Diaper Workshop 2019 Hygienix 2019, Houston, Texas 11 Nov 2019 1 - - PowerPoint PPT Presentation

Diaper Workshop 2019

Hygienix 2019, Houston, Texas 11 Nov 2019

1

Meet our Houston team and what we do

Laboratory Services + Consulting

→

Performance Benchmarks

→

Reverse Engineering

→

R&D and Product Design

→

Historical Records and Product Evaluation

→

Third Party Quality Control

→

Interpretation and Analysis of all Results

TOPSHEET CARRIER CORE POLY BACKSHEET ADL

R&D through product surgeries and substitutions.

TOPSHEET CARRIER CORE POLY BACKSHEET ADL

Competitive Intelligence through Reverse Engineering

Retainer Packages

→

UNLIMITED performance laboratory tests

→

Monthly support from our team including industry news relevant to your company and price monitoring

→

Discounts to Know Diaper training seminars and other industry events

→

Organizing Focus Groups and/or Home User Tests

→

Consulting time with Carlos Richer and our team

Make Better Diapers

Mistake: Saturating ADL with adhesives

Hot melt should be sprayed sparsely along the ADL. When hot melt is applied throughout the width and length of the ADL it prevents liquid mobility.

Mistake: Lack of adhesives between core wrap & ADL or ADL and Topsheet

Lack of adhesives can create pockets of air that make entry of liquid less efficient

Air pockets. Slow acquisition speed

Mistake: Lack of surfactant zone treatment can lead to leakages through cuffs

Mistake: Non continuous hot melt line for leg cuff construction

Hooks de-bond the ear fibres when ears are stretched prior to use and the ear is not well laminated This results in low Peel forces

Avoid hot melt oxidation which happens when tank

• verheats. This leads to “chemical smell”

Not all wetness indicators work well Wetness indicators today look ugly

Mistake: Bad lamination in hook and loop tabs and ears

SAP only in a target zone

SAP at Mid Depth Is the Best

ADL Clothlike Backsheet

SAP variation between diapers

• Easy to measure (with just a $150 USD equipment)
• Why it happens and how to correct it.
• Many times a volumetric feeder works better than a gravimetric feeder

Chinese Diaper Regulations

Things to take into account when entering the Chinese market. The following are the requirements for approval:

• 1. Performance: National Standard GB/T 28004-2011
• Topsheet run-off: Less than 20ml
• Rewet: less than 10g
• Leakage: less than 0.5g
• 2. Hygiene: National Standard GB/T 15979-2002
• pH value: 4.0-8.0
• Bacterial colonies: Less than 200 cfu/g
• Coliform group: Negative
• Fungal colonies: Less than 100 cfu/g
• P. aeruginosa: Negative
• S. aureus: Negative
• Hemolytic streptococcus: Negative

WFA: Whitening Fluorescent Agents Asia vs USMCA and EU

Typical US/EU diaper WFA: Hot Melts, Hooks, Ears

Typical CN diaper: no WFA

Lack of individual QC Traceability in Asia

No vision systems used in China

How to find out which is the very best baby diaper or A.I Underwear?

You need a full set of tools and you should try to use as many as possible: 1-Diaper Performance, comparing the absorbent core, chassis, reliability, etc. 2-Consumer Perception, measured by a focus group (softness, cuteness, cost) 3-Visual audits, using statistical sampling 4-Consumer feedback, star rating and overall satisfaction. –Qindex 5-Product performance in real use, measured by Home User Test & Smart Diapers

Note: Each has has its own subjective weight, making it an art!

Trends in Baby Diaper Private Labels & New Launches

1010data PLs now account for 15% of online diaper sales 72% growth over the past year vs 11% sales growth Pampers lost 6% of

• nline market

share

What is going on?

New brands have been able to take advantage of…

• contract manufacturing through Private Labels
• subscription services and e-commerce
• internet & social media marketing

…to enter a market where once the barrier of entry was nearly impossible.

