Wipes in Indonesia

PRE-COVID-19 PERFORMANCE

Baby wipes retains dominance in 2019 due to its perception amongst local consumers as a multi-purpose product

Personal wipes in Indonesia continued to record a solid performance in 2019, driven by the largest category of baby wipes. This product is marginally cheaper than the other main category of general purposes wipes in Indonesia, with many consumers perceiving baby wipes to not only being safe and gentle on their babies’ skin but can also act as alternative wipes for personal use amongst the general adult population as specific products such as facial cleansing wipes were not present in the country at the end of the review period in addition to general cleaning around the home.

Increasing premiumisation is adding further value to baby wipes in 2019

Due to increasing awareness of the need to follow good hygiene practises within households, particularly those with young children, local parents are beginning to search for additional features within baby wipes such as those that offer antibacterial or antiseptic qualities. Players are also differentiating baby wipes through segmentation by offering various usage occasions and needs; for example, leading baby wipes brand Mitu has been further segmented into new baby, or for changing nappies/diapers with its Mitu Fresh n’ Clean claiming to have moisturising qualities due to containing Chrysanthemum Extract & Vit E which it states can help reduce irritation of a baby’s skin, an attribute also offered by its Chamomile & Vit E option.

Megasari retains dominance due to main focus on wipes but loses share in 2019 to more dynamic players

Megasari Makmur PT retained its overall dominance of wipes in Indonesia in 2019, with its brand Mitu, which benefits from top-of-mind familiarity amongst local consumers. While many players within retail hygiene view wipes as a complementary category and therefore do not place strong emphasis on marketing, wipes is a main focus for this brand and it has therefore built up a wide distribution network and enjoys consumer loyalty.

2020 AND BEYOND

COVID-19 impact

Value sales of wipes are now expected to grow by 19% at constant 2019 prices in 2020 overall in light of the impact of COVID-19. This compares to a 13% value rise forecast at constant 2019 prices in our 2020 edition of tissue and hygiene published in February 2020 (pre-COVID-19).

Affected products within wipes

Both types of wipes are predicted to benefit from the COVID-19 response in 2020 in demand terms due to increasing awareness of the need to follow strict hygiene routines around the home in addition to personal hygiene habits for both themselves and their children. In addition, value sales at constant 2019 prices are set to significantly rise in 2020 as consumers are likely to search for products that claim to offer greater antibacterial attributes; initial stockpiling in anticipation of a lockdown is likely to force a higher number of consumers to purchase products with a higher unit price due to product shortages in lower price segments.

Recovery and opportunities

Wipes is predicted to record a stronger performance over the forecast period in comparison with the review period in both volume and value terms (at constant 2019 prices). The overall performance will continue to be led by baby wipes which will continue to see stronger growth from 2021 compared to general purposes wipes which is set to see a return to normalisation in demand moving further into the forecast period, despite consumers’ increased awareness of the need to maintain strict hygiene and cleaning routines.

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