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
Price competition boosts demand
Disposable paper products in Italy grew slightly in current value terms in
2006. Overall, growth was lower than in 2005, due to the slower growth rates
experience by sanitary protection, nappies/diapers/pants, kitchen towels, and
toilet paper. Largely stable unit prices in 2006 helped increase the retail
volume sales of incontinence products, cotton wool/buds/pads and kitchen
towels, while limiting the decline in volume sales of toilet paper,
nappies/diapers/pads and tissues. The unit price movement in 2006 was largely
due to price competition between the leading branded manufacturers and private
label. Sales of incontinence products benefited from hitherto low penetration
and the gradual acceptance of these items among an ageing population, to
register above average volume and value growth throughout much of the review
period; however, growth in 2006 represented a recovery from a decline in value
sales in 2005. The increasing demand for convenience products helped to
stabilise the sales of tissues, kitchen towels, and paper tableware in 2006
Innovation a key driver of value growth
One of the most important trends in disposable paper products in Italy was the
demand for innovative products. Manufacturers focused their efforts on
launching new added-value products, which responded to specific consumer
demands and offered higher profit margins. Innovation was the driving force
behind sales of cosmetic wipes, light incontinence products, feminine hygiene
wipes and, facial cleansing wipes, in 2006. These product types registered the
fastest retail value growth in 2006.
On the other hand, household care wipes products recording the worst
performances in disposable paper products in Italy in 2006. Despite initial
favourable growth at the beginning of the review period, value sales of these
products, with the exception of toilet care wipes due to the innovative
promotional strategies of some manufacturers, declined in 2005 and 2006. The
decline in wet household care wipes was partly due to the demand for more
effective, and less expensive, products.
The rising presence of multinationals
Fater SpA remained the leading player in 2006; it held a dominant value share
of sales of sanitary protection in particular. However, its position overall
was challenged by the increasingly strong presence of multinationals, many of
which entered disposable paper products in Italy relatively recently. This was
the case for SCA Hygiene Products SpA, with its Tena brand in incontinence
products and Nuvenia in sanitary protection. There is little room for domestic
players, with Soffass SpA the most important after Fater. However, Fater is
part-owned by The Procter & Gamble Co.
Supermarkets/hypermarkets is the dominant distribution channel
Supermarkets/hypermarkets continued to account for the vast majority of retail
value sales in 2006, while discounters increased its value share year-on-year
between 2002 and 2006. Both of these distribution channels benefited from the
growing presence and popularity of private label products. However,
independent food stores and chemists/drugstores continued to see their value
shares decline, as consumers showed a preference for large modern retail
outlets. Many consumers were attracted to supermarkets/hypermarkets and
discounters by the offer of one-stop shopping, wider product ranges and
cheaper prices.
Innovation to continue to stimulate value growth
Disposable paper products is expected to register slow value growth over the
forecast period. Whilst it will benefit from the first signs of national
economic recovery, performances will be uneven. Value growth is predicted in
incontinence products, cotton wool/buds/pads, and wipes (personal wipes),
which are perceived as more innovative products offering greater growth
opportunities. Incontinence products is expected to provide the most dynamic
value growth over the forecast period, due to the development of innovative
products to cater for the increasing number of incontinent people among an
ageing population, and the growing acceptance of these products. On the other
hand, value sales of toilet paper, sanitary protection, and
nappies/diapers/pants are expected to decline slightly over the forecast
period, due to the high maturity of these products.
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