Global baby disposable diapers market to reach US$33.4B by 2017, report finds, fueled in part by low penetration of disposable baby diapers in regions such as Latin America, Asia-Pacific, Eastern Europe, growing use of designer diapers in mature markets
SAN JOSE, California
November 22, 2011
– GIA announces the release of a comprehensive global report on Baby Disposable Diapers market. The global market for Baby Disposable Diapers is forecast to reach US$33.4 billion by the year 2017. Low penetration of disposable baby diapers in regions such as Latin America, Asia-Pacific and Eastern Europe; increasing adoption of designer diapers in mature markets such as the US and Europe; and the introduction of innovative products by companies in order to maintain their market share, are few of the major growth drivers in the global disposable diapers market. Meanwhile, the increasing popularity of cloth diapers, and concerns over rising use of non-biodegradable disposable diapers are two factors threatening the market.
The baby diapers market is a highly commoditized market, and intrinsically a tough category for manufacturers to operate in. Intense competition, pricing pressures, maturing North American and Western markets, have always challenged players. In developed markets, in addition to the brutal business climate, falling birth rates are also fingered as a key factor responsible for dragging down retail sales. Growth in these markets, therefore, hinges onto consumers trading up to premium priced diapers. Developing markets in Asia, on the other hand, have and will continue to remain bright spots for growth in the post recession period with over 58% of annual births worldwide coming from the Asian continent. Other strong market fundamentals that underpin the region’s potential include improving economic affluence, increase in the number of working women, rising spends per child, fast-paced consumer lifestyles, growing awareness over the importance of hygiene, the ability to afford baby well-being products, and the inherent Asian culture that attaches greater importance to family bonding than in the West.
Recuperating from the challenges faced during the recession brought about by tight spending habits of customers and with emerging economic data pushing further into obscurity, the possible re-emergence of pre-recession overspending habits, manufacturers of Disposable Diapers are seeking new ways to stay afloat. This is especially so in developed markets. Interestingly, market majors in North America and Europe are focusing on premium diapers to expand value sales. The designer diapers market is thus forecast to emerge into the battleground in these markets, with diaper R&D shifting from developing super absorbent and safe materials towards aesthetics, and thus developing product concepts for designer diapers.
The diapers market is very competitive, driving companies to introduce innovative products in order to maintain their market share. Companies are focusing on products that enhance wearer comfort. Increased focus on features such as more stretch is expected to augment growth in the pull-on style diapers category. Products that are a combination of both diapers and pants are expected to make inroads into the training pants segment.
As stated by the new market research report on Baby Disposable Diapers, Europe continues to remain the largest regional market, while Asia-Pacific represents the fastest growing market with a CAGR of 7.5% over the analysis period. Growth in the global baby disposable diapers market would be driven by the growing adoption of these diapers in developing countries, where penetration has been relatively low till date. In developed nations, the market for baby diapers is inextricably linked to the birth rate. Declining birthrates and the number of women of childbearing age, coupled with high penetration, have more or less stabilized the mature market.
China represents the largest market in Asia-Pacific with its huge population and changing economic dynamics. Other advanced nations such as Singapore and Korea, albeit with low population, make Asia a high potential market for diapers. With increased disposable income, the market for consumer goods and convenience products is expected to increase. Rise in the purchasing power and growth of middle class population in countries will also spur market demand.
Growing use of disposable diapers in developing countries, especially in the neo-rich countries of Asia, aggravates the existing problem of landfill faced by the developed world, resulting in rising concerns over the use of non-biodegradable diapers. Additionally, major fallout of the recession is the renewed popularity of reusable cloth diapers. The potential cost savings offered, followed to a lesser degree by environmental concerns, are prime factors responsible for prodding a comeback of cloth diapers. Additionally, innovation has made cloth diapers more hygienic, easy to use and maintain. These are few factors that threaten the future of the disposable diaper industry.
Major players profiled in the report include Procter & Gamble, Kimberley Clark, UniCharm, SCA Hygiene Products, Kao Corporation, among others.
The research report titled “Baby Disposable Diapers: A Global Strategic Business Report” announced by Global Industry Analysts Inc., provides a comprehensive review of the global baby disposable diapers market, current market trends, key growth drivers, recent product launches, recent industry activity, and profiles of major/niche global as well as regional market participants. The report provides annual sales estimates and projections for Baby Disposable Diapers market for the years 2009 through 2017 for the following geographic markets – US, Canada, Japan, Europe, Asia-Pacific, Latin America, and Rest of World. Also, a six-year (2003-2008) historic analysis is provided for additional perspective.
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Global Industry Analysts, Inc., (GIA) is a leading publisher of off-the-shelf market research. Founded in 1987, the company currently employs over 800 people worldwide. Annually, GIA publishes more than 1300 full-scale research reports and analyzes 40,000+ market and technology trends while monitoring more than 126,000 Companies worldwide. Serving over 9500 clients in 27 countries, GIA is recognized today, as one of the world's largest and reputed market research firms.