02.13.25
Softcare, a Chinese company that happens to be Africa’s leading diaper seller, has filed an application for an IPO on the Hong Kong Stock Exchange, where it reported its profits had grown 54% during the first three quarters of last year.
Founded in 2000 in Guangzhou as a subsidiary of Sunda International Group, Softcare began selling hygiene products in Africa in 2009. It currently has the most plants in Africa among hygiene manufacturers, operating eight facilities and a total of 44 production lines on the continent. Its capacity is reported at 5.5 billion diapers, 352.1 million baby pants, 2.5 billion sanitary pads and 6.2 billion wet wipes per year.
Outside of Africa, Softcare operates production plants in Kazakhstan, El Salvador and Peru. From 2022-2024, it sold more than 3 billion baby diapers (up 9.4%) and 1.23 billion sanitary pads (up 24%). Growth has been attributed to population growth as well as increasing spending power in the developing countries where it is active.
According to a study conducted by Frost & Sullivan, the number of births in Africa has been growing at a globally highest CAGR of 1.5% from 2019 to 2023, and its demographic structure, with over 50% of its population under the age of 20, shows considerable growth potential.
Meanwhile, the market penetration rate of baby diapers and baby pants in Africa was 22.7% in 2023, lower than the market penetration rates of baby diapers and baby pants in the European, North American and Chinese markets, which range from 70-86% The market penetration rate of sanitary pads in Africa was 30.8%, lower than the market penetration rates of sanitary pads in the European, North American and Chinese markets, which ranged from 35- 80%.
Softcare's reported sales. (Source: Softcare)
The African Leader
Softcare makes a range of products, but baby diapers, baby pants, sanitary pads and wet wipes are among the biggest. About 90% of its $334 million during the first nine months of 2024 were split between Western and Eastern Africa with the largest percentage of sales going to Ghana in the west and Kenya in the East. About 9% of sales were achieved in Central Africa, primarily in Cameroon while just 1.8% were in Latin America (Peru)
The company ranked first in both the baby diaper and sanitary pad markets in Africa in 2023 in volume terms, with a marketshare of 20% and 14%, respectively and is a leader in countries including Ghana, Kenya, Cote d’Ivoire, Senegal, Cameroom and Tanzania in diapers and in Senegal, Kenya and Tanzania in sanitary pads. Its baby product brands including Softcare, Maya and Cuettie, are favored by consumers according to the independent survey conducted by Frost & Sullivan and have strong brand recognition and a high repeat purchases rates. Its sanitary pad brands include Softcare, Veesper and Clincleer.
For the first three quarters of 2024, sales increased 7.2%, lagging behind the 28% growth achieved between 2022 and 2023. Profits increased to 54% to $72 million during this period, after tripling the prior year.
Founded in 2000 in Guangzhou as a subsidiary of Sunda International Group, Softcare began selling hygiene products in Africa in 2009. It currently has the most plants in Africa among hygiene manufacturers, operating eight facilities and a total of 44 production lines on the continent. Its capacity is reported at 5.5 billion diapers, 352.1 million baby pants, 2.5 billion sanitary pads and 6.2 billion wet wipes per year.
Outside of Africa, Softcare operates production plants in Kazakhstan, El Salvador and Peru. From 2022-2024, it sold more than 3 billion baby diapers (up 9.4%) and 1.23 billion sanitary pads (up 24%). Growth has been attributed to population growth as well as increasing spending power in the developing countries where it is active.
According to a study conducted by Frost & Sullivan, the number of births in Africa has been growing at a globally highest CAGR of 1.5% from 2019 to 2023, and its demographic structure, with over 50% of its population under the age of 20, shows considerable growth potential.
Meanwhile, the market penetration rate of baby diapers and baby pants in Africa was 22.7% in 2023, lower than the market penetration rates of baby diapers and baby pants in the European, North American and Chinese markets, which range from 70-86% The market penetration rate of sanitary pads in Africa was 30.8%, lower than the market penetration rates of sanitary pads in the European, North American and Chinese markets, which ranged from 35- 80%.
Softcare's reported sales. (Source: Softcare)
The African Leader
Softcare makes a range of products, but baby diapers, baby pants, sanitary pads and wet wipes are among the biggest. About 90% of its $334 million during the first nine months of 2024 were split between Western and Eastern Africa with the largest percentage of sales going to Ghana in the west and Kenya in the East. About 9% of sales were achieved in Central Africa, primarily in Cameroon while just 1.8% were in Latin America (Peru)
The company ranked first in both the baby diaper and sanitary pad markets in Africa in 2023 in volume terms, with a marketshare of 20% and 14%, respectively and is a leader in countries including Ghana, Kenya, Cote d’Ivoire, Senegal, Cameroom and Tanzania in diapers and in Senegal, Kenya and Tanzania in sanitary pads. Its baby product brands including Softcare, Maya and Cuettie, are favored by consumers according to the independent survey conducted by Frost & Sullivan and have strong brand recognition and a high repeat purchases rates. Its sanitary pad brands include Softcare, Veesper and Clincleer.
For the first three quarters of 2024, sales increased 7.2%, lagging behind the 28% growth achieved between 2022 and 2023. Profits increased to 54% to $72 million during this period, after tripling the prior year.
