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    Features

    Wipes Manufacturers Meet Demand Surge

    Line investments and increased partnerships will increase output of disinfectant wipes

    Wipes Manufacturers Meet Demand Surge
    Wipes companies like Anthem have been ramping up production to meet unprecedented demand for its product.
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    Karen McIntyre, Editor04.01.21
    Twelve months after an unprecedented surge in demand made disinfectant wipes nearly impossible to find, cleaning products manufacturers continue to take steps to increase their output. While demand continues to outpace supply, new line investments and expanded partnerships are opening up the supply chain for disinfectant wipes.

    According to a study conducted by the Freedonia Group, sales of disinfectant wipes increased 17% to reach $470 million between 2019-2020. This sales increase only partially met a surge in demand so great that consumers literally wiped out store shelves and online retail channels making it nearly impossible to buy disinfectant wipes.

    Initially, household cleaning companies ramped up their wipes supply with temporary fixes like adjusting their product mixes and focusing on fewer product formats to boost output of disinfectant wipes. Clorox, for example, paused production of its compostable cleaning wipes—which were launched in January 2020—to focus on disinfectant wipes. Additionally, major brands increased their relationships with contract manufacturers to help boost output as they waited for longer term solutions like new line investments to come onstream.

    Clorox, the leader in disinfectant wipes, is ramping up production with a multi-pronged strategy which includes the construction of a new wipes line in the Atlanta, GA, area, which should come onstream later this year, as well as increased relationships with contract manufacturers and an improved supply chain. These efforts should double the company’s wipes capacity from the level it was prior to the pandemic.

    Already in the first quarter of 2021, the company has been able to increase its output from one million to 1.5 million canisters per day, and executives expect that number to reach 2 million once all of its growth initiatives are in place.

    Additionally, Clorox has improved and shortened its international supply chain to expand its disinfectant wipes’ presence internationally. While Clorox products are available in over 100 countries, its wipes don’t have a significant presence in many of these markets.

    So far, efforts aimed at getting wipes in new markets appear to be paying off. International wipes growth has contributed to about 20% of global increases for Clorox in the first quarter, according to the company.

    “Our expansion plans are going very well and we plan to double the number of countries where Clorox wipes are sold,” CEO Linda Rendle says.

    Clorox expects shortages of its disinfectant wipes to continue at least to some degree throughout the rest of 2021. “We are working with self manufacturing as well as with third party manufacturing,” Rendle adds. “That work will continue well past this year.”

    Third party, or contract, manufacturers, have been critical to major brands in increasing their wipes output in 2020-2021.

    American Flexpack, Green Bay, WI kept pace with the increase in demand for antibacterial wipers and surface disinfectants with the addition of eight new towel/towelette line for sizes ranging from 3X4 inches to 16X16 inches, according to vice president Colleen Smits. “This allowed our partners to increase their production by millions of pieces,” she says.

    Towellete demand was further increased for PPF equipment sanitizing and de-fogging, says president Michael Mackey. “Our employees have a scene of  pride knowing they are a part of the pandemic recovery effort.”

    Anthem Wipes, a Miami, FL-based wipes manufacturer reports a 500% increase in its business as the company shifted gears to up its disinfectant wipes output and invest in new capacity. These efforts include the addition of two new lines in Florida—bringing that number to four—as well as a new line in New Jersey.

    “A lot of the major wipes companies had to increase their reliance on contract manufacturers to meet the huge surge in demand for wipes,” says CEO Raj Prakash. “Meeting this demand was a big puzzle. We had to shift production to different lines. We moved non-regulated products like baby wipes and facial wipes to new lines to focus on disinfectant wipes.”

    Additionally, Anthem ramped up its employee count doubling its staff from 200 to 400 workers.

    “The supply chain was very challenging but we were able to keep going and we didn’t have to shut down,” Prakash says.

    Radienz Living, formerly known as U.S. Nonwovens, also describes a challenged supply chain during Covid-19 but reports the company was able to make necessary changes to ensure the safety of its employees and exhibited agility in innovation to react to heightened demand, according to chief growth officer Ernesto Levy.

    Among the initiatives taken by Radienz to meet increased demand was the investment in a new canister line at its plant in Pittson, PA, and repurposed flatpack wipe capacity to produce its disinfecting format.

