Wipes in Hong Kong, China

2021 DEVELOPMENTS

Wipes continues to see demand in line with heightened hygiene concerns

Demand for wipes continued to grow in 2021, due to heightened hygiene concerns as the threat of the pandemic lingered in Hong Kong. While virus cases were deemed to be more under control during the year, local consumers remained cautious about personal and home hygiene, fuelling further growth of the category.

Further declines for baby wipes and intimate wipes

Baby wipes is the largest category overall, but continued to record low retail volume declines in 2021 in line with falling birth rates and the drastic drop in the number of tourists visiting Hong Kong, especially from Mainland China during the pandemic, as some of these consumers would normally purchase baby wipes to take back to China. Nevertheless, baby wipes continue to appeal due to their multifunctionality and convenience.

Wipes remains fairly consolidated competitive landscape

Wipes remained a fairly consolidated competitive landscape in 2021, led by Johnson & Johnson, Kimberly-Clark and 3M Hong Kong Ltd, the latter benefiting from its strength in all purpose cleaning wipes with its brand Scotch-Brite. Johnson & Johnson’s lead is supported by its strong position in the largest category of baby wipes, through its Johnson's Baby brand, where its closest competitor Huggies trails at a significant distance.

PROSPECTS AND OPPORTUNITIES

Positive outlook for wipes, with premiumisation driven by added functionality

The outlook is positive for wipes in Hong Kong. A considerable number of consumers are expected to continue buying general purpose wipes to keep as reserves in their bags for more frequent cleaning purposes, having cultivated this habit since the outbreak of COVID-19.

Concerns over use of harmful chemicals drive growth of natural wipes

Over the review period, the World Green Organisation reported that the wide range of chemicals contained in wipes, such as fragrances, disinfectants, moisturisers and antiseptics, could be allergenic or even carcinogenic. As a result, consumers in Hong Kong are increasingly aware of the potential drawbacks of chemicals in wipes.

Licensing collaborations to attract younger audience

Kleenex, Vinda, and Huggies have looked to obtain licensing to use on the packaging of their wipes to appeal to children. Cartoon characters from the likes of Disney, Piske and Usagi attract parents who purchase these wipes for their children to encourage them to use the wipes frequently as part of their hygiene routines, especially when they are outside of the home such as at school.