How will the 2025 U.S. Tariffs Affect the Incontinence and Pet Supplies Industries and Consumers?
2025-03-04
Against the backdrop of the continuously changing global trade pattern, the US tariff increase in 2025, like a boulder thrown into the industry lake, has had a profound impact on numerous industries. The incontinence and pet supplies industries are among the first to be affected. As a factory deeply engaged in this industry, it is necessary for us to thoroughly analyze the chain reactions brought about by this policy change, so as to better meet challenges, seize opportunities, and provide valuable reference for industry practitioners and consumers.
I. Impact on the Industry
(1) Cost Increase
- Raw Material Procurement Cost: After the US imposed higher tariffs, the prices of imported raw materials rose. For example, for non - woven fabrics and superabsorbent resins commonly used in the production of incontinence products, as well as plastics, rubbers and other basic materials used in pet supplies, their costs have increased significantly due to tariffs. Take non - woven fabrics as an example. In some cases, tariffs may increase the cost per ton by hundreds of dollars, which has greatly increased the procurement budget of enterprises. For the pet food industry, the tariffs on imported meat, grains and other raw materials directly compress the profit margin.
- Manufacturing Cost: In order to cope with the rising cost of raw materials, enterprises may need to adjust the production process and look for alternative materials, which undoubtedly increases the research and development cost. Moreover, due to the overall increase in production costs, enterprises also face pressure in terms of production equipment maintenance, employee training, etc., further pushing up the manufacturing cost. Some small - scale pet supplies manufacturers may face the risk of bankruptcy due to their inability to bear the soaring costs.
- Transportation and Logistics Cost: The increase in tariffs has raised the taxes and fees for goods in the import and export links, and transportation companies may pass on this additional cost to customers. For the incontinence and pet supplies industries, especially those enterprises that rely on international logistics to transport goods, the increase in transportation costs has become a heavy burden. The freight of containers shipped from China to the United States may increase by 10% - 20% due to tariff adjustments, which greatly increases the total cost of products.
(2) Changes in the Market Competition Pattern
- Competition between Local and Imported Enterprises: After the US imposed higher tariffs, the prices of imported incontinence and pet products rose, which provided certain market opportunities for local enterprises. Local enterprises can attract more price - sensitive consumers with price advantages. However, imported products often have advantages in terms of quality and brand influence, and consumers' preference for imported products will not disappear in the short term. Therefore, local enterprises need to increase investment in improving product quality and brand building to consolidate their market position.
- Differentiation among Enterprises in the Industry: Large enterprises, with their strong financial strength, complete supply chain systems and powerful research and development capabilities, can better cope with the impact of tariffs. They can relieve cost pressure by optimizing the supply chain, reducing procurement costs, developing new products, etc. Small enterprises, due to limited resources, may find it difficult to bear the substantial increase in costs and be at a disadvantage in market competition, and may even be eliminated. This will lead to an increase in industry concentration, and market share will be concentrated in large enterprises.
- Changes in Emerging and Traditional Markets: As the US market becomes unstable due to tariff policies, some enterprises begin to seek development opportunities in emerging markets. The demand for incontinence and pet products in markets in Asia, Europe and other regions is gradually increasing, becoming new growth points for enterprises. In contrast, the demand in the US, a traditional market, may be suppressed due to price increases, and the market share may shrink to a certain extent.
(3) Supply Chain Adjustment
- Trend of Localized Production: In order to avoid tariff risks, some enterprises begin to consider transferring the production link to the US or other countries and regions with lower tariffs. For example, some pet supplies enterprises plan to establish production bases in the US, using local raw materials and labor for production to reduce the tariff cost in the import link. This trend of localized production not only helps enterprises reduce costs, but also improves the supply efficiency of products and better meets the needs of the local market.
- Diversification of the Supply Chain: Enterprises begin to seek a diversified supply chain, reducing their dependence on a single supplier or region. In addition to purchasing from traditional raw material supply sources, enterprises will also expand new supplier channels to find more cost - effective raw material sources. In terms of transportation and logistics, enterprises will also choose a variety of transportation methods and routes to reduce transportation costs and risks. Some enterprises may increase the proportion of railway transportation or inland waterway transportation and reduce their dependence on sea transportation.
- Supply Chain Risk Management: The uncertainty of tariffs makes enterprises pay more attention to supply chain risk management. Enterprises will strengthen communication and cooperation with suppliers, establish more flexible contract terms to cope with the risks of raw material price fluctuations and supply disruptions. At the same time, enterprises will also increase inventory levels to ensure that they can meet market demand when there are problems in the supply chain.
II. Impact on Consumers
(1) Price Increase
- Direct Price Impact: After the US imposed higher tariffs, the prices of incontinence and pet products generally rose. The cost for consumers to buy a pack of adult diapers or a pet pad may increase by 10% - 20% compared with before. For some low - income families or consumers with a large number of pets, this undoubtedly increases the living burden. For example, a family that originally spent 500 per month on pet supplies may need to spend an additional 100 due to price increases.
- Indirect Price Impact: In addition to the price increase of the products themselves, the prices of services related to incontinence and pet products may also be affected. Pet grooming shops, pet hospitals and other service institutions may increase service prices due to the increase in procurement costs, and consumers need to pay higher fees when enjoying these services. Some pet grooming shops may increase the prices of services such as bathing and hair trimming by 15% - 20%.
(2) Limited Product Selection
- Reduction in Imported Products: Due to the increase in tariffs, the prices of imported incontinence and pet products have risen, and consumers' willingness to buy imported products may decline. At the same time, some importers may reduce the import volume or even stop importing certain products. This reduces the variety and quantity of imported products that consumers can choose from in the market, and cannot meet the needs of some consumers for specific brands or high - quality products. Some high - end pet food brands may reduce their volume in the US market due to tariff issues.
- Slowdown in Product Innovation: In order to cope with the tariff cost, enterprises may reduce investment in product research and development and innovation. This will lead to a slowdown in the launch of new products in the market, and consumers will find it difficult to enjoy more high - quality and innovative incontinence and pet products. For example, an enterprise that originally planned to launch a new type of intelligent pet toy may postpone or cancel the R & D plan due to cost pressure.
(3) Changes in Consumer Psychology
- Cautious Consumption: Facing the situation of price increases and limited product selection, consumers will be more cautious when buying incontinence and pet products. They will pay more attention to the cost - effectiveness of products and have a higher sensitivity to prices. Before buying, consumers will make more comparisons and choices to find products with reasonable prices and reliable quality. Some consumers may switch from buying high - end brand products to buying more cost - effective mid - to - low - end brand products.
- Decline in Loyalty: If consumers cannot find products that meet their needs in the market, or have to change brands due to price reasons, their loyalty to the original brand may decline. This poses challenges to the brand building and market share maintenance of enterprises. Some consumers who have long purchased pet products of a certain brand may choose other brands due to price increases, resulting in the loss of market share of this brand.
III. Coping Strategies
(1) Enterprise Coping Strategies
- Optimize Cost Structure: Enterprises should strengthen internal management, improve production efficiency and reduce production costs. For example, optimize the production process to reduce waste in the production process; strengthen negotiations with suppliers to strive for more favorable procurement prices; reasonably arrange production plans to improve equipment utilization. Through these measures, enterprises can relieve the cost pressure brought by tariffs to a certain extent.
- Strengthen Product R & D and Innovation: Enterprises should increase investment in product research and development and innovation, and launch more differentiated and competitive products. By increasing the added value of products, enterprises can still maintain consumers' willingness to buy in the case of price increases. For example, develop incontinence products with higher water absorption, or design more interesting
(2) Consumer Coping Strategies