Tissue and Hygiene in KenyaReport SummaryGrowing middle class remain the core of future growthKenya’s middle class is growing at a fast rate and this growth is set to be the main engine and indicatorof economic prosperity in the country during the forecast period. As Kenya emerges from an era ofhuge income disparity—the gap between the rich and the poor in Kenya has traditionally been amongthe highest in the world—the rise of the middle class is likely to bode well for the country’s economy.Kenya is a country where over 50% of the population lives below the UN threshold of poverty,subsisting on less than US$1 a day, and over 75% live on less than US$2 a day. Meanwhile, Kenya has alarge population of wealthy urban professionals. The growth of the middle class will definitely boostbusiness and the overall economy in Kenya during the forecast period.Rebounding Kenyan economyThe Kenyan economy is on the rebound from the major shock it suffered during 2008 and 2009. Theeffects of post-election violence which hit the country in 2008 have been far reaching, with travel andtourism, the country’s leading source of foreign exchange, taking a direct hit due to adverse traveladvisories. This situation changed in 2010 and it is estimated that 2011 will turn out to be the best yearyet for travel and tourism in Kenya. Furthermore, with the global economy largely on the rebound, andthe country by and large shielded from Europe’s sovereign debt crisis in many ways, although thecountry’s travel and tourism industry may feel the negative effects of its high exposure to theEuropean debt crisis as the UK is Kenya’s leading source of inbound tourist arrivals, constituting 16% oftotal inbound arrivals in 2010. However, when all indicators and factors are taken into consideration,the Kenyan economy is in much better shape than it was 2-3 years ago.Soaring cost of living due to economic factorsThe cost of living in Kenya is rising, driven by the declining exchange value of the Kenyan shilling. Theshilling has lost over 20% of its value against the all major world currencies since the beginning of2011. This loss in exchange value is having a negative effect across the country, which is a net importerand depends largely on foreign currency. The currency shock has had an impact on the domestic priceof fuel, which is now at KES117 per litre, the highest it has ever been, and this has had a far reachingimpact on the cost of production, transport, manufacturing and everyday life. Recent droughtconditions have also caused an increase in the cost of electricity as over 85% of the country’s electricityis generated in hydro-electric dams, with the electricity supply now having tripled in some areas of thecountry. This has made life very expensive in Kenya and many products, especially in packaged food,have risen dramatically in price, by as high as 30% in some cases.
2012 election to shape economics in the next year2012 is an election year and is particularly significant because it is the first under the new constitution,promulgated in August 2010. The new constitution has completely changed Kenya’s politicallandscape, with new positions created and the governance structure shaken up considerably.Furthermore, the current president, Mwai Kibaki, is constitutionally required to step down, havingalready served two terms. The transition of power in the new dispensation is unprecedented and howthe scenario will play out remains to be seen. Memories of 2008 are still fresh in people’s minds andthe world will be watching keenly to see how events will unfold in Kenya during 2012 and 2013.Accelerating growth expected in the forecast periodForecast growth for Kenya Tissue & Hygiene market is expected to outperform review period’sperformance. The main factor will be the rising disposable income and development of modernretailers in Kenya that will make tissue and hygiene products more accessible and visible to thegrowing middle class. As a result, sanitary protection should be one of the best performers on the backof better awareness among the younger generations and increasing need for convenience.TABLE OF CONTENTSTissue and Hygiene in Kenya - Industry OverviewEXECUTIVE SUMMARYGrowing middle class remain the core of future growthRebounding Kenyan economySoaring cost of living due to economic factors2012 election to shape economics in the