Tissue and Hygiene Markets
Global Tissue and Hygiene Markets
Howard Telford, Research Associate of Euromonitor International (USA) observed that the global tissue and hygiene retail markets were immune to the recession and apparently detached from the core economic trends. However the global picture hid stasis in North America and Western Europe which had been offset by growth in the emerging markets where population and incomes were still growing. Between 2005 and 2010:
· Global $ growth of 32.4% was made up of an emerging market growth of 75% and a developed market growth of 12%.
· Highest growth rates (11-12%) were in Latin America, the Middle East and Eastern Europe. Asia Pacific as a whole grew 7.5%.
· The USA was still the largest market ($26bn) but China ($18bn) is catching up fast with 9.2% per annum growth.
· China has accounted for 80% of the Asia/Pacific growth, but India hardly progressed.
· P&G ($25.3bn at retail globally) were the largest supplier. K-C was second at $23.3bn and SCA third at $6.3bn.
· Both P&G and K-C had grown at 4.5% p.a. over the 5-year period, but for 2009-10, P&G showed 5.4% growth against K-C’s 4.3%.
· All major manufacturers grew through repositioning their presence in emerging markets with China being the key target.
· Private label remains over-dependent on mature markets, especially Europe which has seen both low growth and a resurgence of brands in 2010.
· Supermarket and Hypermarket sales still dominate, but Internet sales are now growing at 25% per year and in Korea the internet accounts for 45% of diaper sales.
· Incontinence products have grown at 40% p.a. from a low base in developed markets and appear unaffected by economic instability.
For the future, considering the 2010-15 period: