Premiumization and affordability: the Middle East Baby Diapers market's keywords
Middle East is an area of strong consumer growth: urbanization, rising disposable income, high birth rates and modern retail development are driving Baby Open diaper expansion through local markets (+3% CAGR 16-18).
Growth in this region comes with significant challenges, such as political unrest in some countries and fluctuations in income levels from one country to the next. The spotlight on the economic scene is focused on price pressure, thus creating an emphasis on affordable products to deepen their market penetration.
Connection to a brand's value remains particularly important in the region: as consumers move up the social-economic ladder, they are attracted to aspirational brands, signaling that they have achieved a certain position within their community. For many, available incomes remain limited and trusted brands provide an assurance of quality, minimizing the risk of wasting money on a product that does not meet expectations, as reported on Nielsen 2016 analysis.
Product quality and features are the main levers on which the Middle East Baby Diapers market players, both global and regional, are focusing on, seeking to find the best possible solution to improve diaper performance while minimizing costs.
Considering the production point of view, manufacturers are concentrating on the following drivers to strengthen their position:
- Innovative and performing diapers to follow premium market trends
- Flexibility for quick size change, needed to extend the range of products typology
- High production volumes to ensure production continuity and shelf availability
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