 million for the disposable paper products market as a whole. In contrast, big multinationals saw their sector and market value shares increase steadily throughout the review period, due to the fact that their brands are the most recognisable and trusted among consumers. This was especially evident in nappies/diapers/pants, where global brands Huggies and Pampers offer a range of products for every usage occasion and stage of a child’s development. Additionally, the producers of these brands run parenting websites that offer tips and advice, which helps to gain the trust of consumer and build brand loyalty. Multinational brands benefit from the support of extensive marketing budgets which local brands and producers simply cannot match, making it extremely difficult for them to compete.
Future outlook
Robust increases in household incomes and government spending will remain the major engines of growth in the Irish economy over the forecast period. Economic growth is expected to rise at a rate of around 4% annually. Private consumption is expected to increase by 6-7% in 2007, and continue rising thereafter. This trend will be supported by improvements in living standards and the purchasing power of consumers.
Many of the macro economic trends that characterised Ireland’s development between the mid 1990s and 2006 are set to continue over the forecast period. The country will remain open to international influences, which should help to attract more foreign investors. Household internet penetration will continue rising, and the proportion of internet users with access to high speed broadband connections will grow. This will prove increasingly important as the internet comes to play a more prominent role in the promotion and retailing of all kinds of products and services. Ireland’s cultural horizons will continue to widen, not only due to increased foreign travel via low cost airlines but also thanks to the country’s rapidly rising immigrant population. Immigrants will continue to be attracted by the employment opportunities that Ireland’s growing economy holds. Together, these two trends will lead to a greater demand for foreign products and services of all kinds in the country.
While the outlook is generally positive, there are a number of factors which could slow the development of the Irish economy over the forecast period. Further growth in the country’s already sizeable immigrant population is expected to lead to a rise in unemployment levels from 2007/2008 onwards. Additionally, although Ireland is expected to continue attracting foreign investment, some multinational companies are likely to relocate to other countries. Ireland is something of a victim of its own success in this regard. While the economic boom would have been impossible without Ireland’s low corporate tax rate, this strategy is now being replicated by other countries eager to attract foreign investors, particularly Eastern European nations. In the first half of 2007, a number of high profile multinational manufacturing companies announced that they were leaving Ireland for other countries where corporate tax rates, labour costs and living costs are lower. These trends mean that growth in Ireland’s GDP over the forecast period will not be as fast as that recorded over 2001-2006.
One of the key risks for the Irish economy is the housing market. Between 1996 and 2006, average house prices roughly tripled in real terms. House prices fell markedly in the first half of 2007, and housing completions are expected to decline throughout 2007 and 2008. While this is a worrying trend, it will be offset somewhat by increased spending on home improvements, investment in infrastructure and commercial construction. The most likely scenario is that house prices will continue to level out, and the housing market will experience a soft landing rather than a dramatic crash. However, this could have a knock on effect on consumer confidence and spending, particularly when it is considered that over 10% of Ireland’s total workforce was employed in construction in 2006.
Future impact
The preoccupation of Irish consumers with home improvements and high quality household goods is set to be maintained over the forecast period. As a result, disposable paper products manufacturers will continue to introduce new versions of their products in different formats and designs. In many sectors, the updating or expansion of existing product ranges will be more prominent then the development of completely new products. In more mature sectors such as toilet paper, the scope for innovations is limited. The Irish sewage system will not be able to cope with any further increase in paper thickness, which will seriously restrict the type of new product developments that can be undertaken. Accordingly, manufacturers will have to focus on improving the visual aspect of their products (eg new designs on paper) in order to drive growth in constant value sales.
Given that the cost of eating and drinking in on-trade outlets shows no sign of declining, Irish consumers will find themselves entertaining at home on a more frequent basis. The increasing popularity of barbecuing and dinner parties, coupled with the fact that consumers are free to smoke indoors at home and drink until any hour they please, will boost demand for quality disposable paper products. In addition, as home entertaining becomes more frequent, the need to have appropriate disposable paper products on display in every room of the house will increase.
