Core Viewpoint - The sanitary napkin industry is undergoing significant changes due to new regulations and the entry of various new players, raising concerns about product safety and quality [1][5][7]. Industry Overview - The sanitary napkin market has seen an influx of new brands, including those launched by celebrities and influencers, indicating a growing consumer base and market potential [2][3]. - The introduction of the new national standard for sanitary products, effective July 1, 2023, is expected to accelerate industry consolidation and push non-compliant companies out of the market [1][7]. Market Dynamics - The production of disposable sanitary products in China reached 1.20 million tons in 2023, a year-on-year increase of 15.6%, with sales revenue hitting 1.8 trillion yuan, up 18.2% [3]. - The market share of low-priced sanitary napkins has increased, with sales in the under 40 yuan segment rising from 67% to 75% [4]. Regulatory Changes - The new national standard prohibits the use of recycled materials and mandates stricter labeling requirements, which will impact the production and marketing of sanitary napkins [7][9]. - The new regulations are designed to eliminate substandard products and ensure consumer safety, particularly concerning harmful substances like sulfur urea [8][9]. Brand Strategies - Many brands, including established players, are adopting a private label model, while some, like Huang Zitao's brand, are investing heavily in production facilities to ensure quality control [5][6]. - The industry is witnessing a shift towards technology-driven product development, moving away from marketing-driven strategies [1][7]. Consumer Trends - There is a growing consumer demand for high-quality sanitary products, which is driving market prices upward and encouraging brands to innovate [3][4]. - New product concepts, such as probiotic and herbal sanitary napkins, are gaining traction, although their actual benefits may be minimal [3][8]. Quality Control Issues - Reports of product quality issues, such as the presence of black spots in sanitary napkins, highlight the need for improved manufacturing processes and quality control measures [11][12]. - The industry is facing challenges in maintaining product integrity due to inadequate foreign object control technologies [11][13].

Core Viewpoint - The health crisis surrounding XinXuan Group's sanitary napkin brand "Mian Mi Ma" has raised significant concerns about product safety in the sanitary napkin industry, particularly after reports of carcinogenic substances being detected in multiple batches [1] Industry Overview - The sanitary napkin industry is experiencing a trust crisis, exacerbated by recent consumer complaints and media exposure regarding product safety issues, including the detection of harmful substances [1] - The market for disposable sanitary products in China reached a production volume of 1.20 million tons in 2023, reflecting a year-on-year growth of 15.6%, with sales revenue hitting 1.8 trillion yuan, up 18.2% year-on-year, capturing 35% of the global market share [5][6] - The introduction of the new national standard for disposable sanitary products, effective July 1, 2023, is expected to accelerate industry consolidation and push non-compliant companies out of the market [10][12] Market Dynamics - The sanitary napkin market is seeing an influx of new players, including celebrity brands and established companies launching new products to cater to diverse consumer needs [3][5] - The price of sanitary napkins is decreasing, with a shift in consumer demand towards lower-priced products, leading to a decline in market concentration and weakening the influence of leading brands [6][8] Regulatory Changes - The new national standard (GB 15979-2024) aims to address industry issues, enhance product quality, and ensure consumer safety by prohibiting harmful substances and improving production hygiene requirements [10][11] - The new regulations will allow existing products produced before the standard's implementation to be sold until their expiration date, leading to a transitional period where both old and new standards coexist in the market [15][16] Production and Supply Chain - Many sanitary napkin brands rely on OEM manufacturing, with established manufacturers like Beishute providing production capabilities for new entrants [7][8] - The production capacity is a critical differentiator among manufacturers, with leading brands investing in automation and quality control to enhance their market position [9][12] Consumer Trends - There is a growing consumer demand for high-quality disposable sanitary products, prompting brands to innovate and introduce new concepts, such as probiotic and herbal sanitary napkins [5][6] - The industry is facing challenges related to product quality, including issues with foreign materials and contamination, which are prompting manufacturers to invest in better detection technologies [17][18]