Baby Diapers: A Changing Market

North American Baby Diaper Market Sees Major Expansion Amid Growing Demand for Premium Products

The North American baby diaper market is undergoing a significant transformation, driven by increasing consumer demand for high-quality, premium-style disposable diapers and training pants. In response to these evolving market needs, two of the region’s largest private label and contract manufacturing diaper suppliers—Drylock Technologies and Ontex—have made major investments to expand their manufacturing capabilities. These strategic moves are set to reshape the competitive landscape of the baby diaper industry in North America.

Drylock Technologies Expands U.S. Production to Meet Growing Demand

In July 2024, Drylock Technologies began baby diaper and training pants production in the United States at a new state-of-the-art facility in Reidsville, North Carolina. This expansion is part of the company’s long-term strategy to align with its customers' needs and deliver innovative and sustainable baby care solutions closer to consumers.

The new Reidsville facility is Drylock's second manufacturing site in the U.S., following its initial multi-million dollar investment in Eau Claire, Wisconsin, where it started adult incontinence product production in 2017. With this latest expansion, Drylock aims to strengthen its presence in the North American baby diaper market, leveraging its patented diaper technology and expertise in hygiene product innovation.

“We wanted to leverage our patented baby diaper technology and our deep passion for providing high-quality, innovative baby diapers and training pants as close to the consumer as possible,” says Matt Koloseike, VP of Sales and Marketing at Drylock Technologies.

The baby diaper segment has seen steady growth in the U.S. in recent years, with retailers and independent brands seeking premium alternatives to national brands. Consumers are increasingly looking for diapers with enhanced absorbency, better fit, skin-friendly materials, and sustainability features—factors that have influenced Drylock's investment in North America.

Innovation and Sustainability: Core Pillars of Drylock’s Growth

A key factor behind Drylock’s success has been its commitment to sustainability and innovation. The company has built strong partnerships with retail brands in both baby diaper and adult incontinence markets, positioning itself as a leading contract manufacturer of private-label hygiene products.

Retailer brands in the hygiene sector have gained traction due to their high product quality, affordability, and innovation-driven approach, making them strong competitors against established national brands. Drylock aims to support retail partners with its next-generation baby diaper technology, including:

• Ultra-thin absorbent cores for superior comfort and leakage protection

• Plant-based and biodegradable materials for enhanced sustainability

• Advanced moisture-wicking and breathable layers for optimal skin health

• Customizable designs and packaging tailored to retailer-specific needs

“The establishment of Drylock’s newest baby care plant in Reidsville, NC, will enable us to bring faster innovation and value to a demanding and growing consumer base,” adds Koloseike.

By expanding its North American production capacity, Drylock is better positioned to deliver high-quality baby diapers and training pants faster and more efficiently, reducing lead times for its retail partners and strengthening its competitive edge in the fast-evolving baby diaper market.

Ontex Strengthens North American Presence with New Baby Diaper Facility

Drylock’s expansion in North Carolina comes shortly after Ontex, another leading global hygiene manufacturer, announced the opening of its new North American baby diaper production facility in Stokesdale, NC. Ontex’s investment aligns with its long-term strategy to expand its private label and contract manufacturing business in North America and offer premium baby diaper solutions to retailers across the region.

The presence of both Drylock and Ontex in North Carolina highlights the growing importance of the U.S. market for contract-manufactured baby diapers. With the demand for high-performance, sustainable, and innovative diapers increasing, manufacturers are investing heavily in localized production to better serve retail partners and meet consumer expectations.

Retailer Brands: A Growing Force in the Baby Diaper Market

Retailer-branded baby diapers have seen tremendous growth in recent years, driven by consumer demand for affordable, high-quality alternatives to national brands. Many parents today are more willing to try private label diapers, especially those offering:

• Comparable or superior performance to premium brands

• Skin-friendly, hypoallergenic materials

• Eco-friendly features, such as plant-based fibers and biodegradable components

• Competitive pricing without compromising quality

This shift has encouraged private label manufacturers like Drylock and Ontex to double down on R&D and manufacturing efficiency, ensuring that their baby diaper products can compete with leading national brands.

The Future of the North American Baby Diaper Market

As Drylock and Ontex continue expanding their manufacturing footprints in North America, the baby diaper industry is set to become more competitive and innovation-driven. Key trends shaping the future of baby diaper production include:

1. Sustainability Innovations – Increased focus on biodegradable materials, recyclable packaging, and carbon-neutral manufacturing.

2. Smart Diaper Technology – The emergence of wetness sensors, temperature indicators, and other smart features to enhance baby care.

3. Customization for Retail Partners – Retailer brands seeking exclusive designs, unique formulations, and premium features to differentiate their baby diaper offerings.

4. Faster Speed to Market – Localized production facilities like Drylock’s Reidsville plant and Ontex’s Stokesdale site will enable shorter lead times and greater supply chain efficiency.

With consumer expectations evolving, baby diaper manufacturers must continuously innovate to stay ahead in a highly competitive industry. Drylock Technologies, with its commitment to quality, sustainability, and retailer-focused solutions, is poised to play a major role in shaping the future of the North American baby diaper market.

As the company invests further in technology and production expansion, it aims to bring superior diaper products to more consumers while maintaining its strong focus on sustainability and innovation.