As Irish consumers adopt an increasingly multicultural or global outlook, domestic brands will have to offer something more than just their Irish background if they are to compete successfully with the big players. Multinationals have the resources to invest heavily in innovations that meet specific consumer needs, whereas most domestic players lack the facilities and finances necessary to develop cutting edge products. In addition, multinationals have huge marketing budgets which allow them to promote their global brands efficiently, even in the less profitable disposable paper products sectors. These advantages mean that domestic brands will continue to see their value shares eroded over the forecast period as they struggle for recognition in an increasingly crowded market. Moreover, domestic brands will also face greater competition from private label products as international retailers like Tesco, Lidl and Aldi continue to expand in Ireland.
Demand for premium and private label products continues to rise
Leisure became an increasingly important aspect of Irish society over the review period, with busy consumers turning to labour-saving products and devices to free up time for hobbies and pastimes. Long working hours mean that Irish people place a high value on leisure time and pursuing their favourite activities, which makes them reluctant to spend any more time than is absolutely necessary on mundane and labour intensive tasks outside the workplace.
Much of the growth in leisure pursuits in Ireland has been fuelled by rising disposable incomes. Unfortunately, rising disposable incomes have been accompanied by increases in the cost of living. House prices in the country rocketed between the late 1990s and 2006, especially in Dublin. This has created an environment where leisure time is becoming increasingly precious. As a result, consumers are willing to spend higher amounts on convenient products that afford them more time to pursue their hobbies and interests. Convenience is king, and cash-rich, time poor consumers are willing to pay a premium for products that fulfil this need.
Not only are Irish consumers changing what they spend their money on, but they are also changing where they spend it. While supermarkets/hypermarkets retained the largest share of grocery retailing current value sales in 2006, discounters made steady gains throughout the review period. This occurred as discounters chains Aldi and Lidl rapidly expanded their operations in Ireland. In line with rising discontent over cost of living increases, which received popular expression in the phrase ‘rip-off Ireland’, Irish consumers quickly warmed to the low price offering of discounters chains, particularly in commodity product categories. Together with the expansion of multinational supermarkets/hypermarkets chains like Tesco, this led to an increase in the penetration of private label products throughout grocery retailing. While private label products were once viewed as being substandard, in 2006 they were increasing seen as offering reasonable quality at affordable prices.
Current impact
The impact of rising disposable incomes, longer working hours and the high value placed on leisure time has manifested itself in a number of ways. On the one hand, Irish consumers are now more willing to pay higher prices for convenient items that can save time or offer some kind of added-value benefit, such as wipes or luxury toilet paper products, for example. At the same time however, they are reluctant to waste money on mid-priced commodity products that offer no perceivable added-value benefit. During the review period, this allowed multinational disposable paper products brands to continue making gains at the expense of smaller standard brands, particularly those from domestic manufacturers.
Moreover, the review period also witnessed an opposing trend in the form of rising penetration for private label products throughout the disposable paper products market, particularly in commodity sectors like kitchen towels and cotton wool/buds/pads. While private label products were once seen as cheap, low quality imitations of branded products, consumers increasingly came to see them as offering good quality at reasonable prices. In many sectors, there is now little difference in terms of quality between private label products and leading brands. In toilet paper, for example, consumers can buy 3-ply private label products with added aloe vera which compare favourably with equivalent items sold under leading brands like Andrex or Inversoft. Moreover, private label products are considerably cheaper than branded products. As a result, private label products accounted for a value share of 43% in toilet paper in 2006, and a value share of 24% in disposable paper products as a whole.
However, private label product penetration remained relatively low in sectors like sanitary protection and nappies/diapers/pants in 2006. This is attributable to the fact that products in these sectors are more akin to personal care items, which means consumers are more likely to opt for quality brands that they can trust. As a result, average unit prices for sanitary protection and nappies/diapers/pants products remained comparatively high throughout the review period.
