So step forward China’s booming nonwovens industry, which according to the latest figures from the country’s government produced 1,309,817 tonnes of product across the twelve months of last year.
This 30% increase far overshadowed any of the other sectors reported on by the Association of China Textile Industry, although there was double-digit growth in polyester fibre, with production up by 14.5% – an extra 2.2 million tonnes – to reach a total of over 22 million tonnes. Viscose manufacturing was also up by over 14%, with additional production boosting output to 1.5 million tonnes, while nylon fibre production grew by over 23% to almost 1.4 million tonnes.
These figures, however, were achieved against a climate of dwindling returns for China’s fabric and apparel powerhouses, with 56,743 million metres of fabric representing growth of 5.3% and 23,750 million pieces of apparel growth of around 7%. Such growth would be impressive almost anywhere else, but pales in comparison to the progress reported by China in previous years.
Meanwhile China has now become the number two market for nonwoven-based diapers and training pants, second only to the USA. This global market reached a value of US$30 billion in 2008 – a year in which China’s market grew by a staggering 42%.
According to research firm Datamonitor, China’s diaper market now has an annual value of $1.4 billion – roughly a quarter of the size of the US market – with average annual growth projected for the next few years of 40%.
Hengan is the leading domestic player, while the biggest foreign brands are Pampers, MamyPoko and Huggies.
SCA is also currently considering launching diapers in China.
“While penetration is high in the big cities, it is still low in the towns and rural areas,” says Stephan Dyckerhoff, President of SCA Hygiene North Asia. “We can see clear trends of consumer trade-up.”
Finding acceptance for disposable diapers over the past 30 years in China has not been easy however, since potty training begins as early as six months and many children in rural areas still wear cloth diapers or even kaidangku – practical open-crotch pants which allow them to relieve themselves easily when outdoors.
Early products by the major brands were lower-quality versions of US and European diapers which scrimped on comfort and absorption and simply didn’t catch on. Slowly though, the right price point and product has been established.
Marketing efforts have been aided by China’s one-child policy which means that many parents spend a large part of their income on their only child. National statistics have revealed that in urban areas, this can average 30% of the total outlay of a family, comprised of two parents and four grandparents.
But diaper use in the country still amounts to less than one per day on average, meaning there is still plenty of potential for growth.
For Stephan Dyckerhoff, international brands also have advantages over regional suppliers in this market.
“International brands are more trusted generally than domestic brands, probably partly as a result of recent baby food scandals such as melamine in milk products,” he says. “If we decide to launch baby diapers in China, we would definitely launch a branded product. We see ourselves as a brand-driven, fast-moving consumer goods company and not as a manufacturing company.”
The benefits of modern nonwovens have even extended to brand new retail opportunities which are very specific to China.
Attracting a blaze of media attention across China, Winner Medical opened the first three pilot retail stores on the very last day of 2009.
The stores – in Shenzhen Huayuancheng, Zhongxincheng, and Xihaiwan – all feature products made from PurCotton by Winner Medical. These are being promoted for their medical and well-being benefits in combination with a wide range of traditional Chinese remedies.
PurCotton is a spunlaced nonwoven, billed as an alternative to traditional woven cotton gauze and now marketed in China by Shenzhen PurCotton Technology. All the consumer products are based on pure natural cotton, produced in a medical production environment to stringent quality control standards.
“The recognition by top-tier clients of the premium quality of our PurCotton products is leading to an increasing market demand,” said Winner CEO Jianquan Li. “Currently orders – primarily from our clients in China, the United States and Japan – are for approximately 150 tonnes a month, and are expected to increase in the future.
“In addition, our patented advanced automation and design process reduces the average cycle time for production of the finished products.”
Winner currently holds 50 patents and patent applications for various products and manufacturing processes and is one of the few Chinese companies licensed by the US Food and Drug Administration (FDA) to ship finished, sterilized products directly to the US market.
The company is just one of a growing number of Chinese manufacturers who will be present at INDEX 11 – the leading show for the sector which takes place at Geneva Palexpo from April 12th-15th next year.
