The Indonesian baby diaper market experienced notable shifts from 2017 to 2021. Fueled by socioeconomic changes, evolving consumer preferences, and new product innovations, the market continued to expand, though it also faced significant challenges.
Key factors such as delayed potty training, the convenience of disposable diapers, and new product launches were the main growth drivers. Meanwhile, declining birth rates, cloth diapers, and concerns about potentially harmful materials restrained the market.
Indonesian Baby Diaper Market Size and Structure
The baby diaper market in Indonesia increased at a compound annual growth rate (CAGR) of 2.65%. As a result, it reached 1.37 billion USD in 2021.
The consumption per capita of baby diaper in Indonesia showed an overall increase in the period 2017-2021. Until 2021, it grew at a CAGR of 3.88% to reach 61.089 USD per capita.
In 2021, the baby diaper market in Indonesia was dominated by universal baby diapers, which accounted for 67% of the total volume. They were followed by male baby diaper and female baby diaper with shares of 19% and 14%, respectively.
Broken down by retail distribution channels, the baby diaper market in Indonesia was led by supermarkets and hyper markets. In 2021, they accounted for 42.1% of the total volume. That left 57.9% to all other retail distribution channels in the same year.
Imports and Exports of Baby Diaper in Indonesia
The imports of baby diaper to Indonesia in the period 2017-2021 decreased at a CAGR of -0.48% to reach 27.30 million USD.
The exports of baby diaper from Indonesia in the period 2017-2021 grew at a CAGR of 0.31% to reach 66.96 million USD.
As a result, the trade balance of baby diaper in Indonesia was positive and recorded an overall increase during the analyzed period. Until 2021, the trade balance increased at a CAGR of 0.88% to reach 39.65 million USD.
Key Trends in Indonesian Baby Diapers Market
A significant growth trend on the Indonesian baby diaper market is the increasing average age of potty training, a trend observed across many developed and developing countries. In Western European nations like Germany, France, and Austria, children typically begin potty training at around two years of age.
The delay is becoming more common in developing countries like Indonesia, particularly as more women join the workforce and household disposable incomes rise. As education and income levels grow, parents tend to delay the onset of potty training. Consequently, babies use diapers for a longer period, thereby boosting overall sales.
The practical benefits of disposable diapers also fueled market growth. Despite concerns about their environmental impact and potential risks to child health, many Indonesian parents continue to favor disposable diapers due to their convenience and relative affordability.
Particularly in urban areas, where time-saving solutions are critical for working parents, disposable diapers are an indispensable part of daily life. In rural areas, where access to such products is often limited, disposable diapers are viewed as a luxury.
Innovation is another critical driver of market expansion. To meet changing consumer expectations, manufacturers continuously launch new products tailored to the diverse needs of Indonesian parents.
Some of the most notable innovations include gender-specific diapers, night-time diapers with enhanced absorbency, and flexible diaper pants designed for infants learning to walk or crawl. Diaper pants gained immense popularity due to their leak-proof design and ease of use.
Another innovative product is swim diapers, specifically designed to prevent fecal contamination in water. These products not only attracted attention for their practicality but also helped drive the market’s growth by encouraging consumers to try premium diaper offerings.
Restraints in Indonesian Baby Diapers Market
Despite the positive trends, the baby diaper market in Indonesia faces challenges due to declining birth rates. The country’s population growth rate was already slowing, at just 0.7% annually as of 2021. The decline mirrors trends in many developed nations, where urbanization and increased participation of women in the workforce contribute to delayed family formation and fewer births.
Indonesia, which had a birth rate of 17 children per 1,000 people in 2020, saw a 15% drop over the previous decade. With fewer babies being born, the market for baby diapers is shrinking, prompting major brands to shift their focus towards premium products to retain profitability.
In recent years, environmental consciousness led to a resurgence in the use of multi-use cloth diapers. Made from absorbent and reusable materials such as textiles and polyurethane, cloth diapers can last up to a year with proper care.
Their reduced environmental impact makes them appealing to environmentally conscious parents, especially those concerned about the waste generated by single-use disposable diapers.
While cloth diapers represent a niche segment, they pose a challenge to the mainstream disposable diaper market. Manufacturers of disposable products must increasingly rely on more sustainable materials, such as biodegradable superabsorbent polymers, to maintain their competitive edge.
Another restraint on market growth stems from rising awareness of the potentially harmful materials used in disposable diapers. For example, chlorine, which is often used to whiten diaper materials, can release trace amounts of dioxins, a chemical linked to cancer and other health concerns.
Although the levels of dioxins in diapers are minimal, the World Health Organization (WHO) has warned that even small exposures to the chemical can pose risks to newborns, who are especially vulnerable to toxins. With greater awareness of these risks, there is growing pressure on manufacturers to use safer materials, potentially raising production costs and impacting market dynamics.
To mitigate these challenges, diaper producers adapt by introducing premium, eco-friendly products. As declining birth rates limit market expansion, premium diapers featuring organic materials and smart technologies, such as indicators that show when a diaper needs changing, could drive future growth.
By focusing on quality, functionality, and sustainability, companies can appeal to increasingly discerning consumers, who may be willing to spend more on products that align with their values.
Forecast for the Indonesian Baby Diapers Market
Under the base forecast scenario, the Indonesian economy is expected to show steady growth in the medium term. As a result, the Indonesian baby diaper market is expected to reach 1.83 billion USD by 2027.
If the Indonesian economy does not reach expectations, it will show declining rates in the medium term. In this case, the baby diaper market in Indonesia will fall to 1.14 billion USD by 2027.
If the Indonesian economy exceeds expectations, the baby diaper market in Indonesia is forecast to reach 2.23 billion USD by 2027.
