Nappies/Diapers/Pants in New Zealand

PROSPECTS

The declining birth rate is set to impact value growth

According to Statistics New Zealand, the country’s birth rate reached a record low of 1.81 births per woman in 2018.

Disposable pants is expected to grow

Disposable pants is expected to exhibit by far the strongest current value CAGR over the forecast period. Nevertheless, the forecast period current value CAGR is expected to be lower than the review period CAGR, which is reflective of the expected decline in the birth rate, highlighting that this will impact the entirety of nappies/diapers/pants over the forecast period.

Unit prices are set to increase

Whilst volume demand is expected to decline due to the declining birth rate over the forecast period, unit prices are expected to increase in current terms. When faced with declining demand, it would normally be expected that discounting strategies would be employed to stimulate volume sales; however, in nappies/diapers/pants, premiumisation is expected to counteract the downwards pressure on consumer demand, with an example of premium-oriented products being the Huggies Ultimate range, which includes contoured shapes and patented dry touch design.

COMPETITIVE LANDSCAPE

Huggies continues to lead

Huggies from Kimberly-Clark New Zealand remained the leading brand in nappies/diapers/pants in 2018. The company led innovation in the category, launching its Huggies Ultimate nappies range during the review period, and offering incremental innovation by virtue of the incorporation of a gentle balm in 2018.

Treasures recovers from design issues

In 2017, Asaleo Care launched a new design for its Treasures brand of nappies/diapers/pants, which proved to be unpopular amongst parents due to leakage issues, which adversely impacted the performance of the company in this year. However, the company managed to overcome this adversity and the associated consumer apathy, with its 2018 value share recovering the losses experienced in 2017.

A new local player enters the category

Founded by local toy entrepreneur Nick Mowbray, Rascal and Friends was launched in the New Zealand market in late 2017. Offering premium nappies, the brand is exclusive to Foodstuffs (NZ)’s supermarkets; however, the company’s focus is more on export markets, rather than extensively challenging the Treasures/Huggies duopoly.

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