Nappies/Diapers/Pants in Turkey

PRE-COVID-19 PERFORMANCE

Later potty training bolsters demand but economic uncertainty hinders growth in 2019

Per capita volume consumption among the population aged 0-3-years-old continued to rise in 2019, benefiting sales. This was mainly due to the increasing average age of potty training, as the participation rate of women in the workforce continued to rise.

Price competition intensifies in 2019 as rising costs lead to higher prices

Consumers’ price-sensitivity intensified in 2019. Price competition became even fiercer due to the fact that producers had to increase unit prices in response to higher costs as a result of a weakened Turkish lira in the last two years of the review period.

Pampers retains lead in 2019 but faces growing competition from Sleepy

Procter & Gamble continued to lead nappies/diapers/pants in 2019, thanks to its first-mover advantage, its extensive distribution network and exceptionally large advertising and marketing budget for its Pampers brand. The company however lost value share to domestic players that offer budget nappies/diapers/pants, as a marked proportion of consumers downgraded their brand preferences and opted for more affordable options, owing to the prevailing economic hardship.

2020 AND BEYOND

COVID-19 impact

Sales of nappies/diapers/pants are now expected to grow by 2% in 2019 constant value terms in 2020 overall in light of the impact of COVID-19. This is the same as the 2% rise forecast in 2019 constant value terms in our 2020 edition of tissue and hygiene published in February 2020 (pre-COVID-19).

Affected products within nappies/diapers/pants

The impact of the COVID-19 pandemic on the Turkish economy is likely to be the main factor shaping performances across differing product areas in 2020. New born nappies/diapers is for example likely to see retail volume sales stagnate in the year, with cost concerns encouraging many to use cloth diapers for new born babies, particularly as parents were more likely to be at home during the lockdown.

Recovery and opportunities

The Turkish economy is likely to be negatively impacted by the COVID-19 pandemic, which is likely to result in a slower recovery and a weak Turkish lira at the start of the forecast period. Consumers’ disposable income levels will remain low and price-sensitivity high, at a time when players are further forced to increase prices as a result of rising costs.

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