North America - Marketplace

The retail disposable diaper/training pants/youth pants category size in the United States is approximately $4.2 billion retail dollars. The Mass sector sells 48% of all diapers; grocery sells 43%, and drug sells approximately 9%. Retailer consolidation has changed the landscape in the marketplace. In 1980 in the grocery sector, the top 5 largest supermarket companies held a 26.5% share of all sales. In 1999 (19 years later), the top 5 controlled 37% of all sales. The top 10 accounts in 1999 controlled 70% ($2.94 billion) of all sales in the United States. In the drug sector the consolidation has been equally robust. Today, three chains completely dominate the drug sector.

The expansion of the mass merchandiser/supercenter stores, “wholesale club” stores and “dollar” stores has changed consumer-buying habits. In 1992, in the disposable diaper category, the grocery sector accounted for 62.1% of all diaper sales in the United States. In 2000, the number fell to just 43%. This change equates to a 31% decline in diapers sales volume in the grocery sector over the past eight years. Nearly all of that volume went to the Mass/Club Store sector.

The disposable diaper category has a development index of 98%. Stagnant birth rates, combined with enhanced product performance have resulted in declining category sales. In the diaper category 80% is sold in proprietary branded products and 20% is sold in corporate branded products.