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Why do so many brands set up factories overseas? Africa or the next nuggets for diapers?

updatetime:2019-05-24 17:42:51

Recently, the largest diaper factory in Sub-saharan Africa invested by a Chinese company in Gahana went into operation. Chinese ambassador Wang shiting thanked Ghana President Addo for attending the inauguration ceremony of Sunda Ghana nappies co.,ltd. Saying the project is the largest important achievement of China-Canada cooperation under the BBS China-Africa cooperation program.

In recent years, many diaper manufactures have started to enter the African market. How big is the diaper market in Africa ?  Is there a market for diaper markets?

1.   Consumption level increases, the diaper market needs to explode

First of all, from the perspective of the population of Africa, due to the climate in Africa , many parts of Africa are not suitable for survival , so the population density in Africa is low, but each family has more children. UNICEF says two out of every five children in the world will be born in Africa in the future, changing demographics. Africa, on a growth momentum curve, is projected to reach 2.4 billion people by 2050, doubling its current population, bringing about greater economic change and increasing global impact.

Nigeria in Africa is currently one of the most populous countries in the world. It is also the country with the best economic foundation in Sub-Sahan Africa and one of the largest trading are maintained, Niger’s population will reach nearly one billion by 2100.

Nigeria, one of the most populous countries in world history , is expected to grow eightfold in two to three generations. As disposable incomes rise across Kenya, the diaper market has grown considerably.

Ghana is one of the fastest growing economies in west Africa and one of the few rich countries on the west coast of African commodities and goods has a strong ability to rediate trade to neighboring countries. Economic growth has been rapid in recent years. With the constant improvement of the economic development and people’s level of Gahana , Gahana people also pay more attention to health and hygiene for babies, so as the growth of the Gahana household disposable income, and health consciousness and the consumption idea, maternal and child care products market prospects look good in Ghana, so this is why China’s enterprise to choose in Ghana building Sub-Saharan Africa’s biggest diapers plants.

2.   The market is potentially large or become the next nuggests

The baby diaper market is saturated because of slowing birth rates in developed countries and aging populations. Developing countries and aging populations. Developing countries such as Nigeria, with populations ranging from zero to three years old, accounted for 14 percent of the population in 2017 and have 26 million potential by baby products consumers.

As a result, many international diaper manufactures, including of Chinese diaper companies, have begun to set their sights on the African market and establish a local diaper market.

According to the local market estimate of the e-commerce platform in china and Africa, the diaper market in China and Africa is 20 billion yuan.

In recent years, the import volume of diaper in Africa has been increasing year by year, and the diaper brands of more and more countries have been gradually accepted by African consumers.

Due to the development of the internet in Africa and the entry of many retail giants including carrefour into the Africa markets, the African market will be gradually improved in the future.

And china has become Africa’s largest trading partner, which will be more conducive to bilateral trade, so Africa is undoubtedly not a new incremental market for Chinese diaper manufactures.

(Source: new mother and baby store; Disposable hygiene Industry)