Abstract
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- 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
Disposable paper products continues to grow
Disposable paper products in Slovakia witnessed a healthy growth in sales in
2008. The main growth drivers continued to be based on the country' s healthy
economy performance. The Slovak economy performed well in terms of GDP growth
in 2008. Simultaneously, wages increased strongly. Slovakia, in urban areas
particularly, witnessed development similar to more developed Western
economies. Slovak households spent more on everyday products, including
disposable paper products. Consumers also spend more time outside the home
which boosted AFH products directly. Rising disposable income increased the
interest in disposable paper products, including premium products.
Sophistication of existing variants drives sales
The most important major trend in disposable paper products was the rising
sophistication of existing assortments. Slovak consumers became increasingly
interested in new variants or task-specific products. Sanitary protection
witnessed several new improvements to existing products, for example by the
Always brand. A new eco brand, Jessa Nature by DM-Drogerie Markt Bratislava,
was launched in summer 2008. SHP Harmanec as launched several new premium
variants of toilet paper, kitchen towels and tissues with a main focus on
material strength which is highly demanded by consumers of disposable paper
products. Several new launches included improved scents or softening
additives. These new product launches confirm that Slovaks are more interested
in quality disposable paper products.
Multinationals lead disposable paper products
In 2008, two multinational players Kimberly-Clark as and Procter & Gamble
Slovakia sro led disposable paper products in Slovakia. However, local
companies performed quite well and they led in several categories. The
domestic producer SHP Harmanec was the third ranked player overall in 2008,
only slightly behind the leading multinationals. Another strong local company
is Celltex sro, which performs well through branded and private label products.
Discounters performs strongly
Discounters continued to increase its overall retail value share, largely at
the expense of independent small grocers, in 2008. Many consumers remain price
sensitive which boosted the interest in the developing discounters format and
stimulated growth in sales of disposable paper products. Nonetheless,
supermarkets/hypermarkets remained the dominant retail distribution format for
these products.
Disposable paper products is expected to grow over the forecast period
Disposable paper products are predicted to registers constant value growth
over the forecast period. Growth is expected to be steady and balanced. Sales
will be driven by demographic trends such as population growth and by rising
living standards. The global financial crisis is also likely to threaten
sales, especially in 2009-2010. However, disposable paper products are
perceived as necessary everyday items and therefore retail value sales are
likely to be threatened more than retail volume sales.
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