Nappies/Diapers/Pants in Azerbaijan

2021 DEVELOPMENTS

Resistance to pandemic

Sales of nappies/diapers/pants saw a slight decline in 2020, although as these are products that consumers cannot do without sales remained positive. Nonetheless, restrictions on store entry and a other lockdown measures meant that consumer access to these products, especially emergency purchases, was limited.

Immaturity lingers, offering substantial potential

Nappies/diapers are the dominant product in this channel, reflecting the comparative lack of development in Azerbaijan. Most consumers in Azerbaijan perceive diapers as a staple, whereas disposable pants are seen as a specialist product that most children don’t need; in addition, they typically carry a markedly higher unit price, and in the current climate of acute price sensitivity demand has weakened.

Local production struggles to compete

The competitive environment in nappies/diapers/pants is dominated by international brand operators, notably category leader Procter & Gamble Azerbaijan. However, the company has consistently lost share, thanks largely to an influx of cheaper Turkish brands over the review period; Predo Saglik Ürünler San ve Tic Ltd AS’s Predo brand, for example, has made rapid gains.

PROSPECTS AND OPPORTUNITIES

Category set for volume growth, with possibility of better long term price positions

Sales of nappies/diapers/pants are set to see ongoing positive volume growth over the forecast period, underpinned in large part by the country’s favourable demographic changes. Although birth rates in Azerbaijan are slowing, they still will remain high in comparison to most countries in the region.

Shape of category set to remain unchanged

Standard nappies/diapers will continue to be the most important product set in Azerbaijan; these products are favoured by consumers thanks to their functionality and relatively low cost. Disposable pants, on the other hand, are set to remain a limited part of the market, with growth rates exaggerated by emergence from lower sales bases.

Retail shift and new availability offers opportunity to build consumer base

The retail landscape will continue to shift over the forecast period, as modern grocery retailers continue to invest in new store openings and more consumers start to shop in the channel. These retailers have already seen a rapid shift in their favour over the review period, and the pandemic has accelerated this; consumers have more favourable perceptions of their hygienic safety, and the idea of a single shopping trip also means (in theory) less exposure to potential infection.