Nappies/Diapers/Pants in Lithuania

PROSPECTS

Demographic changes drive sales down

Birth rates continued to witness a negative trend in 2018, due not only to high emigration rates, but also changes in lifestyles. Historically, bringing up a child, having a job and getting married were associated with maturity in Lithuania, while the socialist society promoted early childbirth with financial support.

Premiumisation takes over

As disposable incomes and GDP continue to rise in Lithuania, consumers are becoming more concerned about product quality and many are switching to more premium products. Purchasing decisions for nappies/diapers/pants are often made on the basis of consumer trust and knowledge of the brand.

Disposable pants takes share

Disposable pants, although declining, continued to outperform the overall category of nappies/diapers/pants in 2018. Still widely perceived as an innovative product, disposable pants attract customers as they are regarded as a premium and convenient choice.

COMPETITIVE LANDSCAPE

The search for innovation

Nappies/diapers/pants is highly consolidated, with the leading players The Procter & Gamble Co and Kimberly- Clark Corp continuing to lead the category with strong retail value shares in 2018. The strong presence on the shelves of these well-known names with a narrow range of brands, together with the rapid growth of internet retailing, has led consumers to search for innovation and encouraged the desire to try something new.

Private label loses share

Private label products have traditionally been associated with low prices in Lithuania, especially with food products, which was where private label initially focused. Thus it is much more difficult for private label to gain consumers’ trust in nappies/diapers/pants, where shoppers are more prone to seek quality products.

The Procter & Gamble Co gives up on advertising

In 2017 The Procter & Gamble Co globally lowered its expenditures on digital advertising. Companies are recognising that advertising is becoming less effective with modern consumers and does not materially improve sales.

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