Cotton Wool/Buds/Pads in Kenya

TRENDS

Cotton wool/buds/pads continued to see slow sales growth from a low base at the end of the review period. Sales are being boosted by an expanding mid-income group and rising disposable income levels. A growing focus on hygiene is also supporting growth. These factors supported a slightly stronger volume growth of 3% in 2014 over the previous year, in comparison to a review period CAGR of 2%.

COMPETITIVE LANDSCAPE

African Cotton Industries dominated sales of cotton wool/buds/pads throughout the review period and accounted for 61% value share in 2014. This company benefits from representing Unilever's Dove brand, which has a high quality positioning due to offering hospital quality and high absorbency. The company also offers its own Tender Care brand, which is also 100% pure cotton but has a more affordable price in comparison to Dove. The company's products thus have a strong appeal to both mid- and high-income consumers.

PROSPECTS

Private label could well emerge in cotton wool/buds/pads in the forecast period. Leading grocery retailer Nakumatt launched its Nakumatt Blue Label private label range in retail tissue towards the end of the review period, with the retailer planning to further expand its range in the forecast period. If Nakumatt is able to offer affordable and good quality cotton wool/buds/pads, its products would be likely to prove popular among mid-income consumers. Crucially, the dominant player in cotton wool/buds/pads, African Cotton Industries, supplies Nakumatt Blue Label with retail tissue products and may well be prepared to also produce private label cotton wool/buds/pads for the retailer.

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