Nappies/Diapers/Pants in Israel

PRE-COVID-19 PERFORMANCE

Steady growth boosted by demographics, with a switch to e-commerce seen

Despite saturation, nappies/diapers/pants maintained steady retail volume growth in 2019, along with only slightly higher current value growth, with the value increase limited by a move towards cheaper products. The volume increase was mainly due to population growth, particularly in the ultraorthodox and Arab communities, amongst which birth rates are higher than average.

Multinationals continue to dominate, but see falling shares due to rising competition

Kimberly-Clark Israel remained the dominant player in nappies/diapers/pants in value terms in 2019. It has two significant brands in this category, Huggies and Titulim.

Quality offered at low prices by smaller brands and private label

Babysitter is an interesting brand. It is a relatively young brand, and was the first to shake the competitive environment by offering high quality at low prices, challenging the added-value of the leading brands.

2020 AND BEYOND

COVID-19 impact

Nappies/diapers/pants is expected to grow by 4% in 2019 constant value terms in 2020 overall, in light of the impact of COVID-19. This is similar to the 4% rise forecast in 2019 constant value terms in our 2020 edition of tissue and hygiene published in February 2020 (pre-COVID-19).

Affected products within nappies/diapers/pants

COVID-19 is not expected to have a significant impact on the overall growth rate of nappies/diapers/pants in 2020, and the category growth trends seen in the review period are expected to have the biggest impact on sales in this year. For instance, disposable pants is expected to see the strongest growth rates in both current value and volume terms, as consumers value the convenience of these products, especially when potty-training.

Recovery and opportunities

COVID-19 is expected to have little direct impact on the growth rate of nappies/diapers/pants during the review period overall, with trends evident in the review period expected to continue. However, if the country falls into recession as a result of the health crisis, this could speed up trends which were already in evidence prior to COVID-19, such as the growth of brands offering quality but at lower prices, including Babysitter, Shufersal and Life Baby’s.

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