Baby Supplies
CHANGING THE DIAPER MARKET Despite supply chain disruptions, raw material shortages, and inflation, innovation is thriving in the baby diaper market and new brands continue to be born. Although the United States is a mature market for diapers, a Euromonitor report still predicts modest growth for baby diapers over the next five years, driven by disposable pants. Most of the growth today is driven not by volume but by price because of inflation, says the report. The supply chain has proven to be one of the most pressing challenges for young diaper brands. “The pandemic, raw material availability and fluctuating prices created a constant flux,” says Sergio Radovcic, CEO of Dyper. “Brands such as Dyper that rely on specialized plant-based materials and unique raw materials are particularly challenged and have to exhibit high resilience to assure uninterrupted supply to consumers,” Radovcic says. “These and other challenges also present unique opportunities to innovate, which comes naturally to young brands rooted in challenging the status quo.” –Nonwovens Industry
In 2022, parents faced a nightmare when the pandemic and panic-buying, a large-scale voluntary infant formula recall, and the shutdown of a major manufacturing facility due to unsanitary conditions caused supply chain shortages of infant formula. To avoid a repeat of that scenario, U.S. regulatory agencies are studying ways to improve the country’s baby formula supply chain. As part of the Food and Drug Omnibus Reform Act of 2022, the U.S. Food and Drug Administration (FDA) released a report titled Immediate National Strategy to Increase the Resiliency of the U.S. Infant Formula Market . The report outlines several ways to improve the infant formula supply chain: • Advance strategies to prevent illness associated with cronobacter sakazakii in powdered infant formula. • Collaborate with U.S. government partners to address tari¨s and market concentration. • Enhance FDA inspections at infant formula manufacturing plants and provide investigators with more thorough training. • Make information about formulas easier to understand on the FDA website. • Make sure formula manufacturing companies understand the need to create and execute backup plans to manage risks and prevent production disruptions in the supply chain. • Monitor the availability of infant formula and create a prediction model that will help the FDA minimize future supply issues. • Speed up reviews of applications for new baby formula products to help prevent or reduce shortages. • Work with the USDA to ensure the Women, Infants and Children formula programs remain resilient. • Work with health care providers and professionals to help educate consumers. A FORMULA TO COMBAT SHORTAGES
18 Inbound Logistics • July 2023
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