Timeline

2012 – Honest launches e-commerce subscription service

subscription service social media worthy cute patterns eco claims

Timeline

2012 – Honest launches e-commerce subscription service 2015 – 2017 – Parasol, Lilydoo, Joone Paris, Thrive & others February 2018 – P&G launches Pampers Pure September 2018 – Amazon launches Earth & Eden September 2018 – Ontex launches Big Little Change in Europe January 2019 – Target launches Cloud Island February 2019 – Walmart & Kristen Bell launches Hello Bello July 2019 – KC launches Huggies Special Delivery

Who is our consumer?

OVER ALL MARRIED COLLEGE+

1 San Francisco

County, Calif.

31.9 32.8 33.4

2 Manhattan,

N.Y.

31.1 32.4 32.9

3 Pitkin County,

Colo.

31.1 31.5 32.5

4 Falls Church

City, Va.

31.1 31.9 32.0

5 Marin

County, Calif.

31.1 32.5 33.5

Counties with the oldest first-time mothers

The New York Times 2018

Consumer Disloyalty = New Normal

• 8% of consumers are firm committed loyalists*
• 46% of consumers are active explorers*

Marketing to the growing traits of disloyalty, instead of the declining rates of loyalty will be key. Critical for brands to identify the tendencies in what consumers prioritize -> innovate Independent PL can react FAST

*The Nielsen Company 2019

Trends in Premium Diapers

• Subscription service
• Patterns – cute patterns, faded vs. bold, white
• Softer and Thinner
• Diaper Pants
• Ingredient Transparency
• Green and Safe Claims
• Plant Based is King

Trend: Subscription Service

Trend: Subscription Service

Caters to the busy parent (who isn’t a busy parent?) Can be cheaper/ wholesale prices Allows companies to have direct contact with consumer Predictable revenue Consumer acquisition costs are more worthwhile with recurring billing

Consumer Benefits Brand Owner Benefits

Subscription Service Models

size N 1 2 3 4 5 6 lbs <10 8-14 12-18 16-28 22-37 27+ 35+ monthly units 224 245 224 189 161 140 126 size N 1 2 3 4 5 6 lbs <10 8-14 12-18 16-28 22-37 27+ 35+ monthly units 198 186 168 150 132 108

Honest Model – Optimistic Model Pampers Pure – Conservative Model

Subscription Service Models

7% 9% 9% 29% 25% 21%

NB 1 2 3 4 5

15% 8% 29% 26% 23%

1 / NB 2 3 4 5 Expected diaper requirements by size for 36 months

Pampers Pure Honest

Trends in Backsheet Pattern Design

Trend: Patterns

• Cute patterns over trademarks / mascot characters

Trend: Patterns

Limited Edition / Seasonal Patterns

Trend: Customizable Pick

• Honest let you pick 7 prints in your

monthly diaper subscription

• Choose between 12-18 different

patterns

Trend: Customizable Pick

Pampers Pure and Hello Bello also offer customizable check-out experience With Hello Bello meeting the same SKU

• ffer Honest does

Hello Bello by Walmart

Trend: Bold Patterns to Faded

2017 2018 2019

Trend: White Diapers

Trend: Registered Print without mark

USA manufacturers P&G, KC, Domtar, FQ

Others offer random print Or use mark

Trends in Packaging

Trend: Simple vs Crowded Packaging

• Less redundant claims
• Less baby photos
• Marketed towards parent

(not baby)

Trend: Simple vs Crowded Packaging

• Valuable real estate focused on claims that differentiate the

product

Trend: Simple vs Crowded Packaging

Cloud Island

Trend: Softer + Thinner

Trend: Softer & Thinner

More predominant 3D embossing Backsheet and topsheet Higher GSM nonwovens especially in backsheet

Coterie backsheet Huggies Special Delivery topsheet Parasol Clear+Dry topsheet Pampers Pure topsheet

Trend: Diaper Pants

• Approx. Diapers and Pants in the USA and Canada 2019
• Approx. No. of Diaper + Pants + Kids Sales for 2019= 27 MM

73% 22% 5% Baby Diapers Baby Pants Kids Pants

Trend: Diaper Pants

Total Training Pants volume increase 6% Private Label Training Pants volume increased 17.4%

