Disposable Baby Products - US - October 2007

SCOPES AND THEMES
What you need to know
Definition
Resources used for The Consumer sections
Abbreviations and terms
Abbreviations
Terms
EXECUTIVE SUMMARY
Report highlights
The disposable baby products market has seen sluggish growth
Price increases in 2005 improved 2006 sales, but 2007 estimates show slowing
Top two market leaders dominate
Disposable diaper sales dictate market direction
Continued migration to mass merchandisers at expense of supermarkets
More product innovations while better private label quality stifles price increases
Declining birth rate and smaller households slow entrance of new end-users
Starting families later in life has created more affluent parents
Early marketing efforts should pay off
All products reveal high usage rates, while baby oil/lotion and body/baby powder also display high adult usage
Race and ethnic differences in brand preference
Johnson & Johnson is strong market incumbent in its core segments
Mass merchandisers are most popular retail channel
High degree of brand loyalty and desire for quality
Future full of challenges and opportunities
Future forecast
MARKET DRIVERS
Declines in birth rates slow
Figure 1: Number of U.S. births and crude birth rate*, 1990-2006
Hispanics’ above-average birth rate is a boon for the market
Figure 2: Population of kids aged 0-5, by race/ethnicity, 2000-10
Figure 3: U.S. population aged 0-5, by race and Hispanic ethnicity, 2006
Figure 4: Share of U.S. population, by race and Hispanic ethnicity, all ages and ages 0-5, 2006
Older mothers are generally more affluent
Figure 5: Birth rate, by age of mother, 1990-2005
Expanding the category to toddlers and children
Innovation adds extra revenue channels, but private label increases competition and lowers prices
Pros and cons of disposable versus cloth diapers
MARKET SIZE AND TRENDS
Market size—total
Figure 6: Total U.S. retail sales* of disposable baby products, at current and constant prices, 2002-07
Market size—FDM
Figure 7: FDM sales* of disposable baby products, at current and constant prices, 2002-07
Market trends
Natural products grow from niche to the mass market
Segmentation by developmental stages expands from diapers/trainers to other products
Disposable training pants and cleansing products continue to focus on learning
Improved comfort, stretch and fit
MARKET SEGMENTATION
Overview
Figure 8: FDM* sales of disposable baby products, segmented by type, 2005 and 2007
Diapers
Figure 9: FDM* sales of diapers, at current and constant prices, 2002-07
Training pants
Figure 10: FDM* sales of training pants, at current and constant prices, 2002-07
Baby wipes and towelettes
Figure 11: FDM* sales of wipes and moist towelettes, at current and constant prices, 2002-07
Baby cleansing and care
Figure 12: FDM* sales of baby cleansing and care products, at current and constant prices, 2002-07
SUPPLY STRUCTURE
Companies and brands
Figure 13: FDM manufacturer sales of disposable baby products, 2006 and 2007
Diapers
Figure 14: FDM manufacturer and brand sales of disposable baby products, 2006 and 2007
Training pants
Figure 15: FDM manufacturer and brand sales of training pants, 2006 and 2007
Baby wipes and towelettes
Figure 16: FDM manufacturer and brand sales of wipes and towelettes, 2006 and 2007
Baby cleansing and care
Figure 17: FDM manufacturer and brand sales of baby cleansing and care products, 2006 and 2007
ADVERTISING AND PROMOTION
Overview
Procter & Gamble
Pampers
Pampers Stages
Figure 18: Three-way fit Pampers Cruisers
Figure 19: Pampers Stages Baby Wipes
Pampers Baby Dry
Figure 20: Pampers Baby Dry with Caterpillar Flex
Pampers Splashers
Figure 21: Pampers Splashers
Kandoo
Figure 22: Pampers Kandoo Wipes
Luvs
Figure 23: Luvs Bear Hug Stretch leak protection
Figure 24: Luvs Change to Luvs Challenge
Kimberly-Clark Corp.
Huggies
Figure 25: Huggies Wipes
Figure 26: Huggies Natural Fit
Pull-Ups
Figure 27: Huggies Pull-Ups Training Pants
GoodNites
Figure 28: GoodNites Underpants
Johnson & Johnson
Aveeno
Pfizer Inc.
