| KN21012 |
| KEY NOTE DISPOSABLE PAPER PRODUCTS : October 2002 |
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This report covers: disposable paper products,disposable tissue products,disposable nappies,sanitary protection products,environmental issues,health issues,current issues,
Companies/brands covered include: Georgia-pacific Gb,Kimberly -Clark,Proctor & Gamble,SCA Hygiene Products,Andrex,Bodyform,Huggies Wipes,Poïse,Swiffer,Pampers,
EXECUTIVE SUMMARY
The market for disposable paper products, as covered by this Key Note Market Report, consists of disposable tissue products, disposable nappies and sanitary protection products. In 2001, the largest sector of the market was disposable tissue products, with sales of toilet tissue accounting for the largest subsector within the disposable tissue products market.
The UK disposable paper products market is mature and demand is virtually finite, determined to a large extent by the size and composition of the population. Manufacturers concentrate their efforts on product innovation to stimulate demand. Own-label brands are strong in most sectors and are no longer confined to basic economy lines. There are strong brands in each of the sectors and household penetration levels in the UK are high. There is also considerable opportunity for manufacturers to increase sales in overseas markets, such as South America and Asia.
The most significant recent change in the industry's competitive structure was in late 2000, when Georgia-Pacific Corporation acquired Fort James Corporation. Georgia-Pacific, along with other US companies, The Procter & Gamble Company and Kimberly-Clark Corporation, dominate the global market. A principal European competitor is Svenska Cellulosa Aktiebolaget (SCA) of Sweden. Each of these companies has leading brands in the sector, which they support with high levels of advertising. Some also supply grocery own-label brands. This is a lucrative niche market as the manufacturer avoids the promotion of goods, leaving it instead to the retailer (SCA, for example, makes Shades, ASDA's own-label toilet tissue). In addition to traditional television and newspaper advertising, many high-profile brands, such as Pampers, have dedicated websites. These not only give the opportunity to increase sales by, for example, promoting different variants for specific occasions and ages, but also give the manufacturers some invaluable feedback from their products' end-users.
Unfortunately, both the manufacture and disposal of disposable paper products is environmentally unfriendly. There is also reason to question the effects that their use may have on personal health. Groups such as the Women's Environmental Network (WEN), are exerting growing pressure for a return to more traditional products, notably fabric nappies. Not surprisingly, the industry disputes that the use of, for example, disposable nappies is any more harmful to the environment than reusable nappies, taking into account the detergents, water and energy needed in washing. However, the Advertising Standards Authority (ASA) recently upheld a complaint against Procter & Gamble's claim that neither type of nappy is superior from an environmental point of view. The ASA ruled that Procter & Gamble's claims were simply one side of an ongoing argument.
Annual growth in the value of retail sales of disposable paper products is not anticipated to exceed 3 percent between 2002 and 2006.
TABLE OF CONTENTS
| Executive Summary | 1 |
| 1. Market Definition | 2 |
| REPORT COVERAGE | 2 |
| MARKET SECTORS | 2 |
| Disposable Tissue Products | 2 |
| Disposable Nappies | 2 |
| Sanitary Protection Products | 3 |
| MARKET TRENDS | 3 |
| Brand Extensions | 3 |
| Working Women | 3 |
| MARKET POSITION | 3 |
| The UK | 3 |
| Production of Paper and Board | 3 |
| Consumption of Paper and Board | 4 |
| Table 1: The UK Paper and Board Industry (£m and million tonnes), 2000 | 4 |
| Household Consumption | 4 |