Future outlook
The Irish economy is expected to continue growing over the forecast period, albeit at a slower rate than it did over 2001-2006. Private consumption is expected to increase by 6-7% in 2007 alone. While longer working hours will support rising disposable incomes, this will inevitably be tempered by increases in living costs. Nonetheless, certain factors will continue to drive demand for both premium and private label disposable paper products. With regard to premium products, the increasing importance of leisure time will ensure that consumers remain willing to pay higher prices for convenient items that can reduce the amount of time spent on laborious household chores. Additionally, demand for premium products will also be boosted as Irish consumers spend more time entertaining guests at home and investing in the upkeep or decoration of their houses. At the same time, a reluctance to spend money on mid-priced standard products in commodity categories will facilitate steady demand for private label products, the quality of which of improving all the time. Growing income disparities will also ensure that private label products remain an attractive option for low earners.
Future impact
Ireland’s cash-rich, time-poor consumer culture will allow multinational brands to retain their leading positions in more developed disposable paper products sectors over the forecast period. Reluctant to waste any more time than is absolutely necessary on shopping, consumers will continue to go straight for the brands they know and trust, which are invariably those from multinational players. Multinational brands will remain strongest in those sectors with high brand loyalty and low private label penetration, such as nappies/diapers/pants and sanitary protection. Together with frequent innovations, high disposable incomes will ensure that consumers feel comfortable paying the higher cost for multinational brands, provided that they can offer some kind of added-value benefit.
At the same time, private label products are also expected to make further inroads into disposable paper products over the forecast period. Indeed, it is likely that private label products will eventually replace domestic brands completely in a number of sectors. As smaller domestic producers find themselves increasingly squeezed between low price private label products on one hand and high quality multinational brands on the other, they may be forced to turn to the production of private label products for leading retail chains in order to maintain profitability. While this strategy may provide a short-term solution, it is ultimately likely to hasten their downfall. As the quality of private label products continues to improve, multinationals will be forced to develop innovative new products and marketing methods to achieve differentiation.
If there is any downturn in consumer confidence, the disposable paper products market will be among the first to be affected. Consumers are quick to cut out luxury products from their weekly shopping baskets when times are tight; given that the quality of private label products is improving all the time, they can now do so without having to make too much of a sacrifice. Hence any downturn in consumer confidence would have an adverse effect on demand for premium branded products, but boost demand for private label products offering reasonable quality at acceptable prices.
Legislative changes alter Ireland’s retail landscape
Surprisingly for a country traditionally renowned for its laidback and relaxed attitude to life, Ireland became increasingly bound up by regulations and legislation during the review period. For instance, Ireland was the first European country to impose a ban on smoking in the workplace, which had a dramatic impact on demand for alcoholic drinks products in the on-trade channel. Government legislation also played an influential role in the development of the country’s retailing market. This was most evident in the reform of Retail Planning Guidelines and the abolition of the Groceries Order.
In 2001, new Retail Planning Guidelines were introduced in Ireland to help shape the development of the country’s retail landscape. Among other things, the legislation placed limits on the size of new supermarkets and larger grocery retailers outlets, as well as restrictions on where they could be located. Specifically, it was decided that such outlets should only be constructed in areas that were accessible to people without cars. Caps were also introduced on the size of retail warehouses and parks, and large out-of-town shopping malls were effectively banned. These restrictions were gradually relaxed or expanded over the review period however, paving the way for bigger retail developments and encouraging new entrants into different retail channels.
In March 2006, the Groceries Order was abolished. Introduced in 1987, this piece of legislation banned the sale of grocery items below wholesale price. The abolition of the Groceries Order was designed to encourage competition in the retailing market and stop suppliers from keeping prices at artificially high levels. The theory was that price competition would increase and larger grocery retailers chains would put pressure on suppliers, who would in turn be forced to reduce costs. This was intended to result in an extremely sophisticated, economically efficient supply chain which would allow retailers to adapt their offerings to fit the diverse needs of their customers. The real effects of this change only began to become visible towards the end of 2006 and beginning of 2007.
