Sluggish demand in the Chinese baby diaper market due to declining birth rates has led Toray Industries, one of Asia’s largest manufacturers of polypropylene spunbond nonwovens, to focus on other areas for growth. According to reports, the company is trying to increase its sales to local diaper manufacturers in China while developing new markets such as Central and South America. Additionally, Toray is strengthening its product offerings for the adult diaper and fem care markets.

With manufacturing sites in Korea, China, Indonesia and India, Toray has invested heavily in nonwovens production in recent years. In addition to focusing on new markets the company is looking at new technologies to expand its sales. Most recently, Toray has created polypropylene spunbond products with finer and denser fibers which are pressure bonded to provide high water pressure resistance and a smooth surface.

After finding initial success within the premium tier diaper market in China, multinationals have more recently been pressured by local competition. Last year Japan’s Kao Corporation stopped producing diapers at its site in Hefei, Anhui, China citing market shrinkage and intensified competition.

According to a statistics published on Nikkei,net, the share of local brands in the Chinese diaper brand has risen from 20% in 2017 to 60% in 2021 as younger parents have a stronger attachment to domestic brands like Beaba and Babycare, which have also been able to offer more premium diaper products.