Abstract
- Get insight into trends in market performance
- Pinpoint growth sectors and identify factors driving change
- Identify market and brand leaders and understand the competitive
environment
Product coverage
Away-from-home disposable paper products; Retail disposable paper products
Executive summary
Dynamic growth in 2008
Norwegian retail disposable paper products saw positive current value growth
throughout the review period. Several sectors recorded strong growth such as
incontinence products, wipes, toilet paper, tissues and kitchen towels. Cotton
wool/buds/pads and paper tableware recorded negative growth, whereas sanitary
protection and nappies/diapers/pants recorded only moderate growth. The
latter' s weak growth rate is due to the nappy deal offered by all retail
chains whereby consumers receive the fourth nappy pack for free, which
impacted on lower value sales which lead to slow value growth.
Environment, private label and quality products
There were three key factors impacting on growth in 2008, namely environmental
issues, private label sales and quality products. Norwegian consumers are
environmentally concerned and they prefer to purchase when possible
environmentally friendly products. The Nordic countries have their own
ecolabel named the Swan label which documents that the product meets certain
environment-friendly conditions. Products in toilet paper, kitchen towels,
tissues and paper tableware carrying the Swan label benefitted as consumers
preferred environmentally friendly products and these issues were more
prominent in these sectors.
Private label is particularly strong in cotton wool/buds/pads, toilet paper,
kitchen towels and paper tableware with more than a 20% share of value sales
in each sector. Some private label products even carry the Swan label. Private
label products are still less expensive than industrial products but the
quality is better and packaging more attractive which led to private label
boosting their overall position in the market in 2008. However, many consumers
prefer high quality products and are willing to pay more for functional and
well known brand names. Thus a polarisation has been created in the Norwegian
market with high quality expensive products at one end and private label at
the other end.
SCA Hygiene Products dominates
SCA Hygiene Products dominates the Norwegian market and accounted for a
dominant share of value sales in 2008. Metsä Tissue and Procter & Gamble Norge
are second and third respectively, but lie a long way behind the leader.
Private label is now larger than Procter & Gamble and enjoys an increasingly
strong presence. SCA Hygiene Products is dominant in important sectors such as
sanitary protection, nappies/diapers/pants, wipes, toilet paper, kitchen
towels and also the away-from-home market. The company is strong in terms of
innovation, launching the right products and knowing the Norwegian market and
its consumers.
Grocery channel dominates
The grocery channel comprising supermarkets/hypermarkets, discounters and
small grocery retailers accounted for 89% of all value sales in 2008.
Non-grocery retailers such as variety stores and health and beauty retailers
accounted for the rest of the sales. The grocery channel dominates due to the
fact that outlets stock most products and fit in perfectly with the
traditional shopping trends in Norway where most shopping is done once a week
in bulk mainly before the weekend. Longer opening times, together with keeping
prices low have benefitted discounters which gained shares from
supermarkets/hypermarkets during the review period. Grocery retailers invested
heavily in discounts for regular nappy customers, frequently offering "nappy
deals".
Economic slowdown to impact forecast sales
The unstable economic times are expected to be felt during the forecast
period. Growth is expected to be slower than compared to the review period and
it would mean that more people would turn to private label products. Consumers
are also expected to make certain products last longer where possible. Players
in the market are expected to focus more on the environment during the
forecast period, marketing and advertising more frequently their Swan labelled
products. Despite the unsure times ahead in terms of the economy,
manufacturers will remain innovative and launch high quality, comfortable and
functional products in order to attract consumers especially in sanitary
protection, nappies/diapers/pants and wipes.
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