Nappies/Diapers/Pants in Taiwan

PRE-COVID-19 PERFORMANCE

Players look to premiumisation to compensate for decreasing volumes linked to declining birth rate in Taiwan in 2019

Nappies/diapers/pants continued to experience declining demand in 2019 linked to the declining birth rate in the country. The worst declines in volume sales continued to be recorded by new born nappies/diapers and the standard segment.

Disposable pants continues to record dynamic performance in 2019 offering greater convenience to busy urban consumers

Disposable pants continued to record the highest volume and current value growth in 2019, supported by demand for greater convenience from busy urban consumers, while its much higher than average unit price compared to nappies/diapers places it out of reach for lower-income parents. Greater awareness of these products has been supported by aggressive marketing efforts from leading brands towards the end of the review period including Pampers, using online advertising and promotions including lucky draws or sending out free samples to encourage parents to try the products before hopefully going on to make a purchase themselves.

Multinational brands continue to dominate nappies/diapers/pants in 2019, led by Pampers

Multinational brands continued to dominate nappies/diapers/pants in 2019 due to strong consumer trust in their quality in terms of absorbency or materials, while domestic producers such as Kang Na Hsiung Enterprise Co Ltd with its brand Carnation continued to hold low share. Most international players tend to emphasise their products’ exclusive qualities including leakage prevention and higher absorbency which offers greater comfort to the child, while domestic producers tend to highlight their reasonable price points in their marketing.

2020 AND BEYOND

COVID-19 impact

Value sales of nappies/diapers/pants are now expected to decline by 1% at constant 2019 prices in 2020 overall in light of the impact of COVID-19. This compares favourably to a 1% value decline 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

In line with 2019 trends, the strongest growth in 2020 is predicted for disposable pants, while junior nappies/diapers will see a marginal improvement in demand in 2020 as it offers a much more accessible unit price compared to disposable pants, and is therefore more attractive to lower-income parents of older babies and toddlers.

Recovery and opportunities

Over the forecast period, nappies/diapers/pants is expected to record declining demand due to decreasing sales of new born (due to ongoing declining birth rates) and standard formats, while junior nappies/diapers is set to record a marginal improvement as it offers a more affordable option to disposable pants. However, the latter will continue to record the most impressive performance over the forecast period, with higher volume and value growth (at constant 2019 prices) compared to the review period, as local parents continue to be attracted to this product’s convenience, and flexibility, particularly for more active toddlers, in addition to aiding potty training efforts, and fostering a greater sense of independence in the child.

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