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With the acceleration of aging, China will usher in a new growth industry: adult incontinence industry. In the past ten years, the compound growth rate of this industry has exceeded 20%. According to the data, the market size of China's adult incontinence products will reach about 7.51 billion billion yuan in 2021, with an annualized growth rate of 23.2 percent. But on the other hand, on average, for each elderly person, the per capita consumption of adult incontinence products in my country in 2020 is only US $4.3, which is lower than the per capita consumption level of close to US $70 in mature markets such as the United States and Japan. The main reason is that consumption habits have not yet been formed. The penetration rate of domestic adult incontinence products is only 5%, compared with 80% in Japan and 60% in the United States.

high growth

China's adult incontinence industry started relatively late. In 1996, Taiwan's adult diaper brand Bao Da entered mainland China, which started the development of the adult diaper industry in mainland China. In 2006, Hangzhou reliably introduced China's first adult diaper production line and successfully put it into production. Since 2007, foreign brands such as Vader and Eunice Happy Mutual have successively entered the Chinese market. From 2008 to 2020, the market size of adult incontinence products rose from 0.59 billion yuan to 6.12 billion yuan, and the market size achieved a tenfold growth in 13 years.

The primary target populations for the adult incontinence industry and the female care industry are disabled persons over 60 years of age and women aged 10-49, respectively. During the ten years from 2011 to 2020, the population over 60 years old rose from 0.185 billion to 0.264 billion. According to the statistics of the China Insurance Association, the disability rate of the population over 60 years old in my country is 16.5, so the disabled population over 60 years old rose from 0.37 to 0.053 billion. The female population aged 10-49 in my country showed a downward trend, from 0.406 billion to 0.366 billion. In 2011, the size of China's female care market was 28.6 times that of the adult incontinence industry; in 2020, the size of the female care market was 61.1 billion yuan, the size of the adult incontinence market was 6.12 billion yuan, and the size of the female care market was 9.9 times that of the adult incontinence industry, and the gap was narrowing.

Japan entered severe aging in 2008, with more than 21% of the population over 65 years old, and the penetration rate of the adult incontinence industry was about 55%. For the first time, the size of the adult incontinence market also exceeded the size of the female care market. By 2020, the penetration rate of adult incontinence products in Japan will reach 80%, and the market space for adult incontinence products is about twice that of female care products.

According to the forecast of the Health and Health Commission, China will enter a severe aging society in 2035 (the proportion of the population over 65 years old is more than 21%), and it will take only 14 years from moderate aging to severe aging. Compared with Japan's 13 years from moderate aging to severe aging (1995-2007), China and Japan are very similar in the aging process.

With the aging degree and industry penetration rate, it is expected that the market size of China's adult incontinence industry will reach or even exceed the female care industry in the future, and the industry size will exceed 50 billion by 2030.

Increased concentration

Japan's adult incontinence products CR5 has been stable at 85% for many years, with high concentration, the competitive landscape of the industry has been relatively stable, and the barriers to entry for new enterprises are high. Industry leader Unija as Japan's first brand to do adult incontinence care), the market share has always been ranked first (but also the first in the Japanese market for women's care products). In contrast, China's adult incontinence products market competition pattern is scattered, multi-brand competition is fierce.

The head brands in the domestic adult incontinence products market include Kimberly-Clark, Vader, Hengan, Reliable Care and other international first-line enterprises and local manufacturers. Among them, the market share of local brands Reliable (Reliable, Absorbing Treasure, An Nurse) is 9.4, and the market share of Hengan (An Erkang) is 7.9, ranking first and second. CR5 is a domestic brand with strong local characteristics. CR5 has shown an overall downward trend in recent years, the current total is less than 30%, the industry concentration is reduced.

In the fragmented and increasingly intense adult incontinence market, Reliable is the only company in the leading market to maintain a stable market share, and for the first time in 2018, it surpassed Hengan Anerkang and is currently ranked first in the industry. At the same time, in the past two years, Shandong Kangshun and Hebei Hongda joined the ranks of the head market competition, and gained a certain market share.

Compared with the baby care and feminine hygiene products industry, in the field of adult incontinence products in China, the strength of national goods is obviously dominant, consumer purchase preferences and channel structure differences support the rise of the national brand space. First of all, the initial scale of the industry is small, consumer price is sensitive, the head brand promotion will be low, the promotion investment is not high. Secondly, the mainstream consumption channels of adult incontinence products are unique compared with women's health and infant care, with hospital channels accounting for more than 16%. In the early stage of industry development, convenience stores around hospitals, chain circulation pharmacies and other channels also played an important role, which does not completely overlap with the dominant channels (KA, etc.) of traditional personal care leaders, giving small and medium-sized brands room for survival. From a long-term point of view, with the aging, consumption upgrading and the rise of brand awareness will be gradually repaired, it is inevitable for the industry to move towards head concentration.

Reliable shares is the domestic personal hygiene care industry's leading manufacturer and adult incontinence products leader, the company's own brand and ODM two-wheel drive collaborative development, of which the independent brand business focuses on adult incontinence products, ODM business to produce baby care products, to produce pet hygiene products and adult incontinence products as a supplement.

Reliable shares attach importance to research and development, rich technology accumulation, with 239 patented technologies, ranking in the forefront of the industry, the company currently has reliable, Aai two production bases, a total of 29 production lines (excluding masks), large-scale production advantages outstanding. On the other hand, Reliable has established long-term and stable cooperative relations with many well-known brands of baby care products at home and abroad, such as JS in the Philippines, Dudi Company and Wanbang Health. Most of the company's customers do not have their own production capacity and rely on the company to provide production capacity. Guangzhou Dudi and Hangzhou Muxin even use the company as exclusive suppliers.

Overall, the adult incontinence industry has a deterministic growth opportunity with a simultaneous increase in the number of target users and penetration under the aging trend.

Source: Jung-International Nonwoven Industry Business