Current impact
Legislative changes affected disposable paper products manufacturers in a number of ways during the review period. According to the CSO, the abolition of the Groceries Order caused a decline of 0.6% in the price of the average grocery basket between March 2006 and March 2007. This occurred as supermarkets operators, which accounted for the highest share of grocery retailers current value sales, reduced prices in a wide variety of product categories. Price reductions were most evident in food categories, and this had a knock on effect in non-food categories. As consumers found that they were paying less for their food shopping, they opted to spend more on non-food items in supermarkets outlets. This resulted in a trend towards trading up in a number of product areas, including disposable paper products. As a result, demand for premium or luxury brands in sectors like toilet paper rose steadily in 2006.
As the abolition of the Groceries Order squeezed margins on food items, it also encouraged supermarkets players to expand their product assortments in a range of categories, including disposable paper products. New brands were introduced, and disposable paper products were given more prominent positions on supermarket shelves. As this occurred, supermarkets chains like Tesco were effectively able to operate like hypermarkets players, and Irish consumers proved increasingly willing to shop for non-food items in supermarkets outlets.
The Retail Planning Guidelines, introduced in 2001 and subsequently revised, played a crucial role in shaping Ireland’s retail landscape over the review period. While there were a number of notable cases where local council authorities prevented new retail developments from going ahead, overall there was a massive expansion in new retail space. In many instances, local authorities made exceptions to planning restrictions for larger retailers such as Ikea and Tesco on the grounds that their presence would boost local employment and economic growth. However, while the amount of retail space in Ireland increased by almost 300% between 2001 and 2006, the number of new retail jobs in the country increased by just 15%, reflecting the fact that bigger outlets did not automatically translate into higher employment.
The result of all this new retail space was that Irish consumers gained access to an ever increasing number and variety of products across a wide range of categories. As many of the larger outlets were owned by international chains, there was also a corresponding increase in the number of global brands on Irish shelves as retailers rationalised their supply chains to gain maximum efficiency. This was clearly evident in disposable paper products, where Irish brands lost out to those from multinational players throughout the review period. As consumers embraced the modernisation of Ireland’s retailing environment, they became less concerned with the nationality of individual products and more concerned with buying recognisable brands that they could trust.
Future outlook
As planning laws continue to be relaxed, it is expected that the number of large-scale retail outlets in Ireland will increase significantly over the forecast period. Multinational retail chains hold a great deal of influence over planners and local councils in the country, who see large-scale retail outlets as a good way of bringing new jobs and economic growth into their local areas. This is exemplified by the meteoric rise of Tesco, which looks set to become as formidable a force in Ireland’s retailing market as it has in the UK. As multinationals like Tesco gain ground in the country, they will continue to lobby for permission to open bigger outlets so as to capture as wide a customer base as possible and achieve supply chain efficiencies.
Numerous studies show that Ireland is following the US model of car dependency, which brings with it the threat of urban sprawl, various health and environmental problems, a reduction in social capital and the demise of traditional family-owned shops. The demise of family-owned shops is of particular concern, as they have always played an important role in maintaining economic vibrancy and good social relations in local communities. As the modernisation of Ireland’s retailing environment continues, the focus on large-scale out-of-town retail parks could eventually lead to a backlash from citizens, which would probably prompt the government to place new restrictions on such developments. Ireland is heavily dependent on tourism, and it often trades on offering a more traditional or relaxed way of life in this respect. If it becomes apparent that urban sprawl and the proliferation of uniform large-scale retail outlets are discouraging foreign visitors, the chances that the government will take action are more likely. Aside from limiting the size and location of larger chained outlets, the government could offer tax relief to smaller independent retailers selling fresh produce or local goods, for example.
