Printer Friendly

The Brazilian disposable diaper market.

while this market remains relatively small, the potential for future growth is increasing; local companies are banking on future investments, modernizing existing capacity and working on new products

The disposable baby diaper market is a growing consumer market for the disposable nonwovens industry in Brazil. The Brazilian diaper market has seen much change in the areas of diaper manufacturing and design in the last two years. These changes began two years ago with the entry into the Brazilian market of imported diapers.

Currently Johnson & Johnson, the leader in the diaper market in Brazil, is the target on an assault Procter & Gamble, an attack coming from two sides. On one side, P&G began with the importation of its "Pampers Phases" brands from Canada and will continue with local manufacturing at its own industrial unit in Tambore-Barueri, near Sao Paulo. From the other side, P&G has acquired 55% of the Argentinean company that manufactures the "Duffy" brand name and is entering the Brazilian market with this diaper label.

A Look At Other Manufacturers

Tambrands, manufacturer of "Plim Plim" diapers, is looking at reducing the raw material costs of producing a diaper in an effort to modernize production and manufacture a less expensive product. A cheaper diaper will benefit the poorer people of Brazil.

Kimberly-Clark, one the U.S. leaders in the diaper market with its "Huggies" diaper, has given up on the Brazilian market after having invested U.S. $3.5 million and suffered a loss.

Kenko do Brasil, which uses Unicharm's technology from Japan, is involved in the market with a diaper under the brand name "Monica."

Johnson & Johnson worked hard last year and launched some new versions in its product line in an effort to maintain its leadership position in the disposable diapers market.

The actual Brazilian disposable diaper market is very small. Roughly 250 million diapers were consumed in Brazil with sales of about $130 million in 1990. (Figure 1).

The consumption of disposable diapers in Brazil has not risen dramatically in recent years due to high sales prices, low product diversification and the relatively low amount of disposable income available in the general population, a factor that limits diaper use to the highest social classes of urban populations. Only 6% of the children in certain social classes use disposable diapers.

However, the main reason that has attracted companies like P&G to invest in the Brazilian market is the growing potential foe baby diapers. It is estimated that Brazil will have 30 million children under six years of age through the year 2000.
COPYRIGHT 1992 Rodman Publications, Inc.
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 1992 Gale, Cengage Learning. All rights reserved.

Article Details
Printer friendly Cite/link Email Feedback
Publication:Nonwovens Industry
Date:Jul 1, 1992
Words:427
Previous Article:Japan Vilene posts sales.
Next Article:OSHA issues final rule on employee exposure to formaldehyde; new ruling may affect some nonwovens manufacturers; INDA recommendation adopted in...
Topics:


Related Articles
The Brazilian disposable diapers business.
New disposable diaper debuts in Brazil.
The disposable baby diaper market in Brazil.
Drypers acquires Chansomes.
Brazilian Diaper Market Growth Continues.
MPC To Buy Drypers.
Disposable diapers in Brazil: market stagnation blamed on glut of producers. (South American Report).

Terms of use | Copyright © 2016 Farlex, Inc. | Feedback | For webmasters