In the last 52 weeks according to data by RISI Fastmarkets Oct 2019

Trend: Diaper Pants

Pampers 360 Fit launch March 2019 First time diaper pants are not called “training pants” by multinational in USA First one to offer size 3 (up from only 4-6)

Trend: Green Diapers Safe & Eco Claims

Trend: Green and Safe Claims

• Most common cla

claims: : Chlorine Free (TCF), Fragrance Free, Hypoallergenic

• Pulp sourced from sustainably managed forests
• Free of: phthalates, parabens, chlorine bleaching, lotions
• Not tested on animals

CGS 2019

Trend: Plant Based is King

Trend: Plant Based

HONEST

SAP containing renewbale materials PLA backsheet And other PL made by Ontex mexico

PAMPERS PURE

Plant-based / polypropylene fiber blend Premium cotton

HUGGIES SPECIAL DELIVERY

polyethylene derived from sugarcane blended into topsheet and waistband

SEVENTH GEN sizes NB to 2 EARTH + + EDEN Others with cotton blended topsheets: ONTEX LIT ITTLE BIG IG CHANGE

cotton blend backsheet polyethylene derived from corn starch and sugarcane TS

Trend: Plant Based

Super absorbent core blend is made with renewable, plant-based material that reduces the amount of SAP gel needed

Trend: Ingredient Transparency

Toxicology report shared for consumers to access

Joone Paris Ontex Little Big Change

Premium Products at Accessible Prices

Earth + Eden

Amazon “eco-friendly” made by First Quality 0.28 Size 4 | 0.33 Swaddlers or Snugglers

Cloud Island

Premium at “an incredible price” by Domtar 0.28 size 4 | 0.33 Swaddlers or Snugglers

Hello Bello Marca de Walmart “premium” pero economica Hecha por Irving en Canada. 0.26 talla 3

Hello Bello

Parents shouldn’t have to choose between what’s best for the baby and their budget. By Irving for Walmart 0.32 Size 4 | 0.33 Swaddlers or Snugglers

Trends in Premium Diapers

• Subscription service
• Patterns – cute patterns, faded vs. bold, white
• Softer and Thinner
• Diaper Pants
• Ingredient Transparency
• Green and Safe Claims
• Plant Based is King

Sustainability

Post-Consumer Processing

Sustainability

Post Consumer Processing Synthetic Materials Composted? NO Recycling? YES Compostable/Degradable Materials Composted? YES Recycling? NO

• Common claims that every product has.
• Lasts 12 hours, super absorbent, super soft, etc.…
• Environmental claims. Sustainability and Biodegradation.
• FSC Certified, Compostable, Biodegradable, Certified Eco-Friendly, use of Eco-

Friendly Raw Materials, Non-bleached pulp, Chlorine-free, etc.…

• Health related claims.
• Nontoxic diapers, Hypoallergenic, Dermatologically tested.
• Free of fragrances, heavy metals, dyes or inks, latex, rubber, gluten, GMO,

phthalates, parabens, WFAs, etc.….

• Some brands exaggerate their claims, or outright lie about them, leading to

loss of trust.

• FDA approved (FDA does not regulate diapers), Chemical Free, Guaranteed Skin

Friendly.

Product Claims

Diaper Eco Products: Environmental Claims and Examples of Liability Risks

Elemental chlorine free (ECF) is a technique that uses chlorine dioxide for the

bleaching of wood pulp. It does not use elemental chlorine gas during the bleaching process and prevents the formation of dioxins and dioxin-like compounds, carcinogens.

Totally chlorine free (TCF) is paper that does not use any chlorine compounds for

wood pulp bleaching.

Claims related to fluff Pulp: Dioxins and Chlorine Free

The European Commission and US Environmental Protection Agency have

recognized ECF bleaching as “Best Available Techniques”. The modern

ECF pulp mills use bio-activated sludge in wastewater treatment, so the water released back to the watercourses is virtually free of toxic substances.

53

Elemental chlorine free (ECF) is a technique that uses chlorine dioxide for the

bleaching of wood pulp. It does not use elemental chlorine gas during the bleaching process and prevents the formation of dioxins and dioxin-like compounds, carcinogens.

