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Chinese diaper market dominated by Procter & Gamble

The Chinese diaper market experience current value growth of 23% in 2012, reaching sales of RMB31.6 billion.

Diapers enjoyed vigorous current value growth in 2012; the highest among all tissue and hygiene categories in China. 2012 was the Year of Dragon, which usually witnesses a higher birth rate in China, which may be one of the important factors underpinning the buoyant demand for diapers.

The penetration of such convenience products into lower-tier cities and rural areas may also contribute to the overall robust market, along with the growing purchasing power and quickening life pace among consumers.

Value growth of diapers in 2012 was slightly outperformed by that in 2011, mainly because the product penetration rate in higher-tier cities is already very high, whereas lower-tier and rural markets have played an even more important role in boosting volume growth. On the other hand, the trade-up to better products in higher-tier cities may account for the strong value growth in 2012.

The wider consumer base of standard diapers than new born and junior diapers has resulted in a much higher volume and hence higher value sales, accordingly. Manufacturers have been making great efforts to meet the various consumer needs in this category by offering a variety of standard diapers, such as gender-specific nappies from Mamy Poko and ultra-thin nappies for more comfort in summer, from Anerle.

Procter & Gamble (Guangzhou) Ltd comfortably led the Chinese diapers market, with a value share of 46% in 2012, up by almost one percentage point over 2011. Procter & Gamble's high brand awareness and developed distribution network across China have established its outstanding position within the market.

The company has nurtured a loyal consumer base in the country with its frequent new product launches, upgraded existing product lines as well as aggressive advertising via various media.

A strong constant value compound annual growth rate (CAGR) of 16% is expected for the Chinese diaper market through to 2017. Statistics show that the population of childbearing women aged 20-29-years-old is expected to remain over 100 million during 2010 to 2015, which will underpin the steady birth rate in China.

Meanwhile, the growing product penetration into lower-tier cities and rural markets may also boost the sales of diapers, to result in a robust volume CAGR of 15% over the next five years.

For more information on the Chinese diaper market, see the latest research: Chinese Diaper Market

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