With the changing consumption concept of the young generation parents, the demands for baby diapers are increasing significantly which give huge potential for Chinese baby diaper industry.
Researches and reports of 2015 have indicated that the increasing consumption ability and the implementation of the two-child policy will accelerate the sales of
baby diaper in the year of 2016.
Every new national policy will make loss for some industries but will also benefit some industries which are the same in every country. For instance, the Third Plenary Session of the 18th Central Committee of the Communist Party of China has decided to open the two-child policy to all couples, which give more opportunities to real estate, education and maternal & child products. It takes 34 years from one-child policy to two-child policy, and many 70s and 80s generations couples are actively advocated the new policy. In second and third tier cities and towns, especially in rural areas, most couples are willing to have a second child. Therefore, it is expected that the market of baby diaper will growing rapidly.
After 2010 Chinese baby diaper market was continued to maintain a rapid growth, according to statistics, the sales amount in 2015 was about 29 billion RMB, compared to 25 billion in 2014, it having a growth of 16%. The 15% annual growth rate is expected to maintain in next five years. From the current situation, the increasing population, the enhancing consumption ability and the implementation of two-child policy will all become a momentum for growing market of diaper.
In recent years, the disposable diaper market in China maintained a rapid development and the growing rate of baby diaper were remained at around 30%. Based on the lasted survey, the price and profit margins of baby diaper are still high.
Disposable diaper is a typical absorbent hygiene product, the raw material and manufacturing processes are commonly superior to the general cleaning paper and the gross profit is also correspondingly higher. Thus, the future of diaper market is promising.
The huge population base and the fourth baby boom will offer huge potential for growing market. In domestic big cities, more than 90% babies aging from zero to two have used the disposable diaper, in middle & small cities and rural areas, demands for cheap diapers are also incremental. It can be predicted that as the changing parental concept and the profound demographic transformation, demands for diapers still be increasing. In the year of 2020, the sales amount will up to 59.4 billion RMB.
