Nappies/Diapers/Pants in Saudi Arabia

2021 DEVELOPMENTS

Sales decline as the number of children aged under three falls

In 2021, retail volume sales of nappies/diapers/pants declined. The population of children aged 0 to 3 years continued to decline in 2021, to a large extent due to the ongoing exodus of expatriate families from the country in light of COVID-19, the rising expatriate levy and the policy of Saudisation.

Standard nappies/diapers remains the largest category, while disposable pants witnesses strong growth

Standard nappies/diapers remained by far the largest category and saw the strongest retail volume and current value growth rates within nappies/diapers/pants in 2021, with consumers buying into product claims such as high absorbency, soft materials and protection against leakage. A strong factor in this growth was the purchase of mega packs to save money.

Baby Joy and Pampers together maintain their dominance thanks to continuous product innovation

A number of international brands, namely Greek brand Dr Baby, Turkish manufactured Evy Baby and Teemo by Unicharm Gulf Hygienic Industries, which is based on Japanese technology, have increased their penetration in modern grocery retail channels. However, nappies/diapers is very saturated in Saudi Arabia, and dominated by a handful of leading brands.

PROSPECTS AND OPPORTUNITIES

Potential launch of sustainable and reusable products

Nappies/diapers/pants is set to see a decline in retail current value and volume sales over the forecast period. Nappies/diapers/pants is the primary product type for babies in Saudi Arabia, with the current absence of reusable cloth nappies/diapers in the country owing to high disposable incomes and adherence to using disposable products for many years, which will maintain growth.

Innovation and improvement to product quality will sustain value growth

In Saudi Arabia, growing demand for light weight, multi-layered and chemical-free disposable baby diapers has created lucrative opportunities for growth. Increasing precautionary measures towards baby hygiene has led to the development of clinically proven hypoallergenic baby diapers to prevent skin rashes and other skin issues.

E-commerce expected to maintain its share growth

Due to the high internet penetration rate in Saudi Arabia and the high standard of living, e-commerce is growing in popularity for the purchase of nappies/diapers/pants. Although this was the case even before the COVID-19 pandemic, sales via this distribution channel took off in 2020.