Future impact
The real impact of abolition of the Groceries Order will only become apparent towards the end of the forecast period, as it will take the economy some time to adjust to the new retailing environment. As supermarkets chains grow in size and offer wider assortments of non-grocery items, disposable paper products are likely to prove increasingly important in terms of attracting consumers into outlets. Larger retailers will continue to rationalise their product assortments and stock global brands backed by heavyweight marketing budgets, as these are instantly recognisable to Irish consumers.
The rise of multinational disposable paper products brands at the expense of their domestic counterparts will be accelerated by the expansion of larger retail chains and the decline of small independent operators. Increasing competition for the attention of consumers will continue to drive independent retailers out of business. It is expected that this situation will eventually reach a tipping point, whereby the number of smaller independent retailers will reach a level so low that the independent wholesaling channel on which they rely will all but collapse. The consequences for the remaining independent retailers will be catastrophic, as major suppliers will not be interested in trading with them individually or supplying them directly. This could spell the end of domestic disposable paper products brands, as they are largely dependent on high volume sales and there is little room for niche brands in most sectors. Given the increasing consumer preference for multinational brands and private label products, large retail chains will be unwilling to allocate valuable shelf space to mid-priced domestic brands that cannot offer any significant added-value benefits.
Changing demographic trends benefit disposable paper products
Ireland had the highest birth rate in the EU in 2006, recording 14.5 births per 1,000 inhabitants, and showed consistent population growth throughout the review period. This was in stark contrast to other Western European countries, where population sizes declined steadily. Having been characterised by high emigration for the best part of three centuries, in the early 1990s the rise of the Celtic Tiger economy supported a complete reversal of this trend. Rising employment and high wage levels allowed young Irish people to stay at home, while labour shortages in a range of industries meant that the country experienced significant immigration for the first time in its history. Ireland subsequently witnessed an influx of skilled and unskilled foreign workers from countries within and outside the EU, as well as the return of many expatriates who had been forced to leave the country in tougher economic times. This altered Ireland’s demographic profile significantly in terms of age and ethnic groups.
Current impact
Demographic trends had a direct impact on a number disposable paper products sectors during the review period. Healthy volume growth in nappies/diapers/pants, cotton wool/buds/pads and baby wipes, for example, was largely attributable to Ireland’s high birth rate. Increasing affluence among women in Ireland meanwhile boosted demand for sanitary protection, pocket handkerchiefs, feminine hygiene wipes and facial cleansing wipes products. Additionally, demand for incontinence products rose as Ireland’s elderly population increased in line with average life expectancy.
The changing role of women in Irish society also influenced the development of the disposable paper products market. As more women than ever before took up well-paid jobs, many chose to return to work after having children. Indeed, many had no option but to return to work, given rapidly rising house prices and living expenses. This led to an increase in the number of cash-rich, time-poor households with two working parents, supporting a rise in demand for premium disposable paper products that offered greater convenience, functionality or time-saving benefits.
Because they are more likely than men to make the weekly household shopping trip, women were also the main targets of most innovations in disposable paper products during the review period. This was most obvious in terms of product designs and the ways in which different brands were marketed. For example, there was a major focus on the aesthetic qualities of toilet paper and kitchen towels products, which are now available in a myriad of different colours and patterns.
Future outlook
Ireland’s population was still relatively young compared to other EU countries in 2006. The total population is expected to grow at a rate of 0.8% per annum to reach 4.7 million in 2020. The proportion of the population under 20 years of age in 2020 will be around 27%, and there will be little change in the ratio of people of retirement age (over 65 years) to those that are eligible for the workforce (20 to 64 years) at around 4.8 potential workers per elderly person. Accordingly, Ireland’s age dependency ratio will be considerably higher than that projected for the enlarged EU. Moreover, Ireland is expected to have the smallest share of the total population comprised by people over 65 years of age (12%) of any country in the EU in 2020. Meanwhile, the number of persons of prime working age (25-54 years) will rise by one million, while their share in the total population will increase to around 43% by 2020.
