Prospects and development of the wet wipes market 

Wet wipes are hygiene products designed for skin cleansing and daily care. Compared to foreign markets, the Chinese wet wipes market has only recently started to develop vigorously, and product penetration remains lower than that of developed countries.

The industry's main production enterprises are concentrated in Shanghai, Beijing, Jiangsu, Zhejiang and Liaoning provinces.

From a market structure point of view:

• baby wet wipes occupy about 56.4% of the market,
• universal wet wipes - about 27.8%.

According to industry statistics, China's wet wipes market size reached approximately US$730 million in 2018, with retail sales growth of approximately 10%.

Multipurpose wet wipes have the largest market share, followed by baby care wipes.

Wet wipes market prospects

With rising incomes, rising living standards and increasing consumer attention to hygiene and health issues, the requirements for disposable sanitary products continue to grow.

Wet wipes are gradually becoming an integral part of consumers' daily lives.

Despite the relatively low product penetration rate in China's domestic market, the wet wipes industry is experiencing high growth rates. In the coming years, the market will enter a period of active expansion of production capacity and further growth in consumption.

According to the research report "Research on Supply and Demand Trends and Investment Risks of China's Wet Wipes Market 2020-2025", China will continue to strengthen its position as one of the world's largest manufacturing centers in the industry.

State of the art and development trends of the industry

The tissue industry as a whole is currently facing excess capacity.

Among the main pressure factors on the industry:

• high concentration of new production capacities,
• increased market competition,
• tightening environmental requirements,
• exchange rate fluctuations,
• increase in marketing and production costs.

As a result, pressure on small and medium-sized enterprises is increasing, and the industry is gradually entering a stage of structural transformation and market consolidation.

Excess capacity is also affecting equipment manufacturers. In recent years, the rapid growth of investment in the production of sanitary products has attracted a large number of equipment manufacturers to the Chinese domestic market.

On the one hand, this contributes to:

• technological development,
• equipment localization,
• substitution of imported solutions.

On the other hand, price competition between equipment suppliers is intensifying.

As the next stage of large-scale investments in the modernization of production facilities is completed, the growth rate of demand for new equipment is gradually slowing down, and the risks of small equipment manufacturers leaving the market are increasing.

Situation on the pulp market

In 2019, global pulp prices generally showed a downward trend, which was due to:

• decreased demand in the Chinese market,
• trade disputes between China and the United States,
• fluctuations in exchange rates,
• increase in pulp stocks.

According to China customs statistics:

• in January–October 2019, pulp imports amounted to about 22.43 million tons (+7.9%),
• the total volume of imports in monetary terms decreased by 11.7%.

The average price of imported bleached softwood pulp fell by more than 33%, and bleached hardwood pulp by almost 33%.

Current stage of industry development

Today, China's wet wipes market is at a mature development stage.

The industry is characterized by:

• completely market competition,
• independent management of enterprises,
• high level of internal competition,
• gradual strengthening of the international competitiveness of Chinese manufacturers.

Wet wipes market development forecast

In 2019, the Chinese wet wipes market size was about 7 billion yuan, and the growth rate reached about 25%.

Main market categories:

• universal wet wipes,
• baby wet wipes,
• wet toilet paper.

At the same time, it is wet toilet paper that shows the highest growth rates.

Sales channel changes

The structure of retail channels in China has changed significantly:

1. Supermarkets and retail chains

The share of medium and large supermarkets decreased:

• from 60% in 2013
• up to 45% in 2019.

However, this channel still remains the largest in terms of sales.

2. E-commerce

The share of e-commerce grew to 20% in 2019 and has already exceeded sales through hypermarkets.

Online trading is becoming one of the main growth drivers of the wet wipes market.

International market comparison

Among countries in the Asia-Pacific region, China ranks second in terms of retail sales of wet wipes.

In the Japanese market, cosmetic wet wipes occupy the largest share, which is due to the high popularity of daily care and makeup among Japanese consumers.

In the Chinese market, multipurpose wet wipes remain the largest and fastest growing category.