Period Health Trends Disrupt Global Tampon Supply Chains
This summer, the US could grapple with a significant tampon shortage, echoing issues faced in 2022.
After the pandemic, Instacart reported a 13% spike in tampon searches within a week, while order fulfilment dropped by 67%, the lowest since the pandemic began.
Tampon sales also surged by 29% week-over-week due to panic buying.
The crisis stemmed from disruptions in sourcing key materials like cotton and plastic, essential for personal protective equipment.
Now, the supply chain could struggle to meet demand due to regulatory pressures, whilst facing evolving consumer habits that are more environmentally and health conscious.
Consumer behaviour and market shifts
Procter & Gamble (P&G), which produce Always and Tampax, is also facing legal action over alleged deceptive advertising related to its Tampax 'Pure Cotton' tampons.
This lawsuit comes amid a shift in consumer habits, with a decline in tampon popularity.
Tampon sales in the UK have decreased by 12% since 2018, driven by rising health and environmental concerns that lead women to explore alternatives like period pants and silicone cups.
Meanwhile, consumer research firm Circana reports that tampon prices have surged by 36% over the past five years, outpacing overall inflation and costing about a third more than pads or liners.
The Office for National Statistics recently updated its “inflation basket,” removing tampons and CDs while adding e-bikes, frozen berries and sanitary towels.
“Sanitary towels are attracting greater expenditure and are currently more representative of feminine hygiene products,” stated the ONS.
In the US, the menstrual care industry, valued at US$3.5bn, is grappling with rising prices and environmental issues.
Procter & Gamble's spokesperson, Cheri McMaster, attributed the tampon shortage to the success of their ad campaign featuring Amy Schumer, which led to a 7.7% increase in demand over the past two years.
However, critics argue that this explanation fails to address the broader supply chain disruptions caused by the pandemic, which have impacted various brands and products alike.
Additionally, environmentalists are raising alarms after a study discovered lead in tampons, questioning whether global metal pollution is more severe than previously thought.
Alexandra Scranton, Director of Science and Research at Women’s Voices for the Earth, notes “It is potentially getting worse as there is more heat and as the metals are cycling through our environment.”
She adds “There’s more and more there to contaminate things, so it’s now coming into these products which you don’t think of as applying metals intentionally. But this contamination is now getting in there.”
The study, published in Environmental International, found over a dozen metals, including lead and arsenic, in tampons used in the US and Europe.
Jenni Shearston, lead author and postdoctoral scholar at the University of California Berkeley School of Public Health, remarked that this is the first study to measure metal concentrations in tampons.
Impact of European regulations
US paper manufacturers are warning the European Union about a new law requiring timber traceability, which threatens to raise prices for hygiene products.
The American Forest and Paper Association has highlighted that compliance with the upcoming EU Deforestation Regulation is impractical due to the diffuse nature of pulp supply chains and the two-year lag between timber harvesting and fibre production.
The US is a major exporter of "fluff pulp," an absorbent material used by Procter & Gamble and Kimberly-Clark to make personal hygiene products.
Any disruption in this supply chain will have significant consequences across the 27-nation EU bloc.
Why is this so tricky for supply chain leaders?
Predicting tampon demand is complicated by fluctuating consumer behaviour and sudden spikes, especially when this demand is influenced by social media, as the report on lead in tampons went viral on TikTok.
Accurate demand forecasting becomes challenging when there is a mismatch between historical sales data and unexpected shifts in consumer preferences or panic buying trends.
- Regulatory compliance costs:
Navigating the regulatory landscape requires adherence to new and evolving standards, such as the EU's requirement for timber traceability.
These compliance demands can increase costs and the administrative burden, which trickle down the supply chain.
- Supply chain resilience and redundancy:
The tampon shortage crisis highlights the need for resilient supply chains with built-in redundancies.
Disruptions caused by the pandemic demonstrated the lack of contingency plans for sudden spikes in demand or supply interruptions, making it essential for supply chain leaders to develop more robust contingency strategies.
- Consumer sentiment and brand impact:
Managing the impact of shifting consumer sentiment, such as the decline in tampon popularity and concerns over product safety, requires agile marketing and product development.
- Lead time variability:
The lead time for obtaining raw materials like fluff pulp can vary significantly due to global supply chain disruptions.
For example, a delay in the pulp supply caused by changes in trade policies or environmental regulations can result in extended production cycles and unpredictable delivery times for finished products, affecting overall supply chain efficiency and customer satisfaction.
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