Baby and Child-Specific Products in Chile

PRE-COVID-19 PERFORMANCE

Declining birth rates impact demand in 2019

During the review period, birth rates in Chile continued to decline, which directly affected the performance of baby and child-specific products. Current value sales consequently stagnated at the end of the review period.

Organic products and dermocosmetics attract growing number in 2019

As the number of environmentally-conscious consumers increased during the review period, so did the number of new products with a sustainable and natural positioning in baby and child-specific products. A growing number of players offered natural and sustainable ingredients, with leading companies investing in new formulas while smaller players focused on this area increased their presence.

Local players see success with Durandin leading and Laboratorio Ballerina gaining share in 2019

Durandin continued to lead baby and child-specific products in 2019, with its brands Simond’s and Babyland enjoying strong consumer awareness and trust. Combined with their vast distribution reach and attractive price-to-quality ratio, this enabled the company to further extend its lead in the year.

2020 AND BEYOND

COVID-19 impact

Sales of baby and child-specific products are now expected to grow marginally in 2020 in 2019 constant value terms in light of the impact of COVID-19. This compares to an expected 1% decline forecast for 2020 during research conducted at the end of 2019 before the spread of COVID-19.

Affected products within baby and child-specific products

Baby wipes will see the strongest retail volume growth in 2020 as a result of the COVID-19 pandemic. Many consumers bought these as an alternative to all purpose cleaning wipes and general purpose wipes, partly due to the latter two products facing product shortages due to stockpiling in the early stages of the pandemic.

Recovery and opportunities

There is not expected to be a significant long-term impact on sales of most baby and child-specific products in the forecast period as a result of the COVID-19 pandemic, with the stagnation seen in the review period at constant 2019 prices likely to continue. There will be a strong retail volume growth for baby wipes but the impact of this on overall value sales will be limited as price competition intensifies in this area and consumers seek out the lowest-priced options.

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