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65 posts categorized "Tissue and Hygiene"

April 2, 2014

Using Rash Outbreak as an Opportunity for Nappies/Diapers Manufacturers

Ian_Bell With Ian Bell - Head of Home Care, Tissue and Hygiene

The global market for nappies/diapers is on the upswing, with the category as a whole seeing 5.5 percent growth since 2008. However, when an economic crises emerges in less economically stable countries, nappies/diapers use per child decreases as consumers either look to conserve the amount of diapers per baby or switch to cloth diapers all together. Euromonitor data shows that along with the declining use of diapers there is an increase in the sales of nappy rash treatment.  Manufacturers of diapers in these economically unstable countries should look to promote themselves by educating consumers against diaper rash.

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March 26, 2014

Low Fertility Set to Hamper Volume Growth in Hygiene

EMI_fertilityRates-v1.2

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By 2024, 53% of all countries will see a fertility rate below 2.1 births per woman. This means, ignoring immigration and longer life expectancy, that these countries will see sub-replacement level fertility, population ageing and eventually a declining population which is set to influence demand for hygiene as well as a wide range of other FMCG products.

 

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March 25, 2014

When Emerging Markets Develop – The Effect of Rising Incomes and Declining Birth Rates on the Hygiene Industry

Tamara BartelsAnalyst Insight by Tamara Bartels - Home Care, Tissue and Hygiene Analyst

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As in most other FMCG categories, income is a crucial factor for development in retail hygiene. But, income requirements for disposable sanitary protection and nappies/diapers are relatively low, standing at US$1,500 and US$3,000, respectively, according to Euromonitor International’s estimates. Therefore, hygiene products are some of the first fast moving consumer goods to become ‘mainstream’ staples in developing markets because of the importance of personal hygiene and the lack of substitution.

However, the relatively low income requirements for these hygiene products also mean that while volume growth accelerates quickly in early development stages, market saturation tends to set in at relatively low income levels compared to other FMCG categories. Additionally, hygiene products suffer from the law of ‘diminishing returns’, meaning that for every unit of income increase, ‘marginal’ consumption decreases.

In other words, it only takes a per capita income of US$6,000 before half of all babies wear disposable nappies/diapers regularly, but it requires four times that income for full penetration. Therefore, it can be predicted that future growth, in relative terms, is always lower than past growth rates. Manufacturers should be mindful of not being blinded by previous rapid volume growth rates, which can often be found in many emerging markets, but analyse penetration rates and focus on innovation and value growth to generate sustainable business growth.

Continue reading "When Emerging Markets Develop – The Effect of Rising Incomes and Declining Birth Rates on the Hygiene Industry" »

March 13, 2014

Tissue and Hygiene Companies Investing in Developing Markets and Divesting in Developed Markets

Tamara Bartels

With Tamara Bartels - Home Care, Tissue and Hygiene Analyst

 2014 will see tissue and hygiene companies investing more heavily in emerging markets and divesting in developed markets. In developing countries such as China, tissue and hygiene companies will move from higher to lower populated cities, targeting rural consumers. In developed countries, more divestments are taking place as private label products become a real threat. For example, in 2013 Kimberly Clark exited the diapers category in Western Europe and Johnson and Johnson left sanitary protection in North America.

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March 4, 2014

Unicharm Moves West: Japanese Nappies/Diapers to be Sold in Latin America

Tamara BartelsAnalyst Insight by Tamara Bartels - Home Care, Tissue and Hygiene Analyst

View Tamara Bartel's profile on LinkedIn

In 2012, Japanese manufacturer Unicharm announced plans to expand its nappies/diapers operations in Latin America via production sites in Brazil and Mexico. Production in Brazil, where nappies/diapers/pants sales reached US$3 billion in 2013, is set to commence in early 2014.

But what brings Unicharm to Brazil? Growth in nappies/diapers is set to slow, with a 2.3% constant value CAGR predicted over the 2013-2018 forecast period compared to 8.5% over 2008-2013, which suggests that the company may well have missed the boat. The market is reaching maturity, at least in volume terms, with penetration standing at 65% in 2013, and there is also the difficulty in gaining distribution in what is becoming an increasingly competitive retail channel.

Pants Just for Potty Training? Not in Asia Pacific

At first glance, it appears that Brazil offers less growth potential than, for example, emerging markets in the Middle East and Africa, where nappies/diapers usage is still in its infancy. However, Unicharm could gain a foothold in the market by focusing on disposable pants, in which it holds a competitive advantage. The company has developed highly efficient production techniques which have already helped it to succeed in low-income countries such as Indonesia and Thailand, where disposable pants account for (a somewhat surprising) 50% of total nappies/diapers sales.

Continue reading "Unicharm Moves West: Japanese Nappies/Diapers to be Sold in Latin America" »

February 24, 2014

Three Key Trends Changing the Hygiene Industry

 

There are three key trends shaping the hygiene industry, states Ian Bell, Head of Global Head of Home Care and Tissue & Hygiene Research at Euromonitor. First is the slackening of the one-child policy in China, where more births are driving sales of nappies/diapers. Second is the slowing of the hygiene market in Latin America, where more women are entering the workforce and delaying having children. Finally, developed markets such as Japan are seeing a growth in ageing population, and therefore an uptick in the use of incontinence products.

