October 12, 2025

Unicharm to Launch African Sanitary Products Subsidiary with Toyota Tsusho

Unicharm is shifting from an export-based model to a fully localized operation in Africa, taking on responsibility for product development, manufacturing, and marketing. The move marks a strategic pivot away from its struggling China business as the company seeks new sources of growth and profitability on the African continent.

The new subsidiary will be established in Nairobi, Kenya, by December 2025, with Unicharm holding a 75 percent stake and Toyota Tsusho the remaining 25 percent. The company will have an initial capital of 2 billion Kenyan shillings, equivalent to about 2.2 billion yen, and is expected to become a consolidated subsidiary of Unicharm from the fiscal year ending December 2026.

Unicharm first entered the African market in 2023, exporting sanitary products for affluent consumers from its factory in Egypt to Kenya and neighboring countries. In 2025, it began limited-scale contract manufacturing in Kenya, but its market presence has remained limited.

A Strategic Shift Toward Full Localization

With the establishment of a local subsidiary, Unicharm plans to localize its entire value chain, from product planning and development to production, sales, and marketing. The company will also recruit and train local staff and is considering building its own manufacturing plant in the future. By 2030, Unicharm aims to expand annual sales in Kenya to between 2 billion and 3 billion Kenyan shillings, nearly 20 times its current level.

The competitive environment, however, remains challenging. According to the UK-based research firm Euromonitor, Unicharm holds only a 2 percent share of the sanitary products market in the Middle East and Africa. In comparison, Procter & Gamble commands a 24 percent share, while Kimberly-Clark holds 6 percent.

Unlike Western rivals that mainly target high-income consumers, Unicharm is positioning itself toward the region’s growing middle class. The company plans to introduce affordable, long-lasting products, cut prices by about 30 percent, and offer smaller pack sizes to improve accessibility and regain market momentum in the region.