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The global disposable hygiene products retail market is valued at $112 billion billion in 2021 and is expected to reach $129 billion billion by 2026. The Asia-Pacific region contributes more than 40% of the global market. The region's positive sales performance is supported by evolving hygiene standards, increasing consumer awareness, increased purchasing power, innovation and improved product availability.

In the Asia-Pacific region, China and Southeast Asia (SEA) together accounted for more than 70% of sales, with China accounting for the largest share. Retail sales in 2021 were $28 billion in China and $6 billion in Southeast Asia, where Indonesia and Vietnam are the growth engines.

Birth rate drops for baby diapers
Long-term growth prospects challenge

Baby diapers are one of the largest contributors to the disposable hygiene products market in the Asia-Pacific region. However, population headwinds have limited the growth of the category as the region is facing the challenge of declining birth rates. Indonesia, Southeast Asia's most populous country, saw its birth rate fall to 17 births per 1000 in 2021, up from 18.8 five years ago. China's birth rate has fallen from 13 births per 1000 five years ago to 8, meaning the number of children aged 0 to 4 has fallen by more than 11 million. By 2026, China's diaper population is estimated to be about 2/3 of 2016.

The family planning policy, changing social attitudes towards family and marriage, rising levels of education and increasing female labor force participation are key factors contributing to the decline in birth rates in the region. In May 2021, China announced a three-child policy to reverse an aging population. It is unclear whether the new policy will have a significant impact on the population. China's two-child policy, introduced in early 2016, has failed to generate a sustained surge in newborns.

Despite the shrinking consumption base, retail sales of baby diapers in the region are expected to show positive growth over the next five years, with pull-ups driving growth. Compared with developed countries, per capita consumption is still low, there is room for organic growth. Despite the higher price, pull-up pants are showing positive demand growth due to convenience and durability. They help support toilet training and foster a stronger sense of independence and are increasingly becoming the style of choice for parents.

Manufacturers are also responding to this demand in terms of new product development. For example, Softex, a leading company in Indonesia (now owned by Kimberly-Clark), launched a new Sweety Gold Pants NextGen in 2021 to promote freedom of movement for babies.

As per capita consumption in the region remains low and there is a large untapped consumer base, the hygiene market has the opportunity to further drive market penetration through retail expansion, product innovation and attractive pricing strategies. While innovation in the high-end segment through more complex value-added products and product forms can help the growth of value in this category, a reasonably priced pricing strategy is still essential for broader product adoption.
 
Innovation and education are
Key to Driving Growth in Women's Care

Both in terms of product value and volume, feminine hygiene products are the largest contributor to disposable hygiene products retail sales in the Asia-Pacific region. In Southeast Asia, the women's care category is expected to grow at a CAGR of 5% between 2022 and 2026 to reach $1.9 billion. On the other hand, in China, the feminine care market faces many challenges, including the already high per capita consumption of sanitary napkins (pads) (preferred form) and an aging population. Subsequently, the category is expected to see only moderate growth in the future, mainly driven by consumption upgrades and high-end products.

Increasing women's disposable income and ongoing education by government and non-profit organizations to address women's health and hygiene issues have been helping to drive sales growth and industry innovation in feminine hygiene products.

Innovations in this category focus on product features and value-added features. In Indonesia, for example, Softex has launched a number of value-added products over the past few years, including Softex Celana Menstruasi pant sanitary napkins. The success of this product format has prompted other leading players to launch similar products, such as Eunice's Charm Sleep Protect Panties.

In China, Sophie launched a new hybrid product in 2020, which uses Japanese patented technology and integrates body warming functions into sanitary napkins that extend to the lower abdomen to increase comfort. However, this innovation comes with a higher sticker price and may limit the growth prospects of high-income consumer groups.

Over the years, the region has also become increasingly concerned about waste from feminine hygiene products and the need for more sustainable alternatives. "Euromonitor International Consumer Voice" pointed out that the health and nutrition survey released in 2021 showed that 21% of respondents in China, Indonesia and Thailand turned to reusable underwear, while 8% of respondents used reusable Sanitary napkins. While cost may be a consideration in moving to reusable products, more consumers are also looking for environmentally sustainable options.

In Vietnam, local brand Green Lady Vietnam to provide reusable bathroom products to young environmentally conscious consumers. In addition, Chinese underwear brands inside and outside and UNIQLO launched washable underwear as an alternative to disposable products. Although retail sales of these products are still small, sales of these products have been growing compared to single-use, reusable alternatives. This trend creates challenges and opportunities for disposable feminine care brands to address sustainability issues through innovative products and packaging that appeal to environmentally friendly consumers.

