Nappies/Diapers/Pants in North America

Declining birth rates, slowing population growth and market maturity limit further growth

The nappies/diapers/pants category in North America has recently seen declines in value growth, and is one of the slowest growing regions, ahead only of Western Europe. This is due to the limited opportunities for additional growth, as the category is already very mature. In addition, declining birth rates limit growth in the user base. Stricter immigration policies expected to be imposed in the US will also limit further growth.

Rise in e-commerce allows smaller brands to grow, but negatively impacts prices

Internet retailing was by far the most significant growth channel for nappies/diapers/pants sales in North America over 2012-2017. However, due to the price transparency in online shopping, as well as the rise of private label diapers, sold online, the growth of e-commerce is expected to have a negative impact on unit price.

Competition continues to heat up between the two players that dominate in the region

Procter & Gamble and Kimberly-Clark continue to dominate nappies/diapers/pants in North America, with a combined 78% share. Although KC’s Huggies brand has historically been the leading brand in the region in terms of sales, P&G’s Pampers surpassed it in 2017. In addition to competition between the two giants, they are also facing increasing competition, both in the premium segment, as smaller organic brands grow, and in the value segment, as private label manufacturers continue to drop their prices.

Limited growth prospects, though disposable pants will be a driver of industry growth

While nappies/diapers volume sales are expected to be flat in the forecast period, disposable pants is expected to see significant growth. As consumer habits change, toilet training is being delayed to older ages, and disposable pants have become an integral part of the toilet training process, thus this category is expected to grow. Recent innovations in disposable pants will also aid growth.