How Brands Are Using SKU Mix and Claims to Signal Value: A Diaper Case Study

As the largest nappy/diaper market, the US is a critical bellwether for global trends – and it is clear that value is being redefined. With inflation easing, but consumer price sensitivity still high, manufacturers and retailers are reassessing how they deliver value across their diaper assortments. Traditional pricing tiers are shifting, with the gap between premium and value products narrowing. Claims once seen as premium – such as “natural” or “hypoallergenic” – are becoming standard at lower price points, while skin-forward claims are emerging to justify higher-priced options. In this changing landscape, value is being redefined not just by price, but by how the industry positions quality, trust, and function to today’s consumer.

Supply-side reset: Value and mid-tier diaper SKUs gain share in product assortment

To understand how the US diaper industry is redefining value, it's useful to look at the supply side – specifically, how manufacturers and retailers are positioning their product mix by price point. Using Via, Euromonitor’s AI-powered online pricing tool, we analysed SKU distribution over a 2-year period. A clear picture of market realignment emerged: value- and mid-tier SKUs are growing in share, while premium-priced options are contracting.

Between May 2023 and April 2025, the number of diaper SKUs in the market fell by 14%, reflecting a broader trend towards SKU rationalisation and leaner portfolios. But within that shrinking assortment, pricing tiers have shifted meaningfully. The share of SKUs priced under USD40 has steadily increased, while that of SKUs priced over USD40 has dropped, from 32% to 26%.

This shift suggests that brands and retailers are recalibrating their pricing strategies towards the mid- and lower-priced segments, responding to continued price sensitivity while still aiming at differentiation. This is evidenced in P&G’s 2024 upgrade of its value-tier Luvs diapers with enhanced leak protection and softness, backed by a 100% money-back guarantee. In many cases, this likely involves adjusting pack sizes or configurations – not just lowering unit prices – in order to offer SKUs that hit key psychological price points without eroding margins. In effect, the centre of gravity in diaper pricing is moving downward – a strong signal of where the industry believes today’s definition of value lies.

Brands turn to skin-forward claims to signal premium value

The repositioning of diaper SKUs isn’t just about price – it’s also about how product value is communicated to consumers. As prices move up the tier, claims shift from broad reassurance-based language to more skin-forward benefits backed by science, technology, or advanced ingredients – a deliberate move by brands to justify premium positioning. As pricing data from online retailers shows, manufacturers and retailers are making deliberate choices about which features to emphasise at each tier. This reflects a broader shift in how brands are defining value through both price and language, especially as they adjust their SKU mix to match today’s consumer expectations.

By April 2025, many claims once used to signal premium quality, like “hypoallergenic”, “no parabens” or “natural”, were common across all price points. In the under-USD20 tier, 61% of SKUs feature a hypoallergenic claim. This suggests that these claims are now considered standard, especially for parents who expect a baseline level of safety and care, regardless of price.

While fewer SKUs now occupy the over USD40 tier, those that remain are being positioned more assertively. Compared to prior years, they now feature higher shares of “fragrance free”, “sensitive” and “skin health” claims, pointing to a strategy of using more targeted benefits to justify premium pricing. This is evidenced in P&G’s updated premium Pure Protection diaper line with plant-based ingredients and Skin Health Alliance approval, Huggies’ rash-targeting Skin Essentials diapers with proprietary SkinProtect™ liner technology, and the positioning of smaller boutique brands expanding over recent years such as Millie Moon and HealthyBaby.

In short, brands are leaning more heavily on claims to define product value, not just to compete at the high end, but to elevate perception at every tier. The next wave of diaper innovation will further harmonise the affordability-premiumisation equation, with natural and harm-negating features becoming the bare minimum and value creation further backed by high-end skin-forward formulations and science-backed verifications.

Learn more about the evolution of product positioning in our report, Top Five Trends in Tissue and Hygiene, to gain further insights from case studies and see our predictions for the forecast period. For more information on how Euromonitor tracks SKU-level pricing and product claims across categories and markets, see our Via page.