Euromonitor NappiesDiapersPants - in - Latin - America (2019) PAÑALES TIPO PANTS
Euromonitor NappiesDiapersPants - in - Latin - America (2019) PAÑALES TIPO PANTS
August 2019
INTRODUCTION
REGIONAL OVERVIEW
LEADING COMPANIES AND BRANDS
FORECAST PROJECTIONS
COUNTRY SNAPSHOTS
INTRODUCTION
Scope
Disclaimer
Much of the information in this
briefing is of a statistical nature and,
while every attempt has been made
to ensure accuracy and reliability,
Euromonitor International cannot be
held responsible for omissions or
errors.
Figures in tables and analyses are
calculated from unrounded data and
may not sum. Analyses found in the
briefings may not totally reflect the
companies’ opinions, reader
discretion is advised.
Latin America is seeing
growth in sales of
nappies/diapers/pants, although
a number of markets are still
impacted by economic
headwinds and cautious
consumer sentiment and
spending. Per capita
consumption in the region is
still generally below that in more
developed markets, but levels of
consumption are reaching high
levels in key markets like Brazil
and Mexico, raising the risk of
commoditisation and putting
more focus on innovation in
both the premium and affordable
segments.
Key findings
Growth in the region, Latin America overall is seeing growth in sales of nappies/diapers/pants, albeit
despite challenges modest, due to macroeconomic and lifestyle challenges. Given already high per
capita consumption, category growth is likely to be negatively affected by the
decline in birth rates and women’s focus on professional development.
Disposable pants have Disposable pants are yet to gain a significant presence in Latin American
room to increase sales households. Brazil is the only market with a notable level of sales, as
manufacturers, including new entrants, have sought to offer affordable products.
Key companies tend to Procter & Gamble and Kimberly-Clark lead the region, and largely determine the
set the direction of competitive environment and pricing, with private label experiencing limited growth
innovation and price due to consumers’ preference for trusted brands. Regional players continue to be
dynamics active across price segments, and more affordable products are appearing even in
high-value categories like pants.
Per capita consumption While birth rates are decreasing across the region, consumers are expected to
is rising even while birth spend more on nappies/diapers/pants, due to improved economic conditions in
rates decline markets like Brazil, as well as still relatively low per capita consumption, leaving
room for organic growth. However, Brazil and Mexico are reaching levels of per
capita consumption similar to developed markets, leading to the risk of
commoditisation and calling for meaningful innovation to drive growth.
Opportunities for Expansion of e-tailers like Amazon, coupled with a push by supermarkets and
expansion by online hypermarkets to expand into online retail, and better consumer access to mobile
retailers technology, has started changing the retailing landscape in the region, particularly
in countries with infrastructure to support online sales, like Mexico.
▪ Disposable pants recorded overall positive growth in Latin America over the review period, with the most
significant growth occurring in Brazil. Promotional activities, product innovation across both the premium
and value segments, and strategic marketing of pants to a wider age range have contributed to this positive
growth.
▪ In Colombia – which has among the lowest per capita consumption of pants – the industry has been
making efforts to educate consumers and expand product offerings. In Colombia, parents tend to
accelerate the potty training stage to avoid buying a product that is still considered burdensome financially,
despite rising incomes. Additionally, it appears that the fault is not with the pant format itself, which is seen
as convenient and appreciated by parents, but with how pants were promoted as being just for older
children in the potty training stage. Pequeñín, the leading brand from Productos Familia Sancela, identified
the potential interest in the market and launched Pequeñín Baby Pants for the junior phase, or when babies
are becoming more active. The brand offers a new well-fitting design to prevent leaks, drips and slipping
down – key concerns of parents when using disposable pants. Innovation led to a stronger performance for
pants sales in the country in 2018.
▪ Consumer preferences for high-quality products in the region could help drive pants sales over the next few
years, but the increasing maturity of the nappies/diapers category, coupled with widening socioeconomic
gaps in key markets, could be a challenge for manufacturers of pants, which tend to be more expensive
than open diapers.
▪ The industry’s focus for future growth must be on expanding the target demographic, creating user-friendly
and leak-proof products that are easy to access, and justify the higher price points to increasingly
demanding consumers in the region.
▪ The success of Amazon Family in Mexico demonstrates the increasing strength of online retailers in the
region, a trend which is also seeing supermarkets and hypermarkets expanding their online presence. To
compete with non-grocery specialist stores and discounters, these distributors must offer competitive prices
and increased convenience, such as at-home delivery, to attract consumers. Shifting consumer preferences
towards products offering higher absorbency and softer materials than cheaper private label goods could
further decrease the share of traditional retailers, which historically have benefited from offering private
label alternatives to premium products, a shift which leaves room for growth in the e-commerce sector.
▪ Increasing urbanisation across the region may change the market landscape, with consumers experiencing
faster paced lifestyles that increase demand for nappies/diapers/pants for their convenience factor.
Consumers moving to urban areas gain access to retail channels such as supermarkets, providing an
alternative to higher priced local retailers.
▪ Targeted marketing of pants to a wider age bracket, and as an accessible premium product for the
increasing number of urban families, could help the disposable pants category continue to grow, either in
traditional retailers or via e-commerce. Due to the primacy of a few brands in the traditional retail channel,
internet retailing may allow smaller brands with innovative products to penetrate the market more
effectively.
▪ E-commerce allows consumers searching for alternative options to find them more easily, especially in the
case of disposable pants, where the brands focused on this product tend to be newer, more niche and still
finding their way into the mainstream market.
