2. Diapers, more details

US baby diaper market $8 billion (?)

China $13 billion (global leader)

India $1.6 billion

Japan $2.5 billion (growing revenue from adult market)

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Other additional points:

- Pampers accounted for over $10b in revenue for P&G in 2013/2014. It became the first P&G brand to reach that level. P&G has many brands over $1 billion.

- The following timeline of innovation pretty much mirrors the diaper industry as well:

Disposable diapers began to appear on the market during the 1940s

Pampers diapers were born in 1961.  Through the decades, Pampers has consistently rolled out diaper innovations that have improved everyday life:

1950s: Introduced Z-pleats for stretch and stay-dry lining;

1970s: Replaced pins with custom fit fastening tapes, making every diaper fit better with fewer leaks;

1980s: Unveiled a revolutionary thinner diaper with super absorbers that kept wetness locked in, allowing babies to crawl, scoot and play more comfortably;

1990s: Introduced the first diaper with stretchy sides, and other upgrades to improve dryness and skin care for babies; and

2000s: Introduced Baby Stages of Development, a complete line of diapers, training pants and wipes designed for every stage of baby’s development.

Today, Pampers are made at nearly 30 manufacturing plants in 25 countries

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Manufacturing- key components

Materials Used in Diapers

Material	Where Used in Diapers
Polypropylene (PP)	Primarily used for the topsheet, the part of the diaper next to baby’s skin, tapes and fastening system
Polyethylene (PE)	Primarily used for the backsheet, the outer cover, tapes, and fastening systems
Cellulose fluff pulp	Absorbent core and core tissue
Superabsorbent polymer	Absorbent core
Elastics	Along leg opening and waist to improve fit.
Adhesives	Throughout the diaper to bond various other materials together

"In 1988, over 18 billion diapers were sold and consumed in the United States that year. It is unknown how many are consumed today, but based on our inquiries to Kimberly Clark and Procter & Gamble, we estimate that at least 40 billion are consumed each year."

"The modern disposable diaper typically consists of a plastic layer treated with a that wicks moisture into the diaper and away from the skin; an absorbent layer of wood pulp mixed with sodium polyacrylate, a polymer that assumes a gel-like form when it is exposed to liquid; and a backing layer made from a plastic such as polyethylene. Leg cuffs and the top of the diaper are made from polypropylene or another water-resistant material to minimize leakage. Petroleum- and wood-derived adhesives are applied as a hot melt to hold the layers together. Some disposable diapers feature a reusable outer cover and a disposable or flushable liner. Other disposable absorbent goods, such as adult incontinence products and feminine sanitary products, have a composition similar to that of disposable diapers."

Fluff Pulp -   

"Fluff pulps are used as a raw material in the absorbent core of personal care products such as diapers, feminine hygiene products, air-laid absorbent towelling, as such, or with superabsorbents and/or synthetic fibres. More than 80% of the pulps are used in baby diapers.

More than 90% of the fluff pulps are fully bleached chemical softwood pulps, of which more than 90% are kraft pulps.

The most common raw material source for fluff pulps are southern bleached softwood kraft (SBSK) from loblolly pine. SBSK from other species and NBSK are also used to make fluff pulp.[4] Thicker fibres are preferred to improve the bulk. The worldwide production of fluff pulps amounts to about 3.5 million tons."

At some point P&G bought land/farms for fluff :  "P&G in order to control the quality and have a reliable source of fluff pulp (wood), actually bought 650K acers in North Florida and started harvesting the forest to produce pulp for the pampers diapers." 

Since, they have sold it, and have made multiple attempts to replace wood-pulp. 

(Since some of these consumer industries tread the fine line of materials which are non-renewable (or not easily replenishable), and just a general consumption demand, landfill issues, they generally seem to have a high R&D component.)

Changes in pulp rules in Europe:

According to a report produced by Fast Markets last month, more than 6 million tonnes of pulp are imported into the European Union every year, with fears that the paper and board industries are amongst the most exposed and unprepared for the EUDR, which could, in turn, lead to massive supply shortages and price hikes in European supply chains.

As a result, a large share of trade that currently enters the EU could be traded through Asia instead, “leading to an unintended increase in the use of high-deforestation-risk pulp and paper outside Europe.”

The issue for pulp and paper producers is that the new rules require supply chains to provide a geolocational dataset for every shipment of forest products entering the one – which China, Europe’s largest supplier of timber products, has outright rejected.

As it stands, Proctor & Gamble and Kimberly-Clark (through Huggies) are the top suppliers of diapers (and nappies) in Europe, with Proctor & Gamble also the largest supplier of menstrual care products. For what it’s worth, Proctor & Gamble confirmed that it will comply with the new regulations in accordance with its sourcing guidelines.

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Where are these mainly sold?


Pharmacies seem to lead the share with 44.7%

Supermarkets and Hypermarkets are ~25%

Convenience Stores ~ 15%

Online stores - 10%

Increasing share of Online stores/


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The question of disposable consumption

Disposable diapers are the third largest single consumer item in landfills, and represent about 4% of solid waste.  In a house with a child in diapers, disposables make up 50% of household waste.

The convenience of disposable diapers has led to their dominance in the market, with approximately 96% of American infants using them, resulting in about 6,000 diaper changes before a child is toilet trained.

In Japan the change frequency is higher on a daily basis but children are toilet trained sooner.