Retail News CRM

Tag: Kao Corporation

  • Asia-Pacific Diaper Market to Reach $19.9 Billion as Pant Formats Gain

    Asia-Pacific Diaper Market to Reach $19.9 Billion as Pant Formats Gain

    The Asia-Pacific baby diaper market reached USD 11.3 billion in 2025, heading toward USD 19.9 billion by 2035. Revenue across the region will hit USD 12.1 billion in 2026, expanding at a 5.9 per cent annual compound rate over the ten-year period.

    Unicharm Corporation led the regional sector with more than 21 per cent market share in 2025. Together with Procter & Gamble, Hengan International Group, Kao Corporation, and Kimberly-Clark Corporation, the top five players controlled 58 per cent of total diaper revenue across Asia-Pacific.

    Shift to Pants and Digital Channels

    Taped diapers generated 52 per cent of sales in 2025, anchored by newborn demand and premium lines such as Pampers Premium Care and Huggies Platinum. Pant-style diapers accounted for the remaining 48 per cent. Rising demand for mobile infant formats will push pant diapers to 56 per cent of the total market by 2035, expanding at a 7.2 per cent annual rate.

    Digital storefronts captured 44.9 per cent of total regional revenue in 2025. Diaper sales through online platforms are climbing at 7.5 per cent annually, led by recurring orders on Tmall, JD.com, Flipkart, Lazada, and Shopee. High price transparency on these marketplaces is forcing brand owners to rely on bundle promotions and subscription models rather than standard shelf markups.

    Volume Split Between East and South Asia

    China remains the largest market by revenue, while India is expanding the fastest. Mature metropolitan markets in Japan, South Korea, and Tier-1 Chinese cities reward high-specification components, including multi-layer superabsorbent polymer cores, breathable backsheets, and wetness indicators. Suppliers in these markets face tighter environmental policy, including South Korean producer-responsibility rules and Japanese resource-circulation guidelines targeting nonwoven plastic waste.

    In contrast, revenue growth across India, Indonesia, Vietnam, and the Philippines relies on converting households from cloth to disposable products. That conversion hits income ceilings in areas where household earnings stay below USD 5 per day. Sourcing volatility in polypropylene nonwovens and elastic attachments leaves little room for price increases in mass-market packs.

    Regional manufacturers are running split production lines to balance these distinct market demands. The strategy separates high-speed, cost-optimized conversion for Southeast Asian distribution networks from thin-core premium lines destined for East Asian e-commerce channels.

    Production economics now hinge on how fast producers adjust material formulations before municipal packaging and nonwoven waste rules take effect in Northeast Asian retail networks.

  • Kao Corporation Targets $2.68b In Sales With Major Cosmetics Business Revamp

    Kao Corporation Targets $2.68b In Sales With Major Cosmetics Business Revamp

    Kao Corporation, a Tokyo-based company specializing in chemicals and cosmetics, has recently revealed plans to revamp its cosmetics business. The strategy will focus on the growth and expansion of its six core brands.

    The New Strategy

    Kao’s primary goal is to achieve a net sales target of 400 billion yen (US$2.68 billion), alongside an operating margin of 15 percent, as early as possible after 2030. To this end, the company will concentrate its growth and development efforts on six brands: Sensai, Molton Brown, Kanebo, Sofina, Curel, and Kate. The expansion strategy will be tailored to the specific markets where these brands meet consumer demands.

    As part of this reorganization, skincare brand Curel is expected to experience accelerated growth. The company plans to increase Curel’s store presence in Europe by sixfold, aiming to generate 50 percent of the brand’s total sales outside Japan by 2027.

    Focusing on the European and Asian Markets

    Sensai and Molton Brown, two brands that have proven successful among European consumers, will pivot their growth strategy to target the Asian luxury market. The company’s ambitious aims include a 150 percent increase in Sensai sales and a doubling of Molton Brown sales in Asia by 2027.

    For Kanebo and Kate, Kao plans to adapt their expansion to the distinctive characteristics of each Asian market, using Thailand as the initial target market. The company hopes to boost sales of these two brands by 150 percent in Thailand by 2027.

    In a simultaneous move, Kao intends to consolidate Sofina and its sub-brands under one umbrella. The aim is to enhance Sofina’s sales in Asia by 50 percent by 2027.

    Enhancing Profitability and Long-Term Growth

    Beyond brand-specific expansion plans, Kao’s revamp includes a broader focus on improving profitability and fostering long-term growth. This will involve the implementation of core technologies, cost reductions through improved supply chain management, and the application of digital and AI technologies.

    The restructuring process will be spearheaded by Tomoko Uchiyama, executive officer and president of global consumer care – cosmetics business, who began her role in January.

    Uchiyama emphasized the company’s adaptability in the face of change, explaining, “Our cosmetics business has the flexibility to respond to changing times and market dynamics with a diverse portfolio of brands.” She assured that, coupled with the robust foundation of the Kao Group, the company is well-positioned to pioneer advancement of globalization.

    In addition to cosmetics, Kao’s business segments also include hygiene living care (which counts Attack and Laurier among its brands), health beauty care (owner of Biore, among others), and chemical products.

    Questions & Answers

    What are the core brands Kao Corporation is focusing on?
    Kao Corporation will be focusing on the expansion of Sensai, Molton Brown, Kanebo, Sofina, Curel, and Kate.

    What are the business goals of Kao Corporation under the new strategy?
    The company aims to achieve a net sales target of 400 billion yen (US$2.68 billion) and an operating margin of 15 percent, as early as possible after 2030.

    Who will be leading the restructuring process at Kao Corporation?
    The restructuring process will be led by Tomoko Uchiyama, executive officer and president of global consumer care – cosmetics business.