▪ Average disposable income is predicted to grow by 3% over the 2018-2023 forecast period, thus
consumers may be more willing to purchase premium or higher quality products, including from non-
traditional retail sources. However, increasing discussions around motherhood, contraception and women’s
rights are anticipated to further decrease birth rates, particularly in urban areas, leading to changing
demand for nappies/diapers/pants in those areas.
▪ Nappies/diapers/pants in Latin
America is a maturing category, and
the largest markets in the region –
Mexico, Brazil and Argentina –
continue to be dominated by large
companies.
▪ Kimberly-Clark and Procter &
Gamble have been able to maintain
their primacy in the region due to
their extensive coverage of Latin
American markets, allowing them to
exert influence and prevent the rise
of local competitors.
▪ In Colombia, Tecnoquímicas SA is
the most important local
pharmaceutical and consumer
health company, and dominates the
nappies/diapers/pants category. As
consumer demand for high-quality,
affordable products continues, the
opportunity for such companies to
capitalise on changing preferences
in key markets is growing.
Positive trajectory ahead for the region, but also risks to revenues
▪ Despite economic downturns in Brazil and Argentina during the review period, the top five Latin American
markets by value are expected to grow between 2018 and 2023, with Brazil and Mexico being the largest
contributors to incremental sales growth, at USD363 million and USD191 million, respectively. Economic
recovery in Brazil, albeit slower than anticipated, is likely to improve consumer sentiment and purchasing
power. However, it is worth noting that the market already has fairly high per capita consumption of
nappies/diapers and, as such, is at risk of gradual commoditisation. Innovation and the support of higher
value categories like pants can help drive revenues in the coming years.
▪ Higher prices and value-added innovation are likely to contribute to positive value growth in
nappies/diapers/pants in Mexico, although volume sales will see a more modest performance. Mexico still
offers the potential for organic growth. However, it is becoming progressively more challenging, as per
capita consumption is reaching high levels, while families are getting smaller.
▪ Argentina’s growth ahead is set to recover in volume terms, while value growth will come to some extent
from price inflation. Ecuador is also anticipated to experience positive growth over 2018-2023 in volume
terms, although value growth will continue to be affected by stronger demand for lower cost products. The
market does, however, have some room for more value-added products, such as pants. Brands like
Huggies from Kimberly-Clark Ecuador and Pequeñin from Productos Familia Sancela del Ecuador are
offering pant formats in different sizes, reinforcing sales with consumer communication regarding more
flexibility for the baby and giving parents an easier way to put on the pant. Nevertheless, these products are
still a small niche, mainly because they are the most premium priced.
▪ Cost-consciousness will continue to play a key role in the nappies/diapers/pants category in the region, due
to low average consumer disposable incomes, still weak consumer sentiment in some markets, and more
products entering the market with more affordable prices.
GDP, price and demographics among key factors across the region…
▪ Across the region, the proportion in the population of children aged 0-1 years continues to fall, putting
pressure on demand and the pace of growth, especially in markets where per capita consumption levels
are already fairly high, such as Brazil and Mexico.
▪ At the same time, fundamentals like GDP remain an important component of growth decomposition, aiding
positive growth in value. Additionally, value growth will benefit from the impact of value-added products and
price increases backed by innovation in markets like Mexico, Brazil, Peru and Argentina.
▪ In Brazil, Colombia and Argentina, soft drivers are expected to have a positive influence on future growth.
The increased availability and variety of products is a key soft driver of positive retail sales value. In Brazil –
the largest market in the region – product variety and lifestyle trends will be buoyed by increased consumer
spending, due to rising per capita GDP.
▪ In Chile, changes in lifestyle trends, falling prices and a 1% decline in the population of children aged 0-1
years over 2018-2023 will contribute to a real terms decline in sales of nappies/diapers/pants. A potential
boost to the faltering birth rate and demand for baby products might, however, come from recent
government actions. President Sebastian Piñera made an announcement in 2018 about a project that
seeks to reverse the fall in the country’s birth rate. The plan aims to generate savings from the moment a
baby is born. The savings have the objective to help parents pay for basic services, such as education and
health. With this strategy, the government seeks to encourage parents to have more children.
▪ The expansion of modern grocery retailing across many markets is expected to have a slight positive
impact on growth in Brazil, Chile, Colombia, Mexico and Peru, opening up opportunities for the industry to
work with retail partners on merchandising strategies.
Elayne Stecher
Contributing analyst
Experience more...
This research from Euromonitor International is part of a global Learn More
strategic intelligence system that offers a complete picture of the To find out more about
commercial environment. Also available from Euromonitor Euromonitor International's
International: complete range of business
intelligence on industries,
countries and consumers please
Global Briefings visit www.euromonitor.com or
Timely, relevant insight published every month on the state of the contact your local Euromonitor
market, emerging trends and pressing industry issues. International office:
Interactive Statistical Database Bangalore +91 (80) 67740500
Complete market analysis at a level of detail beyond any other source. Cape Town +27 21 524 3000
Market sizes, market shares, distribution channels and forecasts. Chicago +1 312 922 1115
Dubai +971 4 372 4363
Strategy Briefings
Dusseldorf +49 211 890 0944
Executive debate on the global trends changing the consumer markets
Hong Kong +852 3796 3604
of the future.
London +44 0 20 7251 8024
Global Company Profiles Santiago +56 22 915 7200
The competitive positioning and strategic direction of leading São Paulo +55 11 2970 2150
companies including uniquely sector-specific sales and share data. Seoul +82 2 6123 0209
Country Market Insight Reports Shanghai +86 21 6032 1088
The key drivers influencing the industry in each country; Singapore +65 6429 0590
comprehensive coverage of supply-side and demand trends and how Sydney +61 0 2 9581 9200
they shape future outlook. Tokyo +81 3 3436 2100
Vilnius +370 5 243 1577