Owing to the widespread use of diapers over the years, the manufacturing of disposable diapers has increased in popularity. Machines are fast and highly mechanized to enhance competence and productivity, which has in turn enabled the diaper market to expand and advance technologically. Although the decline in world economic growth has hurt the diaper market, the industry has sustained comparatively positive growth in the last four years, as MarketWatch reports.  However, the diaper market is expected to experience a major flop in 2020 due to the coronavirus pandemic which restricted the movement of non-essential goods.

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Declining Birthrates

The Centers for Disease Control and Prevention (CDC) reports that the birth rate in the United States hit a record low in 2018, recording a 2% drop from 2017. Fertility rates dropped for virtually all races and age groups for the fourth year running.

As birth rates decrease, companies that make baby products are affected. That is because you cannot encourage parents to use more baby products including diapers, in markets where babies are not being born. Consequently, the diaper market is experiencing a decline in sales, and manufacturers do not know whether this is the new normal or a passing generational delay. Moreover, with the rough economic times, millennials are delaying having kids up until they feel prepared financially or otherwise. This is a trend you need to follow closely to see how it will impact your investment’s present and future.

Growing Competition

There is increasing competition from private label producers, online stores, and subscription services in the diaper market. Moreover, the two big names in the diaper market, Kimberly-Clark and Procter & Gamble have long been posing fierce business rivalry against each other and other brands as well. Besides, the companies use competitive pricing to capitalize on making profits on every unit they sell. In a way, competitive prices are set to stop competitors from entering the market so that major companies can stay in the market and increase their market share.

Thus, for newcomers in the industry, setting prices to be at par with those of leading manufacturers may cause them to incur greater production costs with no profit. Also, fierce competition in the diaper market, as is the case with any other market, is such that once a supplier knows an individual intends to become a producer like them, they will view you as competition, and start treating you differently. Save you have your own private label - a retailer who can compete with popular brands on your behalf - it is better to explore other alternatives.

The Struggle To Afford Diapers

Diaper affordability is the diaper crisis that a rising number of families are having currently. In fact, in 2017, PR Newswire stated that one in three American families were struggling to afford enough diapers for their kids. Families have been going through difficult financial times to the extent of not being able to afford other necessities like soap and other hygiene products.

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The record job losses many workers experienced during the COVID-19 outbreak made it worse for families who were already burdened. Parents and caregivers could no longer purchase diapers and diaper banks along with community groups stepped in to mete out free diapers. The diaper banks stated that they experienced record demand, up from 50% to 300%. It is therefore highly likely that many families may no longer have enough money to get diapers even when they are in stock.

The Quest For The Perfect Diaper

Part of being a parent is choosing the right diaper for your baby. Next to food, diapers are important accessories that should guarantee a toddler's comfort, safety, and support. Also, newborns have super sensitive skin, a factor that determines the safety and usefulness of baby products produced in the market.

Diaper markets are experiencing a push for innovations, as parents continue to look for working solutions. Will your product guarantee skin health to diaper users? What about issues to do with diaper sag and leakage? Diaper makers need to provide more than diapers, by assessing what diaper buyers need and be the source of expertise that clients clamour for. Disposable diapers are significantly different than they were two decades ago, but the function is still the same.

Clearly, the disposable diaper industry has changed majorly in recent decades, and with the continuance of the COVID-19 pandemic, it serves to transform the industry even more, creating challenges for both producers and consumers.

Next: Baby Center Helping Families With Distribution Of Diapers & Wipes During COVID-19 Outbreak

Sources: marketwatch.comhealthgrades.comintelligencenode.com.