Nappies/Diapers/Pants in Malaysia

PRE-COVID-19 PERFORMANCE

Slowing category demand in 2019 linked to declining birth rates, while the convenience of disposable pants drives increasing preference for the latter

Nappies/diapers/pants recorded marginally slower demand in 2019 compared to 2018, in line with declining birth rates Malaysia. The category continued to be dominated in both retail volume and value terms by nappies/diapers due a range of affordable price points.

E-commerce becomes increasingly attractive distribution channel due to home delivery option for bulky items and promotional events

While modern grocery retailers such as hypermarkets retained its dominance of distribution for nappies/diapers/pants in 2019, e-commerce continued to gain notable share to record the most impressive performance in current value terms. E-commerce is gaining in popularity as a viable channel due to the bulky nature of this category which allows consumers, particularly millennials, to take advantage of home delivery.

International brands remain in favour with local consumers in 2019 due to perceived high quality but domestic names are also present offering greater affordability

International brands remained well represented in Malaysian nappies/diapers/pants in 2019, indicating that local consumers have high regard for established brands that they are perceived to have stringent quality controls in materials and manufacturing processes. Overall, the category was led by Drypers Wee Wee Dry by Vinda Malaysia Sdn Bhd for Essity where it remains popular for its associated quality, brand name and affordability.

2020 AND BEYOND

COVID-19 impact

Value sales of nappies/diapers/pants are expected to grow by 4% at constant 2019 prices in 2020 overall in light of the impact of COVID-19. This compares favourably to a 4% value rise forecast at constant 2019 prices in our 2020 edition of tissue and hygiene published in February 2020 (pre-COVID-19).

Affected products within nappies/diapers/pants

The entire category of nappies/diapers/pants is set to record fairly stable demand in 2020 with disposable pants predicted to record the strongest performance overall, aligning with end of review period trends. Being at home during the COVID-19 pandemic also offers parents the opportunity to address potty training with their toddlers, supporting ongoing demand for disposable pants due to the product’s convenience and ability to foster a greater sense of independence in the child.

Recovery and opportunities

A short-term impact is likely to be felt by the response to COVID-19 as normalisation in terms of demand for nappies/diapers/pants is set to return from 2021. However, the longer-term impact may be felt amongst younger parents who have become used to purchasing these products online so e-commerce is likely to enjoy the effects of ordering online from home for delivery of bulky items.

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