Introduction:
Since 2024, issues surrounding sanitary pads have repeatedly come into public view. This year’s March 15 “Consumer Rights Day” investigative program once again ignited widespread concern with its exposé on “recycled sanitary pads.” A petition on Xiaomi’s community site gathered tens of thousands of signatures urging CEO Lei Jun to “redefine sanitary pads,” and pop idol Huang Zitao announced live on stream that he was entering the industry. This safety revolution—central to women’s health—is now pushing this previously overlooked sector to a crossroads of industrial restructuring.
What’s wrong with sanitary pads?
Currently, the problems exposed in the market mainly revolve around product safety, labeling, and post-sale market regulation:
- Recycled defective materials: The March 15, 2025 edition of CCTV’s consumer rights program revealed an underground black market operation at Xixi Paper Products Co., Ltd. in Liangshan County, Jining, Shandong Province. The company illegally refurbished sanitary pads and diapers by purchasing defective materials from major brands at low cost, then hand-sorting and repackaging them in unsanitary conditions. These products were found to have excessive bacteria and even contained contaminants—seriously threatening consumer health.
- Excessive fluorescent agents and harmful substances: Some sanitary pads were found to contain unsafe levels of fluorescent agents, and even foreign objects such as live insects, insect eggs, and needles.
- Allergic reactions and discomfort: Consumers have reported allergic reactions after use—such as itching, swelling, and redness—due to factors like excessive pH levels and unsuitable materials.
- False length labeling: In November 2024, multiple brands were found to misrepresent the actual pad length and inner absorbent layer dimensions. One brand had a discrepancy of up to 66mm between the labeled and actual pad length.
- Low complaint resolution rates: According to Black Cat Complaints platform data, many sanitary pad brands in 2024 had very low—some even zero—rates of resolving consumer complaints.
A massive market, rife with quality disparity?
China has a large population, and unlike Western countries where many women use tampons or menstrual cups, most Chinese women still choose sanitary pads. Data shows that in 2024, China’s sanitary pad market reached approximately RMB 70 billion (around USD 9.7 billion), making it one of the largest single markets for sanitary pads in the world.
In terms of demand structure, first- and second-tier cities are relatively saturated, while third-tier, fourth-tier, and rural areas still offer large growth potential. In terms of competition, the top 10 brands (CR10) only account for about 40% of the market, meaning over half remains dominated by fragmented, off-brand players.
International brands—such as P&G’s Whisper, Kimberly-Clark’s Kotex, Unicharm’s Sofy, and Kao—occupy the high-end pricing tier. Leading domestic brands—like Hengan International’s Space 7, BY-Health’s Free Point, and ABC—dominate the mid-tier battlefield with a focus on product innovation and high cost-performance. Regional and small manufacturers are concentrated in lower-tier markets.
In terms of distribution, offline channels (supermarkets and convenience stores) still dominate, but e-commerce is rising fast. Social commerce and livestreaming are also penetrating deeper into lower-tier markets.
High gross profit margins may exceed your expectations.
Take Hengan International, the parent company of Space 7. Since 2020, its sanitary pad division has maintained gross profit margins between 60% and 70%. While sanitary pads contribute only 25% of Hengan’s total revenue (with other sectors including tissue and diapers), they account for over 80% of its operating profit.
Similarly, the parent company of Free Point, BY-Health, recorded over 55% gross profit margin on sanitary pads in 2024.
The secret behind these high margins lies in extremely low production costs. According to Zhongtai Securities, the average manufacturing cost of a sanitary pad is RMB 0.21 (about USD 0.03), which includes materials, electricity, and production. After adding sales, management, and R&D costs, the average ex-factory price rises to RMB 0.38. Distributors apply multiple layers of markups (20%–30% each), resulting in an average retail price of RMB 1.25 to consumers.
To create differentiation in a product with such low production barriers, mid- to high-end brands heavily invest in product features, celebrity endorsements, and sales channels. Marketing budgets have grown annually, promoting far-fetched claims like “facial mask-grade skincare,” “endocrine regulation,” and “far-infrared technology.” Brands have recruited young top-tier female celebrities and focused intensely on packaging and aesthetic campaigns to justify premium pricing.
Low-end brands, on the other hand, rely on OEMs and bulk packaging. With e-commerce penetrating lower-tier markets, they reap massive profits via direct-to-consumer low-cost strategies.
Sanitary pads remain a core business division that brands are reluctant to abandon, constantly seeking revenue and profit growth. However, relying solely on marketing spend is not a sustainable path to long-term performance. Market feedback shows that most companies need to allocate more resources and profit margins toward improving basic product quality.
Who is doing what?
In response to the March 15 exposé, brands have been swift in damage control and rebuilding consumer trust. For example:
- Free Point issued an apology within 2 hours of the broadcast, launched a nationwide product recall, and hosted a live third-party factory inspection.
- Kotex disclosed its waste management process in detail. All defective products generated during production are centrally processed in the factory’s dedicated treatment center—crushed, compressed, and never reused. Every step is under video surveillance and subject to daily inspection before release.
- PurCotton (全棉时代) publicly shared its entire sanitary pad production process through official channels, guaranteeing no human contact during manufacturing. It also launched a “self-service test report inquiry” function that allows consumers to scan barcodes or input codes to check product quality reports.
On the distribution side, Pang Dong Lai (a major Chinese retailer) publicly announced that all sanitary pad brands sold will be accompanied by test reports, which quickly went viral. Products were soon sold out due to high consumer demand.
Among new entrants:
- Vancl founder Chen Nian announced during a livestream that Vancl will launch its own sanitary pad products.
- Xiaomi retracted a previous statement that it would not enter the market and was found to have already registered trademarks in Class 5 (covering sanitary pads and liners) as early as 2020.
- Celebrity Huang Zitao’s announcement that he would enter the industry triggered over 300 million views and 500,000 interactions online.
Conclusion:
Sanitary pads are an essential daily product for nearly half of China’s population. When existing market products fail to meet basic consumer expectations, industry-wide restructuring is inevitable, whether gradual or radical. For existing companies, the question is how to survive long-term with a healthier cost structure and fairer pricing. For new players, the challenge is how to meet high consumer expectations while maintaining sound business operations.
Both brand owners and market regulators must seriously consider these questions going forward.
[Disclaimer]: The above content reflects analysis of publicly available information, expert insights, and BCC research. It does not constitute investment advice. BCC is not responsible for any losses resulting from reliance on the views expressed herein. Investors should exercise caution.