Nappies and Baby Wipes - UK - April 2006

Table of Contents

• Introduction
• Definition
• Consumer research
• ACORN Executive Summary
• Birth-rate provides welcome boost to sales
• Nappy sales return to growth
• Pants have provided opportunities to add value
• Wipes sector matures
• Pampers extends dominant position in nappies
• Own-label leads in wipes
• Advertising plays key role
• Nappy purchasers are becoming less loyal
• More households with children are using wipes
• The future
• Market drivers
• Unexpected rise in births has boosted demand for baby products
  • Figure 1: UK birth-rates, 2001-11
• Working women need greater convenience
  • Figure 2: UK workforce in employment, by gender, 2000-09
• More women in full-time employment
  • Figure 3: UK workforce in part-time employment, by gender, 2000-05
• Increased childcare provision has enabled more mothers to work
  • Figure 4: Provision of daycare facilities in England, 2000-04
• Rising incomes make convenience and quality more affordable
  • Figure 5: PDI and consumer expenditure, at current and constant prices, 2001-11
• Demographic changes favour growth of higher-value sectors
• Disposable remains the choice of the majority
• EU Landfill Directive remains the primary incentive for change
• Market Size and Segmentation
  • Figure 6: UK retail sales of disposable nappies and baby wipes, 2000-05
• Sales trends converge
  • Figure 7: UK retail sales of disposable nappies and baby wipes, by sector, 2000-05
• Nappies return to growth
  • Figure 8: UK retail sales of disposable nappies, by volume and value, 2000-05
• Training pants take greater share
  • Figure 9: UK retail sales of disposable nappies, by type, 2001-05
• Smaller pack sizes gain in popularity
  • Figure 10: UK retail sales of disposable nappies, by pack size, 2001-05
• Segmentation has driven growth
• Older children add value
  • Figure 11: Online price comparison, by nappy size and brand, February 2006
• Eco brands command significant premium
• Discounting narrows the gap between brands and own-label
  • Figure 12: Examples of discounts available on nappies, February 2006
• Baby wipes slowing down
  • Figure 13: UK retail sales of baby wipes, 2000-05
• Refill packs are preferred choice
  • Figure 14: UK retail sales of baby wipes, by packet type, 2001-05
• Brand activity
• Nappies
• Pampers tightens its grip on the market
  • Figure 15: Brand shares in disposable nappies, 2001-05
• Company information
• Pampers
• The Pampers range
• Brand positioning
• Huggies
• The Huggies range
• Brand positioning
• Nature Boy Girl
• Nature Boy Girl range
• Brand positioning
• Moltex
• Abena
• Own-label
• Baby wipes
• Own-label emerges as clear leader
  • Figure 16: Brand shares in baby wipes, 2001-05
• Johnson & Johnson
• Pampers
• Boots
• Huggies
• Simple
• Nature
• Own-label baby wipes
• New Product Development
• Nappies
• Wipes
  • Figure 17: NPD Positioning claims and qualities in baby wipes, Jan-Dec 2005
• New Product Briefs
• Nappies
• Wipes
• Advertising & Promotion
• Main media advertising is key marketing tool
  • Figure 18: Main monitored media advertising expenditure on nappies and baby wipes, 2000-05
  • Figure 19: Main monitored media advertising expenditure on nappies and wipes, by manufacturer and brand, 2003-05
• Procter & Gamble dominates our screens
• All new parents long for a good nights sleep
• Inspired by babies
• Extending the mix
• Huggies also maintains high profile
• Huggies takes a humorous approach
• DryNites adopt a different approach
• Johnson & Johnson leads in wipes
• Distribution
• Multiple grocers dominate nappy sales
  • Figure 20: Retail distribution of disposable nappies, by type of outlet, 2001-05
• Distribution of wipes is more fragmented
  • Figure 21: UK retail sales of baby wipes, by type of outlet, 2001-05
• The Consumer
• Disposables on the increase
  • Figure 22: Usage of disposable nappies in the last 12 months, 2002-05
• Brand switching
• Trainer pants gaining share...
  • Figure 23: Type of disposable nappies used, 2002-05
• ...and adding value
• Parents willing to try own-label
  • Figure 24: Usage of branded and supermarket own-label disposable nappies, 2005
• More households with children are using wipes
  • Figure 25: Usage of baby wipes/pre-moistened tissues in the last 12 months, 2004 and 2005
• Purchasers of wipes more likely to be solus users
• Heavy usage has a northern bias
• Own-label poses greater challenge in wipes
  • Figure 26: Usage of branded and supermarket own-label baby wipes/pre-moistened tissues, 2005
• Key conclusions for nappies:
• Key conclusions for wipes:
• The consumer base
  • Figure 27: Mintels consumer typologies showing above-average age, employment and Mintels special group status of shoppers, 2005
• Price-Conscious (25% of the sample)
  • Figure 28: Typical media usage of Price-Conscious consumers, 2005
• New Product Enthusiasts (25% of the sample)
  • Figure 29: Typical media usage of New Product Enthusiasts, 2005
• Eco-Friendly (25% of the sample)
  • Figure 30: Typical media usage of Eco-Friendly consumers, 2005
• Unconvinced (25% of the sample)
  • Figure 31: Typical media usage of Unconvinced consumers, 2005
• Conclusion
• Detailed demographics
• Disposable nappies
  • Figure 32: Usage of disposable nappies in the last 12 months, by gender, age, socio-economic group, presence of children, marital status, working status, household size, region and family lifestage, 2005
• Wipes
  • Figure 33: Usage of baby wipes/pre-moistened tissues in the last 12 months, by gender, age, socio-economic group, presence of children, marital status, working status, household size, region and family lifestage, 2005
• Cluster groups
  • Figure 34: Cluster groups, by gender, age, socio-economic group, presence of children, marital status, working status, household size, region and family lifestage, 2005
  • Figure 35: Cluster groups, by the lifestyle statements, 2005
  • Figure 36: Cluster groups, by usage of disposable nappies and baby wipes/pre-moistened tissues, 2005
• The Future
• Forecast decline in birth-rate casts a shadow over future sales
• Disposables certain to remain preferred option
• Environmentally friendlier brands have potential for further growth
• Wipes will have to extend usage further
• Pampers set to retain its strong lead in nappies
• Wipes sector set to become more fragmented
• Forecast
  • Figure 50: Forecast of the disposable nappies and baby wipes market, by value, 2005-11
  • Figure 51: Forecast of disposable nappies, by volume, 2005-11
• Fewer live births to translate directly onto sales
• Forecast factors
• Forecast modelling
  • Figure 52: Forecast models of disposable nappies and baby wipes, 1990-2011