next yearAccelerating growth expected in the forecast periodMARKET INDICATORSTable 1 Birth Rates 2005-2010Table 2 Infant Population 2005-2010Table 3 Female Population by Age 2005-2010Table 4 Total Population by Age 2005-2010Table 5 Households 2005-2010Table 6 Forecast Infant Population 2010-2015Table 7 Forecast Female Population by Age 2010-2015Table 8 Forecast Total Population by Age 2010-2015Table 9 Forecast Households 2010-2015MARKET DATATable 10 Retail Sales of Tissue and Hygiene by Category: Value 2005-2010Table 11 Retail Sales of Tissue and Hygiene by Category: % Value Growth 2005-2010Table 12 Tissue and Hygiene Retail Company Shares 2006-2010Table 13 Tissue and Hygiene Retail Brand Shares 2007-2010Table 14 Retail Sales of Tissue and Hygiene by Distribution Format: % Analysis 2005-2010Table 15 Retail Sales of Tissue and Hygiene by Category and Distribution Format: % Analysis 2009
Table 16 Forecast Retail Sales of Tissue and Hygiene by Category: Value 2010-2015Table 17 Forecast Retail Sales of Tissue and Hygiene by Category: % Value Growth 2010-2015DEFINITIONSSummary 1 Research SourcesTissue and Hygiene in Kenya - Company ProfilesAfrican Cotton Industries Ltd in Tissue and Hygiene (Kenya)STRATEGIC DIRECTIONKEY FACTSCOMPANY BACKGROUNDPRODUCTIONCOMPETITIVE POSITIONINGSummary 3 African Cotton Industries Ltd: Competitive Position 2010Chandaria Industries Ltd in Tissue and Hygiene (Kenya)STRATEGIC DIRECTIONKEY FACTSCOMPANY BACKGROUNDPRODUCTIONCOMPETITIVE POSITIONINGSummary 5 Chandaria Industries: Competitive Position 2010Away-From-Home Tissue and Hygiene in Kenya - Category AnalysisHEADLINESTRENDSDemand for away-from-home tissue and hygiene in Kenya during 2010 was boosted by the economicrecovery and rising tourism flows inbound. Value growth rose significantly to 11% as a result of higherdemand from horeca outlets and also rising unit prices.COMPETITIVE LANDSCAPEAway-from-home tissue and hygiene in Kenya is very fragmented, although Chandaria Industries Ltd isconsidered to be a significant player and has expanded its product portfolio in the category. Thecompany benefits from its well-established distribution network, which allows it to reach a largenumber of business clients as well as retailers.PROSPECTSGrowth in away-from-home tissue and hygiene in Kenya over the forecast period is expected to behigher than the growth sustained over the review period, rising in constant value at a CAGR of 3%. Themain driver of growth will be the favourable performance expected in Kenya’s travel and tourismindustry and the commitment of the Kenyan Government to support the industry in the future.CATEGORY DATATable 18 Away-From-Home Sales of Tissue and Hygiene by Sector: Value 2005-2010Table 19 Away-From-Home Sales of Tissue and Hygiene by Sector: % Value Growth 2005-2010Table 20 Away-From-Home Sales of Tissue and Hygiene by Distribution Format: % Analysis 2005-2010Table 21 Away-From-Home Sales of Tissue and Hygiene by Sector and Distribution Format: % Analysis
2009Table 22 Forecast Away-From-Home Sales of Tissue and Hygiene by Sector: Value 2010-2015Table 23 Forecast Away-From-Home Sales of Tissue and Hygiene by Sector: % Value Growth 2010-2015Cotton Wool/Buds/Pads in Kenya - Category AnalysisHEADLINESTRENDSCotton is the main ingredient in the manufacture of products in cotton wool/buds/pads and thecommodity price of cotton at a global level, which is entirely imported into Kenya, increased sharply in2010, leading to unit price increases across the category during the year.COMPETITIVE LANDSCAPEAfrican Cotton Industries dominates cotton wool/buds/pads in Kenya with the popularity of its well-known Dove and Tender Care brands allowing it to control 60% of total value sales in the category.Dove and Tender Care are both very well known and trusted brands in Kenya, which is the main factorin the ongoing success of African Cotton Industries in cotton wool/buds/pads.PROSPECTSOver the forecast period, volume and value growth in cotton wool/buds/pads is set to accelerate, withgrowth expected to be higher than over the review period as increases are anticipated in both unitprices and demand. Companies will continue to expand their product ranges and imported productswill sustain competition in the category throughout the forecast period. Furthermore, Kenyanconsumers will increasingly demand cotton wool/buds/pads for beauty