Disposable Baby Products - US

Published by: Mintel International Group Ltd.

Published: Oct. 1, 2007 - 87 Pages

Table of Contents

Scopes and Themes

What you need to know

Definition

Resources used for The Consumer sections

Abbreviations and terms

Abbreviations

Terms

Executive Summary

Report highlights

The disposable baby products market has seen sluggish growth

Price increases in 2005 improved 2006 sales, but 2007 estimates show slowing

Top two market leaders dominate

Disposable diaper sales dictate market direction

Continued migration to mass merchandisers at expense of supermarkets

More product innovations while better private label quality stifles price increases

Declining birth rate and smaller households slow entrance of new end-users

Starting families later in life has created more affluent parents

Early marketing efforts should pay off

All products reveal high usage rates, while baby oil/lotion and body/baby powder also display high adult usage

Race and ethnic differences in brand preference

Johnson & Johnson is strong market incumbent in its core segments

Mass merchandisers are most popular retail channel

High degree of brand loyalty and desire for quality

Future full of challenges and opportunities

Future forecast

Market Drivers

Declines in birth rates slow

Figure 1: Number of U.S. births and crude birth rate*, 1990-2006

Hispanics’ above-average birth rate is a boon for the market

Figure 2: Population of kids aged 0-5, by race/ethnicity, 2000-10

Figure 3: U.S. population aged 0-5, by race and Hispanic ethnicity, 2006

Figure 4: Share of U.S. population, by race and Hispanic ethnicity, all ages and ages 0-5, 2006

Older mothers are generally more affluent

Figure 5: Birth rate, by age of mother, 1990-2005

Expanding the category to toddlers and children

Innovation adds extra revenue channels, but private label increases competition and lowers prices

Pros and cons of disposable versus cloth diapers

Market Size and Trends

Market size—total

Figure 6: Total U.S. retail sales* of disposable baby products, at current and constant prices, 2002-07

Market size—FDM

Figure 7: FDM sales* of disposable baby products, at current and constant prices, 2002-07

Market trends

Natural products grow from niche to the mass market

Segmentation by developmental stages expands from diapers/trainers to other products

Disposable training pants and cleansing products continue to focus on learning

Improved comfort, stretch and fit

Market Segmentation

Overview

Figure 8: FDM* sales of disposable baby products, segmented by type, 2005 and 2007

Diapers

Figure 9: FDM* sales of diapers, at current and constant prices, 2002-07

Training pants

Figure 10: FDM* sales of training pants, at current and constant prices, 2002-07

Baby wipes and towelettes

Figure 11: FDM* sales of wipes and moist towelettes, at current and constant prices, 2002-07

Baby cleansing and care

Figure 12: FDM* sales of baby cleansing and care products, at current and constant prices, 2002-07

Supply Structure

Companies and brands

Figure 13: FDM manufacturer sales of disposable baby products, 2006 and 2007

Diapers

Figure 14: FDM manufacturer and brand sales of disposable baby products, 2006 and 2007

Training pants

Figure 15: FDM manufacturer and brand sales of training pants, 2006 and 2007

Baby wipes and towelettes

Figure 16: FDM manufacturer and brand sales of wipes and towelettes, 2006 and 2007

Baby cleansing and care

Figure 17: FDM manufacturer and brand sales of baby cleansing and care products, 2006 and 2007

Advertising and Promotion

Overview

Procter & Gamble

Pampers

Pampers Stages

Figure 18: Three-way fit Pampers Cruisers

Figure 19: Pampers Stages Baby Wipes

Pampers Baby Dry

Figure 20: Pampers Baby Dry with Caterpillar Flex

Pampers Splashers

Figure 21: Pampers Splashers

Kandoo

Figure 22: Pampers Kandoo Wipes

Luvs

Figure 23: Luvs Bear Hug Stretch leak protection

Figure 24: Luvs Change to Luvs Challenge

Kimberly-Clark Corp.

Huggies

Figure 25: Huggies Wipes

Figure 26: Huggies Natural Fit

Pull-Ups

Figure 27: Huggies Pull-Ups Training Pants

GoodNites

Figure 28: GoodNites Underpants

Johnson & Johnson

Aveeno

Pfizer Inc.

Desitin

Wal-Mart, Babies R Us and Sam’s Club target parents with events and adult diaper themes

Retail Distribution

Introduction

Figure 29: U.S. retail sales of disposable baby products, by channel, 2005 and 2007

Supermarkets

Figure 30: U.S. supermarket sales of disposable baby products, at current and constant prices, 2002-07

Mass merchandisers

Figure 31: U.S. mass merchandiser sales of disposable baby products (excluding Wal-Mart), at current and constant prices, 2002-07

Drug stores

Figure 32: U.S. drug store sales of disposable baby products, at current and constant prices, 2002-07

Wal-Mart outsells everyone including retail channels combined

Warehouse/Clubs offer bulk and low prices

Online launches

The Consumer

Summary

Usage of disposable baby products

Figure 33: Use of disposable baby products in households with children aged 0-3, 2005 and 2006

Figure 34: Use of disposable baby products in households with children aged 0-3, by age of child, January-October 2006

Figure 35: Use of disposable baby products in households with children aged 0-3, by race/ethnicity, January-October 2006

Brand preferences

Baby and children’s shampoo

Figure 36: Brand usage for baby/children’s shampoo, by age of child, January-October 2006

Pre-moistened wipes/cloths

Figure 37: Brand usage for pre-moistened wipes/cloths, by age of child, January-October 2006

Figure 38: Brand usage for pre-moistened wipes/cloths, by race/ethnicity, January-October 2006

Disposable diapers and training pants

Figure 39: Brand usage for disposabe diapers/training pants, by age of child, January-October 2006