Desitin
Wal-Mart, Babies R Us and Sam’s Club target parents with events and adult diaper themes
RETAIL DISTRIBUTION
Introduction
Figure 29: U.S. retail sales of disposable baby products, by channel, 2005 and 2007
Supermarkets
Figure 30: U.S. supermarket sales of disposable baby products, at current and constant prices, 2002-07
Mass merchandisers
Figure 31: U.S. mass merchandiser sales of disposable baby products (excluding Wal-Mart), at current and constant prices, 2002-07
Drug stores
Figure 32: U.S. drug store sales of disposable baby products, at current and constant prices, 2002-07
Wal-Mart outsells everyone including retail channels combined
Warehouse/Clubs offer bulk and low prices
Online launches
THE CONSUMER
Summary
Usage of disposable baby products
Figure 33: Use of disposable baby products in households with children aged 0-3, 2005 and 2006
Figure 34: Use of disposable baby products in households with children aged 0-3, by age of child, January-October 2006
Figure 35: Use of disposable baby products in households with children aged 0-3, by race/ethnicity, January-October 2006
Brand preferences
Baby and children’s shampoo
Figure 36: Brand usage for baby/children’s shampoo, by age of child, January-October 2006
Pre-moistened wipes/cloths
Figure 37: Brand usage for pre-moistened wipes/cloths, by age of child, January-October 2006
Figure 38: Brand usage for pre-moistened wipes/cloths, by race/ethnicity, January-October 2006
Disposable diapers and training pants
Figure 39: Brand usage for disposabe diapers/training pants, by age of child, January-October 2006
Baby wash and bath products
Figure 40: Brand usage for baby wash and bath products, by age of child, January-October 2006
Baby oil and baby lotion
Figure 41: Brand usage for baby oil and baby lotion, by age of child, January-October 2006
Figure 42: Brand usage for baby oil and baby lotion, by race/ethnicity, January-October 2006
Body and baby powder
Figure 43: Brand usage for body and baby powder, by age of child, January-October 2006
Figure 44: Brand usage for body and baby powder, by race/ethnicity, January-October 2006
Frequency of use of disposable baby products
Disposable diapers and training pants
Figure 45: Average number of disposable diapers used by household on an average day in last six months, by age of child, age of respondent, race/ethnicity, household income and marital status, January-October 2006
Other disposable baby products
Figure 46: Frequency of use for wipes, baby lotion, body/baby powder, baby oil, baby wash/bath products, and baby/child’s shampoo, by age of child, age of respondent, race/ethnicity, level of education, marital status and region, January-October 2006
Female respondents’ purchasing habits
Use of disposable diapers and training pants
Figure 47: Female respondents’ purchase of disposable diapers/training pants for children in household, August 2007
Number of children in household using diapers or training pants
Figure 48: Number of children in household of respondent using diapers/training pants, August 2007
Figure 49: Number of children in household of respondent using diapers/training pants, by household income, August 2007
Where disposable baby products are purchased
Figure 50: Usual place of purchase of diapers, lotions, powders, and ointments, August 2007
Figure 51: Usual place of purchase of diapers, lotions, powders, and ointments, by household income, August 2007
Figure 52: Usual place of purchase of diapers, lotions, powders, and ointments, by race/ethnicity*, August 2007
When disposable diapers/training pants are used
Figure 53: When disposable diapers and/or training pants are used, August 2007
Opinions regarding disposable baby products
Figure 54: Attitudes toward disposable baby products, August 2007
Figure 55: Attitudes toward disposable baby products, by household income, August 2007
FUTURE AND FORECAST
Future trends
Even slower growth in key 0-4 age group from 2007-12
Figure 56: Population, by age, 2002-12
Growth in population of women aged 18-40 varies by race/ethnic group
Figure 57: Women aged18-40, by race/ethnic origin, 2002-12
Biodegradable and eco-friendly products become more mainstream
Bundled products provide marketing opportunity
As allergies become more widespread demand for products increase
MARKET FORECAST
Disposable baby products
Figure 58: Forecast of total U.S. retail sales of disposable baby products, at current and constant prices, 2007-12
FDM disposable baby products
Figure 59: Forecast of total U.S. FDM sales of disposable baby products, at current and constant prices, 2007-12
Diapers
Figure 60: Forecast of U.S. FDM sales of diapers, at current and constant prices, 2007-12
Training pants
Figure 61: Forecast of U.S. FDM sales of training pants, at current and constant prices, 2007-12
Wipes and moist towelettes
Figure 62: Forecast of U.S. FDM sales of wipes and moist towelettes, at current and constant prices, 2007-12
Baby cleansing and care products
Figure 63: Forecast of U.S. FDM sales of baby cleansing and care products, at current and constant prices, 2007-12
Forecast factors
APPENDIX: TRADE ASSOCIATIONS