The category of baby nappies/diapers/pants sees positive growth globally, with increased usage in developing markets. Developed regions have seen a push for premium to improve value in the absence of organic growth. Performance in 2020 will be shaped by the extent of the economic fallout from the Coronavirus pandemic, with more focus on affordability. This report reveals key drivers behind category growth globally through 2024, consumer preferences across markets, and retail channel shifts.
This report comes in PPT.
Large untapped potential but possibility for setback in pace of growth due to COVID-19
The category has a significant global untapped potential, mainly coming from developing markets. Stockpiling early 2020 led to a temporary spike in demand in the developed regions. However, the full impact of COVID-19 on the category will be determined by the extent of economic fallout from the pandemic and the pace of recovery. Affordability in products and innovation will likely take centre stage in the short to mid term. It is important to note that affordability does not equal cheap.
In 2019, many nappy/diaper brands focused on the premium space, including natural ingredients. However, not all consumers are willing to pay more for premium features. It is important to understand consumer priorities in nappies/diapers and the features they are willing to spend on to tailor innovation, especially in the COVID-19-driven focus on cost efficiencies. For example, while natural features and softness appeal strongly to consumers in China, US parents prioritise leak protection and value.
Private label has gained a footing in the category over the years, and innovation and plans for expansion into private label continue in 2020. Consumers’ tendency to seek private label is expected to increase further in 2020, also supported by depressed incomes in the COVID-19 environment. In addition to private label developments, retailers are also turning to more partnerships to build exclusive brands across price segments to drive customer traffic.
Pants remain on the agenda for the industry, with more products coming out in developed and developing regions. To support consumer demand among lower- income consumers, some brands have been introducing more affordable pants into the developing markets.
This is the aggregation of retail and away-from home tissue and disposable hygiene products as well as Rx/reimbursement adult incontinence.
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