Diaper Manufacturing in the US Industry Market Research Report Now Available from IBISWorld

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Rising disposable income and an increase in births will lead to industry growth. For this reason, industry research firm IBISWorld has added a report on the Diaper Manufacturing industry to its growing industry report collection.

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Rising per capita disposable income will allow consumers to afford higher-priced diapers

Static product prices and key demographic variables have harmed the Diaper Manufacturing industry over the five years to 2014. Industry operators design and produce disposable and cloth diapers, which are garments that are worn by infants to catch excrement. According to the latest available data from the Bureau of Labor Statistics, the industry's relevant producer price index is anticipated to rise at an annualized rate of only 0.1% from 2009 to 2014, failing to keep up with inflation over the period. Moreover, growth in the number of children has not been sufficient to compensate for stagnant prices. According to the latest available data from the Federal Interagency Forum on Child and Family Statistics, the number of children aged five and younger is anticipated to increase at an annualized rate of only 0.3% over the five-year period. Consequently, over the five years to 2014, industry revenue is anticipated to decline at an annualized rate of 1.3% to reach $14.6 billion. This decline includes a 3.4% dip in revenue expected in 2014 alone, as a result of falling diaper prices.

One product and two large players dominate the landscape of the Diaper Manufacturing industry. According to the latest available data from the Real Diaper Association, an estimated 7.5% of babies wear cloth diapers at least part time; the remainder predominately wear disposable diapers. While reusable diapers are more environmentally friendly and are accompanied by substantial cost savings, the convenience of disposable diapers continues to dictate industry sales. Similar to its product lines, the industry is dominated by a smaller number of industry operators, namely Procter and Gamble and Kimberly-Clark. According to IBISWorld Industry Analyst Stephen Hoopes, “These two players consistently account for more than 70.0% of the domestic market, with their scale and distribution capabilities increasing the industry's barriers to success substantially.”

Over the five years to 2019, industry revenue is forecast to rise. “Wealth gains resulting from increases in per capita disposable income and improvements in equity markets will allow consumers to afford additional or higher-priced diapers and positively impact couples' decisions to have a child,” says Hoopes. Moreover, the mounting focus among the largest players on the high-end diaper market is anticipated to cause the industry's average profitability to rise further, despite the industry's earnings already exceeding the sector average by a wide margin.
For more information, visit IBISWorld’s Diaper Manufacturing in the US industry report page.

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IBISWorld industry Report Key Topics

The Diaper Manufacturing industry designs and produces disposable or cloth diapers, which are garments that are worn by infants to catch excrement.

Industry Performance
Executive Summary
Key External Drivers
Current Performance
Industry Outlook
Industry Life Cycle
Products & Markets
Supply Chain
Products & Services
Major Markets
Globalization & Trade
Business Locations
Competitive Landscape
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Barriers to Entry
Major Companies
Operating Conditions
Capital Intensity
Key Statistics
Industry Data
Annual Change
Key Ratios

About IBISWorld Inc.
Recognized as the nation’s most trusted independent source of industry and market research, IBISWorld offers a comprehensive database of unique information and analysis on every US industry. With an extensive online portfolio, valued for its depth and scope, the company equips clients with the insight necessary to make better business decisions. Headquartered in Los Angeles, IBISWorld serves a range of business, professional service and government organizations through more than 10 locations worldwide. For more information, visit http://www.ibisworld.com or call 1-800-330-3772.

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Gavin Smith
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