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January 31, 2014

Chinese Oversupply Problem Not an Issue for Global Tissue Growth

 

The oversupply problem in China is a looming issue for the away-from-home tissue sector in 2014. Only 13 percent of all tissue sales in China account for the away-from-home sector, compared to 25 percent in Western Europe or North America. Tamara Bartels, Home Care, Tissue & Hygiene Analyst for Euromonitor, states that the problem could be solved by hotels, cafes, and restaurants buying more tissue supplies or the Chinese government starting a personal hygiene initiative, which could lead Chinese consumers to start investing in tissue products. Despite the problems in China, the away-from-home tissue sector is set to grow by US$6 million over the next five years on the back of strong growth in emerging markets.

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January 22, 2014

China to Lead the Way in Hygiene Sales for 2014 and Beyond

 

The hygiene industry performed well in 2013 and growth is expected to continue into 2014 with China leading the way in sales. Ian Bell, Head of Home Care, Tissue & Hygiene Research at Euromonitor states that with China’s easing of the one child policy, the country will see another 40 million babies in the next five years. This means a lot more revenue for nappies/diapers/pants manufacturers. On the other side of the age range, there are about 180 million people over the age of 65 in the country with limited incontinence resources, therefore innovation and product development in the sector will rapidly develop in China. 

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Continue reading "China to Lead the Way in Hygiene Sales for 2014 and Beyond" »

January 21, 2014

The New Face of Private Label: Global Market Trends to 2018

According to Euromonitor survey, 89% of respondents bought private label products in 2013

The new face of private label: Global market trends to 2018Download an extract of The New Face of Private Label: Global Market Trends to 2018 to learn:

- The single most important factor affecting private label growth
- Consumer attitudes towards private label
- Regions and sectors showing the most promise
- Global leaders in private label and their growth strategies
- Future outlook for the category

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Our 2013 Global Consumer Trends Survey noted that consumers in India and France were most positive about private label with 27% and 23% saying they intended to increase purchases of private label products over the next 12 months.  However, private labels are still a little known concept in Russia where as many as 23% never buy private label products.  Private label penetration is highest in Switzerland with 37.7% and lowest in China with .4%.

Within private label products globally, packaged food accounted for the majority of fast moving consumer goods with 77% of value sales in 2012, but the strongest penetration for private label was found in tissue and hygiene products at almost 14% as products such as toilet tissue and paper towels are easy for retailers to distribute and generate good margins. The private label share within packaged food was at 12%. 

Continue reading "The New Face of Private Label: Global Market Trends to 2018" »

January 19, 2014

What’s Next for Nappies/Diapers Manufacturers in China After The End of One-Child-Policy?

Tamara BartelsAnalyst Insight by Tamara Bartels - Home Care, Tissue & Hygiene Analyst

View Tamara Bartel's profile on LinkedIn

Euromonitor International’s 2014ed data, published on 13 January 2014, reveals that over 2012-2013 sales of nappies/diapers/pants in China grew by an astonishing US$1 billion to US$6 billion, generating more than one third of global incremental value growth. Nappies/diapers/pants manufacturers have certainly nothing to complain about and with the lifting of China’s strict one-child-policy it appears there is no slowdown on the horizon.

Not all manufacturers stand to benefit equally from the potential increase in birth rate, however. Different regions and social classes will see different dynamics.

Income Matters

In 2012, China’s birth rate stood at 12 births per thousand people, comparable to the UK. But there are regional disparities, with urban centres seeing significantly lower birth rates than rural areas. In fact, Shanghai has the lowest birth rate globally with only four births per thousand people. Often, it is not governmental regulations that affect a couple’s baby-making decisions in these affluent regions of China, but the high costs of raising a child. Chinese parents are devoting a large sum of their income to their child’s education and a larger family would translate into fewer financial resources for each child, consequently lowering its educational progression, a trade-off many parents are not willing to take. Additionally, a second child often means that parents have to look for larger homes, a costly and difficult adventure in cities where there is high pressure on housing.

Continue reading "What’s Next for Nappies/Diapers Manufacturers in China After The End of One-Child-Policy?" »

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Recent Posts

Using Rash Outbreak as an Opportunity for Nappies/Diapers Manufacturers

Low Fertility Set to Hamper Volume Growth in Hygiene

When Emerging Markets Develop – The Effect of Rising Incomes and Declining Birth Rates on the Hygiene Industry

Tissue and Hygiene Companies Investing in Developing Markets and Divesting in Developed Markets

Unicharm Moves West: Japanese Nappies/Diapers to be Sold in Latin America

Three Key Trends Changing the Hygiene Industry

Chinese Oversupply Problem Not an Issue for Global Tissue Growth

China to Lead the Way in Hygiene Sales for 2014 and Beyond

The New Face of Private Label: Global Market Trends to 2018

What’s Next for Nappies/Diapers Manufacturers in China After The End of One-Child-Policy?