Baby and Child-Specific Products in Argentina

PRE-COVID-19 PERFORMANCE

Economic problems undermine demand despite parents’ reluctance to skimp on products for their children

Benefiting from the essential status of several products and the fact that budget-conscious parents prioritised products for their children, baby and child-specific products was protected from the negative impact of Argentina’s challenging economic conditions to some extent towards the end of the review period. Nonetheless, such was the decline in consumer purchasing power that demand was adversely affected in 2019, with parents using products less frequently, opting for less expensive alternatives or turning to products that could be used by the whole family.

Drugstores/parapharmacies and chemists/pharmacies drive growth through aggressive pricing strategies

The aggressive discounting and promotional strategies of major drugstores/parapharmacies and chemists/pharmacies chains, such as Farmacity and Open Farma, led these channels to register a strong performance in 2019. Drugstores/parapharmacies and chemists/pharmacies also benefited from the fact that they offered a wider variety of baby and child brands than channels such as supermarkets and hypermarkets, with a particularly strong offer of premium brands and more expensive brands in the mass segment.

Johnson & Johnson sees continued share erosion in 2019

Johnson & Johnson de Argentina retained the lead in baby and child-specific products in 2019 despite experiencing the continued decline of its value share. The market-leader saw the consistent erosion of its share in the latter part of the review period as price-conscious consumers migrated to less expensive products.

2020 AND BEYOND

COVID-19 impact

Sales of baby and child-specific products are now expected to fall by 3% in 2020 in 2019 constant value terms in light of the impact of COVID-19. This compares to a 5% fall forecast for 2020 during research conducted at the end of 2019 before the spread of the disease.

Affected products within baby and child-specific products

Rising consumer hygiene-consciousness as a result of COVID-19 is helping to support sales of baby wipes, as consumers use them for a wide range of cleaning and sanitising purposes. In a highly price-sensitive environment, baby wipes is benefiting from greater affordability than alternatives such as home care wipes.

Recovery and opportunities

Measures to limit the spread of COVID-19 are set to exacerbate already extremely difficult economic conditions in Argentina. This will have a negative impact on demand across baby and child-specific products over the forecast period.

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