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Southeast Asia is one of the fastest growing regions in the world. Due to the improvement of living standards, consumers have strong demand for daily necessities. By 2023, the Southeast Asian hygiene products market will triple. It is mainly driven by the growth of consumer income in Southeast Asia, urbanization, and the growth of literacy rate. With rapid economic development and improved education, consumers in developing countries in Southeast Asia will have greater purchasing power and health awareness to incorporate modern disposable hygiene products into their daily lives.

In addition, Southeast Asia's female population is more educated than ever before, pushing more women into the workforce and increasing disposable income. Educational and economic improvements not only further support the growing demand for modern and convenient hygiene products for themselves and their babies, but also provide women with greater purchasing power to buy these products. By 2023, the increase in per capita disposable income of the female population in Southeast Asia is expected to exceed $1200 billion, which is twice that of the global female population.

Income growth, disposable diapers become necessities

If you want to enter the disposable diaper category consumer market, the parent's per capita disposable income threshold is about $4000. While most adults in Southeast Asia remained below that level in 2018 (with the exception of Singapore and Malaysia), many more are crossing the threshold, particularly in countries such as Indonesia, the Philippines and Malaysia.

The main driving factors for the growth of disposable diapers include: the higher population growth rate; the increasing number of dual-income families; and parents' awareness of hygiene, especially the middle class is paying more attention to infant hygiene. The number of dual-earner families is on the rise, which means that changes in parents' handling of baby affairs and education, such as an increase in the average age of potty training, make it take longer to use baby diapers. In addition, because parents are busy, they will rely more on convenience products.

Another notable trend in Southeast Asia is that consumers are increasingly turning to disposable pull-up pants. It has become the most popular form in markets such as Indonesia, Thailand and Vietnam. The convenience provided by pull-up pants is a major factor driving this conversion, as parents further look for products that can provide children with more comfort, protection and greater freedom of movement.

In addition, by 2027, the demographic composition of Southeast Asia will change, with an increase in the 1-4 age group and a decrease in the number of newborns. This change will create more opportunities for older children to use pull-up products. However, the affordability of pull-up pants is a key factor in product replacement, especially for the promotion of use among the majority of low-income consumer groups.

Affordability is a key factor in the replacement of disposable diaper products. For manufacturers of high-end products and low-end products, there are opportunities here. Affordable entry-level products can attract consumers to start using disposable diapers, while high value-added innovative products can cater to the needs of middle-and upper-class consumers, who are usually willing to spend more for high-quality products. In order to design a successful quality product, it is important to grasp the consumer preferences of different markets, the influencing factors of the product and the willingness of consumers to pay.

In most cases, high-end brand claims alone are not enough. For example, the global consumer survey International in Euromonitor shows that Thai consumers show a strong preference for high-quality baby care products, but this does not equate to a preference for premium/luxury brands. On the other hand, consumers in Indonesia tend to use child-safe products that are convenient to use and certified by the government or non-profit organizations. Identifying your own products in each market ensures growth in sales and market share.

For baby products, brand loyalty can be strong, with parents tending to choose reliable brands and products that trust their quality and know the source. For example, Kao's Merries brand claims to be "number one" in Japan, targeting the region's middle-and high-income consumers. Consumers in Southeast Asia see the "Made in Japan" label as a guarantee of quality, especially when they associate Japanese products with quality and safety.

In the Southeast Asian market, the use of various products has not yet reached its full potential. Therefore, in order to succeed in Southeast Asia, manufacturers must establish emotional relationships and trust with parents. As the first point of contact, the introduction of products in hospitals is an effective way to increase the use of these products. In addition, in the field of pull-up pants, brand owners should pay attention to educating consumers about the use and benefits of products, so as to improve the awareness and understanding of using pull-up pants products.

Changing roles and diverse needs of women

As mentioned earlier, the educational level and disposable income of women in the region's developing markets have been increasing, allowing more autonomous modern women to focus on self-care. As a result, the feminine care market in Southeast Asia has grown rapidly in recent years, and female consumers attach great importance to hygiene in their daily lives, so they use and change hygiene care products more frequently.

At the same time, the key strategy for the growth of developed markets in the region is mainly to take advantage of lifestyle changes and trends. In Singapore, for example, women are increasingly looking for hygiene products that use organic and sustainable materials, which are considered safer and more beneficial to the skin.

It is worth noting that sanitary pads are growing in most markets in Southeast Asia. The demand for such products comes from women who have less menstrual flow and want to save money, because the unit price of pads is usually lower than other hygiene care products. In addition, many working women, especially middle and upper class women, prefer to use pads every day to maintain fresher and comfort.

Tampons, on the other hand, remain a niche in the region. This is largely due to unfamiliarity with the product, high prices and lack of marketing. They attract a small number of women who are familiar with Western culture or have exercise habits such as swimming and other water activities.

The competitive landscape in Southeast Asia's health care market is dominated by multinational companies-Eunice (Unicharm), Kao (Kao), Johnson & Johnson (Johnson & Johnson), Kimberly-Clark (Kimberly-Clark), Procter & Gamble (P & G) and Essity-which together account for the largest share of sales in the health care retail market. This shows that consumers are more inclined to buy products from well-known brands based on quality and safety considerations.

Product innovation has also further stimulated demand and brand sales. New products in the region include organic cotton products for sensitive skin, such as Eunice's Sophie (Sofy) products, and new technologies to improve fit and comfort to minimize the risk of leakage, such as Kimberly-Clark's Kotex (Kotex) products.

In developing countries in South-East Asia, a large proportion of the population is located in remote areas and below the income threshold for disposable hygiene products. Therefore, the growth of traditional hygiene products is still strong. These markets have a lot of unmet potential and are a blue ocean for sanitary product manufacturers.

This article is from Nonwovens Industry Journal