Indonesia and Vietnam Lead SE Asia's Hygiene Boom

Executive Summary#

Southeast Asia's online disposable hygiene products market grew 23.7% YoY to CN¥ 3.60 billion on leading Southeast Asian marketplaces in Jan-Oct 2024^[1], and Indonesia and Vietnam together accounted for 49% of regional sales. The Chinese brand MAKUKU's progress in Indonesian baby diapers shows a workable path for brands expanding abroad. This analysis examines the performance of the two countries and the strategies brands are using in Southeast Asia's two most attractive hygiene markets.

Two Markets, 49% of Regional Sales#

Indonesia and Vietnam together account for nearly half of Southeast Asia's disposable hygiene products market, although the two countries differ considerably in their competitive profile. Indonesia is the largest market, with CN¥ 974 million in sales and growth of 32.5%, which shows that a large market base does not prevent strong expansion. Vietnam's growth of 69.0% to CN¥ 807 million is particularly noteworthy, as the country is approaching Indonesia's scale while growing at more than twice its rate.

Indonesia and Vietnam together command 49% of Southeast Asia's disposable hygiene market

*Source: Moojing Market Intelligence*

How Southeast Asian Shoppers Buy Hygiene Products Online#

The leading marketplaces in the region are built around the way Southeast Asian consumers shop for everyday consumables, and trust and convenience drive repeat purchases in categories that shoppers buy as often as diapers and sanitary pads. Brands entering the region should therefore plan their marketplace investment around the channels where their category's shoppers already buy.

Indonesia: How MAKUKU Entered the Market#

Indonesia's online disposable hygiene products market reached CN¥ 974 million in Jan-Oct 2024, growing 32.5% YoY^[1]. Competition in the market is shaped by two forces, established Japanese multinationals such as Mamypoko and Merries and a wave of Chinese challengers, among them MAKUKU, and brand concentration in baby diapers is high^[2], although competition is changing quickly.

MAKUKU has entered Indonesian baby diapers through social media marketing and the diversification of its product line, and by targeting the middle of the market it has found a position that balances accessibility with perceived quality.

Vietnam: Fastest Growth at +69.0%#

Vietnam's disposable hygiene products market is growing quickly in each of its categories, with total online sales reaching CN¥ 807 million in Jan-Oct 2024, up 69.0% YoY. Baby diapers account for CN¥ 730 million of that total, after growth of 66.8%. Brands in Vietnam are at an early stage of consolidation, so that positions remain highly contestable, and some newer brands have grown very quickly from small bases.

Consumer demand in Vietnam is shifting decisively toward the CN¥ 40-80 price segment. Together, the CN¥ 40-60 and CN¥ 60-80 segments accounted for 56.0% of Vietnam's baby diaper market in Jan-Oct 2024, up from 48.9% a year earlier. We believe this concentration in the middle of the market creates an opportunity for brands offering quality products at accessible price points.

Vietnam baby diaper demand shifting toward CN¥ 40-80 price segment

*Source: Moojing Market Intelligence*

Key Takeaways#

• Southeast Asia's hygiene market grew 23.7% YoY to CN¥ 3.60 billion, with Indonesia and Vietnam accounting for 49% of regional sales
• Brands entering the region should plan their marketplace investment around the channels where their category's shoppers already buy
• The Chinese brand MAKUKU has built its position in Indonesia's baby diaper market through social media marketing and mid-market pricing
• Vietnam's growth of 69.0% and its early stage of brand consolidation make it the strongest entry opportunity, as newer brands have shown how quickly a position can be built there
• The CN¥ 40-80 price segment accounted for 56% of Vietnam's baby diaper market in Jan-Oct 2024, which makes it the best price positioning for new entrants

About the Data#

This analysis draws on Moojing Market Intelligence data covering Jan-Oct 2024. Moojing analyses brand and category performance in the disposable hygiene products market across leading Southeast Asian marketplaces, covering Indonesia, Vietnam, Thailand, the Philippines, Singapore and Malaysia. For full methodology and additional insights, see the complete Disposable Hygiene Products whitepaper.