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70 posts categorized "Tissue and Hygiene"

January 27, 2015

Estimating Category Leaders in FMCG Industries

Virgilijus NaruseviciusAnalyst Insight by Virgilijus Narusevicius - Senior Data Scientist

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In this article, we have attempted to characterise category leaders across FMCG industries and the typical market shares they achieve. “Category leader” is generally a highly coveted status as it allows price-setting power and a better ability to influence category trends, enables economies of scale and implies a better bargaining power over retailers and suppliers. It also suggests that the company is doing many things right and it is thus rather common to benchmark against the category leaders and study their past strategies. However, category leader shares vary between industries and a successful company in one industry may differ from another.

 

Figure 1: Average Category Leader Share across FMCG Industries

CAMI1

 

Source: Euromonitor International

Note:  Retail value sales

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January 24, 2015

¿Cuál es la importancia real de la falta de tampones en Argentina?

Tampon-banner

Por Horacio Larghi – Contributing Analyst

En los últimos días fue sensación mediática la falta de tampones en el país. Este producto básico de higiene femenina no se produce localmente y tanto Johnson & Johnson como Kimberly-Clark, las dos principales empresas que dominan el mercado con casi el 90% de las ventas,  los importan desde el vecino Brasil, e inclusive desde países más lejanos como la Republica Checa. Las barreras a la importación  impuestas por el Gobierno sin duda tuvieron un rol importante en el desabastecimiento de tampones a lo largo del país.

Ahora bien, ¿Es realmente tan importante la falta de tampones? No cabe duda que para las argentinas que compran este producto es un serio inconveniente. Sin embargo, los números demuestran que las argentinas prefieren, y por amplio margen, otras opciones de higiene personal.

Continue reading "¿Cuál es la importancia real de la falta de tampones en Argentina?" »

November 20, 2014

Added Value in the Brazilian Toilet Paper Market

With increasing average incomes and industry sophistication, consumers in Brazil are beginning to trade up to higher quality products, increasing the overall value of the market.

Video features Leonardo Freitas - Research Associate

August 10, 2014

Could Jellyfish be the Key Ingredient in Biodegradable Diapers?

Franziska BrandenburgerAnalyst Insight by Franziska Brandenburger - Lead Analyst

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Israeli nanotech start-up Cine’al recently announced something of a novel innovation in Super Absorbent Polymers (SAP), namely Hydromash a super absorber made from jellyfish. The company claims Hyrdromash to be both extremely absorbent and highly degradable, allowing it to break down within just 30 days in aerobic conditions. With the race on to produce the first mainstream fully degradable diaper, the advent of another degradable polymer is good news for the industry and may in itself have wider benefits than simply being ‘green’.

Hygiene Growth Blooms

Globally, volume sales of hygiene products continue to show significant growth potential, with diapers in particular likely to break the 200 million unit mark before 2020. Rapid growth has been driven by growing disposable incomes across developing markets, China alone will account for more than a quarter of this growth. While growth is good news for the industry, the disposal of such a large number of diapers will continue to be a strain, especially in markets where waste disposal services are far less developed than is the case in the West, for example.

Continue reading "Could Jellyfish be the Key Ingredient in Biodegradable Diapers?" »

June 9, 2014

Tissue Sales Struggling in the Middle Class

Ian_BellWith Ian Bell, Head of Home Care, Tissue and Hygiene

Tissue manufacturers are struggling to gain sales within the middle class segments of emerging markets as consumers choose to spend their income on other products. Competition from industries such as apparel, hot drinks and consumer electronics are taking sales away from tissue products. In Mexico for example, the population consumes about 4.5 kilograms per capita of tissue products while in the United States the number is around 13.4 kilograms.

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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" »

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Recent Posts

Estimating Category Leaders in FMCG Industries

¿Cuál es la importancia real de la falta de tampones en Argentina?

Added Value in the Brazilian Toilet Paper Market

Could Jellyfish be the Key Ingredient in Biodegradable Diapers?

Tissue Sales Struggling in the Middle Class

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