Nappies/Diapers/Pants in Israel

2021 DEVELOPMENTS

Retail volume growth is maintained despite price rises

Sanitary protection and nappies/diapers/pants are similar in terms of the fact that they are necessary products, so their retail volume consumption was little affected by COVID-19. In addition, despite the pandemic, according to official reports, the growth in the birth rate in Israel remained almost unchanged.

Product innovations focus on absorption rates and eco-friendly offerings

Trends in nappies/diapers/pants have focused on offering products that have high and reliable rates of absorption, which allow consumers to increase the time between changes and ensure the comfort of their children. As such, emphasis is given to both the comfort and the quality of the material used.

Multinationals continue to dominate, but see rising competition from smaller players

Kimberly-Clark Israel remained the dominant player in nappies/diapers/pants in value terms in 2021. It has two significant brands in this category, Huggies and Titulim.

PROSPECTS AND OPPORTUNITIES

Solid growth set to continue due to rising birth rate

The growth trends seen in nappies/diapers/pants in the review period are expected to continue over the forecast period, since these are basic commodities on which many parents depend for their busy daily routine. Therefore, despite saturation, nappies/diapers/pants will continue to see solid retail volume growth over the forecast period, along with stronger current value growth due to continued price rises.

Very slow trend towards reusable alternatives will not notably affect disposables

Despite the environmental crisis, it will take a long time for eco-friendly trends to notably affect sales of disposable nappies/diapers/pants. The convenience of using disposable nappies/diapers, along with the outdated reusable solutions available in the market, are not yet attracting many parents to switch to reusable alternatives, with such products therefore remaining a niche, as mass consumers will need better reasons to switch to reusable products.

Rise in e-commerce, as consumers appreciate its convenience

Although sales of nappies/diapers/pants via e-commerce were already growing, the outbreak of COVID-19 maintained this momentum, with some consumers preferring the channel as a safer form of retailing. In the forecast period it will be the convenience of e-commerce that will continue to drive growth in sales via this distribution channel, such as saving time and home delivery for such bulky items, along with quantity discounts.