South Korean diaper market to decline due to the falling birth rate

Demand within the South Korean diaper market is directly related to birth rate and according to International estimates; the birth rate in South Korean has been on the decline since 2008. Due to this, sales of diapers in South Korea have been declining.

Based on estimations from the Organisation for Economic Co-operation and Development (OECD), South Korea had the lowest birth rate in the 34 OECD member countries in 2009 (1.15). The average OECD birth rate in 2009 was 1.74.

In response to the falling birth rate, manufacturers are trying to develop premium products which offer enhanced absorbency and use natural ingredients and eco-friendly raw materials in order to boost value sales. As a result, retail volume sales of diapers fell by 2% in 2011, while current retail value sales increased by 4%.

Yuhan Kimberly accounted for 64% of retail value sales in South Korea's diaper market during 2011, with the company performing far better than rivals like LG Household & Health Care and KleanNara.

Looking ahead to 2016, the South Korean diaper market has been forecast to fall at a compound annual growth rate (CAGR) of -1%, predominantly due to the falling birth rate.

In response, producers will look to focus on offering more advanced diapers which retail at higher unit prices.

For more information on the South Korean diaper market, see the latest research: South Korean Diaper Market Report

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