After more than 3 years of market research along with the impacts of the epidemic, Turkish FMCG group Hayat has officially joined the Vietnamese diaper market with the objective of turning Vietnam into the diaper manufacture for the whole Southeast Asia area.
On October 19, Hayat – a fast-moving consumer goods manufacturer from Turkey announced a plan to enter the Vietnamese baby diaper market with the Molfix brand, and is expected to capture about 30% of the market share in this category in 2025.
Hayat Kimya operates in the fast-moving consumer goods (FMCG) industry since 1987, manufactures hygiene, tissues, and home care products, with well-established brands such as Bingo (detergents and home cleaning), Molfix (baby diapers), Molped (feminine care), Papia, Familia, and Focus (cleansing tissue), as well as Joly and Evony (adult diaper).
According to Nielsen, Vietnam’s diaper market is very potential with a scale of about US$600 million, of which 73% are pants diapers, 21% are diapers and 6% are pads.
Mr. Cetin Murat, general director of Hayat Vietnam said that the firm has been conducting extensive study on the Vietnamese market since 2018. As a result, Vietnam is regarded as one of the most promising baby diaper markets in the area, with the growth rate forecasted to reach double digits in the period of 2021-2027.
“We have selected Vietnam as our manufacturing base in the region. From there, we will penetrate deeper into the ASEAN market. Our growth will lead to the development of related partners and chains.” shared Mr. Ugur Hasan Tahsin, Vice President of Hayat, in charge of the Asian market.
Southeast Asia is one of the regions with the highest population growth in the world and occupies nearly 9% of the world’s population. Specifically, Vietnam is the country with the third largest population in the region when it has increased nearly 11 million people over the past 10 years.
Each year, Vietnam has an additional 1.6 million children born. Besides, Vietnam is in the golden age with the majority of young people. Currently, there are about 25 million people under the age of 15 in the country. On average, each day, Vietnam has 4,300 babies born. On the blue moon, Vietnamese families have children under 10 years old.
These figures show the potential for mother and baby products, especially the baby segment, in the general region and Vietnam in particular. Hayat announced a US$250 million investment in Binh Phuoc towards the end of 2020, with an initial estimate of US$100 million.
Next stage, the Hayat factory in Vietnam will deliver products to other potential markets in ASEAN such as Cambodia, Philippines, Laos and Indonesia. Total export value of Hayat Vietnam is estimated at US$50 million per year.
Besides the existing diapers segment, Hayat also plans to invest in a tissue factory with a capacity of 60,000 tons/year and a detergent factory with a capacity of 250,000 tons/year.
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