Totally chlorine free (TCF) is paper that does not use any chlorine compounds for

wood pulp bleaching.

Claims related to fluff Pulp: Dioxins and Chlorine Free

The European Commission and US Environmental Protection Agency have recognized ECF bleaching as “Best Available Techniques”. The modern ECF pulp mills use bio-activated sludge in wastewater treatment, so the water released back to the watercourses is virtually free of toxic substances.

• Modern ECF bleaching provides pulp with the same or even

lower environmental impacts than TCF.

• ECF bleaching, in combination with oxygen delignification,

provides - with lower energy consumption - higher yield and produces stronger fibers compared to TCF bleaching.

• This, in turn, enhances the ability to recycle the products

made out of the pulp and contributes to more efficient use of wood resources.

• ECF pulp also has higher brightness than TCF pulp.

Sustainability in SAP

• It is mostly used just for the biodegradable/natural claim. Deceptive.
• Scalability may be an issue with some pilot lab prototypes (PGA, Orange-SAP).
• They are mixed with synthetic super absorbents (less always better).
• They have good free swell capacity but poor AUL (bleeding).
• We have not tested the new (PGA) Bio-SAP.
• Possibility of implementing K-SAP back into eco-friendly compostable products.

The Challenge - Summary

• Claims lose their strength when used lightly or deceptively.
• Using biodegradable or naturally sourced raw materials is preferable to

petroleum-based materials, the downside is the loss in product performance.

• Current offerings of PLA are not biodegradable in natural conditions, only

in industrial reactors.

• Viscose is compostable and biodegradable, but the common manufacturing

process is not environmentally or worker friendly.

• ECF vs. TCF continues to be a debate with consumers for a preference.

Consumers concerned with chlorine presence more than environment.

• Current offerings of Bio-SAP do not reach desired performance and

absorption in products and must be mixed with synthetic SAP.

Post Consumer Diaper Processing

50% 7% 43%

Typical Soiled Baby Diaper

Water Feces Reusable Materials

30% 32% 33% 5%

Reusable Materials in a Baby Diaper Total weight= 30 grams

Paper Derivatives: Fluff pulp, Curly pulp, and Tissue Core Wrap Plastics: Nonwovens, Film, Hook and Loop, and NW Core Wrap Sodium Polyacrylate (SAP) Others (Spandex and hot melts)

Diaper Recycling

Post-Consumer Diaper Recycling

Current Options

• Direct Incineration
• Loss of energy due to water evaporation
• Biodegradation
• Really bad option if no methane is recovered
• Thermal Pressure Hydrolysis (TPH), Elsinga, NL (Expected Feb 2018).
• Incineration with SAP de-activation (CaCl2) and water removal (RDF).
• Nagoya Group in Japan launched a new RDF fuel in Sep 2018 (Hoki, Japan)
• The Know-Waste (liquid sterilization, No SAP recovery).
• Diaper Recycling proposal for air-born sterilizing.
• Terracycle (Gamma Ray and separation, expensive, no SAP recovery).
• Unicharm (RDF, using Ozone from fuel cell for recovering clean pulp).
• P&G-Fater (recycling pulp and plastics, no incineration)

Biggest Challenge for Post-Consumer Recycling

• Need of separate bins and centralize collection (special stream)
• Collection and freight costs for soiled diapers and RDF
• Installing Recycling Factory away from the city

Avoiding the use of special stream

→ Use of scanning systems with optical sorting and infrared vision → Use of ultrasonic sensors to detect bag with diapers automatically. → Provide RFID tags with diapers sold, consumer adds tag to soiled bags → Add a digital water marking to each diaper → Usage of a trash disposal bag that can release air when pressure is applied to prevent blowouts in garbage trucks or recollection systems.

Diaper Composting

Using PLA and Viscose in diapers

• PLA -> Not biodegradable in natural condition, only in industrial

conditions.

• Some products with a PLA backsheet have leaks and humidity going

through it.

• Viscose -> Biodegradable, compostable. Uses heavy pollutants

for manufacturing process. E.g. Carbon Disulfide process.