Immigration patterns in Ireland will also continue to change. Prior to the 1990s, skilled workers from countries such as the US, Japan, India and Pakistan formed a sizeable proportion of the total immigrant population. This changed dramatically during the mid 1990s and over the review period, with greater numbers of semi-skilled or unskilled workers coming to Ireland. According to the CSO, in 2006 10% of the total population was comprised of foreign nationals, ie those who do not describe themselves as Irish in official surveys. The vast majority of these immigrants came from Eastern European countries which joined the EU in 2004, such as Poland and Lithuania. Large numbers also came from Asian and African countries. Immigrants from Eastern Europe, Africa and Asia will continue to come to Ireland in search of employment over the forecast period. However, the rate of immigration is likely to be slower than that recorded over 2001-2006.
Future impact
Ongoing changes in Ireland’s demographic profile will continue to shape the development of the disposable paper products market over the forecast period. Together with a relatively high birth rate, steady population growth will support volume and constant value sales growth for the market as a whole, though some sectors will naturally benefit more than others. Nappies/diapers/pants and cotton wool/buds/pads will be the main beneficiaries of the high birth rate. While the comparatively small size of Ireland’s elderly population will limit demand for incontinence products, this will be offset to some degree by increases in life expectancy, which will see people use such products for longer. Moreover, as health awareness rises and the stigma attached to incontinence is reduced, the use of substitute products (ie sanitary protection) will decline, and this will also bolster demand for incontinence products.
As women in Ireland become more affluent, they will become even more central in influencing how disposable paper products are designed and marketed. Also, as the number of women living alone rises, the design and appearance of disposable paper products will prove increasingly important. Manufacturers will thus continue to expand their ranges with innovative added-value products that appeal to this demographic group in particular to boost constant value sales.
Immigration will continue to support greater diversity in the ethnic makeup of Ireland’s population. Many immigrants will look for disposable paper products brands that they already know and trust from their home countries. This will help to ensure that multinational brands continue making gains at the expense of domestic branded products.
Table of contents
DISPOSABLE PAPER PRODUCTS IN IRELAND : MARKET INSIGHT
Growth in 2006 does not match growth rates from review period
New product development drives value growth
Multinationals dominate the market
Discounters stealing retail distribution share
Gloomy forecast
KEY TRENDS AND DEVELOPMENTS
Rapid economic expansion revolutionises consumer lifestyles
Demand for premium and private label products continues to rise
Legislative changes alter Ireland’s retail landscape
Changing demographic trends benefit disposable paper products
MARKET INDICATORS
Table 1 Birth Rates 2001-2006
Table 2 Infant Population 2001-206
Table 3 Female Population by Age 2001-2006
Table 4 Total Population by Age 2001-2006
