The US is usually in a baby bust, so diaper makers need a fresh plan

Kimberly-Clark, the maker of Huggies diapers in addition to Kleenex tissues, on Tuesday announced which will cut about 13 percent of its workforce globally in a bid to reduce costs as sales wane. which pointed to the lower U.S. birth rate among the challenges confronting the company in its Tuesday call with investors.

Pampers-maker Procter & Gamble, which also announced earnings Tuesday, reported a 1 percent drop in its baby, feminine in addition to family care business. which segment, which also includes wipes in addition to pregnancy tests, has declined or stayed flat on a yearly basis since 2014.

The pain has proliferated beyond diaper makers. Edgewell Personal Care, the maker of Playtex baby bottles, has seen sales of its infant feeding products decline. Johnson & Johnson has watched its U.S. baby business, which includes baby oil, bubble bath in addition to nursing pads, drop as well.

“Big brands right right now need to adapt, because a delay in having children or a decline poses a significant material threat to their core business,” Dorsey said.

The diaper business remains viable, in addition to any business which requires frequent repeat purchases is usually desirable. however companies need to make in addition to deliver products the way mothers want them to.

Innovation has largely been driven by upstarts. Brands like Honest Co. in addition to Seventh Generation have shown there is usually an appetite for organic diapers (though Honest ran into labeling issues). Several retailers have demonstrated the appeal of an online subscription diaper business.

Companies also can extend their product lines, generating different products for babies or focusing on toddlers rather than newborns.

J&J plans on relaunching its baby care products This specific year with fresh formulations in addition to packaging, the company said during its earnings call.

Kimberly-Clark told investors Tuesday which has numerous innovations which is usually planning on unveiling, including diapers with much better protection in addition to fit.

Meantime, as the number of adults older than 65 grow, diaper markers can double down on their offerings for the incontinent. Roughly 31 percent of all diaper sold within the U.S. were adult diapers, according to data provider IBISWorld.

— CNBC’s Angelica LaVito contributed to This specific report.

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