China's embrace of a two-child policy in 2015 has apparently started to bear fruit, leading consumer goods maker Kimberly-Clark ready to focus on boosting sales of diapers, or nappies as they are known outside of the U.S., using its Huggies brand as the flagship.
China abandoned a one-child policy in October of 2015 as a rapidly aging population threatens to skew the workforce and lead to a surge in retirees who will need care. The move was largely expected and some analysts said possibly too late to reverse the demographic trend rapidly, but in a billion-plus population, the numbers of babies that can be made is still staggering, a company executive said.
"We've got countries like China where you've got 16 million babies on average … Because of the loosening of the one-child policy, the number of babies went up to about 17.8 million. That's a pretty big jump of about 10 percent," Achal Agarwal, president of Kimberly-Clark Asia Pacific, tells CNBC's "Managing Asia."
"So as long as there are babies … it's going to be great. And this part of the world, certainly. It's where the babies are being born. So we go where babies are," he says.