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    Features

    Baby Diapers: A Changing Market

    New brands, new marketing efforts have changed the way manufacturers speak to parents

    Baby Diapers: A Changing Market
    Baby Diapers: A Changing Market
    After successfully launching in Walmart stores in 2019, Hello Bello diapers are now available in CVS stores. The brand will begin manufacturing in Waco, TX, later this year.
    Baby Diapers: A Changing Market
    Major diaper brands like P&G’s Pampers are offering a natural option to appeal to consumer needs.
    Baby Diapers: A Changing Market
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    Karen McIntyre, Editor01.06.21
    In recent years, the proliferation of new brands in the disposable baby diaper market has reached an unprecedented amount of activity. In a market traditionally dominated by multinational brands like Pampers and Huggies, the emergence of accessible contract manufacturing services combined with more affordable social media-based marketing platforms has made this market easier to enter.

    While start up brands like Hello Bello, Honest, Abby&Finn, Dyper and more have not made a significant impact on marketshare in the category, they have influenced the way companies—both big and small—design and market their products touting not just performance benefits but also social messages to influence consumers.

    “If you look at each of the brands, you can see their unique approach. They are going after particular priorities of consumers. This is the rule of the natural brands too. If your top priority is being good to the earth, there is an option for you. If you want a soft and aesthetic diaper, there is one for you,” says Pricie Hanna, founding partner of Price Hanna Consultants, a consultancy serving the nonwovens and disposables market.

    “Everyone is approaching the market from a different angle, based on a different theme-whether it’s sustainability, transparency or determining the end of the product’s life, like in our case,” says Sergio Radovcic, CEO of diaper brand Dyper.

    A subscription-based diaper service, Dyper offers high quality bamboo-based compostable diapers that are free from chlorine, alcohol, PVC, lotions, TBT or phthalates. In early 2020, the company partnered with TerraCycle to implement the Redyper composting program in the U.S. The program is available by mail, where consumers receive a bag to return their used diapers for composting, and is rolling out in-person throughout the western part of the U.S.

    “We really see that the customers who participate in at-home composting tend to be more loyal to the brand,” Radovcic says. “We see them once a week and we have a relationship.”

    The weekly at-home composting program is currently in the pilot stage in Phoenix, where Dyper is based, and is rolling out to Nashville, Portland, Seattle, Las Vegas and Los Angeles.

    Dyper is one of many smaller start-up brands that are offering parents new options in diapering their babies. According to market watchers, these brands are seeing significant success with their targeted consumers but aren’t making a significant impact on marketshare dynamics.

    As some companies like Dyper focus on environmental benefits, others offer a social benefit like donating diapers to people in need.

    “Some companies have made helping others central to their whole marketing strategy,” says Colin Hanna, director of market research at Price Hanna Consultants. “What is interesting is they are helping people in need as they serve families that are interested in a more premium diaper. That speaks to the millennials’ hyper-awareness of social privilege and they want to feel like they are making a difference.”

    Brands with a Purpose
    One of these brands, Hello Bello, has been so successful in its mission to offer parents natural-based and affordable products that the company has announced it will begin manufacturing its own diapers and other goods in 2021. Founded by husband-and-wife actors Kristen Bell and Dax Shepard in early 2019, Hello Bello is renovating and modernizing a diaper manufacturing site once owned by Domtar Personal Care in Waco, TX.

    “As our company continues to experience significant growth, this new next-generation facility will allow us to scale operations while ensuring the premium quality, affordable pricing and superior service our customers have come to expect from us,” say Sean Kane and Jay McGraw, co-CEO’s, Hello Bello.

    Hello Bello’s decision to expand into Texas represents a multi-million dollar investment in U.S. manufacturing which complements its existing supply chain, and is based on the location’s central geography for its direct-to-consumer customers, retail and premium supply partners. The investment will provide logistical efficiencies and significantly reduce freight costs. Hello Bello will source a majority of raw materials from local and regional premium U.S. supply partners which will improve reliability, flexibility and cost efficiency and ultimately improve the company’s overall carbon footprint.

