Wipes in New Zealand

PROSPECTS

Large pack sizes to place pressure on the value growth of personal wipes

Whilst strong population growth is expected to drive consumer demand for wipes over the forecast period, increasing pack sizes are expected to place downwards pressure on value growth. This is expected to be a continuation of the trend observed in 2018.

Environmental concerns to influence wipes over the forecast period

Whilst wipes are viewed as convenient and hygienic cleaning solutions for consumers, particularly in personal wipes, the environmental impact of the excessive use of products in the category is expected to influence its performance over the forecast period. The appropriateness of “flushable” wipes being labelled as such started to receive media attention and public scrutiny in 2018 – including a public awareness campaign by Watercare Auckland.

Unit prices set to increase only slowly

Only slow unit price growth is expected to be observed in wipes over the forecast period in current terms, although higher than that observed in 2018 and over the review period. High levels of competition within the category are expected to lead to low unit price growth over the forecast period, with pack sizes in baby wipes in particular expected to grow, and the rise of online baby care retailers and daily deal sites stocking baby wipes expected to place pressure on unit price growth.

COMPETITIVE LANDSCAPE

Wipes remains heavily segmented

Given the varied nature of the constituent categories within wipes, from baby wipes and moist toilet wipes to home care wipes, the category remained heavily segmented in 2018. Interestingly, given the nature of tissue and hygiene in New Zealand, and despite the strong presence of baby wipes within the category overall, wipes was one of the few categories not to be dominated by a duopoly.

Kimberly-Clark leads, but questions are raised over Kleenex “flushable” wipes

Kimberly-Clark New Zealand continued to lead wipes in 2018. The company’s leadership is largely attributable to the influence which baby wipes has on overall wipes in terms of category share; as such, the company’s leading position within baby wipes led to its lead in overall wipes with its Huggies brand.

Baby wipes drives the performance of Johnson & Johnson Pacific (NZ)

Johnson & Johnson Pacific (NZ) was ranked second within wipes in 2018. The company owes its performance in wipes overall to the value share it holds in baby wipes, in which it held second place in 2018.

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