Private label's popularity: store brands grow their diapers, feminine hygiene, wipes and more.

The popularity of wipes has clearly trickled down into the private label market. As more consumers depend on these disposable products for personal care, household care and other applications, they are increasingly looking to less expensive store brand products. The makers of these private label products are trying to replicate consumer products to meet the needs and demands of the market.

This trend was particularly evident at the Private Label Manufacturers Association's two recent trade shows--one held in Amsterdam in May and the other in Chicago in November. Both events attracted a number of wipes producers--both established players such as Rockline Industries and Nice-Pak and newbies--looking to capitalize on the success of this relatively new market.

Beyond wipes, however, nonwovens-based products, in general, have been increasing their role in the private label diaper market. Private label diapers, for one, have been steadily increasing in sophistication. In fact, a training pant made by Tyco Healthcare for Wal-Mart has been nominated for a 2005 Visionary Award by INDA, Association of the Nonwoven Fabrics Industry, which recognizes nonwovens innovation in the consumer market. This product uses a filament cote rather than a fibrous one for increased flexibility and absorbency and a less complicated production process.

In fact, it bas been Tyco's agreement with Wal-Mart, inherited through its acquisition of Paragon Trade Brands three years ago, that has boosted the baby diaper's presence on the private label market. Wal-Mart's White Cloud baby diaper brand has continuously been recognized as a high quality, innovative product.

According to experts, Wal-Mart's possession of a high quality private label brand is consistent with a trend among major retailers of creating a brand presence by establishing an identity within their stores through private label products. While commodity food products, namely milk, bread and cheese, continue to represent the largest markets for private label products, growth in non-food markets has been more consistent in recent years.

Some private label manufacturers credit the segment's success to the commodity situation occurring in many nonwovens-based consumer markets. Products like diapers and feminine hygiene products have long been considered commodity and are largely price driven. The absence of a marketing budget bas allowed private label producers to dedicate more resources to new product development.

PLMA president Brian Sharoff credited increased innovation on the private label front to two retail trends: the consolidation of both brands and retailers and an increased number of players in the private label market. "The major players in retail have dwindled, largely through consolidation. This bas created a handful of large companies with huge resources that have put pressure on the private label side of things."

Recent News From Private Label Manufacturers

New to the North American wipes market is A.F.G. Wipes, based in Rockingham, NC. This division of Israel's Albaad Industries produces wipes as well as its own spunlaced nonwovens at a 32-acre site in Rockingham. Albaad officials expect A.F.G. Wipes to become a significant player in the current $1.2 billion wet wipes industry in the U.S., with sales from the North Carolina site exceeding $75 million. Applications targeted by the company include baby, skincare, household and healthcare wipes.

American Hygienics operates seven wipe converting machines with a focus on the U.S. and U.K. markets. The Shanghai-based company's strongest market is currently adult wipes for nursing homes. This segment can reportedly command high end prices because of its value-added products. American Hygienics' Chinese location allows it to offer lower price points than many competitors.

Baby diaper manufacturer Arquest, Cranbury, NJ, has introduced its pull-on style diaper product to the European market. Launched in response to the success of Procter & Gamble's Pampers Easy-Ups product, this product has already been distributed in the U.S. market. According to Arquest executives, the pull-on style diaper, which was initially popular in Japan and other Asian markets, is gaining ground in both Europe and North America.

Based in Spain, wet wipes producer AskaWipes, s.l. proved its commitment to targeting the North American market with a booth at the PLMA show in Chicago. The company produces all types of wet wipes, for baby, make-up and nail varnish removers and personal hygiene wipes.

Bambo's Abri-Light light incontinence products for males and females feature odor containment technology. While Bambo has been involved in adult incontinence for some time, it has increased its focus on the segment in recent months. So far, much of this focus has been applied to Bambo's own brand of products, but private label is also a key interest, according to company executives.

CIP4, Buccinasco, Italy, has been involved in the manufacturing of disposable private label products for 27 years but kept a low profile in the business until two years ago when it began moving beyond its domestic Italian markets. A producer of feminine hygiene products and wet wipes, CIP4 exited the baby diaper market a few years ago.

Sister companies Disposable Products Limited and Products For People were sharing a booth at the private label show. A manufacturer of disposable wipes for baby, personal and home care applications, DPL purchased disposable goods producer P4P, formerly Amir Products, in October 2004. The acquisition allows the two companies to benefit from synergies between them. Currently, about 50% of sales are conducted domestically within Israel while the remaining half is spread around the world. Recent developments include wipes housed in a patented sliding lid package, which mark DPUs first foray into full-sized wipes products after spending 10 years selling sachets.

Developed by Drammock, Dublin, Ireland, Comfies baby diapers compete with Pampers in the U.K. and Ireland quite successfully, according to executives. Additionally, the company operates a considerable private label business, where it is particularly attractive to retailers looking for premium store brand products.

A clear indicator of the massive proliferation of the wipes category is Boston-based Dr. Wipe. The child of a large player in the Israeli private label market, the company offers shoe wipes, potted plant leaf cleaners, pain removal wipes and plastic furniture cleaning cloths. Dr. Wipe produces the cleansing solutions and outsources the nonwoven fabric.

Castilenti, Italy-based Eurofil's Venize adult diapers with elastic offer comfort and protection to both mobile and bedridden patients. The elastics around the legs ensure precise fit and the adhesive tabs can be adjusted to fit the patient's body. The company also offers a range of sanitary towels and panty liners for feminine hygiene needs.

New to the private label baby diaper and feminine hygiene markets, Evyap, Istanbul, Turkey, had a presence in both Amsterdam and Chicago. The company was ready to showcase its products for the private label segment. According to executives, the company is billing its new diapers as having the same quality as national brands, particularly in terms of stretchability and absorbency. Evyap currently is distributing its diapers under the Evy Baby brand name and its feminine hygiene products under the Evy Lady name in Turkey but will eventually target markets around the world.

