In a baby bust economy, the baby diaper industry must address declining birth rates by harnessing per capita penetration. This involves targeted portfolio segmentation, evidence-backed wellness enhancement and agile channel strategies. Adjacent areas of broader baby and maternity care and senior hygiene offer scope beyond diapers for long-term growth and customer lifetime value.
This report comes in PPT.
In a declining birth rate environment, the diaper industry faces stagnant growth, with the underserved developing global south driving the bulk of incremental growth due to income growth and lifestyle shifts. Brands harnessing more targeted portfolio segmentation, tangible wellness benefits and agile channel strategies are better positioned against industry headwinds.
A contracting diaper user base calls for the development of a more specialised, customised assortment and targeted marketing to maximise per capita penetration, which requires benchmarking of the portfolio against diverse user profiles, life occasions and adjacent health needs such as skin conditions and immunity risks.
Delayed motherhood and shrinking household sizes support appetite for premiumisation across value tiers, which can be achieved by highlighting products’ core efficacy, promoting halo wellness ingredients and integrating advanced technology for diagnostic and preventative care. Clinical and science backing helps further appeal to health-conscious parents.
Modern parents use diverse and increasingly digital information sources to guide their essential purchases, prioritising affordability, accessibility and authenticity. A marketplace model, influencer marketing, B2B partnerships and tech-driven personalisation help maximise consumer touchpoints and deepen penetration.
As the diaper economy contracts further due to the declining baby population, diversifying the portfolio and leveraging synergies and retail partnerships by entering related markets like baby and maternity care and senior hygiene can provide long-term growth opportunities and increase customer lifetime value.
This is the aggregation of retail and away-from home tissue and disposable hygiene products as well as Rx/reimbursement adult incontinence.
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