The aging of America: users of adult incontinence products have high expectations and an...

In recent years, baby boomers have been considered a marketer's dream consumer group, the pot of gold at the end of the aisle. Baby boomers have offered retailers a demographic flush with disposable income thanks to empty nests and an overall willingness to spend--especially when it comes to

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According to Chicago's Information Resources Inc., the total adult incontinence category has rung up sales of more than $535 million, with private label grabbing 30.7 percent share of the business at $164.3 million in sales for the 52 weeks ending March 20, 2005. The total category increased sales 4.5 percent over last year, and private label grew as well, up 3.8 percent. Unit sales grew also, with the total category growing 5.7 percent and private label 2.2 percent.

"The adult incontinence category continues to grow as the population ages," says Carmen Baker, senior category manager, Rockline Industries, Sheboygan, Wis. "At retail, more incontinence products are available. Private label incontinence products, including wipes, are experiencing growth since private labels represent a great value to the consumer."

"Demographic, social and governmental trends are all pointing toward increased purchases of incontinence products for home care," says Dan Murphy, vice president of and marketing, First Quality Hygienic, Great Neck, N.Y. "Drug chains have traditionally owned the incontinence category at retail, but consumers are increasingly shopping alternative classes of trade."

Whether making purchases in drug chains, grocery stores or mass merchandise outlets, consumers have shown that new products, advanced technology and increasingly better efforts to meet consumers' needs have all contributed to the growth of the total category. Products such as protective underwear, panty liners, wipes and protective underpads have filled out the category previously established with adult briefs that functioned much like baby diapers. Now, retailers have given the category signigicant shelf-space and are capturing the attention of a big group of consumers. Baby boomers are entering their 60s and 70s, and thanks to modern medicine, the elderly population is growing because people are living longer.

"Both drug chains and mass merchandisers continue to increase shelf-space allotted to these products to support the growth mode in the elderly population," says Rob Lippucci, product manager, Hospital Specialty Co. (Hospeco), Highland Heights, Ohio. "As with any growing product line, consumers desire products with different and more specific applications suited to their needs. Manufacturers have responded with new products, improved performance and more efficient manufacturing processes."

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Growth in light-use products such as bladder control panty liners and higher-count packages are impacting the category, Lippucci adds. And on the heavy-use products, overnight undergarments and protective underwear are increasingly popular.

FUNCTION, FUNCTION, FUNCTION

An increased prevalence of home health care is another trend influencing this category, providing an opportunity for retailers to meet the needs of caregivers. "I would expect that an increase in home care would also increase the demand for products through retail chains," adds Bill Hemann, Hospeco president.

With the increase in home health care, caregivers are often primary shoppers and demand easy-to-read packaging, and value-sized packages from private label offerings, in particular. "Time-restricted care givers are an increasingly important purchaser in this category," First Quality's Murphy says.

In a category as personal as adult incontinence products, speed of use and function are more critical than most other attributes. For care care-givers, "providing products that are easy to use and effective at cleaning the patient will ultimately cost the household less and keep both the patient and caregiver happy," says Mike Fitzgerald, vice president of sales and marketing, AFG Wipes Inc., Reidsville, N.C. "For those house-holds that use a family member to provide care, using products that are easy to use and effective will keep peace within the family. It all depends on products that are functional. Both private label and branded products must speed the user through the unpleasant task of providing personal hygiene for a loved one. The operational word here is 'speed.' Products that prolong the task will not be used long-term."

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For the more active consumer group, caring for themselves and dealing with less advanced incontinence, product design plays a big part. Discreetness is imperative. "Increasingly sophisticated consumers are looking for products that are discreet and comfortable, while still providing the maximum in protection," Murphy says.

"Many older adults remain active and demand more convenient and discreet undergarments that are easier to put on and take off," Hospeco's Lippucci says. Protective underwear is gaining popularity, he adds, because of enhanced capabilities and discreet usage.

To improve the total category, Rockline's Baker says, "Retailers can offer a good selection of incontinence products. Considering private label incontinence products, packaging should clearly communicate what the product is and the benefits of the product as consumers don't tend to spend much time in the incontinence aisle."

TRY A WIPE

In the early 1970s, baby wipes entered the market, offering consumers an extremely easy and convenient product, which also offered value. The group of men and women that first started using these wipes, Fitzgerald says, are now entering the elderly category. Manufacturers and retailers, he says, can benefit from this group's familiarity with wet wipes. "It is not coincidence that the usage of wet wipes in personal hygiene is growing as this segment of the population ages," he says.

Baby wipes have been a default product for seniors for many years, Fitzgerald says, pointing to the product as a low-cost option considered "safe." Wipes also offer a discreet product purchase as they are often bought by grandparents for grandchildren and may be considered less embarrassing than other personal hygiene products.

Wipes for incontinence, as well as all-purpose wipes, can serve as transitional buys for consumers just beginning to struggle with incontinence issues, Baker says. "All-purpose wipes have a great appeal to incontinent consumers that may not be ready to journey into the incontinence aisle just yet," she says.

ADULT INCONTINENCE PERFORMANCE

                     DOLLAR SALES    % CHANGE    DOLLAR   UNIT SALES
CATEGORY             (IN MILLIONS)  VS. YR. AGO  SHARE   (IN MILLIONS)

ADULT INCONTINENCE

TOTAL PRIVATE LABEL     $164.3         3.8%       30.7%      17.8
TOTAL CATEGORY          $535.0         4.5%      100.0%      58.9

                      % CHANGE    AVG. PRICE
CATEGORY             VS. YR. AGO   PER UNIT

ADULT INCONTINENCE

TOTAL PRIVATE LABEL     2.2%        $9.24
TOTAL CATEGORY          5.7%        $9.08

Source: Information Resources Inc. Total supermarket, drug and mass
merchandiser sales for the 52 weeks ending March 20, 2005, excluding
Wal-Mart.

* Totals include subcategories not listed on this chart.

UNIT SHARE

Private Label Share  30.2%

Source: Information Resources Inc. Total supermarket, drug and mass
merchandiser sales for the 52 weeks ending March 20, 2005 excluding
Wal-Mart.

Note: Table made from pie chart.