The market for ASEAN Superabsorbent Polymers is expected to grow at a CAGR of over 5% during the forecast period. Major factors driving the market studied are increasing demand from female hygiene products industry and growing application in baby diapers. On the flipside, high cost of raw material and the availability of raw materials and unfavorable conditions arising due to COVID-19 outbreak, are the major restraints, which are expected to hinder the growth of market.
- Growing awareness about female hygiene in rural areas is expected to offer various lucrative opportunities for the growth of market.
- By application, baby diapers segment accounted for the largest share, due to their ability to absorb liquids and keep them trapped, even under pressure.
- By Geography, Indonesia is expected to dominate the market during the forecast period.
Key Market Trends
Growing Application in Baby Diapers
- The popularity of disposable baby diapers has increased, with the introduction of superabsorbent polymers. Superabsorbent polymers are used in baby diapers, due to their ability to absorb liquids and keep them trapped, even under pressure.
- Superabsorbent polymers used in baby diapers can absorb urine about 30 times their weight. The swollen gel holds the liquid in a solid and rubbery state and prevents the liquid from leaking onto the baby’s skin and clothing. As a result, it provides convenience, comfort, exceptional protection form leakage, improved hygiene and skincare, compared to cloth diapers.
- The per capita disposable income for parents to be consumers of disposable nappies/diapers/pants category is approximately USD 4,000 globally. Although most of the parents in Southeast Asia, except for Singapore and Malaysia, are below this level, especially in countries, such as Indonesia, the Philippines, and Malaysia.
- The dual-income families are aware of hygiene and the affluent middle-class population is becoming increasingly conscious of baby hygiene. This is a major driver boosting the demand for disposable baby diaper in the Southeast Asian region. This factor, in turn, is boosting the demand for superabsorbent polymers.
- With the potential demand for products related to baby hygiene, several major players are entering the Southeast Asian market. In 2019, Unicharm Corporation, a major manufacturer of baby diapers entered the Thai market by buying DSG International, a Thai-based maker of diapers and hygiene products.
- However, the outbreak of COVID-19 resulted in social restrictions in several Southeast Asian countries. This has caused major hurdles in the supply chain of baby diapers in the region. This factor is expected to hamper the superabsorbent polymers market.
- The aforementioned factors are expected to affect the demand for superabsorbent polymers in the Southeast Asian region during the forecast period.
Indonesia to Dominate the Market
- The Indonesian economy witnessed a significant growth in the past. According to the International Monetary Fund, the GDP growth rate of the country was 5% in 2019, and it is expected to reach 0.5% in 2020.
- Majority of the superabsorbent polymers manufactured in the country are used in baby diapers and products related to female hygiene.
- Some of the major players of the superabsorbent polymer market in the country include Nippon Shokubai Co. Ltd, Chinafloc, etc.
- The baby diapers market witnessed a significant growth in the past decade. The revenue generated by the industry reached USD 1,332 million in 2019.
- Additionally, the female hygiene products market witnessed a significant growth in the past. The revenue generated by this market reached USD 1,254 million in 2019.
- The growing geriatric population of the country is expected to boost the demand for adult incontinence products. This factor, in turn, is expected to drive the demand for superabsorbent polymers in the country.
- Indonesia is the second-worst affected country by COVID-19 in the Southeast Asian region, and as a result, the government enforced social restrictions in the country. This has negatively impacted the supply chain of diapers and other hygiene products in the county. This factor, in turn, is expected to affect the demand for superabsorbent polymers in the short/mid term.
- The aforementioned factors are expected to affect the demand for superabsorbent polymers in Indonesia during the forecast period.
The ASEAN Superabsorbent Polymers Market is consolidated, with the top five players accounting for major share of the market. The key players in the market include, BASF SE, Evonik Industries AG, Nippon Shokubai Co. Ltd, Chinafloc, and SONGWON.
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