(Bloomberg) -- Consumers in Latin America and Southeast Asia are cutting back on baby diapers to save money, Huggies-maker Kimberly-Clark Corp. said.
Parents who in the past would have used four to five diapers a day are in some cases down to about three, according to Christopher Jakubik, the company’s vice president of investor relations, who spoke during an investor conference on Tuesday. “So that’s caused some pockets of softness right now,” he said.
Consumers across the globe are grappling with persistently higher prices, and this is forcing them to more carefully evaluate spending. The baby-care market has also been pressured by declining birth rates in many countries.
Along with weakness in certain international markets, Kimberly-Clark has seen lower demand in North America for its professional business, which supplies restroom products and dispensers. A decline in foot traffic in restaurants and hotels has caused softness in the near term, Jakubik said.
Kimberly-Clark, which also owns the Scott and Kleenex brands, is trying to appeal to shoppers with more premium items that it can charge a higher price for. This includes its new “Skin Essentials” line of diapers that is marketed as helping prevent rashes and “up to 100% leakproof protection.”
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