Table 5 Households 2001-2006
Table 6 Forecast Infant Population 2006-2011
Table 7 Forecast Female Population by Age 2006-2011
Table 8 Forecast Total Population by Age 2006-2011
Table 9 Forecast Households 2006-2011
MARKET DATA
Table 10 Retail Sales of Disposable Paper Products by Sector: Value 2001-2006
Table 11 Retail Sales of Disposable Paper Products by Sector: % Value Growth 2001-2006
Table 12 Retail Sales of Disposable Paper Products by Distribution Format: % Analysis 2001/2006
Table 13 Retail Sales of Disposable Paper Products by Sector and Distribution Format: % Analysis 2006
Table 14 Penetration of Private Label by Sector 2002-2006
Table 15 Forecast Retail Sales of Disposable Paper Products by Sector: Value 2006-2011
Table 16 Forecast Retail Sales of Disposable Paper Products by Sector: % Value Growth 2006-2011
DEFINITIONS
LOCAL COMPANY PROFILES - IRELAND
DRAMMOCK LTD - DISPOSABLE PAPER PRODUCTS - IRELAND
STRATEGIC DIRECTION
KEY FACTS
Summary 1 Drammock Ltd Key Facts
COMPANY BACKGROUND
PRODUCTION
COMPETITIVE POSITIONING
Summary 2 Drammock Ltd: Competitive Position 2006
IRISH BREEZE LTD - DISPOSABLE PAPER PRODUCTS - IRELAND
STRATEGIC DIRECTION
KEY FACTS
Summary 3 Irish Breeze Ltd: Key Facts
COMPANY BACKGROUND
PRODUCTION
Summary 4 Irish Breeze Ltd: Production Statistics 2006
COMPETITIVE POSITIONING
Summary 5 Irish Breeze Ltd: Competitive Position 2006
SANITARY PROTECTION IN IRELAND
HEADLINES
TRENDS
COMPETITIVE LANDSCAPE
PROSPECTS
SECTOR DATA
Table 17 Retail Sales of Sanitary Protection by Subsector: Value 2001-2006
Table 18 Retail Sales of Sanitary Protection by Subsector: % Value Growth 2001-2006
Table 19 Retail Sales of Tampons by Application Format: % Value Analysis 2002-2006
Table 20 Sanitary Protection Retail Company Shares 2002-2006
Table 21 Sanitary Protection Retail Brand Shares 2003-2006
Table 22 Forecast Retail Sales of Sanitary Protection by Subsector: Value 2006-2011
Table 23 Forecast Retail Sales of Sanitary Protection by Subsector: % Value Growth 2006-2011
NAPPIES/DIAPERS/PANTS IN IRELAND
HEADLINES
TRENDS
COMPETITIVE LANDSCAPE
PROSPECTS
SECTOR DATA
Table 24 Retail Sales of Nappies/Diapers/Pants by Subsector: Value 2001-2006
Table 25 Retail Sales of Nappies/Diapers/Pants by Subsector: % Value Growth 2001-2006
Table 26 Nappies/Diapers/Pants Retail Company Shares 2002-2006
Table 27 Nappies/Diapers/Pants Retail Brand Shares 2003-2006
Table 28 Forecast Retail Sales of Nappies/Diapers/Pants by Subsector: Value 2006-2011
Table 29 Forecast Retail Sales of Nappies/Diapers/Pants by Subsector: % Value Growth 2006-2011
INCONTINENCE PRODUCTS IN IRELAND
HEADLINES
TRENDS
COMPETITIVE LANDSCAPE
PROSPECTS
SECTOR DATA
Table 30 Retail Sales of Incontinence Products: Value 2001-2006
Table 31 Retail Sales of Incontinence Products: % Value Growth 2001-2006
Table 32 Retail Sales of Light Vs Moderate/Heavy Retail Incontinence Products 2003-2006
Table 33 Incontinence Products Retail Company Shares 2002-2006
Table 34 Incontinence Products Retail Brand Shares 2003-2006
Table 35 Forecast Retail Sales of Incontinence Products: Value 2006-2011
Table 36 Forecast Retail Sales of Incontinence Products: % Value Growth 2006-2011
WIPES IN IRELAND
HEADLINES
TRENDS
COMPETITIVE LANDSCAPE
PROSPECTS
SECTOR DATA
Table 37 Retail Sales of Wipes by Subsector: Value 2001-2006
Table 38 Retail Sales of Wipes by Subsector: % Value Growth 2001-2006
