Overview of Vietnam's baby diaper market
From Su Yiqiang
Chinese Household Paper Magazine
This article is a commissioned article by "Life Paper" magazine for Mr. Su Yiqiang, Chairman of Guangdong Yusheng Personal Care Products Co., Ltd. The article introduces the background, product brands, sales channels, and featured products of the Vietnamese baby diaper market, and provides pertinent suggestions for sanitary product companies to invest in the Vietnamese market.
1. Overview of Vietnam Market
Vietnam, the shining pearl in Southeast Asia, has become an important market that cannot be ignored in the region with its large population base and sustained and stable fertility rate. As the third most populous country in Southeast Asia, Vietnam's total population has exceeded the 100 million mark in 2023, and has demonstrated strong fertility vitality and stable population growth. In addition, in recent years, Vietnam's booming economy and significant increase in national income have injected strong consumption power into the maternal and infant products market, especially the baby diaper market, creating a market space full of vitality and potential.
Source: Statistics Office of Vietnam
Population of Vietnam from 2019 to 2023
As an important category in the maternal and infant products market, the market demand for baby diapers is closely linked to the population growth trend and the purchasing power of consumers. In Vietnam, with the growing demand for infant care among local families, the demand for baby diapers has also risen, showing a steady upward trend. Not only that, with the increasing demand for product quality from consumers, the baby diaper market has also shown a diversified and quality consumption trend, providing more development opportunities and challenges for market participants.
2 Vietnam Baby Diaper Market
2.1 Market size
In terms of market size, the Vietnamese baby diaper market has shown strong growth momentum. According to data from the Statista global business data platform, the revenue of the Vietnamese baby diaper market is expected to reach US$610 million (approximately RMB 4.36 billion) in 2024. The compound annual growth rate (CAGR) of this market is expected to be 7.11% during the period 2024-2029[1]. The continued growth in consumer demand and consumers' strong pursuit of high-quality baby diaper products have made the local baby diaper market full of unlimited possibilities.
In terms of import trade, China, as one of the important import sources of Vietnamese baby diapers, has also shown a steady growth trend in import volume. According to Chinese customs data, in 2023 and the first half of 2024, Vietnam imported RMB 1.483 billion and RMB 772 million in baby diapers from China, respectively, with year-on-year growth rates of 17.24% and 7.46%, respectively. This data not only reflects the popularity of Chinese baby diapers in the Vietnamese market, but also further proves the broad prospects for cooperation between China and Vietnam in the field of maternal and child products.
2.2 Consumer Behavior and Product Brands
In terms of consumer behavior, Vietnamese consumers show a variety of preferences when purchasing baby diapers. Online channels and maternal and child stores have become their main channels for purchasing baby diapers. Among them, the top five e-commerce platforms in Vietnam are Lazada, Shopee, Tiki, Sendo and TikTok Shop, which are favored by consumers due to their transparent prices, convenient purchases and rich product selections[2]. These platforms not only provide consumers with a more convenient shopping experience, but also further stimulate their desire to buy through promotions and coupons.
There are many baby diaper brands in the Vietnamese market, including well-known multinational brands such as Huggies, Merries, Moony, Pampers, etc., which have occupied a certain share of the Vietnamese baby diaper market with their brand influence and technical strength; there are also local brands such as Merzy, etc., which have won the favor of consumers through precise market positioning and price advantages. Diaper products of different brands have their own advantages in terms of material, water absorption, breathability, etc., meeting the personalized needs of different consumers.
In addition, multinational companies Procter & Gamble and Unicharm have built factories in Vietnam to produce baby diapers. With the continuous segmentation of market demand and the increasing requirements of consumers for product quality, different brands have also begun to adopt differentiated competition strategies. By launching products for specific consumer groups and specific usage scenarios to meet the personalized needs of consumers, for example, in order to promote the transformation of the local baby diaper market to pants-type products, Unicharm Vietnam will launch a pants-type diaper designed for newborns in 2023 that can be opened and fitted on one side [3], aiming to gain market opportunities.
Unicharm Vietnam launches one-side opening baby diapers
3 Outlook of Vietnam’s baby diaper market
3.1 Demographic dividend drives market growth
Vietnam's high population growth rate and stable fertility rate provide a solid consumer base for the baby diaper market. The positive population growth has injected a steady stream of consumer base and demand into the market. This demographic dividend not only provides a broad space for development for market participants, but also promotes the sustained and healthy development of the entire industry.
3.2 Consumer health awareness has increased
With the improvement of education level and income, Vietnamese consumers' health awareness has gradually increased. In particular, they pay more attention to the quality and safety of products when choosing infant products. This trend is expected to promote the rapid development of the high-quality baby diaper market, making more and more Vietnamese families willing to invest more energy and money in the healthy growth of their children.
3.3 Online channel development
With the popularization of the Internet and the rise of e-commerce platforms, the vigorous development of online channels in Vietnam will boost the online retail of baby diapers. Compared with traditional channels, online sales channels are more convenient to purchase and are in line with the shopping habits of the new generation of parents.
4 Conclusion
Based on the current information on the Vietnamese baby diaper market, it can be seen that there are certain opportunities in the local area, which deserves the attention of sanitary products companies. At the same time, when exporting products or investing in factories in Southeast Asian markets such as Vietnam, Chinese diaper brands need to adopt a rigorous, steady and rational attitude and comprehensively consider local market demand, channel construction, brand promotion, after-sales service and environmental protection trends and other investment factors to ensure steady progress and success in the fiercely competitive baby diaper market.
References [1] Statista. Baby Diapers – Vietnam [DB/OL]. (2024-06) [2024-08]. http://www.statista.com/outlook/cmo/tissue-hygiene-paper/feminine-hygiene/Vietnam. [2] Knok Studios. The Fastest E-commerce Growth in Southeast Asia [EB/OL]. (2024-02-14) [2024-08]. http://knok-studios.com/en/e-commerce-in-vietnam-an-overview-of-the-current-landscape. [3] Unicharm Group 2024 Semi-annual Report [R].