Disposable wipes: a global report: personal wipes drive global growth while household wipes suffer at the hands of private label

Household & Personal Products Industry, April, 2009 by Magdalena Kondej

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The global wipes sector grew by 7% in 2008, according to Euromonitor International figures *. This growth was largely driven by personal care wipes, which posted increased global value sales of 8%, compared to 4% for household care wipes.

As a result of the current economic climate, value growth of wipes in the developed markets of Western Europe and North America has been tempered and is suffering at the hands of private label, especially within household care wipes. In Western Europe the growth of wipes slowed from 11% in 2007 to 5% in 2008. However, Latin America and Eastern Europe saw particularly strong growth of 19% and 23% respectively in 2008, with much of the gains made by branded personal care wipes, serving to counter the shift to private label in the West.

U.S. and U.K. Show Marked Differences in Household Care Wipes

Despite the pace of growth slowing in North America, the region currently offers the most hope in terms of household care wipes in developed markets. The region has the biggest household care wipes market globally and has much lower private label penetration than Western Europe. Here, wipes have evolved into a staple product, with the added convenience they offer being of major importance to consumers in the region.

However, prospects are markedly different in the U.K., which saw the lowest value growth of all the major markets in 2008, posting a decrease of 3.5% according to Euromonitor International figures. Sales slowed across all categories as consumers curbed their spending in light of the economic downturn. For the foreseeable future, wipes in the U.K. are expected to continue to achieve low single-digit growth, while household care wipes are not predicted to rise above minus figures in constant value terms.

Baby Wipes Category Dominates and Major Players Focus on Added Value

In terms of market value, baby wipes dominate the sector globally. By value growth the category will continue to outperform the sector as a whole for the foreseeable future. This success can be attributed to baby wipes' status as a necessity product, added to the fact that there are very few viable substitute products on the market. Because of their real benefits, baby wipes have also been quicker to penetrate emerging markets, bringing more sustainable growth.

The manufacturers that perform best in baby wipes are those that have an established link to a diapers brand: Procter & Gamble's Pampers and Kimberly-Clark's Huggies. Another major player, Johnson & Johnson, is active in a range of associated baby products despite not being present in the nappies/diapers sector. The baby wipes sector, however, does have a high private label share due to its appeal to manufacturers looking to move vast volumes at low prices.

Innovation in 2008 from the major players focused on adding value. After aligning its baby wipes with its diaper range in 2007, Procter & Gamble concentrated on improving comfort, upgrading its Sensitive Wipes product to add a touch of cotton. Kimberly-Clark focused on similar innovations and added a new wipe to its U.S. Huggies range that includes a shea butter moisturizer. The shea butter wipes also have an improved cloth-like texture that further differentiates the product from private label lines. Procter & Gamble and Kimberly-Clark have also both recently looked to innovate in child-specific moist toilet wipes, with the early gains made by the Pampers Kandoo brand and Kimberly-Clark's Andrex Kids demonstrating there may be further potential in the category.

Niche Products Drive Innovation in Personal Wipes

Globally, feminine hygiene wipes achieved the strongest growth in the sector in 2008, according to Euromonitor International, gaining 15% in value through growing sales in both developed and emerging markets. As the category is still relatively new, prospects continue to look promising in most markets where the product has established a presence. Recent innovation in personal care wipes has, in general, focused on establishing a further niche--task-specific areas. Launches include Dr Fischer's 9 Months feminine hygiene wipes, manufactured in Israel and aimed at pregnant women, Bald Guyz and HeadWipes products in the U.S. and Kimberly-Clark's DentaBurst teeth cleaning wipes, also launched in the U.S.

Another development saw properties more associated with healthcare added to products to capitalize on consumers' growing health concerns. Playtex's Wet Ones range was recently expanded to include an anti-bacterial hand and face wipe, while the Little Busy Bodies Inc. Boogie Wipes brand, launched in late 2007, crosses into healthcare with wipes that are impregnated with saline and moisturizing agents to combat the dryness suffered by children repeatedly wiping their noses.

Multi-purpose and Anti-bacterial Additions to Household Wipes

All of the top global players in household care wipes have a traditional surface care product portfolio. Procter & Gamble, Reckitt Benckiser and SC Johnson led the category, driving sales through an association with their established cleaning products. The main challenge for these manufacturers is to differentiate their products from private label and add value to the category. Intense price competition has served to dampen innovation, however, with manufacturers largely focusing on adding multi-purpose and anti-bacterial properties to wipes in line with wider household care trends.