Table 39 Wipes Retail Company Shares 2002-2006
Table 40 Wipes Retail Brand Shares 2003-2006
Table 41 Forecast Retail Sales of Wipes by Subsector: Value 2006-2011
Table 42 Forecast Retail Sales of Wipes by Subsector: % Value Growth 2006-2011
COTTON WOOL/BUDS/PADS IN IRELAND
HEADLINES
TRENDS
COMPETITIVE LANDSCAPE
PROSPECTS
SECTOR DATA
Table 43 Retail Sales of Cotton Wool/Buds: Value 2001-2006
Table 44 Retail Sales of Cotton Wool/Buds: % Value Growth 2001-2006
Table 45 Cotton Wool/Buds Retail Company Shares 2002-2006
Table 46 Cotton Wool/Buds Retail Brand Shares 2003-2006
Table 47 Forecast Retail Sales of Cotton Wool/Buds: Value 2006-2011
Table 48 Forecast Retail Sales of Cotton Wool/Buds: % Value Growth 2006-2011
TOILET PAPER IN IRELAND
HEADLINES
TRENDS
COMPETITIVE LANDSCAPE
PROSPECTS
SECTOR DATA
Table 49 Retail Sales of Toilet Paper: Value 2001-2006
Table 50 Retail Sales of Toilet Paper: % Value Growth 2001-2006
Table 51 Retail Sales of Wet Vs Dry Toilet Paper 2003-2006
Table 52 Toilet Paper Retail Company Shares 2002-2006
Table 53 Toilet Paper Retail Brand Shares 2003-2006
Table 54 Forecast Retail Sales of Toilet Paper: Value 2006-2011
Table 55 Forecast Retail Sales of Toilet Paper: % Value Growth 2006-2011
TISSUES IN IRELAND
HEADLINES
TRENDS
COMPETITIVE LANDSCAPE
PROSPECTS
SECTOR DATA
Table 56 Retail Sales of Tissues by Subsector: Value 2001-2006
Table 57 Retail Sales of Tissues by Subsector: % Value Growth 2001-2006
Table 58 Tissues Retail Company Shares 2002-2006
Table 59 Tissues Retail Brand Shares 2003-2006
Table 60 Forecast Retail Sales of Tissues by Subsector: Value 2006-2011
Table 61 Forecast Retail Sales of Tissues by Subsector: % Value Growth 2006-2011
KITCHEN TOWELS IN IRELAND
HEADLINES
TRENDS
COMPETITIVE LANDSCAPE
PROSPECTS
SECTOR DATA
Table 62 Retail Sales of Kitchen Towels: Value 2001-2006
Table 63 Retail Sales of Kitchen Towels: % Value Growth 2001-2006
Table 64 Kitchen Towels Retail Company Shares 2002-2006
Table 65 Kitchen Towels Retail Brand Shares 2003-2006
Table 66 Forecast Retail Sales of Kitchen Towels: Value 2006-2011
Table 67 Forecast Retail Sales of Kitchen Towels: % Value Growth 2006-2011
PAPER TABLEWARE IN IRELAND
HEADLINES
TRENDS
COMPETITIVE LANDSCAPE
PROSPECTS
SECTOR DATA
Table 68 Retail Sales of Paper Tableware by Subsector: Value 2001-2006
Table 69 Retail Sales of Paper Tableware by Subsector: % Value Growth 2001-2006
Table 70 Paper Tableware Retail Company Shares 2002-2006
Table 71 Paper Tableware Retail Brand Shares 2003-2006
Table 72 Forecast Retail Sales of Paper Tableware by Subsector: Value 2006-2011
Table 73 Forecast Retail Sales of Paper Tableware by Subsector: % Value Growth 2006-2011
AWAY-FROM-HOME DISPOSABLE PAPER PRODUCTS IN IRELAND
HEADLINES
TRENDS
COMPETITIVE LANDSCAPE
PROSPECTS
SECTOR DATA
Table 74 Away-From-Home Sales of Disposable Paper Products by Sector: Value 2001-2006
Table 75 Away-From-Home Sales of Disposable Paper Products by Sector: % Value Growth 2001-2006
Table 76 Away-From-Home Sales of Disposable Paper Products by Distribution Format: % Analysis 2001/2006
Table 77 Away-From-Home Sales of Disposable Paper Products by Sector and Distribution Format: % Analysis 2006
Table 78 Forecast Away-From-Home Sales of Disposable Paper Products by Sector: Value 2006-2011
Table 79 Forecast Away-From-Home Sales of Disposable Paper Products by Sector: % Value Growth 2006-2011