The German nappy market grew by 1% in current value terms in 2012, to reach a value of €694 million.
The development of nappies in Germany in 2012 is mainly influenced by two factors. Demographic developments lead to fewer babies being born every year, thus constantly reducing the amount of potential customers. Even though birthrates are stable again in 2012, which is the second year in a row, the overall development (including a decreasing German population in its entirety) does not work in favour of the category.
In addition to that, competition seems to be on the rise with new brands being introduced into the German market and private label manufacturers being able to stand their ground against market leader Procter & Gamble.
Compared with the 2007-2012 compound annual growth rate (CAGR), the performance in 2012, with a growth of 1%, is above average in current value terms. Yearly growth rates over the past five years were rather small, usually being between zero and 1%, with an exception in 2007 where a growth rate of 1% was reached.
The only negative growth, also between zero and 1% in current value terms, was experienced in 2010. These developments relate to Germany's demographic development, with 2007 having an increased birth-rate and 2010 facing a significant decline.
According to a recent market report, 'Nappies/Diapers/Pants in Germany,' a child is said to use about 6,000 nappies in sum before being entirely dry, which is at an average age of 2.5-years in Germany. Over 95% of German parents choose disposable products over cloth nappies and reusable pants.
The average use of nappies per child and day in Germany in 2012 breaks down to seven nappies and approximately two disposable pants a day, which can be explained by the different target groups for both types; nappies/diapers reach a group with a wider age range starting with new born children and covering the entire age range up to almost 3-years (sometimes even longer).
Disposable pants on the other hand, are mostly being used for children of 6-months and up (depending on the size and weight of the baby).
Even though Procter & Gamble retained leadership of the German nappy market in 2012, with a share of 59% in terms of retail value, it faces strong and growing competition.
The German customer base of nappies is polarised into those who prefer a big named brand with multinational experience and the necessary means for successful research and development and those, who are absolutely convinced in the quality and reputation of private label products, creating a strong loyalty to them.
For more information on the German nappy market, see the latest research: German Nappy Market
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