Nappies/Diapers/Pants in Canada

2021 DEVELOPMENTS

Nappies/diapers sees a slight rebound, while disposable pants posts the strongest growth

2021 saw a slight rebound in the volume consumption of nappies/diapers, due in part to improved product availability and a marginal increase in live births. However, against the backdrop of a consistent decline in the birth rate since pre-pandemic, pandemic-induced financial and health concerns continued weighing on family formation and potential parents’ child-bearing decision-making.

Brands continue gaining share, given recognition, innovations and segmentation strategies

Nappies/diapers/pants continues to be dominated by Kimberly-Clark and Procter & Gamble, which made up a combined 78% of the category’s total value sales in 2021, up from 77% in 2019. This was largely due to consumers’ established affinity for household brand names such as Huggies and Pampers, which to many are synonymous with quality and consistency.

Digital sphere gains a foothold amongst shoppers for nappies/diapers

Although bricks-and-mortar outlets remain the key shopping destinations for baby nappies/diapers, particularly supermarkets, the digital domain has become more attractive, due in large part to consumers’ growing expectation of a more convenient, predictable and in many cases personalised shopping journey. According to Euromonitor’s 2022 Voice of the Consumer Lifestyles Survey, about a third of Canadian parents with children under five years old purchased beauty and personal care products, including nappies/diapers, on a smartphone, computer or tablet in 2022, up from about a quarter in 2019.

PROSPECTS AND OPPORTUNITIES

Sluggish birth rate underpins soft outlook for nappies/diapers, while lifestyle shift upends disposable pants

In the immediate future, pandemic-induced inflation and health uncertainty, coupled with sluggish immigration inflow and low childbearing sentiment, will dampen the growth in live births and per capita consumption of open nappies/diapers. The improved quality of nappies/diapers will allow for fewer changes, while the growing popularity of cloth nappies/diapers will also weigh on the consumption of disposable nappies/diapers.

Value positioning comes to the fore, while performance and sustainability features drive brand differentiation

Against the backdrop of broader inflation on top of long-standing nappy/diaper poverty since pre-pandemic, affordability is a key criterion for shoppers when it comes to nappies/diapers/pants. Hence, brands hoping to appeal to the broader middle- to low-income consumer group, the parents hardest-hit by the pandemic-induced price increases, should first and foremost take value into account.

Digital presence gains importance and becomes an integral part of channel strategy

For many Canadians, the shift to e-commerce during COVID-19 has become entrenched, especially when it comes to shopping for bulky nappies/diapers and disposable pants. Easy site navigation, low-cost and fast delivery, promotions, customisable bundles and flexible subscription plans will remain key motivators for the digital shift.