Global hygiene products giant Kimberly-Clark is continuously enhancing its manufacturing footprint in Southeast Asia. The company, which owns renowned brands including Huggies and Kotex, is currently expanding its production base near Ho Chi Minh City, Vietnam, with plans to increase capacity by 40%.
Recently, Kimberly-Clark also announced adjustments to its U.S. domestic capacity, planning to relocate four production lines from Wisconsin to Malaysia and Vietnam. These lines primarily manufacture Kotex feminine care products and Pampers light incontinence care products. In fact, Kimberly-Clark's factories in Malaysia and Vietnam already possess production capabilities for these products and export them to multiple Southeast Asian countries.
This Vietnam expansion is a key component of Kimberly-Clark's global supply chain optimization strategy. The company has acquired an additional 1.2 hectares of land adjacent to its existing facility by 2025 to support capacity growth. Currently, half of the products manufactured at this Vietnam plant are exported to 18 different markets, underscoring its importance as a regional export hub.
In the Vietnamese market, Kimberly-Clark holds the second position in the infant diaper segment with its Curious brand. The company is actively expanding its market share, aiming to challenge market leaders such as Unicharm's Bobby brand (holding a 25% share) and Procter & Gamble's Pampers (holding a 12% share).
Despite Vietnam's fertility rate dropping to a historic low of 1.91 children per woman in 2024, the local infant diaper market continues to grow at a mid-to-high single-digit rate. This resilience stems primarily from rising incomes, accelerated urbanization, and heightened hygiene awareness. Facing the challenge of declining birth rates, Kimberly-Clark and other major manufacturers have expanded their product lines into adult incontinence care. Last year, they launched two related products in Vietnam to capture new market growth opportunities.
Simultaneously, the company is actively exploring new market strategies, including diverse initiatives such as partnering with influential parenting communities and strengthening e-commerce channel participation. These efforts aim to continuously consolidate and expand its market presence across Southeast Asia.