| Table 2: Personal Care Goods and Services by Household Expenditure at Current Prices (£m at rsp), 1997-1999 | 4 |
| KEY TRADE ASSOCIATIONS | 5 |
| The Absorbent Hygiene Products Manufacturers Association | 5 |
| The British Paper and Board Industry Federation | 5 |
| The Paper Federation of Great Britain Ltd | 5 |
| The Pulp and Paper Information Centre | 5 |
| Others | 6 |
| 2. Market Size | 7 |
| THE TOTAL MARKET | 7 |
| Table 3: The UK Disposable Paper Products Market by Value at Current Prices (£m at rsp), 1997-2001 | 7 |
| BY MARKET SECTOR | 7 |
| Table 4: The UK Disposable Paper Products Market by Sector by Value at Current Prices (£m at rsp and percent), 2001 | 8 |
| Disposable Tissue Products | 8 |
| Table 5: The UK Disposable Tissue Products Market by Sector by Value at Current Prices (£m at rsp), 2001 | 9 |
| Trends | 9 |
| Disposable Nappies | 9 |
| Table 6: The UK Disposable Nappies Market by Sector by Value at Current Prices (£m at rsp), 2001 | 10 |
| Trends | 10 |
| Table 7: Number of Live Births in the UK (000), 1996-2000 | 10 |
| Table 8: Number of Live Births in the UK by Age of Mother (number), 1990 and 2000 | 11 |
| Sanitary Protection | |
| Products | 11 |
| Table 9: The UK Sanitary Protection Market by Sector by Value at Current Prices (£m at rsp), 2001 | 12 |
| Trends | 12 |
| Table 10: The UK Female Population by Age Distribution (000), 1971, 1981, 1991 and 2001 | 12 |
| OVERSEAS TRADE | 13 |
| Intra- and Extra-EU Trade | 13 |
| Table 11: Overseas Trade in Disposable Paper Products (£m), 2000 | 13 |
| Imports | 13 |
| Table 12: Intra-EU Arrivals and Extra-EU Imports of Disposable Paper Products by Sector by Value (£m), 2000 | 14 |
| Exports | 14 |
| Table 13: Intra-EU Expeditions and Extra-EU Exports of Disposable Paper Products by Sector by Value (£m), 2000 | 15 |
| 3. Industry Background | 16 |
| RECENT HISTORY | 16 |
| NUMBER OF COMPANIES | 16 |
| Table 14: Number of VAT-based Enterprises Engaged in the Manufacture of Paper and Paperboard by Turnover Sizeband (£000 and percent), 2001 | 16 |
| Table 15: Number of VAT-based Enterprises Engaged in the Manufacture of Sanitary Products and Toilet Requisites by Turnover Sizeband (£000 and percent), 2001 | 17 |
| EMPLOYMENT | 18 |
| Table 16: Number of VAT-based Enterprises Engaged in the Manufacture by Employment Sizeband (number and percent), 2001 | 18 |
| Table 17: Number of | |
| VAT-based Enterprises Engaged in the Manufacture of Sanitary Goods and Toilet Requisites by Employment Sizeband (number and percent), 2001 | 19 |
| DISTRIBUTION | 19 |
| HOW ROBUST IS THE MARKET? | 20 |
| LEGISLATION | 20 |
| Energy Consumption | 20 |
| The Pollution Prevention and Control Act 1999 | 20 |
| 4. Competitor Analysis | 21 |
| THE MARKETPLACE | 21 |
| MARKET LEADERS | 21 |
| Georgia-Pacific GB Ltd | 21 |
| Kimberly-Clark Ltd | 21 |
| Procter & Gamble Ltd | 22 |
| SCA Hygiene Products UK Ltd | 23 |
| Other Companies | 23 |
| LEADING BRANDS | 24 |
| Disposable Tissue Products | 24 |
| Baby Care Products | 24 |
| Sanitary Protection | 24 |
| OUTSIDE SUPPLIERS | 24 |
| Table 18: Sources of Fibrous Raw Materials, (millions of tonnes), 2000 | 25 |
| Own-Label Suppliers | 25 |
| Machinery | 25 |
| INFORMATION SERVICES | 25 |
| Paperbase | 25 |
| ADVERTISING AND PROMOTION | 26 |
| Disposable Paper Products | 26 |
| Table 19: Main Media Advertising Expenditure on Disposable Paper Products (£000), Year Ending December 2000 and 2001 | 26 |
| Toilet Tissue | 27 |
| Table 20: Main Media Advertising Expenditure on Toilet Tissue (£000), Year Ending December 2000 and 2001 | 27 |
| Facial Tissue | 27 |
| Table 21: Main Media Advertising Expenditure on Facial Tissue (£000), Year Ending December 2000 and 2001 | 28 |
| Kitchen Roll | 28 |
| Table 22: Main Media Advertising Expenditure on Kitchen Roll (£000), Year Ending December 2000 and 2001 | 28 |
| Sanitary Protection | 29 |
| Table 23: Main Media Advertising Expenditure on Sanitary Protection (£000), Year Ending December 2000 and 2001 | 29 |
| Disposable Nappies and Baby Wipes | 30 |
