Africa's diaper market has finally reached the tipping point.
on November 12,2019.
After many years of low penetration compared to other markets around the globe, Africa’s diaper market has finally reached a tipping point. Several recent investments in the Africa region by global players in the hygiene and nonwovens sector are confirmation of this. Pegas Plans its First Factory in Sub-Saharan Africa In 2017,Pega Nonwovens, the largest producer of spunmelt nonwovens in Europe, the Middle East and Africa, finalized the purchase of their land in Cape Town, in preparation to put up a new factory, their second on the continent, but their first in Sub-Saharan Africa. It is anticipated they plan to invest R1.3 billion. Production is expected to commence in early 2019 and the factory will have an annual production capacity of approximately 10,000 tons. Pegas already has a factory in Egypt. This South African move is a most logical investment. The two biggest diaper manufacturers Procter & Gamble and Kimberly-Clark are No. 1 and No. 2 respectively, in South Africa, Africa’s second biggest economy. Spunchem Increases Its Capacity In 2016, Spunchem International, another nonwovens player who has been in the South African market for the past 20 years, responded to the anticipated growth within the South African hygiene sector by increasing its production capacity in its hygiene focused facility to 32,000 tons per annum by 2018. Their website says, “Spunchem worked hand in hand with a top-three diaper manufacturer, which included extensive trials of product manufactured using the technology that Spunchem will employ.” In July 2016, the company completed construction on a state-of-the-art SMXS line of 8000 tons per annum nameplate capacity plant, to increase total capacity to over 22,000 TPA nameplate capacity. This was Spunchem’s fourth spunbond line. A second 10,000 TPA SMMS plant is scheduled to be completed by the end of 2018 to meet the market requirements of South Africa and surrounding regions. In addition, Spunchem plans to increase its coating/laminating and printing capacity. The company currently operates three coating / laminating lines, which includes the ability to make cloth like backing sheet, cast film, breathable film and textile backing sheet. South Africa is the biggest market in the Southern African Development Community (SADC) economic block. So any manufacturer based in South Africa will have full advantage to export their goods to the other 14 SADC members, among them key markets of Angola, Democratic Republic of Congo, Mozambique and Tanzania, without paying duties, as long as the product is manufactured in a SADC member country and carries a SADC certificate. Other markets like Mauritius, Namibia and Botswana, while their population sizes are small, offer consumers that have much higher disposable incomes than the regional average. Diaper market penetration is also higher in these markets, for the same reason. Furthermore the retail environments in these countries are also quite highly develope...
read more