Diaper shortage? Find stories in the baby products market
There’s buzz this week of an impending disposable diaper shortage, due to an explosion at a Japanese plant that produces a key ingredient used in the throw-away nappies. Of course, this speculation could turn out to be hogwash, as some are calling a recently reported bacon shortage – but it does bring to mind some interesting business and consumer features related to the baby products market.
And with September being the prime month for births in the U.S. – it contains all of the Top 10 birthdays, according to this chart on the VizWiz blog - there are lots of squirming newborns out there just now, joining the more than 4 million born in the past twelve months, according to the U.S. Census Bureau’s 2012 Statistical Abstract. And their parents, who toss an estimated 50 million disposables every day, might enjoy some insights into the industry.
According to a recent market research press release, the disposable diaper business alone is on track to generate more than $33 billion worldwide by 2017, with premium and designer diapers driving sales in North America. (If the phrase premium diaper seems like an oxymoron, you might want to check out Consumer Reports diaper buying guide, which explains features like wetness indicators and leak guards.)
So, do any local businesses have ties to the disposable diaper industry? I Googled terms like “diaper manufacturer” or “diaper industry” with geographic terms and turned up an encouraging number of hits, though clearly the big paper-goods makers have the market pretty well sewn up. This industry blog, DisposableDiaper.net, offers a directory of factories, equipment suppliers and other players, along with some interesting information about the machinery used in the process.
And here’s a mother’s blog that appears to represent an impressive amount of research into the business of diapers, including which firms make private-label diapers for big chains, how diapers are strategically placed to spur impulse sales and other lore. Of course, you’ll want to check any of this information independently but the writer has included some great tips.
Moving beyond disposables, the cloth diaper industry is also worth a look, if you can stay above the fray of the politics and controversy that seem to accompany this parenting choice. Cloth diaper and accessory suppliers abound, and a surprising array of diapering systems, each with its own technique, supplies and styles, vie for the consumer dollar. Again, Googling with geographic terms related to your area should turn up local suppliers, many small business persons or cottage industries that would make for interesting profiles. The Real Diaper Industry Association is the trade group for the cloth diapering industry; note that there is a similarly named group, the Real Diaper Association, that appears to be an advocacy group. It’s not clear whether the two are related.
And speaking of cloth diapers, the diaper services industry is eager to relieve parents of laundering chores. A look at the business model behind these small businesses would be enlightening, and could be paired with a consumer piece about the financial pros and cons of cloth vs. toss.
Other ideas include online diaper subscription/delivery services, rewards-points clubs chains offer for baby purchases, and offbeat services like potty-training consultants.
Wikipedia has an interesting entry on the history of diapers and the 20th-century advent of the disposable.