While innovation in features, materials, form and value-added advantages will continue to be the driving force for growth in Southeast Asia and China, brands need to find a balance between quality and price to attract more users from the vast low-income population that forms a major part of the untapped consumer base.

population ageing trend
Conducive to the adult incontinence market

While still small in absolute terms, adult incontinence is the most dynamic disposable hygiene category in the Asia-Pacific region, achieving high single-digit growth in 2021. While Southeast Asia and China are considered relatively young compared to more developed markets such as Japan, changing demographics and a growing number of older people provide an important customer base to ensure category growth.

Adult incontinence sales in Southeast Asia total $0.429 billion in 2021 and are expected to grow at a CAGR of 15% from 2021-2026. Indonesia is a major contributor to Southeast Asia's growth, and while the country's share of its population over 65 is less significant than in countries such as Singapore or Thailand, its much higher absolute population base creates many opportunities for organic growth in the region.

On the other hand, China's market size ranks second in the Asia-Pacific region, second only to Japan, with retail sales of $0.972 billion in 2021. By 2026, China is expected to become the first in Asia, with a compound annual growth rate of 18% in 2021-2026. Among other factors, the world's largest elderly population will drive the growing popularity of disposable adult incontinence products in China.

However, demographic change is not the only factor to consider when considering growth strategies for the adult incontinence market. Consumer awareness, social stigma, and affordability remain major barriers to increasing the penetration of adult incontinence products in the region. These factors also often limit the category to product forms designed for moderate/severe incontinence. Cost is also a factor in the heavy use of reusable adult incontinence products.

According to a survey released by Euromonitor International Voice of Consumer, Health and Nutrition in 2021, adult diapers are still the main form of use by consumers in China and Thailand, with 46% of respondents reporting use in China and 31% in Thailand. Meanwhile, in China, 42% of respondents reported using reusable adult incontinence products, compared to 38% in Indonesia and 19% in Thailand.

The survey also showed a high proportion of respondents using female menstrual products because of adult incontinence-more than 30 per cent in China, Indonesia and Thailand. These findings suggest that product awareness, innovation and better access have led to further growth opportunities for professional disposable adult incontinence protection.

Adult incontinence innovation throughout the region has been evolving around product features (e. g. breathability, absorbency) and addressing issues related to social stigma (thinness and fit). In Indonesia, Softex launched Confidence adult pants. They focused on close-fitting tailoring and styles and "flexible mobility technology", which will help women gain more flexibility, while the products are also close-fitting.

In addition, Kimberly-Clark launched the Poise brand in China in 2021, mainly for Chinese women with mild incontinence problems. Reliable also introduced incontinence products for women, expanding the range of incontinence products.

Demand for wipes

Wet wipes will benefit most from the new crown outbreak in 2020, but the growth rate will slow in 2021 as demand normalizes. However, on a per capita basis, wipes usage is still higher than pre-epidemic levels. In terms of value, Southeast Asia and China are expected to continue healthy growth, with compound annual growth rates of 11% and 8% in 2021-2026, respectively. Increasing revenue, increasing awareness of the use of wipes, innovation and the rise of e-commerce are also positive factors driving demand and sales growth.

In terms of new product development, while antibacterial properties remain a welcome feature and innovation focus, other product claims include natural, hypoallergenic, water-based, skin-beneficial and biodegradable. As the industry seeks to achieve sustainability goals, recyclable packaging has also become more compelling.

Huge unmet potential to expand
Market Opportunities in Southeast Asia and China

Over the next five years, retail sales of disposable hygiene products in China and Southeast Asia are expected to grow positively, contributing nearly 85% of the absolute growth in the Asia-Pacific region. While changing demographics may pose increasing challenges to the organic growth of baby diapers, increased consumer acceptance of disposable hygiene products, increased affordability, habit persistence and product innovation will help drive sales growth in the disposable hygiene category, especially given the large unmet demand potential in the region. However, it is also necessary to acknowledge the differences between the economies and cultures of Southeast Asia and China in each market in order to successfully meet the needs of local consumers.

This article is from Nonwovens Industry Journal
作者：Sahiba Puri，Euromonitor International

Source: Jung-International Nonwoven Industry Business