• Performance in diapers is affected due to the tendency for viscose to

be absorbent. With an absorbent (hydrophilic) topsheet, rewets tend to be higher, promoting humid skin for the user.

• K-SAP… Could we go back to agricultural SAP for use after

composting?

Aerated Static Pile Composting

Composting

• When a diaper is rolled up into a “burrito” after use, the composting
• f the cellulose within becomes very difficult. Therefore, specific raw

materials like PLA and Viscose are required.

• The key parts to allow for composting to work are the backsheet and

carrier materials.

• Describing the percentage of material that may be compostable could

be based on the weight of the soiled diaper, not the weight of the dry

• diaper. Once the backsheet has been successfully degraded, the feces

and urine are accessible to the process.

• What can be done regarding sterilization of the materials before

composting?

Composting

• Parts of the product that cannot be composted are removed from the

compost through a screening process after the composting is complete.

• Since the composting is done under Aerated conditions there is little

to no production of Methane gas.

• The SAP remains with the compost and becomes part of the topsoil

blend of the final product.

• Careful with having excess sodium in the soil!

Product Benchmarks

THE U.S.

We have published our most recent benchmark report for the U.S. market. For more information please go to: diapertesting.com/reports

Consumer Complaints

Exploring Amazon reviews 2018-2019

PERCEPTION

Methodology

*Reviews Analized from January 2018 to November 2019 Out of 7 brands:

• 1. Earth & Eden
• 2. Honest
• 3. Honest Overnight
• 4. Huggies Special Delivery
• 5. Huggies Little Snugglers
• 6. Pampers Pure
• 7. Pampers Swaddlers

Total of Negative Reviews: 1,427 Total of Complaints (from reviews): 2,260

Comparing and Analyzing Negative Reviews (1-3 stars) found on Amazon

Diaper Performance

Absorbency, Blowouts, Leakages, Rashes

Diaper Construction

Component detaching, Cuts/scratches, Diaper tears off/falls apart, Feels cheap/poor quality, Feels plasticy, Loose fluff/nonwoven threads, Hotmelt blobs, Hook & Loop / Ears detaching, SAP “dry” crystal chunks, SAP leakages, Stiff/hard/rough

Reliability

Diapers missing inside bag, Diapers inside bag are wrong size, Diapers came folded/scrunched up, Consistency of product (performance: sizes design), Sudden change of Specifications (preference over “old version”)

CLASSIFIED INTO CATEGORIES

Fit

Diaper runs big, Diaper runs small, Saggy/hangs, Strange Fit

Designs

Bulky/thick, Too thin/flimsy, Lack of wetness indicator, Ugly design patterns

Price

Too expensive, waste of money, not getting money’s worth

Odor/Smell

Strong chemical smell, Fragranced too much, Diaper doesn’t mask urine & feces smell

Green

Harsh Ingredients, Not biodegradable, Tested on animals, Not hypoallergenic

CLASSIFIED INTO CATEGORIES

46% 17% 12% 7% 7% 6% 4% 1% Diaper Performance Construction Reliability Fit Design Price Odor/ Smell Green

Earth & Eden, Honest, Honest Overnight, Huggies Special Delivery, Huggies Little Snugglers, Pampers Pure, Pampers Swaddlers Based on 2,260 complaints on 1, 2 and 3 star reviews on Amazon from Jan 2018 to November 2019

Consumer Complaints by Category

Earth & Eden, Honest, Honest Overnight, Huggies Special Delivery, Huggies Little Snugglers, Pampers Pure, Pampers Swaddlers Based on 2,260 complaints on 1, 2 and 3 star reviews on Amazon from Jan 2018 to November 2019

53% 21% 20% 6% Leakages Rashes Absorbency Blowouts

Diaper Performance

46% Of Total Complaints

• 1. A piece of absorbent

material wrapped around a baby’s bottom and between its legs to ABSORB and RETAIN urine and feces

Earth & Eden, Honest, Honest Overnight, Huggies Special Delivery, Huggies Little Snugglers, Pampers Pure, Pampers Swaddlers. Based on 2,260 complaints on 1, 2 and 3 star reviews on Amazon from Jan 2018 to November 2019

Diaper Construction

17% Of Total Complaints

17% 14% 13% 10% 10% 10% 7% 5% 4% 3% 2% 2% 1% 1%

Global Perspectives

Exploring the worldwide market and growth potential

THE WORLD

Global trends for Baby/Pants?

