North American Sanitary Protection Market, A Case Study
By Adrian Atterby
Euromonitor International
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Within individual categories, both volume and value growth opportunities do exist. When looking at the U.S. market specifically in 2007, it is possible to see that tampon sales declined as the number of aging baby boomers requiring them has declined by 3% (this is the preferred format option of older women). On the other hand, the number of napkins sold increased by 1%, which reflects the switch from an older to a younger generation. The number of females entering adolescence is rising quickly, just as older women are leaving the market. These young women have traditionally been hesitant to use tampons at first or their parents may dissuade them from using such invasive products. As a result, they initially prefer napkins of pads.
This situation is slowly changing thanks to the success of P&G’s Tampax Pearl brand. Since its introduction, the brand has skyrocketed into prominence due to its popularity among younger consumers who admire its design, comfort and improved reliability. During 2007 it accounted for more than 19% of units sold and over 22% of value sales in the tampon subsector, according to Euromonitor International. In addition, the introduction of the new variation, Tampax Compak Pearl, enticed additional consumers to move away from the regular Tampax Compak, as it is smaller and fits more conveniently into small purses for women on the go. Basically, this product offers the compressed efficiency of Compak with the “swirl” element of the traditional Pearl product. Both use plastic applicators.
What is interesting about this development is that the manufacturer is attempting to satisfy the demands of the consumer by luring her toward a new product, albeit one that offers the benefits of two old ones. This will ultimately force women away from a brand to which they were previously loyal (which typifies the sector), while at the same time, they technically retain their loyalty by still patronizing a Procter & Gamble product.
In Canada, the situation was basically the same, although volume sales across the entire category (excluding feminine wipes) remained stagnant, mirroring the trend seen in the previous few years. At the individual sector level, some interesting differences can be seen, however. Tampon sales, for instance, were actually up by 1%. As with the U.S. market, this type of format is generally preferred by older, more experienced women who are more at ease with the application process. However, with 80% of products now coming complete with an applicator, it is possible that younger consumers will, as in the U.S., increasingly be prepared to try out this type of format.
