Nappies/Diapers/Pants in Austria

2021 DEVELOPMENTS

Retail value sales continue to grow at a stable rate, while volume sales are negatively affected by the declining birth rate

Nappies/diapers/pants recorded stable retail value sales growth in 2021. Value growth was driven by average unit price increases and a growing demand for premium products.

Price subsidies drive return of cloth diapers

Many cities and regions in Austria have begun promoting the use of cloth diapers in a bid to tackle the high volume of waste associated with disposable diapers. Subsidies, so-called Windelscheck, of between EUR70 and EUR100 per newborn, can be redeemed when buying a cloth diapers starter pack.

Leader Procter & Gamble faces growing challenge from private label players

Private label brands continued to challenge and slightly erode the value share of dominant player Procter & Gamble Austria and its Pampers brand in 2021. Leading private label players Hofer, Rewe International and dm-Drogerie Markt continued to account for over one-quarter of total value sales with their Mylove, Baby Well and babylove brands respectively in 2021, benefiting from comparable reliability, quality and lower unit prices.

PROSPECTS AND OPPORTUNITIES

Expansion of subsidies and continuing low birth rate set to challenge growth prospects

With the exception of disposable pants, all categories within nappies/diapers/pants are expected to record negative retail value growth at constant 2021 prices over the forecast period. The key driver for this trend is set to be the growing interest in reusable alternatives along with a further expansion of subsidies across the entire country as authorities seek to invest in sustainability.

Environmentally-conscious consumers set to favour cloth diapers over green brands

Towards the end of the review period, Austria saw a notable increase in the availability of green brands in nappies/diapers/pants. However, these have had only a very limited impact to date and this is not expected to change over the forecast period.

Alternative products and rise of private label set to increase pressure on unit prices

Growing consumer interest in the use of alternatives to conventional nappies/diapers/pants is expected to lead to increasing pressure on unit price growth, with negative growth across all categories at constant prices by the middle of the forecast period. Private label products, which are typically found within the economy to mid-price ranges, are likely to continue capturing consumers’ attention over the forecast period, further contributing to the downward trend in value growth and unit prices.