Diaper Inflation Wrecks Already-Strained Family Budgets in U.S.

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Each box of diapers demands another sacrifice from Richard Dixson’s family. First it was forgoing his wife’s trips to Whole Foods for vegan products. Now his 8- and 6-year-old granddaughters won’t be at summer camp.

The guardian of four won’t see any relief until his twin 3-year-old grandsons are done running through pull-ups costing almost $300 per month.

Families that were already struggling during the pandemic are facing a heavier burden as inflation makes an unavoidable expense costlier. Overall consumer prices were up 5% in May year over year, but discretionary purchases like cars, apparel and restaurant meals can be delayed. Diapers won’t wait.

“It’s not like we’re making cuts in areas of disposable income. We’re making cuts on necessities,” said Dixson, 59, who lives in Kansas City, Missouri. “We feel it every week.”

The average unit price of diapers was up 14% year over year in January and has remained elevated ever since, according to data from Nielsen. Packages that cost about $25 last year now can cost $40 — and there are fewer inside. Indeed, baby-care items from rash salves to wipes have seen double-digit increases, and companies have said prices will rise again.

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The HappyBottoms warehouse in Kansas City, Missouri. The number of parents unable to afford diapers has grown significantly since the pandemic. 
Photographer: Chase Castor/Bloomberg

On top of that, diapers are taxed in 36 states anywhere between 2.5% and 7%, according to the National Diaper Bank Network, an advocacy group.

A diaper duopoly makes the impact almost inescapable. The world’s most popular brands — Huggies, Luvs, Pampers and Pull-Ups — are all made by Kimberly-Clark Corp. and Procter & Gamble Co. Those companies account for 70% of the U.S. diaper market and they are protecting their margins as the cost of raw materials soars. 

Growing Pains

Diaper prices have been surging as manufacturers cope with inflation

Source: Nielsen

Dixson, an employee at the nonprofit Community Action Agency of Greater Kansas City, has been going to the HappyBottoms diaper bank to supplement his purchases since the twins were born in 2018. Once a month, he receives 30 training pants per child.

Each is meant to last about two to three hours. In desperate straits, Dixson’s considered stretching his stash by keeping a diaper on longer. “I never would have thought I’d think that way,” Dixson said.

One in three U.S. families already couldn’t afford enough diapers, a figure that has grown significantly during the pandemic, said Jennifer Randles, an associate sociology professor at California State University at Fresno. Anything that discourages poor hygiene puts children at risk -- wearing soiled diapers can lead to skin irritation or urinary tract infection.

The pressure on diaper banks shows the need. Since lockdowns began last year, distributions have increased by 68% across more than 200 U.S. banks, said Joanne Goldblum, chief executive officer of the National Diaper Bank Network. At a bank in San Antonio, Texas, registrations for potty-training classes jumped as much as 15% in the past two months. In New York, a diaper drive at the end of a school’s academic year was complicated by $20 markups on Huggies — even donors couldn’t afford them.

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Dixson, like many guardians and parents of young children, is relying on banks for assistance. 
Photographer: Chase Castor/Bloomberg

The problem is bound to get worse in the 26 states whose governors are ending pandemic relief, including Missouri, which was among the first to cut off unemployment benefits. The leaders of HappyBottoms are racing to raise money as they brace for the aftermath.

Organizers might not be able to provide more than the usual per-child allotment of 50 diapers — or 30 pull-ups —  if they’re too expensive. And the staff of 12 won’t grow, although the bank is already expecting to surpass last year’s total of more than 45,000 distributions. Along with giveaways directly from its warehouse, HappyBottoms has pivoted to drive-thru events and home deliveries to meet the need.

“It’s scary,” said founder and executive director Jill Gaikowski. “Most of our families are working two to three jobs and they still can’t afford diapers.”

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HappyBottoms volunteers give out diapers at a mobile food pantry drive-thru event. 
Photographer: Chase Castor/Bloomberg

Diapers have come a long way from a simple cloth swaddling held together with safety pins. Modern disposables use a so-called core and chassis that involve layers of several sorts of paper, products to encourage absorbency, quilted liners and elastic to hold the whole thing tight around chubby thighs.

Global pulp prices have jumped over 75% since 2020’s lowest level in August, thanks to rebounding demand in Asia and tight supplies among major global producers.

P&G told investors during its latest earnings report to expect price increases by September, and they could be in the mid- to high-single digit percentages. Nearly all of Kimberly-Clark’s increases took effect in June.

That means that each of Brandon Noye’s diaper runs has been costlier than the last. The 28-year-old father of three from of Pensacola, Florida, has watched prices of P&G’s Pampers go from $24.99 for about 200 in November to $40 for 168 in May.

“It just doesn’t make sense that I have to spend so much for less,” Noye said

Noye’s wife became a stay-at-home mother during the pandemic, and hasn’t rejoined the work force because daycare is too expensive. Some months, the family must choose between diapers and phone bills. Sometimes they put off the cable bill. It helped that Noye’s 3-year old finished potty-training in March, but he still has twin 7-month-olds.

The Noyes, while strapped, are managing. But the pandemic is creating a “perfect storm of inequity” for many families, said Randles.

“These aren’t bad parents,” she said. “Kids get access to what their parents can afford. It says a lot about us as a country that so many families are struggling with this.”

— With assistance by Fabiana Batista