Global Baby Nappies/Diapers/Pants Update: Balancing Affordability and Premium Innovation

Delivery

This report comes in PPT.

Key Findings

Growing awareness, rapid urbanisation and product variety contribute to category growth, while declining birth rates curtail moment

Developing countries are the main engine driving growth in nappies/diapers/pants, with the disposable pant format seeing the strongest momentum and most vibrant industry innovations, while the dominant nappies/diapers category navigates a more nuanced global battlefield. Though still a marginal segment, the cloth format continues imposing competitive pressure, given its eco-friendly and affordability advantages.

Reinforced price sensitivity propels supply chain optimisation, portfolio diversification and targeted value communications

As financial uncertainty and price inflation drive consumers to seek value-centric products without compromising on quality, companies looking to address the mass audience are expected to reassess the supply chain for cost reductions and further articulate functionality-centric value propositions that resonate well with millennial and generation Z parents, a key audience of nappies/diapers/pants.

Demand for ethical product features and holistic care drives brand positioning shift and opens up premiumisation opportunities

As COVID-19 has elevated parents’ concerns about their babies’ health, their expectations for conscience, transparency and care to be executed in a more precise way are growing. In response, companies vying for value growth are increasingly banking on a greener supply chain, more diversified portfolios, smart technologies, as well as claims and social campaigns that align with consumers’ priorities and values.

An omnichannel strategy, including strengthened digital agility, customisability and authenticity, will drive long-term growth

With the pandemic driving e-commerce’s growth at an unprecedented rate, a robust digital strategy has become a vital element in a brand’s retail success. As millennial and generation Z parents look online for a hassle-free shopping experience, and hope to form a deeper connection with brands, companies are striving for a balance between customisability and inclusivity.