Kudos Expands Eco-Friendly Diaper Line in Target Stores Amid Growing Demand
In August 2024, Kudos, a leading eco-friendly diaper brand, launched its products in 375 Target stores across the United States. Just months later, driven by surging demand for sustainable baby care products, the company announced plans to double its presence in Target locations by March 2025. To meet this growing need, Kudos is adding a second manufacturing line, ensuring it can keep up with the high-volume requirements of a major retailer.
“Meeting the demands of a retailer like Target requires precision and scalability,” said Amrita Saigal, founder of Kudos. “Timely delivery is crucial at this scale, and we’re committed to ensuring our products are where they need to be, when they need to be there.”
This expansion reflects a broader trend: parents are increasingly seeking natural and eco-friendly alternatives in baby care products. As consumers become more material-conscious, brands like Kudos are positioning themselves as cleaner, greener options in the competitive diaper market.
The Rise of Natural Diapering Options
The disposable diaper market has seen a wave of new entrants, all aiming to compete with traditional giants like Pampers and Huggies. Brands like Coterie, Millie Moon, and Pura advertise their products as free from dyes, fragrances, and chlorine, while others, such as Dyper and EcoPeaCo, use bamboo instead of plastic. Kudos, however, distinguishes itself with its innovative 100% cotton lining, ensuring no plastic touches a baby’s skin—a feature that resonates deeply with parents concerned about the materials in contact with their little ones.
“Parents are increasingly aware of the ingredients in baby products,” Saigal explained. “They’re demanding natural materials that are gentle on their baby’s skin, and that’s driving the growth of brands like ours.”
Market research supports this shift. A 2023 survey by What to Expect, which included around 1,500 parents, found that:
• 38% of moms are currently using eco-friendly or natural disposable diapers, compared to traditional disposable diapers.
• Compared to a 2017 survey, moms are 57% more likely to consider using eco-friendly diapers.
• Moms are also 75% more likely to consider natural or organic diapers when choosing diaper brands.
Safety is a top priority for parents when selecting baby products. “Safety means different things in different categories,” said Sarah Ryan, director of research at What to Expect. “For diapers, it often means avoiding harmful chemicals, like dyes, fragrances, or chlorine.” Kudos’s commitment to using natural materials aligns perfectly with these concerns.
However, cost remains a challenge. What to Expect found that 60% of families report diapers as a strain on their budget. Eco-friendly options tend to be more expensive: a Size 1 Kudos diaper costs about 37 cents, compared to 27 cents for a standard Huggies diaper. To manage these costs, many parents are adding diapers to baby registries to help cover the expense of premium, eco-friendly products.
Despite the higher price, Saigal noted that the natural diaper category is growing at twice the rate of the overall market. “This shows there is strong demand, and you’re going to continue to see that growth,” she said.
Meeting the Demand for Sustainable Baby Products
For Kudos, a brand that’s only four years old, this rapid expansion represents a significant milestone. Scaling production to meet the needs of a major retailer like Target involves overcoming numerous logistical and manufacturing challenges. However, the company’s commitment to sustainability and innovation has positioned it as a leader in the eco-friendly diaper market.
Saigal, a mechanical engineer and alum of Procter & Gamble, launched Kudos in 2021. Her inspiration came from her previous experience founding a sanitary pad company in India that used banana tree fiber. Her mission is clear: to reduce plastic in personal care products.
Disposable diapers are a major contributor to plastic waste. According to the World Economic Forum, approximately 300,000 diapers are discarded in landfills or incinerated every minute globally. While no disposable diaper on the market is fully biodegradable, Kudos minimizes plastic use, offering a more sustainable alternative.
“When people hear ‘eco-friendly diaper,’ they often assume it’s biodegradable, but that’s not the case,” Saigal explained. “It means using fewer added chemicals, which is absolutely a step in the right direction, but it’s not the whole story.”
Overcoming Supply Chain Challenges in Sustainable Manufacturing
As demand for Kudos diapers grew, the company had to rethink its supply chain. In 2023, Kudos sold about 20 million diapers and moved all manufacturing to the U.S. to better control costs and logistics. This shift not only reduced transportation expenses but also insulated the company from potential international trade issues, such as tariffs in places like China or Mexico.
“As we were launching into Target, we rethought our supply chain,” Saigal said. “Now it’s cheaper for us to manufacture in the U.S. because we’re saving on transportation costs.”
However, scaling a product with a unique formulation—like Kudos’s 100% cotton lining—presented its own set of challenges. Kudos uses U.S.-grown cotton, but there are limited suppliers capable of processing it into the specialized lining needed for diapers. Saigal described this as a “chicken or the egg” problem: larger companies haven’t invested in cotton-based diapers due to cost, which in turn limits the supply chain.
“Large corporations never demanded cotton because it’s too expensive,” Saigal said. “So suppliers think, ‘Okay, we don’t need to develop these at large scales because there’s no one to buy it.’”
Despite these challenges, Kudos is pioneering innovation in the diaper industry. By demanding cotton-based materials, the brand is encouraging the development of a more sustainable supply chain.
Innovating for a Greener Future in Baby Care
Over the past four years, advancements in material science—particularly in feminine care products—have helped reduce costs and improve the feasibility of cotton-based diapers. Saigal noted that material prices have come down, and technology has improved, partly due to innovations in related industries.
“Hopefully, as the supply chain develops, these costs can come down,” she said. “But it’s really up to us to push the boundaries of innovation on these supply chains.”
Kudos’s journey has been marked by significant milestones. After a successful appearance on “Shark Tank” in 2023, where the brand secured backing from Mark Cuban and Gwyneth Paltrow, Kudos raised $3 million in seed extension funding in the summer of 2024 to fuel its expansion. This brought its total fundraising to over $6.2 million.
Looking ahead, Saigal is optimistic that continued investment in sustainable supply chains will lead to more affordable eco-friendly diapers. “Our mission is to make sustainable parenting choices accessible to all families,” she concluded.
Benefits of Eco-Friendly Diapers
Eco-friendly diapers, like those offered by Kudos, provide several advantages for both babies and the environment:
• Reduced exposure to chemicals and dyes: Natural materials are gentler on sensitive baby skin.
• Lower environmental impact: Minimizing plastic use reduces the ecological footprint compared to traditional diapers.
• Alignment with parental values: Parents seeking sustainable options can feel confident in their choices.
Challenges in the Eco-Friendly Diaper Market
Despite the growing demand, brands like Kudos face several hurdles:
• Higher production costs: Natural materials and specialized manufacturing processes can be expensive.
• Limited supply chain for specialized materials: Sourcing cotton for diaper linings requires overcoming logistical challenges.
• Competition with established, lower-cost brands: Traditional diaper brands often have lower price points, making affordability a key concern.
With its innovative approach and commitment to sustainability, Kudos is not only meeting the growing demand for eco-friendly diapers but also paving the way for a greener future in baby care. As the brand expands its presence in Target stores, it continues to lead the charge in revolutionizing the diaper industry, one sustainable choice at a time.