Baby Diaper Market 2017–2027
Baby diaper is also called as nappy, is a type of underwear designed to be worn by the baby as it allows babies to urinate in it. It absorb the urine and prevent the leakage of outer clothing and require changing after it gets wet or soiled as failure to changing of diaper on a regular basis can cause skin problems to the baby. Diapers are produced by using super absorbent polymer products as they can absorb a large amount of fluid relative to its own mass. Baby diapers can be classified into a cloth diaper, disposable diaper, training nappy, and training nappy.
The global baby diaper market is projected to reach US$ 79.4 billion by the end of 2027, in terms of revenue, growing at CAGR of 4.5% during the forecast period (2019 to 2027).
Rising advertising and promotion of baby diaper by the major players is a predominantly fueling the growth of the global baby diaper market. For instance, in January 2015 Kimberly-Clark Corp is set to increase advertising and promotional spending for its diapers and launch new products in an escalating war with bigger rival Procter and Gamble Co in North America. Hence, rising adoption of advertising strategy by major players has projected to propel the market growth of the baby diapers over the forecast period.
Increasing birth rate in the developing region especially in the Asia Pacific is projected to foster the market growth of the baby diaper over the forecast timeframe. Moreover, improving the property of raw materials and the adoption of advanced technology in the manufacture of the baby diaper is also expected to augment the market growth. Furthermore, increasing focus of the parents on baby care solution is another major factor expected to fuel the market growth of baby diapers over the forecast period.
Regionally, Asia-pacific dominated the global baby diaper market in 2018, reporting 34.3% market share in terms of revenue, followed by North America and Europe, respectively
Figure 1. Global Baby Diaper Market, Revenue Share (%), By Region, 2018
Intense competition in the market and fluctuating prices of the raw material of the baby diaper is expected to curb the market growth of the baby diaper over the forecast. Such factors are expected to result in constant pressure on the profit margin of the manufacturer. Hence, intense competition in the market is expected to hinder the market growth of the baby diaper over the forecast timeframe.
Baby diapers can cause an allergic reaction to the skin as babies have soft skin and anything that consists of harsh chemicals may harm their skin. Moreover, diapers may lead to toxicity as it is made up of synthetic materials and the chemical is expected to hamper the market growth of the baby diapers. Furthermore, using baby diapers may cause infection and diapers are also expensive, thus these factors are expected to restrict the market growth.
Increasing production of biodegradable diapers by the manufacturer is expected to offer lucrative growth opportunities over the forecast timeframe. For instance, in July 2019, Huggies is introducing Huggies Special Delivery, with a liner and waistband made from plant-based materials, including sugarcane that provides better absorption and fit. Moreover, the diapers are free of parabens, fragrance and “elemental chlorine,” and “dermatologically tested and clinically proven hypoallergenic.
The rising launch of innovation in the baby diaper is expected to propel the market growth of the baby diaper. For instance, in July 2019, Google’s sister company verily has teamed up with US consumer goods giant Procter & Gamble (P&G) to sell ‘smart diapers‘ that monitor baby’s sleeping patterns and track their pee. the new product, called Lumi, will be sold by pampers and comprises an all-in-one connected system that includes two activity sensors for diapers, a Logitech camera that works as a Wi-Fi monitor and an app to record all the data.
Figure 2. Global baby diaper – Market Opportunity Analysis
On the basis of product type, in 2018, disposable diapers accounted the largest market share of 48.9% in terms of revenue, followed by swim-suit and cloth diapers. This is mainly because disposable diapers provides more convenience to the parents and ensures good hygiene.
Figure 3. Global Baby Diaper Market, Revenue Share (%), By Distribution channel, in 2018
Rising acquisition among major players to enhance their foothold in the market is projected to foster market growth over the forecast period. For instance, the Japanese personal care group Unicharm has made one of its largest overseas acquisitions ever, by purchasing Southeast Asian diaper maker DSG International (Thailand) for US$ 530.0 million. Hence, the rising adoption of such a growth strategy by major players is expected to fuel market growth.
Increasing the focus of the manufacturer to recycle the diaper in order to promote environmental sustainability is expected to augment the market growth of the baby diapers. For instance, in September 2017, Procter & Gamble is moving ahead with a diaper recycling operation in Amsterdam, The Netherlands. The company has partnered with AEB Amsterdam to launch a diaper recycling program, similar to one already underway in Italy through the P&G subsidiary Fater.
The U.S. has no product specific regulation, but labeling and packaging are governed by:
FP&L Act 16 CFR 500/NIST Uniform Laws and Regulations Handbook 130
19 CFR 134
Figure 4. Global baby diaper Market –Value Chain Analysis
Major players active in the market Players active in the market are Kimberly-Clark Corporation, Procter and Gamble, Unicharm Corporation, Svenska Cellulosa Aktiebolaget SCA, Kao Corporation, Johnson & Johnson Services, Inc, Nobel Hygiene, Bummis, Fujian Shuangheng Group Co., Ltd., and Bumkins.
Few Recent Developments
- In December 2015, the company announced an agreement with Walt Disney Parks & Resorts. As part of this alliance, the company will increase the availability of various brands and products within the park, Disney Cruise, and Disneyland Resort line, on multiple fronts, which also includes baby care centers hosted by Huggies.
- In June 2016, Huggies donated US$ 22.0 million diapers to the National Diaper Bank Network to help needy families across the U.S., as part of the company’s CSR initiative, which is also helping to increase brand visibility.
Procter and Gamble
- In August 2015, the company introduced new and improved Pampers Cruisers Diapers with extra absorb channels, which enables babies to stay drier, and the diaper does not sag like ordinary diapers.
- In September 2017, Procter & Gamble is moving ahead with a diaper recycling operation in Amsterdam, The Netherlands. The company has partnered with AEB Amsterdam to launch a diaper recycling program, similar to one already underway in Italy through the P&G subsidiary Fater.