Diaper Market – Insights
Diapers are soft absorbent cloth which are worn by babies who are not trained to use the toilet. Diaper are also used by adults suffering from urinary incontinence. It is a type of underwear which allows a user to urinate without using toilet. The major factors contributing to the growth of the global diaper market are the advantages provided by diapers, such as safety, comfort, convenience, ready availability, easy disposal and cost effectiveness. They provide comfort to the infant by their perfect fit, softness, absorbency, and breathable nature.
Among product type, baby diaper segment held the dominant position in the global diaper market in 2018. The baby diaper segment includes regular diapers, diaper pants, training pants, youth pants, baby diaper liners, and other products such as swimming pants, baby changing mats, etc.
Furthermore, adult diapers segment is expected to be fastest growing segment during the forecast period. This owes to the rising geriatric population across the globe due to which demand for adult diapers is expected to increase in the upcoming years. According to the World Health Organization (WHO), the projected growth of the geriatric population (aged 85 and above) in Europe is 40 million by 2050, and between 14 to 19 million by 2020. Therefore, increasing geriatric population is expected to propel demand for adaptive clothing.
Among distribution channels, online channels are expected to account for a significant market share over the forecast period owing to increasing number of parenting websites, baby blogs, and online advertising by manufacturers among others. Rising consumer preference towards online shopping is also expected to provide lucrative opportunities for diaper manufacturers. In September 2018, Ontex Group launched ‘healthy’ nappies, which were made available through an online subscription and were delivered to the customer’s address at an affordable price.
The global diaper market was valued at US$ 63.1 billion in 2018 and is expected to register a CAGR of 7.5% in terms of revenue, over the forecast period (2019 – 2027), to reach US$ 118.7 billion by 2027.
Asia Pacific is expected to hold a significant share in the global diaper market owing to the increasing adoption of strategies such as acquisitions by key players to attain a strong foothold in the market. For instance, in March 2019, Unicharm Corporation acquired DSG International (DSGCL), a manufacturer of diapers and other absorbents in Southeast Asia. The acquisition was finalized for a value US$ 250 million. DSGCL manufactures disposable diapers for babies and adults, with locations in Thailand, Malaysia, Indonesia and Singapore. This acquisition is expected to increase the market presence and product portfolio of Unicharm Corporation in Southeast Asia. Also, in July 2018, Nobel Hygiene Pvt Ltd acquired India-based disposable hygiene manufacturer, Godrej consumer products’ diaper brand ‘Snuggy’. This acquisition has helped Nobel Hygiene to expand its product portfolio in the India market.
Figure 1. Global Diaper Market Share, By Region, 2018
Source: Coherent Market Insights, 2018-19
North America is expected to contribute a prominent market share in terms of value during the forecast period owing to rising incidence of urinary incontinence in the region. According to the National Association of Incontinence, 25 million adults in the U.S. are suffering from urinary incontinence. In addition to this, stress urinary incontinence affects an estimated 15 million adult women. Stress urinary incontinence is considered the most prevalent type of incontinence suffered by women in the U.S.
Figure 2. Global Diaper Market Share, By Distribution Channel, 2018
Source: Coherent Market Insights, 2018-19
Players operating in the global diaper market are adopting various growth strategies such as mergers & acquisitions, partnerships & collaborations and others to expand their consumer base. For instance, in September 2018, The Procter & Gamble Company and Drylock Technologies NV entered a global cross-license agreement to expand their intellectual property rights into the ‘Channel’ technology. The ‘Channel’ technology is used to enhance performance of absorbent hygiene products such as baby care taped diapers and pants as well as adult incontinence diapers and pants.
Major players operating in the global diaper market include Svenska Cellulosa AB, DSG International Ltd., First Quality Enterprises, Inc., Kimberly-Clark Corporation, Abena A/S, Attends Healthcare Products, Inc., Unicharm Corporation, Kao Corporation, Ontex Group, Chiaus (Fujian) Industrial Development Co Ltd and others.