care purposes as the need forconvenience rises.CATEGORY DATATable 24 Retail Sales of Cotton Wool/Buds/Pads: Value 2005-2010Table 25 Retail Sales of Cotton Wool/Buds/Pads: % Value Growth 2005-2010Table 26 Cotton Wool/Buds/Pads Retail Company Shares 2006-2010Table 27 Cotton Wool/Buds/Pads Retail Brand Shares 2007-2010Table 28 Forecast Retail Sales of Cotton Wool/Buds/Pads: Value 2010-2015Table 29 Forecast Retail Sales of Cotton Wool/Buds/Pads: % Value Growth 2010-2015Incontinence in Kenya - Category AnalysisHEADLINESTRENDSSales of incontinence products remained virtually negligible during 2010. Adult incontinence remains ataboo subject in Kenya and as such the demand and usage of incontinence products in the country isvery difficult to measure. The awareness of incontinence products is extremely low in Kenya.COMPETITIVE LANDSCAPEIncontinence products in Kenya is a very underdeveloped category and, as such, only a minimalnumber of players are present, typically leading multinationals with their international brands, all ofwhich are imported. These products are available in only a few supermarkets/hypermarkets such asNakumatt. Among the brands which are available, the most common are Dypers Adina, Impex of Doral,Sani Care by Amir Paper Products Ltd and Tena by SCA Hygiene Products.
PROSPECTSKenyan consumers are expected to become more accustomed to incontinence over the forecastperiod, albeit very slowly and somewhat reluctantly. More specifically, it is light incontinence productswhich will become more popular as these products cater to the light incontinence problems whichaffect mainly women and which can become apparent at a relatively early age. The presence of suchproducts in supermarkets/hypermarkets should also help increase product visibility and as a resultconstant value sales are expected to increase at a CAGR of 1% over the forecast period, faster than thestatic constant value growth recorded over the review period as the average unit price of incontinenceproducts decreased, leading to higher numbers of consumers using incontinence products.CATEGORY DATATable 30 Retail Sales of Incontinence by Category: Value 2005-2010Table 31 Retail Sales of Incontinence by Category: % Value Growth 2005-2010Table 32 Forecast Retail Sales of Incontinence by Category: Value 2010-2015Table 33 Forecast Retail Sales of Incontinence by Category: % Value Growth 2010-2015Nappies/Diapers/Pants in Kenya - Category AnalysisHEADLINESTRENDSNappies/diapers/pants continues to benefit from Kenya’s recent baby boom, which saw almost twentythousand new live births in 2010 being born in the last year. Official statistics estimate that over halfthe Kenyan population is now under the age of 18, and with infant mortality dropping rapidly asKenyans have better access to healthcare, that figure is likely to rise even higher during the forecastperiod.COMPETITIVE LANDSCAPEThe Procter & Gamble Company led nappies/diapers/pants in Kenya during 2010 with a 61% valueshare. Procter & Gamble’s Pampers is a well-known and trusted brand which has been present inKenya for a long time. The company also carries out several different marketing campaigns acrossKenya, encompassing television, radio and the print media. This advertising has been a major factor inelevating the profile of Procter & Gamble and Pampers significantly.PROSPECTSNappies/diapers/pants is likely to continue increasing in value and volume over the forecast period,with increasing numbers of Kenyan mothers moving away from cloth nappies towards the convenienceand ease of nappies/diapers/pants. One of the major challenges surrounding the use ofnappies/diapers is the disposal of used nappies/diapers, with many Kenyan mothers simply tossingthem in the rubbish bin or pit latrines. It remains to be seen how diaper disposal will develop in Kenyain the future.CATEGORY DATATable 34 Retail Sales of Nappies/Diapers/Pants by Category: Value 2005-2010Table 35 Retail Sales of Nappies/Diapers/Pants by Category: % Value Growth 2005-2010Table 36 Nappies/Diapers/Pants Retail Company Shares 2006-2010Table 37 Nappies/Diapers/Pants Retail Brand Shares 2007-2010Table 38 Forecast Retail Sales of Nappies/Diapers/Pants by Category: Value 2010-2015
