Unicharm Corp. opened its third factory in India this month, boosting its diaper production capacity by 30% as the Japanese company seeks to strengthen its market leadership position in one of Asia’s fastest-growing consumer markets.
The 20 billion yen ($131 million) facility in Gujarat state replaces a plant that was destroyed by fire in 2020. The new factory will produce MamyPoko diapers, adult care products, and feminine hygiene items, creating approximately 1,000 jobs.
The expansion underscores Unicharm’s success in India since entering the market in 2008. The company captured the top spot from Procter & Gamble Co. in 2022 by focusing on premium pants-style diapers rather than competing on price with traditional tape versions. This strategy helped Unicharm secure a 50% market share.
India’s diaper market is poised for significant growth, with the proportion of households earning more than $15,000 annually – the key demographic for disposable diaper purchases – expected to rise from 10% in 2020 to 40% by 2030, according to Japan External Trade Organization data.
J.P. Morgan senior analyst Akiko Kuwahara noted that the company has demonstrated its ability to develop new markets, even in seemingly mature regions. The global diaper market is projected to expand 60% to $90.9 billion by 2032, according to Report Ocean.