EZProducts, Deerfield Beach, FL, has modeled its business plan after Procter & Gamble's Swiffer brand and now offers wet and dry floor cleaning cloths as well as disposable dusters. During the three years this company has been in business, executives have seen continued growth in the quick clean category with more consumers looking to branded products.

FIDE is a Brtnice, Czech Republic-based feminine hygiene producer capable of producing 400 million sanitary napkins per year. The company guarantees flexible response to consumer demand, particularly in the private label market. FIDE has received several quality certifications including ISO 9002. Half of its output is sold into private label; the remainder is sold under FIDE's Micci and Oasis brands.

Hayat has been making disposable diaper products for five years but in the past three months has introduced wet wipes for baby and household applications. Executives said that Hayat chose to enter the wipes market because of the huge opportunity it holds within Turkey, where the company already commands 25% of the diaper market with its Molfix brand. The success of this brand has largely been attributed to Hayat's ability to make a product that offers the same level of performance as competitive brands at a lower price point.

Excess capacity in its baby diaper business has reportedly influenced Hayat to target the private label market where it is currently conducting business in 63 countries.

Based in Newark, NJ, Haba has witnessed a trend where its retail partners are not as interested in purchasing national brand equivalents. Instead competition is based more on price, not quality, and you cannot do both, according to executives.

Hygienica is an offshoot of hygiene equipment manufacturer Cellulose Converting Equipments. The new feminine hygiene product manufacturer is able to outsource production on CCE equipment for smaller scale marketers. At the European private label show, the new venture was showcasing sample products to provide a sense of what CCE equipment can achieve.

Innovate Wet Wipes produces moist toilet paper, baby wipes as well as newly developed household care items. Many of the company's products are made from standard spunlaced products, which has allowed it to extend beyond wipes into ancillary products such as disposable washing gloves. Still hygiene remains the most important market for Innovate.

Intigena's thong panty liner is now thinner and features added details such as printing and color options. Based in Zug, Switzerland, Intigena sells feminine hygiene and baby diaper products throughout continental Europe, mainly in Switzerland and Italy.

An entry into the wipes market was a way for cleaning solvent supplier Mykal to add value to its products without taking away from its signature De-Solv-It brand. The citrus-based cleaning wipes complement the company's existing business.

The rapid proliferation of the wipes market was evident at the booth of NicePak, where executives were reporting continued diversification in both household and personal care wipes. Among the results of this diversification were private label self-tanning, antiaging, glass cleaners and flushable wipes. In essence, every little niche for wipes is being filled, according to executives.

Nolken, a 22-year-old wipes producer based in Windhagen, Germany, was at the European show to promote its entire range, particularly products diversified beyond baby wipes. According to executives, business in the baby wipes arena has slowed in recent years thanks largely to market maturity and industry competition. New products launched in facial and household areas have helped to compensate for this lag, however, and executives are optimistic that the segment will continue to grow in the future.

From diapers to the latest generation of training pants, Novacare manufactures approximately 15 diaper components to make the final product. This requires extreme machine flexibility and precision. Novacare recently increased its production capacity to satisfy clients' demands for special patterns, finishing and packaging.

Unternethmensgruppe Pelz was showcasing its skin care products and hygiene items in Amsterdam. On the hygiene front, the company offers modern sanitary napkins with a soft surface and breathable outer covering and panty liners that avoid skin irritations through its W. Pelz GmbH facility.

Israeli tampon producer Rostam is currently the only private label tampon producer with plastic applicators. While infection-control tampons are also an interest to the company, executives at the show indicated they have not yet commercialized these products.

Executives at Rockline Industries were also reporting a rapid rate of development in the disposable wipes market. In order to feed this growing dmnand, Rockline recently added a facility in South China, which joins other company production sites in The Netherlands, Arkansas, Wisconsin, New Jersey and the U.K. This new site will initially help sate demand in Europe and North America, according to executives and will eventually target emerging markets as consumers in these areas become better educated on the use of wipes.

In addition to expanding its production, Rockline has continuously been increasing its product offerings to compete with branded offerings. Most recently, the wipes maker has been working on a flushable kid's wipe to compete with Procter & Gamble's Kandoo wipe, which has been successful in Europe.

Medical and adult incontinence specialist Santex has expanded into light feminine incontinence in recent months. Formerly a medical specialist, Santex has gained significant knowledge in adult incontinence markets during the last 15 years. Its Florelle Lady feminine incontinence products feature lightness, unparalleled absorbency, wearability, lightness, and odor safety. Showing a united front in Amsterdam were Codi International and Suominen Nonwovens. One of Europe's largest wipes producers, Codi was purchased by Suominen last year and renamed Suominen Wet Wipes. This alliance represents spunlaced nonwovens producer Suominen's commitment to the global wipes markets, according to executives.

Medical products specialist Triad Disposables has been focusing its resources on penetrating niche areas. The most recent fruit of this strategy is the diabetic foot care wipe, which soothes and clean foot sores common among diabetics. "We are constantly looking for another avenue to develop a wipe," said the company's Ron Pontollillo. "A diabetic is a great customer to get because that is a customer for life. The convenience and relief felt by diabetics will keep them returning to the product time and time again."

Valor Brands, the Alpharetta, GA-based diaper manufacturer introduced in 2003, bas made its initial push into Europe. Already available in North America, Valor's baby care products include a diaper featuring a high level of elasticity and a special highloft acquisition and distribution layer. In addition to this diaper, Valor is launching a training pant around the world, which features the same technology used in its adult diapers as well as the same level of absorption found in Valor's traditional baby diapers.