Table 39 Forecast Retail Sales of Nappies/Diapers/Pants by Category: % Value Growth 2010-2015Retail Tissue in Kenya - Category AnalysisHEADLINESTRENDSThe collapse of the state-owned Pan Paper Mills in Webuye in 2010 had a ripple effect on the entireretail tissue category. Pan Paper was among the largest producers of pulp and paper in the East Africaregion and its collapse has exposed players in retail tissue to cheap imports from Asia and otherAfrican countries, while local manufacturers have been forced to seek out new suppliers.COMPETITIVE LANDSCAPEChandaria Industries Ltd maintained its leading position in retail tissue in Kenya with a value share of58% in 2010, an increase of one percentage point from 2009. The company’s products are availablethroughout Kenya and it remains competitive in all retail tissue categories including tissues, papertableware, and toilet paper as its products are available at very affordable prices. These advantageshave helped the company to nurture a high degree of loyalty among Kenyan consumers, many ofwhom find that the company’s products and brands cater to all of their needs.PROSPECTSGood prospects can be expected for retail tissue in Kenya over the forecast period thanks to theincreasing growth in the Kenyan economy and the inexorable rise of the middle class. These factors arelikely to encourage rising demand for convenient disposable paper products in Kenya during thenforecast period.CATEGORY DATATable 40 Retail Tissue Sales by Category: Value 2005-2010Table 41 Retail Tissue Sales by Category: % Value Growth 2005-2010Table 42 Retail Tissue Company Shares 2006-2010Table 43 Retail Tissue Brand Shares 2007-2010Table 44 Forecast Retail Tissue Sales by Category: Value 2010-2015Table 45 Forecast Retail Tissue Sales by Category: % Value Growth 2010-2015Sanitary Protection in Kenya - Category AnalysisHEADLINESTRENDSSanitary protection registered considerable value growth in 2010, rising by 16%. The rising demand fordriven for sanitary protection is mainly due to aggressive marketing by major players as well as theincreasing need for convenience and comfort when using sanitary protection products. The ongoingrise of Kenya’s middle class, which is the engine of economic growth, is also fuelling growth in sanitaryprotection.COMPETITIVE LANDSCAPEThe Procter & Gamble Company dominated sanitary protection in Kenya during 2010 with a 68% shareachieved through its Always brand. Procter & Gamble is a well-known company in Kenya with a strongbrand heritage which has been present in the country for decades. The Always brand is so ubiquitousthat its name is almost synonymous with sanitary protection in Kenya; sanitary pads are generallyreferred to as Always by the majority of people. Always also maintains the focus of its marketing on
schoolgirls, many of whom start using the brand from a very young age and stay with it for a long time.Procter & Gamble registered a two percentage point increase in its value share in 2010, the highestgrowth in sanitary protection during 2010. This was due to the company’s aggressive marketingcampaigns and overwhelming presence.PROSPECTSDue to the anticipated increase in the prevalence of cheap and even counterfeit sanitary protectionproducts in Kenya, many of which are expected to be improved from countries with emergingeconomies such as China, constant value growth is expected to slow down over the forecast period,registering a CAGR of 6%.CATEGORY DATATable 46 Retail Sales of Sanitary Protection by Category: Value 2005-2010Table 47 Retail Sales of Sanitary Protection by Category: % Value Growth 2005-2010Table 48 Sanitary Protection Retail Company Shares 2006-2010Table 49 Sanitary Protection Retail Brand Shares 2007-2010Table 50 Forecast Retail Sales of Sanitary Protection by Category: Value 2010-2015Table 51 Forecast Retail Sales of Sanitary Protection by Category: % Value Growth 2010-2015Related Reports: Tissue and Hygiene in Cameroon Tissue and Hygiene in Egypt Tissue and Hygiene in South Africa Tissue and Hygiene in VietnamAbout Us:ReportsnReports is an online library of over 100,000+ market research reports and in-depth marketresearch studies & analysis of over 5000 micro markets. We provide 24/7 online and offline support toour customers. Get in touch with us for your needs of market research reports.Follow us on Twitter: http://twitter.com/marketsreportsContact:Mr.Priyank7557 Rambler road,Suite727,Dallas,TX75231Tel: + 1 888 391 5441E-mail: email@example.comVisit our Market Research Blog