Baby wash and bath products

Figure 40: Brand usage for baby wash and bath products, by age of child, January-October 2006

Baby oil and baby lotion

Figure 41: Brand usage for baby oil and baby lotion, by age of child, January-October 2006

Figure 42: Brand usage for baby oil and baby lotion, by race/ethnicity, January-October 2006

Body and baby powder

Figure 43: Brand usage for body and baby powder, by age of child, January-October 2006

Figure 44: Brand usage for body and baby powder, by race/ethnicity, January-October 2006

Frequency of use of disposable baby products

Disposable diapers and training pants

Figure 45: Average number of disposable diapers used by household on an average day in last six months, by age of child, age of respondent, race/ethnicity, household income and marital status, January-October 2006

Other disposable baby products

Figure 46: Frequency of use for wipes, baby lotion, body/baby powder, baby oil, baby wash/bath products, and baby/child’s shampoo, by age of child, age of respondent, race/ethnicity, level of education, marital status and region, January-October 2006

Female respondents’ purchasing habits

Use of disposable diapers and training pants

Figure 47: Female respondents’ purchase of disposable diapers/training pants for children in household, August 2007

Number of children in household using diapers or training pants

Figure 48: Number of children in household of respondent using diapers/training pants, August 2007

Figure 49: Number of children in household of respondent using diapers/training pants, by household income, August 2007

Where disposable baby products are purchased

Figure 50: Usual place of purchase of diapers, lotions, powders, and ointments, August 2007

Figure 51: Usual place of purchase of diapers, lotions, powders, and ointments, by household income, August 2007

Figure 52: Usual place of purchase of diapers, lotions, powders, and ointments, by race/ethnicity*, August 2007

When disposable diapers/training pants are used

Figure 53: When disposable diapers and/or training pants are used, August 2007

Opinions regarding disposable baby products

Figure 54: Attitudes toward disposable baby products, August 2007

Figure 55: Attitudes toward disposable baby products, by household income, August 2007

Future and Forecast

Future trends

Even slower growth in key 0-4 age group from 2007-12

Figure 56: Population, by age, 2002-12

Growth in population of women aged 18-40 varies by race/ethnic group

Figure 57: Women aged18-40, by race/ethnic origin, 2002-12

Biodegradable and eco-friendly products become more mainstream

Bundled products provide marketing opportunity

As allergies become more widespread demand for products increase

Market Forecast

Disposable baby products

Figure 58: Forecast of total U.S. retail sales of disposable baby products, at current and constant prices, 2007-12

FDM disposable baby products

Figure 59: Forecast of total U.S. FDM sales of disposable baby products, at current and constant prices, 2007-12

Diapers

Figure 60: Forecast of U.S. FDM sales of diapers, at current and constant prices, 2007-12

Training pants

Figure 61: Forecast of U.S. FDM sales of training pants, at current and constant prices, 2007-12

Wipes and moist towelettes

Figure 62: Forecast of U.S. FDM sales of wipes and moist towelettes, at current and constant prices, 2007-12

Baby cleansing and care products

Figure 63: Forecast of U.S. FDM sales of baby cleansing and care products, at current and constant prices, 2007-12

Forecast factors

Appendix: Trade Associations

Abstract

Consisting of disposable diapers, training pants, wipes, and baby cleansing and care products, the disposable baby products market is estimated at $7 billion, including a Wal-Mart estimate for the largest segment, disposable diapers and training pants. Mintel analyzes both primary and secondary research to dissect the market and provide valuable insights into current sales, product trends, and challenges and opportunities in the market.

Insights include:

• How changing birth rates impacted the market and which racial/ethnic groups have had a higher number of births and how age patterns within these groups have current and future implications
• How the increase in age of pregnant mothers is affecting sales
• Which products and trends have affected sales, including increased segmentation of product lines by age group; the expansion of upscale natural products to the mass market; and increased focus on learning elements
• Which segments are seeing increased market share and why
• What is the role of private label and how is it changing the behavior of dominant brand manufacturers

Mintel also uses consumer data from Simmons and Mintel's own exclusive survey to analyze and support research findings. Findings include:

• Which racial/ethnic groups have higher usage rates of specific products and what factors influence this use, including age and cultural influences
• How significant is the brand penetration of market leaders and private label-what factors determine this penetration, including use by age of child and racial/ethnic group
• How do choice of retail channels vary by race/ethnicity and why
• What are the features or attributes that consumers look for, and for which are they willing to pay more

By using sales data for FDM; estimates for other channels including Wal-Mart; and consumer survey results, Mintel analyzes the increasingly competitive disposable baby products market. The report highlights both challenges and opportunities for the market.

Specifically, this report covers the following segments:

• Disposable diapers
• Disposable training pants and swim pants
• Baby wipes and moist towelettes
• Diaper ointment/cream
• Baby soap
• Baby shampoo
• Baby oil and lotion
• Baby powder
• Petroleum jelly

The following products are excluded from the scope of this report:

• Bottles, nipples, nursers or other baby feeding accessories
• Cloth diapers, fabric and rubber training pants
• Diaper covers
• Infant and toddler bathing suits, and other baby clothing
• Moist towelettes not specifically intended for baby or toddler use (e.g. Wet Ones, Wash-n-Dri)
• Products not specifically designed for baby use (e.g. Ivory soap)
• Over-the-counter baby medications such as Orajel and Infant Tylenol
• Other infant medical products or devices
• Infant care such as manicure scissors, tweezers and nasal bulbs

Get Full Details About This Report >>

About MarketResearch.com
MarketResearch.com is an online aggregator selling over 160,000 market research reports, company profiles and country profiles from over 600 research firms. Our reports will provide you with the critical business and competitive intelligence you need for strategic planning and marketing research. Coverage includes the US, UK, Europe, Asia and global markets.