In the past six weeks or so, two nonwovens manufacturers have signaled their intention to manufacture nonwovens for hygiene applications in South Africa. This is interesting because up until these announcements, this sub-Saharan African country had nearly no local nonwovens supply. So why this sudden interest? Is one announcement merely a reaction to another reaction or are they simply coincidental?

Of course there is no shortage of reasons why South Africa is a good bet for nonwovens investment. According to Euromonitor, the country’s hygiene market is growing between 4-6% and this output is nearly completely supplied by imports. (For Euromonitor’s full report on South Africa, turn to page 24). Furthermore, the market shows significant unmet potential for disposable hygiene products—about $400 million worth spanning all of the major categories.

Hygiene manufacturers have been investing in the country for a while. Procter & Gamble began making baby diapers in Johannesburg in 2009 and established a large manufacturing hub—for products including feminine hygiene items and laundry detergent—there in 2014. Last year, Procter had the No. 1 position in the South African baby diaper market with a 41% marketshare. Kimberly-Clark has been making feminine hygiene products and baby diapers, among other things, at a facility in Epping Mill since at least 2013 and currently has a No. 2 position in the baby diaper market.

It is not unusual for nonwovens producers to infiltrate a market after hygiene companies find success there. In fact, industry experts say that it is standard practice for local production to replace imports once a market reaches a certain level. We saw this in North Africa a few years ago when Pegas and Gulsan established sites there and it has been going on throughout Asia for the better part of the past decade.

Industry insiders expect that Pegas and Spunchem, the two companies that are eyeing the Rainbow Nation for their next growth opportunity, have already polled diaper manufacturers for their interest. Locally based Spunchem, who is making its first foray into the hygiene market, reports it has already run trials with a local diaper maker, while Pegas brings decades of experience and a global reach to the country. We predict both companies will find success in South Africa.

As always, we appreciate your comments.




Karen McIntyre
Editor
[email protected]