| Table 24: Main Media Advertising Expenditure on Disposable Nappies and Baby Wipes (£000), Year Ending December 2000 and 2001 | 31 |
| RECENT PROMOTIONS | 31 |
| Andrex | 31 |
| Bodyform | 31 |
| Dixcel | 31 |
| Huggies Wipes | 32 |
| Information Services | 32 |
| Nappy Information Service | 32 |
| Poïse | 32 |
| 5. Strengths, Weaknesses, Opportunities and Threats | 33 |
| THE TOTAL MARKET | 33 |
| Strengths | 33 |
| Weaknesses | 33 |
| Opportunities | 33 |
| Threats | 34 |
| Disposable Tissue Products | 34 |
| Strengths | 34 |
| Weaknesses | 34 |
| Opportunities | 34 |
| Threats | 34 |
| SANITARY PROTECTION PRODUCTS | 35 |
| Strengths | 35 |
| Weaknesses | 35 |
| Opportunities | 35 |
| Threats | 35 |
| NAPPIES | 36 |
| Strengths | 36 |
| Weaknesses | 36 |
| Opportunites | 36 |
| Threats | 36 |
| 6. Buying Behaviour | 37 |
| HOUSEHOLD EXPENDITURE | 37 |
| By Gross Income Decile Group | 37 |
| By Age of Head of Household | 37 |
| HOUSEHOLD PENETRATION | 37 |
| Toilet Tissue | 38 |
| Table 25: Quantity of Toilet Paper Used in Households ( percent of users), 2001 | 38 |
| Disposable Nappies | 38 |
| Table 26: Purchase of Disposable Nappies, ( percent of users), 2001 | 39 |
| Table 27: Purchase of Disposable Nappies by Age Group ( percent of users), 2001 | 39 |
| Feminine Hygiene Products | 39 |
| Table 28: Usage of Feminine Hygiene Products by Age Group ( percent of women), 2001 | 40 |
| 7. Current Issues | 41 |
| ACQUISITIONS AND MERGERS | 41 |
| Georgia-Pacific | |
| Corporation | 41 |
| BOARD CHANGES | 41 |
| Georgia-Pacific Corporation | 41 |
| Kimberly-Clark Corporation | 41 |
| The Procter & Gamble Company | 41 |
| SCA Hygiene Products | |
| UK Ltd | 41 |
| NEW PRODUCTS | 42 |
| Charmin To Go | 42 |
| Cottonelle Fresh Rollwipes | 42 |
| Pampers Clean n Play | 42 |
| Poïse | 42 |
| Swiffer | 42 |
| NEW INITIATIVES | 43 |
| Real Nappy Policy | 43 |
| ENVIRONMENTAL ISSUES | 43 |
| Bag It and Bin It Campaign | 43 |
| The Nappy Debate | 43 |
| Recycling | 44 |
| Sustainable Sources | 44 |
| HEALTH ISSUES | 44 |
| Disposable Nappies | 44 |
| Toxic Shock Syndrome | 45 |
| 8. The Global Market | 46 |
| WORLDWIDE DEMAND FOR DISPOSABLE PAPER PRODUCTS | 46 |
| The US Market for Disposable Paper Products | 46 |
| Table 29: US Sales of Disposable Paper Products and Kimberly-Clark Shares ($m and percent), 2000 | 47 |
| LEADING GLOBAL COMPETITORS | 47 |
| Kimberly-Clark Corporation | 47 |
| Table 30: Kimberly-Clark Corporation Worldwide Sales and Pre-Tax Profit ($m), Year Ending December 2000 and 2001 | 47 |
| Table 31: Kimberly-Clark Corporation Worldwide Sales by Business Sector and Geographic Area ($m), Year Ending December 1999 and 2000 | 48 |
| The Procter & Gamble Company | 48 |
| Table 32: The Procter & Gamble Company Worldwide Sales and Pre-Tax Profit ($m), Year Ending 30th June 2000 and 2001 | 49 |
| Table 33: The Procter & Gamble Company Worldwide Sales by Global Business Unit ($bn), 2001 | 49 |
| Georgia-Pacific Corporation | 50 |
| Svenska Cellulosa Aktiebolaget | 51 |
| 9. Forecasts | 52 |
| INTRODUCTION | 52 |
| Table 34: Projected Births and Deaths in the UK (000), 2001-2011 | 52 |
| Table 35: Projected Female Population (000) by Age, Mid-Year 2006 and 2011 | 53 |
| FORECASTS 2002 TO 2006 | 53 |
| Table 36: The Forecast UK Disposable Paper Products Market by Value at Current Prices (£m at rsp), 2002-2006 | 53 |
| FUTURE TRENDS | 54 |
| 10. Company Profiles | 55 |
| Georgia-Pacific GB Ltd | 56 |
| Kimberly-Clark Ltd | 58 |
| Procter & Gamble Ltd | 60 |
| SCA Hygiene Products UK Ltd | 62 |
| 11. Further Sources | 64 |
| Associations | 64 |
| Publications | 65 |
| General Sources | 66 |
| Bonnier Information Sources | 66 |
| Government Publications | 68 |
| Other Sources | 68 |
| Understanding TGI Data | 70 |
| Number, Profile, Penetration | 70 |
| Social Grade | 71 |
| Standard Region | 71 |
| Key Note Research | 72 |
| The Key Note Range of Reports | 73 |
Text © 2002 Key Note
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Last updated by Amanda Porteous February 2004