    Launched exclusively in Walmart stores in early 2019, Hello Bello has since expanded into other retail outlets including CVS. The brand is positioned as a line of products designed to give parents access to high-quality, better-priced everyday essentials that are better for babies, budgets and the planet. Hello Bello uses plant-based ingredients and organic botanicals within its products which include diapers, wipes, shampoo and body wash, bubble bath, baby lotion, diaper rash cream, hand sanitizer, mineral sunscreen, bug spray and laundry detergent.

    The diapers reportedly have a specially designed core with proprietary spherical absorbent technology able to absorb more than 50 times its weight in fluid—allowing reduced waste (less material) while still providing serious leak protection. Using a fragrance-free, hypoallergenic, over 99% water formula with aloe and chamomile, Hello Bello wipes are gentle and soothing on skin while their thick, plant-based cloth makes them tough enough to help with whatever mess little ones throw at their parents.

    Walmart is also the exclusive retailer for a new brand being offered by Procter & Gamble. The company’s All Good brand was quietly launched at the mass retailer in the second quarter of 2020 without any significant marketing fanfare. Like many boutique start-up brands, All Good uses phrases like “all of the good and none of the bad,” “cushy soft and crazy absorbent” and “Around the clock leakage protection for no epic fails.” And, every time a consumer buys a box of All Good diapers, the brand donates a day’s worth of diapers to a family in need through Feeding America.

    “All Good makes it look like it’s a stand alone brand. Social media is clearly targeted at an urban middle class family and they are really trying to emphasize diversity as they emphasize the social good or social justice messages...’when you buy our product we do good,’” says Pricie Hanna.

    “It seems like Procter has really gone out of its way to distance the brand from its other diaper products.”

    While the design is not markedly different from other P&G diapers, the company is promoting different features to its consumers, highlighting benefits that appeal to millennials. The brand also promotes things like free of elemental chlorine bleaching—P&G’s diapers have been free of elemental chlorine bleach for ages, Hanna says—as well as free of parabens and latex. “They’re just mentioning things that consumers have learned are on the bad list.”

    Meanwhile, the social-impact component of All Good is also important to this generation of parents. Natalia Richer, global AHP consultant and COO of Diaper Testing International, says that brands exhibiting strong social responsibility that can be associated with sustainable practices resonate loudly within millennial parents.

    “We have seen various brands show their commitment through supporting various programs,” Richer says. “Abby&Finn donates diapers, Coterie invests in the future of diaper sustainability by donating to diaper recycling programs, Dyper purchases carbon offsets on behalf of their customers and Parasol has donated masks to frontline workers and a percentage of sales towards Covid-19 charities.”

    Diaper Testing International conducted testing of All Good diapers in its lab and agrees that the social responsibility story and the brands’ market message are the main distinguisher from other P&G diapers. “The most interesting value added with this line that will distinguish them from other P&G brands is the social responsibility shown through their commitment to donating diapers with every box purchased, and their bold black and white unisex patterns,” Richer adds.

    P&G has also tried out the natural story in its mainstream brands. The company introduced a Pampers Pure line of diapers and wipes in 2018 and made an enhancement to the diapers earlier this year after finding that 80% of moms indicated they preferred a diaper enriched with shea butter. The plant-based liner in Pampers Pure diapers is now enriched with shea butter. Shea butter is 100% naturally-derived from fat of the shea nut with moisturizing benefits. This plant-based liner helps keep baby’s skin hydrated while also serving as a barrier between the skin and moisture in the diaper.

    “Pampers Pure diapers contain ingredients parents are passionate about and are free from the ones they aren’t,” says Andre Schulten, P&G senior vice president, North America Baby Care. “This is why Pampers Pure diapers are now enriched with shea butter, providing our best in class protection and outstanding skin care and dryness.”