    “We are currently marketing flatpack wipes with the Covid-19 efficacy claim under our Redi Wipes brand in 75-count and 15-count versions, as we know consumers are looking for flexibility to take disinfecting products everywhere they go and canisters are not always the most convenient format,” Levy adds.

    The surge in wet wipes demand influenced National Wiper Alliance (NWA) to expand into wet wipes. During the past 12 months, the wipes converter has added 10 production lines, including two wet wipes lines, to its North Carolina operation, representing a $3 million-plus investment.

    “With the pandemic, consumers quickly became eager to protect themselves in any way they could, causing stores to sell out of surface sanitizing wipes. Before the Covid pandemic, big name brands accounted for the majority of surface disinfectant wipes, but the supply issues that major companies struggled with created an opportunity for contract converters like us to step in and help fill the void.” says president Jeff Slosman.

    Slosman estimates that at the peak of Covid, demand for wipes was about 20 times stronger than pre-pandemic levels. While demand has pulled back, it remains strong. “

    With new cleaning protocols in place, we think when things level off, we will settle in at about seven to nine times pre-pandemic demand,” he adds.

    Investment Response
    Citing increased demand for disinfectant wipes, two of the world’s largest producers of disposable wipes—Nice-Pak and Rockline Industries have announced ambitious investment plans in North America.

    Nice-Pak is currently underway with dual investments in wipes capacity in North America. The company’s plans include a new 1.2 million square foot facility in Mooresville, IN, which will house manufacturing and distribution, as well as line upgrades and a new manufacturing line in Jonesboro, AR.

    The Indiana investment, announced in December, represents a $165 million investment that will result in 150 additional jobs by 2024, and employ up to 800 associates when fully operational.

    The new complex will be located five miles from Nice-Pak’s existing 147,000-square-foot facility in Mooresville. The current facility will remain open as part of Nice-Pak’s overall manufacturing footprint. Construction of the new location is slated to begin in March 2021, with a target occupation date in May 2022.

    Meanwhile, in Arkansas, Nice-Pak’s plan calls for the doubling of manufacturing capacity for disinfectant wipes. Started in January, the investment will be complete in August.

    According to Nice-Pak, the expansion comes amid increased demand for household disinfectants spurred by the Covid-19 pandemic. Earlier last year, the plant moved to 24-hour-per-day, seven-days-per week production schedule.

    “Our products are essential for consumers to help stay healthy and well amid the Covid-19 pandemic,” says CEO Robert Julius. “We have been working non-stop to produce more wipes than ever before.”

    In addition to Jonesboro and Mooresville, Nice-Pak makes wipes in Orangeburg, NY, in the U.S. as well as at two sites in the U.K. and one in Germany.

    Meanwhile, Rockline Industries is investing more than $18 million this year on the installation of additional production lines in its three Arkansas-based wet wipes manufacturing facilities. As part of the expansion, Rockline is expected to add a total of 100 new jobs to handle the increased production capacity.

    “Rockline has been proud to be a part of the Arkansas community for many years and we are excited to be bringing new jobs and new opportunities to our local communities,” says Ron Kerscher, senior vice president of sales and marketing for Rockline.

    The new equipment will include high capacity wet wipe production lines in Rockline’s 370,000-square-foot facility in Springdale, its 240,000-square-foot facility in Russellville and its 1.2 million-square-foot facility in Booneville.

    “As a result of the Covid-19 pandemic millions of consumers have been introduced to the convenience of personal care wipes. This has led to a dramatic increase in consumer demand for these products,” Kerscher adds.

    In August, Rockline Industries announced that the formula used in its hard surface disinfectant wipes (EPA registration number 6836-336) was approved by the U.S. Environmental Protection Agency to add claim language that the formula has been proven to kill SARS-CoV-2, the coronavirus that causes Covid-19, when used according to directions. “Disinfecting wipes that kill the coronavirus that causes Covid-19 are essential to the health and safety of our communities,” says Kerscher.

    Rockline was among the first private brand suppliers to receive the EPA’s approval for a coronavirus kill claim for the chemistry it uses in its disinfecting wipes products. “With this claim, retailers and consumers can have confidence that our disinfecting wipes products when used as directed will protect their homes and families,” Kerscher adds.

