Sep 12, 2022 - 3 minutes
The AMAS Market pt. 2 with Augusto Quiroz and Kelley Riegert
On episode 36, Kelley Riegert and Augusto Quiroz are back to share how the absorbent hygiene market is addressing supply and cost challenges and how producers are working to meet the consumer needs that are driving the market.
In the conclusion of this 2-part series, ‘Attached to Hygiene’ takes a closer look at absorbent hygiene in the Americas (AMAS) region. Host Jack Hughes continues his conversation with Augusto Quiroz, Bostik’s commercial director for the AMAS region, supporting customers in Latin America, and Kelley Reigert, Bostik’s strategic commercial account manager in North America. This episode delves more deeply into the challenges in the current economic climate. Also considered are consumer trends in this region and how producers are meeting consumer needs based on a variety of factors.
How the absorbent hygiene market is addressing supply and cost challenges
Most businesses have been affected by logistical complications brought on by the COVID-19 pandemic.. Keeping items consumers want on the shelves isn’t the only struggle. Another is getting the products on time whilst dealing with increased costs due to rampant inflation. This has caused Walmart and other retailers to put pressure on their suppliers by refusing to pay producers above a certain price for their products.
Another challenge is increasing regulations, although the impact varies greatly within the AMAS region. Latin America currently has far less regulations than has become common in Europe. North America, on the other hand, is closer to Europe’s level, with some pockets that are pushing for increased transparency and sustainability.
A few manufacturers, such as Ontex, are taking an approach of localisation: producing their articles in the same market they serve. However, this has not become a widespread trend as of yet.
Overall, producers and suppliers are finding creative ways to deal with the logistical obstacles they are experiencing—and will continue to face—in the marketplace.
Meeting consumer needs and how they are driving the market
As the AMAS region adapts to the changing world, the market is seeing a variety of trends in consumer buying behaviour. One is the pant diaper. This is seen most commonly for older children around age 2, making sizes like large and extra large the norm.
The shift toward thinner cores found in other developed markets is also common in North America. By contrast, in Latin America, a bulky diaper is still more common, where it is considered a sign of better absorbency.
The concept of skin sensitivity is also growing in importance. Producers are making more articles that include lotions and use softer substrates.
Increased consumer education is playing a role in what users are demanding from their absorbent products. As consumers become more knowledgeable in certain areas, their preferences change and evolve.
Outline of the Episode
- [1:53] Challenges producers are facing in the current economic climate
- [6:07] How strong is the move toward localisation?
- [9:59] Regulations in AMAS, as compared to the European market
- [15:25] How the consumer need for convenience is driving market trends
- [18:08] The popularity of pant diapers in Latin America
- [21:00] Latin American consumers remain hesitant to embrace a thinner core
- [25:03] How preferences differ among users of period care products
- [26:47] The growing demand for products that prioritize skin health
Resources
Connect with Kelley Reigert on LinkedIn and Augusto Quiroz at [email protected].
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Host: Jack Hughes
Music by Jonathan Boyle
Produced and edited by: Jack Hughes with help from Paul Andrews, Michele Tonkovitz, Emory Churness, Nikki Ackerman, and Green Onion Creative.