• Birth rates are going down everywhere
• Many countries now with negative growth for diaper sales
• China´s policy to open up for more babies is not working

Source: Wikipedia

Baby Pants sales are growing while baby diapers go down

• India showing unprecedented growth, 90% of sales today are baby pants.
• Clearly baby pants are not for toddlers anymore (NB, S, M).
• P&G launches Baby Pants intended not just for training.
• Three piece baby pant is the new standard worldwide (P&G and KC)
• KC launching three piece pants in Mexico, Asia and everywhere else.
• Will KC launch Baby Pants with the 3 piece chassis in USA? I think they will!

Update on the Trade War, Nov 2019

• Several PL brands imported from Chinas are suffering today
• Most of these Chinese brands are being sold successfully in Premium Tears
• Those millions of diapers imported from China will need to go somewhere else.
• Will the Chinese Elite finally accept premium Chinese made products?
• What will happen with Japanese sales?
• Most critical baby pant patents are about to expire.
• USA needs to be ready.

Lucky for our industry we still have a bright future

• Light Incontinence and Adult Underwear for active people
• Adult briefs are at least 3 times larger than Baby products

22% 34% 45%

Adult Incontinence USA 2018 Market Share by Chassis Type

Adult Briefs (with tapes) Pull Up / Disposable Underwear Light Incontinence Pads/Guards

ADULT DIAPERS USA -TOP BRANDS 2018

918 586 228 83

Adult Incontinence Sales USA Millions of Dollars USA Top 10 brands * (2018)

Kimberly Clark Private Label Procter & Gamble Essity-SCA

50.5% 32.2% 12.5%

Source: Statista March 2019

Others

Global Trends for A.I. products:

• Light Incontinence will continue as the largest market share.
• Adult underwear will take market share of adult briefs in the active adult market
• Institutional Products will evolve to smart devices but will continue to be briefs.
• Special male pads will be used instead of briefs by men in institutional market
• Female guards will be used instead of briefs by women in institutional markets

Looking Forward

New gadgets, recently launched products, unmet needs, and the future of diapers

THE FUTURE

Quickchange: Male Incontinence Pads

Quickchange

The Viscose Analogy for SAP

• First diapers back in the 60´s used Rayon.
• Today some products are using Viscose (from Pine or from Bamboo)
• First SAPs ever used in diapers were using Potassium Polyacrylates
• A new kind of K-SAP needed for Diaper Recycling and Industrial Composting

An update on Ecovia: PGA- Bio SAP

UFM

X-Top

Show samples and talk About ** Opportunities **

Smart Sensors in Baby Diapers and their Evolution

Rethinking Incontinence Care Wearable sensor technology is improving the quality of life for residents at care facilities

• Huggies in

in South Korea launched Oct 2018 coming to US 2019 Maybe???

• Lumi by Pampers announced this summer 2019 to

launch this Fall

• Dyper to sell Sense tracker as well very soon

Unmet needs for babies and bedridden adults

• Diaper Rash.
• Explore alternatives on how to address this critical problem.
• Using Big Data to improve product design.

Liquid Feces with Urine Formed Feces with Urine Just Urine and no feces

Reminder… What can we do? Risk of skin rash or infection, IAD risk

Proceedings from the Global IAD Expert Panel Journal of Aging Life Care, also published Jan 2018 Abena Skin Health

1-A nanoporous interferometric micro-sensor for biomedical detection of volatile Sulphur compounds 2-Electrochemical sensors composed of a ceramic–metallic (cermet) solid electrolyte are used for the detection of gaseous sulfur compounds SO2, H2S, and CS2 in a study involving 11 toxic industrial chemical (TIC) compounds. 3-The sensor may be in a separate location near the user, not necessarily attached to the diaper.

Potential Sensors for Detecting Feces

A reminder that we still need a better way to sell baby diapers

Where is the baby tailor?

Thank you