    Suppliers to the disinfectant wipes market are also in full investment mode. Leading the way is Berry Global who has announced plans to add its fourth Spinlace line in North America, a plan that represents a $70 million investment for the company. The investment includes a new line, producing additional capacity and enabling the company to better serve its global customers as well as support the continuing growth of its business.

    According to executives, demand for disinfectant wipes was growing at 6% per year from 2014-2019 but elevated demand levels are expected to persist after the pandemic surge is over.  Berry provides many of the world’s leading brands with wipe materials for infection prevention.

    This investment, which is scheduled to be commercialized in early 2023, will be Berry’s fourth line dedicated to Spinlace technology. Line No. 3 came onstream in late 2019, just in time to support the surge in demand driven by Covid-19.

    “This investment reflects the commitment we have in support of our customers’ growth plans and it is a clear signal of our intent to provide the best products in the disinfectant wiping space worldwide,” says Mark Siebert, EVP and general manager, U.S. and Canada, Healthcare and Specialties at Berry.

    Berry’s Spinlace technology is a critical component of its growth in the wiping space, as it enables the company to produce and deliver innovative nonwovens to customers across multiple market segments. It is a highly efficient process that incorporates almost limitless material inputs, including pulp, with high-speed hydroentanglement. Additionally, Berry’s proprietary Apex technology is combined with Spinlace technology to impart customizable three-dimensional images directly into the fabric to provide differentiated functional and aesthetic attributes. The Apex process improves strength, pick up or lay down of liquids, and improves visuals versus traditional manufacturing methods.

    Like Berry, spunlace nonwovens producer Jacob Holm Industries has invested significantly in its nonwovens business. In June 2020, the company launched “Project Boost,” an investment program that has been approved by its Board of Directors. Implementation began in May 2020, and the project is expected to be completed by the second quarter 2022. Jacob Holm intends to leverage learnings from market studies and proprietary technology advances to fast-track implementation.

    The Project Boost investment program will affect all production lines of the company across all global production sites. The investment will help create 57 new full-time positions across the group’s global manufacturing footprint and add 500 million square meters to the group’s annual capacity.

    In addition to this far-reaching program, Holm has announced it will expand an existing line in Candler, NC, to allow it to expand its scope in sustainable products including more efficiency in running natural and innovative fibers.

    CEO Martin Mikkelsen says, “We so appreciate the hard work of our team members who have been critical in making this happen, as well as local officials in Buncombe County, NC, for their unwavering support of local businesses.”

    Additionally, smaller scale spunlace investments, targeting wipes growth, have been announced by Suominen in the U.S. and Europe, Minet in Romania, Eruslu and Karweb in Turkey, BC Nonwovens in Spain and Novita in Russia.

    As these new investments come onstream, experts expect wipes demand to continue to remain strong as cleaning habits adopted during the Coronavirus pandemic persist beyond the health crisis.

    “These products proved to be essential for millions of Americans during the pandemic, and not just in our homes,” says Brian Sansoni, senior vice president, communication, outreach and membership at the American Cleaning Institute. “Manufacturers worked around-the-clock get these products out to health care facilities and nursing homes and other priority destinations.”

    According to a February 2021 survey conducted by Ipsos for American Cleaning Institute, 55% of consumers say they are using disinfectant wipes more now than at the beginning of the pandemic. “We believe that the utility and beneficial nature of these and other disinfecting products will be front-and-center for quite some time,” Sansoni adds.

    Research conducted by Clorox agrees.“We’re seeing consumers in the U.S. and around the world cleaning much more frequently, cleaning new surfaces and of course cleaning both inside and outside the home,” Rendel says. “From our research with customers, they are telling us that they expect many of these behaviors to stick.”

    As schools and workplaces reopen cleaning behaviors may intensify and wipes provide the portability and convenience needed. While it’s impossible to say with 100% certainty how strong the wipes market will remain, most agree that consumer habits have been permanently changed.

    “Wipes use is going to be more of a norm,” Prakash adds. “You are going to see wipes everywhere you go in public spaces—anywhere with traffic. People who would never buy wipes are buying wipes.”
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