North America will Remain Largest Market for Baby Diapers

According to a recent Fact.MR report, the global baby diapers market will expand at a steady 5.9% value CAGR between the forecast period 2017 and 2026.

Rockville, MD, April 24, 2018 (GLOBE NEWSWIRE) -- A recently compiled Fact.MR report foresees the global baby diapers market to record a stable 5.3% volume CAGR over the period of forecast, 2017 to 2026. Revenues from worldwide sales of baby diapers are estimated to exceed US$ 86,000 Mn by 2026-end. In terms of both value and volume, North America is envisaged to remain the largest market for baby diapers, with demand driven by a plethora of factors including robust working population and high literacy rate.

Pre-fold diapers have substituted use of pin by Snappies, thereby offering higher convenience to users. Biodegradable diapers are witnessed increased penetration in the region, as they are produced by using natural, eco-friendly, and baby skin-friendly materials. Environmental challenges and relevant government regulations have further supported the use of eco-friendly products in North America, thereby influencing demand and sales of biodegradable baby diapers significantly.

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Smart Baby Diapers Development to Influence Demand & Drive Sales

The baby diapers market has perceived a spate of novel product launches over the past couple of years, such as baby diapers featuring wearable sensor technology. Such technologies have enabled caretakers to identify the need to change diaper of a baby beforehand, thereby preventing skin issues, and saving time & spending on clinics. Development of smart diapers is another major trend that is addressing issues related timing of changing diapers of babies.

Jahangir Ahmed, B-Tech student at the University of Kashmir, has developed a smart diaper, tentatively called “Baby Pee Sensor”, which comprises four layers – inner fabric, absorbent material, cover layer, and outer layer that is embedded with devices and sensors. This diaper offers the convenience of washing by detaching the outer layer, and reusing, and is expected to be cost-effective. Such products, with proper marketing and advertisements, have high future market penetration potential, particular in developed and developing nations.

Overcapacity in Developed Markets to Intensify Competition Between Players

Business of baby diaper is rather capital intensive with long investment and payback cycle. Volume sales of baby diapers in developed markets are expected to decline on account of declining fertility rate. This declined fertility rate can be highly attributed to myriad commercially available birth control options coinciding with major societal shifts. Emancipation of women along with their increased participation in occupational fields, in combination with mounting costs of education and childcare, are further affecting birth rates in developed economies.

With low volumes of baby diaper sales, their unit cost is gaining an uptick, thereby leading to deteriorating margin, and marginal cost pricing by manufacturers. These instances point at a rise in price war among players in the baby diaper market until challenges appertaining to overcapacity is addressed.

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Key Takeaways from Fact.MR’s Report on Baby Diapers Market

1- Disposable underwear will continue to be the dominant product type in the market, in terms of value. Demand for disposable underwear is primarily driven by their convenience and ease of use.

2- Based on diaper style, pull on baby diapers are estimated to account for the bulk revenue shares of the market during the forecast period. Pull on baby diapers are also expected to record the fastest volume sales through 2026.

3- Sales of baby diapers will remain the highest for use in babies with less than 12 lbs weight. Babies with a weight of less than 12 lbs will account for approximately one-third market revenue share by 2026-end.

4- Modern trade channel are anticipated to remain dominant distribution channels for baby diapers, and are estimated to latch onto nearly two-fifth market revenue share by 2026-end.

5- Fujian Shuangheng Group Co., Ltd., Svenska Cellulosa Aktiebolaget SCA, Johnson & Johnson Private Ltd., and several other prominent market participants have been profiled and analyzed in detail in this report.

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