Disposable Hygiene Products Market in China

Cao Zhenlei, Chairman, China National Household Paper Industry Association (China) provided the latest data for 2011:

•          Disposable diaper consumption rose 22% over 2010 and there was a large increase in exports.
•          Total disposable hygiene product (DHP) sales in China were 46 bn yuan, up 16% on 2010.  Of this 26bn was in femcare and 18bn in diapers, the rest incontinence products.
•          The femcare market was 87% disposable, and used 58 billion pads in 2010.
•          The diaper market was 40% disposable and used 18bn pieces.
•          The wet-wipes market value fell in value by 9.3% but increased in volume by 9.2% over 2010.
•          Exports of DHP were 307,000 tonnes up 17% on 2010. 
•          98,000 tonnes of wet wipes were exported, up 36% on 2010
•          The industry as a whole is consolidating:  15 femcare producers now make 77% of the sales revenue and 10 diaper producers account for 83% of sales.
•         P&G is the leading producer with a 17.4% share followed by Hengan (15.9%), Uni-Charm (14.9%), Chiaus (6.8%) and KC (6.6%)
•          600,000 tonnes of woodpulp were used in DHP, 546,000 tonnes being imported.  SAP usage was 170,000 tonnes and increasing as more converters chose to use the local production.
•          404,000 tonnes of SAP were produced in China in 2011.   

    For the future, Femcare is mature, will continue to grow but competition will be fiercer and RM prices higher so profits will fall.  A baby-boom is expected this year as only-child couples are allowed to have 2 children.  The diaper industry will continue to grow rapidly but consolidation will eliminate the backward.  Adult incontinence is embryonic so has great development potential and will grow rapidly as the enormous elderly population now living alone need professional care.  Wet wipes will grow as living standards improve and biodegradability/flushability issues will be important.

Asked about waste disposal, Mr Cao said it’s now mainly landfill but other options will become important within 5 years.