Nappies/Diapers/Pants in Turkey

PROSPECTS

Growth in per capita volume consumption slows down owing to economic hardship

Thanks to the steady growth in the economy, which was followed by rapid urbanisation and modernisation of the retailing landscape, consumers have gained easier access to fast-moving consumer goods, including nappies/diapers/pants. Accordingly, per capita volume consumption among the population aged 0-3 years rose rapidly over the review period.

Economic difficulties will limit growth early in the forecast period

Over the forecast period, the slowdown in per capita volume consumption growth will continue, given the fact that there are currently no positive signs pointing to a recovery for the economy. As the economy continues to stagnate, consumers’ purchasing power will continue to be limited, and thus they will be cautious in their everyday purchases, which will impact sales of nappies/diapers/pants in the early part of the forecast period.

Value growth will revive over the forecast period thanks to dynamic volume growth in disposable pants and junior nappies/diapers

Nappies/diapers/pants has seen rising price competition, owing to the entry of new players offering products positioned at the lower end of the price spectrum. This limited value sales growth in the latter part of the review period.

COMPETITIVE LANDSCAPE

Procter & Gamble continues to lead nappies/diapers/pants

Procter & Gamble Tuketim Mallari Sanayi Ltd Skt continued to lead nappies/diapers/pants in 2018, thanks to its first-mover advantage along, its extensive distribution network and exceptionally large advertising and marketing budget. In 2018, the company did not lose significant value share, despite the fact that it lost a certain amount of volume share, mainly owing to its particular strength in sales of more value-added categories, such as disposable pants.

Procter & Gamble expected to retain its lead

Over the forecast period, it is expected that Procter & Gamble will continue to lead the category; however, it is likely to lose value share to domestic players that offer budget nappies/diapers/pants, as a marked proportion of consumers are expected to downgrade their brand preferences and opt for more affordable options, owing to the prevailing economic hardship.

Cheaper domestic brands will benefit from the negative economic outlook

Since their first launch, discounters’ private label products have swiftly gained volume and value share in Turkey, as they played a key role in increasing the number of purchasers of fast-moving consumer goods, including nappies/diapers/pants, as discounters initially located in poorer neighbourhoods and were the only outlets offering products at affordable prices. In the latter part of the review period, the value share of private label declined slightly, following the entry of a new player, Eruslu Saglik Urunleri San ve Tic AS, which positioned its Sleepy brand in the low-priced segment.

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