    Similarly, K-C’s Huggies brand now offers Special Delivery diapers, which is billed as the softest diaper with plant-based* materials (* 23% by weight), designed specifically to provide the best for a baby’s bottom, without compromise.

    “We are inspired by the loving bond that a parent feels with their baby and their desire to provide the very best care to their babies that they possibly can,” says Kristine Rhode, Huggies North America brand director. “These insights led us to create our most perfect diaper, so parents can provide their own perfect care.”

    Huggies Special Delivery diapers feature a baby-side liner and waistband made with fibers derived from plant-based materials such as sugarcane, carefully selected to help provide superior absorption and fit. They are free of parabens, fragrance and elemental chlorine, and dermatologically tested and clinically proven hypoallergenic for baby’s delicate skin.


    Another natural diaper launch is Nature’s One Baby’s Only Premium diapers, which are sustainably sourced, plant-based diapers and made for baby’s sensitive skin, according to the company. The diapers and wipes are made with only the safest, sustainable, most gentle and natural materials, never any harsh synthetic chemicals.

    Utilizing the latest in sustainable moisture absorption technology, the Nature’s One Baby’s Only Premium Diaper uses spherical absorption found in nature’s ingredients to achieve maximum moisture absorption. The enhanced absorbency clusters promote rapid fluid-wicking away from baby’s sensitive skin. After locking away wetness deep into the protective layers, the diaper assures sensitive skin stays dry up to 12 hours.

    Jay Highman, founder and CEO of Nature’s One, says, “A baby’s skin is its largest organ. It is 33% thinner than adult skin at birth and continues to develop the first year of life. Any product touching the skin should be carefully designed to preserve the infant skin barrier. This is important to reduce atopic dermatitis and allergic reactions.” Highman continues, “We are proud to offer premium diapers and wipes designed to meet our highest ‘baby-sensitivity’ standards. Every child deserves a better start for life and that includes a better diaper!”

    According to Svetlana Uduslivaia of market tracker Euromonitor International, while the natural segment of diapers has risen over the years, consumer priorities vary dramatically across the markets. “Brands need to be well-aware of what resonates with consumers and where there are better opportunities to drive products on the counts of natural positioning. In general, ‘green’ / sustainable is a complex issue. It is not only about ingredients. For those consumers who are focused on natural, it is also about the overall brand impact on health and environment as well as ethical positioning/community purpose. “

    Second Life
    Negative perceptions of diapers’  disposability have has plagued the disposable diaper since its infancy and increased focus on sustainability—as well as upcoming legislation regarding single use plastics in the European Union and some U.S. states are driving demand for more end of life options for the products.

    Dyper’s Radovic feels, at least in the U.S., the solution lies in composting. “We have been shocked, in a good way, at how many of our customers are participating,” he says. “Our partnership with TerraCycle is doubling every month. It shows that people really care about where diapers end up.”

    Earlier this year, Dyper acquired Earth Baby, which has led a regional diaper composting service in the San Francisco Bay Area since 2008. The acquisition enables customers in the San Francisco Bay Area to enjoy easy pickup and delivery of Dyper’s compostable diapers, positioning the company to expand the service into more major cities in the U.S. and ultimately evolve into a full-service eco-friendly baby products’ concierge service.

    “Dyper was created because I knew there had to be a better way to diaper babies with the safest materials,” Radovic says. “Earth Baby has been a pioneer in the diaper composting space and by marrying our brands we are able to close the loop in the diaper supply chain by offering manufacturing, distribution and in-house composting to complete the diapering cycle in the most earth-friendly way possible.”

    Meanwhile, other companies are looking at recycling diapers as the solution to the disposables problem. Japan’s Unicharm is underway with a plan to introduce at least 10 diaper recycling facilities between now and 2030. A pilot program of diaper collection, in partnership with area daycares and nursing homes, is already underway in Tokyo.

    According to the company, the diaper recycling process has been simplified and made more efficient in recent years. Unicharm has been working on recycling methods since 2016 by conducting methods in southern Japan.

