The South African Diaper Market

South Africa is Africa’s second-biggest economy and the most developed

South Africa is Africa’s second-biggest economy, after Nigeria. The diaper category in South Africa, according to a 2018 Euromonitor report, grew by 7% in value terms to reach R6 billion (US$423 million). South Africa is the fifth largest country in Africa in terms of population and ninth-largest in terms of land area, but South Africa is by far the most advanced and richest country on the continent, according to a Fin24 report. 

The South African economy has been facing a few headwinds in recent years, ranging from political leadership challenges to socio-economic challenges. GDP growth has been negative or below 1% at best. This has resulted in consumers that are currently highly squeezed for disposable income in a market where affordability was already an issue. Therefore, well-priced products in any consumer goods category, including diapers, is quite critical for the growth of the category. Private labels have been a good driver of affordability in South Africa’s baby diaper market. However, branded players will continue to outperform private label ranges, mainly due to their high levels of consumer trust and quality that they have built over the years. Compared to other developed markets, private label in South Africa in consumer goods still has a lot of room to grow. The 2018 Euromonitor report shows that the private label diaper category was at 5.5%, of which 4.1% was Clicks alone. 

Private label offerings and value offerings by brand owners and manufacturers in the form of promotions across the retail channels throughout the year had the ability to accommodate various consumer segments, thereby driving volume and hence the growth in the diaper category. The average unit price increased by 3% in 2018. Procter & Gamble was leading with 40% retail value share in 2018. Nappies/diapers/pants recorded a current value CAGR of 7% (2% at constant 2018 prices) over the forecast period to reach ZAR 8.5 billion (US$600 million) by 2023. 

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