Nonwovens News

SCA to Exit Mexican Diaper Market

Will continue to focus on feminine hygiene and adult incontinence in the country

SCA has announced it will exit the baby diaper market in Mexico as part of its effort to address markets with less than adequate profitability. The company will continue to focus on its market leading feminine hygiene, adult incontinence and tissue businesses in Mexico, which is its eight largest market based on its 2015 sales.

Total costs of the closure are estimated at SEK 170 million ($20 million). Last year, SCA’s diaper business in Mexico reported sales of SEK 340 million.

SCA’s decision follows Procter & Gamble’s removal of its Pampers brand from Mexico in 2015. Meanwhile, rival Kimberly-Clark continues to find success in the country with a leading 70%, according to research group Euromonitor International. Mexican diaper sales are growing 2% per year.

Keep Up With Our Content. Subscribe To Nonwovens Industry Newsletters