At the end of 2016, the diaper market is expected to reach a value of $49 billion, according to a new report by Persistence Market Research, as reported in Nonwovens Industry. According to that same report, diapers are expected to surpass $70.4 billion in about eight years.
But isn’t the diaper market covered? The big players are making a bundle on diapers…is there any room for anyone else?
The answer is yes. Here are three reasons why there is more room than you might expect in the disposable nonwoven diaper market.
- Private labels are “in.” It seems as if everyone has a private label now. In 2013, according to Statista, the market share of private label brands was about 18 percent and it’s sure to continue to rise. Consumer perception on private labels is changing; consumers in the past considered private label purchases to be for people who couldn’t afford the best. Now, according to one study, 33% of people believe private label brands to be equally as good as brand names. If a new manufacturer were to enter the market now, a private label brand would be one way to break through.
- Incomes are rising. Purchasing disposable products, including diapers, is one thing people tend to do when incomes increase. Additionally, birth rates continue to rise in developing countries as incomes increase. Growing demand combined with the means to pay for disposable products is a good reason to get into the market now.
- Technological innovations are now commonplace. Technology is changing almost faster than we can keep up with it. If you can work with a nonwoven manufacturer to produce a diaper that is better (more absorbent, better for the skin, a higher degradation rate, etc.), then there is plenty of room in the market for you.
Diapers are, of course, only one way to go. The nonwoven market, in general, should continue on a steady growth rate for at least the next 10 years. Is now the time for you to make a change?