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Consumers Continue to Win with Disposable Baby Diapers



competition keeps price down, innovation up



By Karen Bitz McIntyre
Editor




Click here to read the full article.
Despite continued escalating raw material prices and improved fit and performance, pricing levels have remained stable in the disposable baby diaper market in recent years as branded leaders have continued to compete heavily with their store brand equivalents. Add to this heavy promotions such as sales and coupon deals and disposable diapers continue to be a bargain for many consumers.

This situation has caused concern throughout the diaper supply chain, however, as diaper manufacturers and their suppliers have had to tighten their margins and find ways to make their businesses more efficient while raising the bar in terms of performance. To combat this, at least one diaper producer has already an­nounced its intent to raise prices. In October, Kimberly-Clark, the maker of Huggies diapers and Pull-Ups training pants,  said it would increase prices of its consumer goods 4-7% during the first quarter of 2008, blaming inflationary pressure and higher raw material and energy costs for the raise.