Abstract
Why buy this report
- 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
Changing demographics and product innovation drive sales growth
Disposable paper products is characterised by many mature sectors and some
emerging strong growth ones, particularly incontinence products. The
Australian economy is enjoying its lowest levels of unemployment for decades
and, whilst consumer borrowing is at an all-time record high, household
expenditure remains buoyant largely due to the benefit of dual incomes.
Concurrently, Australian demographics are exhibiting the typical trends of
pronounced ageing and record low fertility rates. However, government
financial incentives have resulted in increases in fertility rates since 2004.
Changing consumer lifestyles, the financial capacity to afford higher-quality
products and manufacturer innovation have contributed to growth within
disposable paper products.
Incontinence products enjoys strongest growth
Incontinence products enjoyed the strongest current value growth in 2006
within disposable paper products. Sales were driven by advertising and
increased consumer acceptance. Incontinence products also have stronger
presence in supermarkets/hypermarkets, which helped to increase sales further.
Lifestyle advertising carried out by leading manufacturers has helped to
increase consumer acceptance of incontinence products. The launch of Stayfree
Advanced Protection in late 2005 also boosted sales of incontinence products
in 2006.
Environmental concerns becoming significant across disposable paper products
Most sectors within disposable paper products now have product inclusions that
claim to be more beneficial to the environment. Australia is a leading nation
in paper recycling and more than half of domestic paper production uses
recycled fibre. Other significant issues include bleaching with some companies
marketing unbleached paper and others, notably SCA Hygiene Australasia, using
oxygen bleaching in place of chlorine bleaching. Other innovations include
water usage reduction in the manufacturing process, the use of paper wrapping
in place of plastic and the use of super-absorbent materials to reduce product
bulk and fibre usage.
Private label mounts a new challenge
The value share of disposable paper products sold through
supermarkets/hypermarkets increased in 2006 as these outlets continued to
expand across Australia. Coles Group Ltd and Woolworths Ltd have both
introduced premium-quality private label products under the respective brand
names of You' ll Love Coles and Woolworths Select, claiming to offer quality
and performance at least the equal of leading brands and at a considerable
price saving. Both are evident across most sectors of disposable paper
products and have driven further growth in private label value share.
Disposable paper products to experience low growth over the forecast period
Disposable paper products will see low constant value growth over the forecast
period as several sectors have reached maturity. Incontinence products will
enjoy the strongest constant value CAGR over the forecast period as sales
continue to be driven by consumer acceptance and an increasing number of
advertising campaigns. It is expected that more value-added features and
environmentally friendly products will be launched over the forecast period
due to rising consumer demand for such innovations.
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