    Unicharm plans to turn this used diaper material into new diapers which will be available on the market in 2022. Pulp from used diapers will be extracted and repurposed in new diapers.

    “More people will be using diapers in an aging society and the proportion of disposable diapers in waste increases,” says Kenji Ueda, general manager of Unicharm’s environmental, social and corporate governance division. “We want to aim for recycling that enables [diaper waste] to be remade multiples times [into new diapers], not just once.”

    In Europe, P&G has partnered with AEB, TerraCycle and FaterSMART to use innovative diaper recycling bins for the collection of used diapers in Amsterdam.

    The pilot program, the first of its kind worldwide, is facilitated by the Municipality of Amsterdam to help the partners learn from families what works for them in separating diaper waste. Recent research among Dutch parents shows that almost 70% of families would participate in a diaper recycling project and that 82% of Dutch parents would not mind separating their diaper waste from other waste. In addition, half of the Dutch parents say they feel that establishing a viable diaper recycling program is primarily the responsibility of diaper producers.

    The pilot program will involve about 200 and 10 diaper recycling bins in two neighborhoods in Amsterdam—Amsterdam Zuidoost and Amsterdam Oost. Parents can deposit diaper waste from all brands in the bins at locations they often visit, such as nurseries and drug stores.

    The bins, designed by TerraCycle and can be opened by parents with a special Pampers Recycling app. The app also shows the location of the nearest bin.

    The advanced diaper recycling technique that will be introduced in the Netherlands in the future was developed and patented by FaterSMART, a business unit of Fater, a joint venture of Procter & Gamble and Angelini Group (the manufacturer of Pampers in Italy).

    This machine uses high temperature and steam under pressure to separate human waste from the diaper materials. It sterilizes the products and neutralizes the odor.

    A specific mechanical system separates plastic, cellulose and super absorbent material from each other, and these raw materials are used to produce new materials. For example, cellulose is used for the production of fabric bags, the superabsorbent material is used in various moisture-absorbing products and plastic produces diaper pails or bottle caps. The technology, currently already being used in Italy and The Netherlands, will ultimately roll out to additional cities globally, according to P&G.

    Going For Transparency
    As part of its mission to empower people to live healthier lives, non-profit social advocacy group Environmental Working Group (EWG), along with Healthynest, has introduced a new diaper brand that is the first to meet the EWG’s rigorous criteria for health and ingredient disclosure. The launch coincides with the publication of EWG’s new comprehensive Guide to Safer Diapers, an analysis of the chemicals and materials used in baby diapers, to help parents and caregivers sort through the vast array of product options—and related advertising claims—available on the market.

    The Consumer Products Safety Commission—the agency that regulates the $13 billion diaper industry—doesn’t require manufacturers of disposable diapers to disclose their ingredients publicly or ensure that their products are made without, or are not contaminated with, harmful substances like formaldehyde and pesticides. The agency requires that baby diapers only be tested for lead.

    “At EWG, we’re striving to make clean and healthy consumer products the norm. I am delighted that we’ve added healthy diapers to the growing list of EWG Verified products. And I’m hopeful that other companies will follow Healthynest’s lead to clean up the diaper world,” president Ken Cook adds.

    Healthynest is a personal care brand for babies led by founder Shazi Visram. Visram is a member of EWG’s board of directors.

    “At Healthynest, we’re dedicated to evolving and improving the baby care category so parents can have choices that perform while also supporting the absolute highest standard of safety and ethics,” says Visram. “As a parent focused on eliminating toxic exposure to our children,” she says,

    “I have always been surprised by the lack of transparency in the diaper category, leading to unregulated material lists and leaving families with unanswered questions about the safety of such a key product in a baby’s life. We’ve spent the past two plus years developing the Healthynest diapers, and are so very proud to launch the first ever EWG Verified diaper, which is certified free of toxins and utilizes the latest and cleanest technology so that baby can have the very best.”

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