Baby and Child-Specific Products in Costa Rica

PROSPECTS

Additional levels of segmentation and specialisation set the pace in 2017

Different degrees of moisturisation and claims regarding hypoallergenic and natural ingredients continued to increase in relevance within baby care in Costa Rica during 2017. Higher-quality formulations in hand with imported and differentiated economy products, such as the European brands Babe and Mustela, continued to gain shelf presence at both healthcare specialists and modern grocery outlets across the country.

Claims regarding natural ingredients promise more positive experiences

A broader base of players continued to develop differentiated value products, often based on their ability to leverage on specific formulations containing natural ingredients. These included aromatherapy fragrances (associated with their natural calming effects) and their functional benefits included moisturising properties and hypoallergenic features.

New added-value developments anticipated to feature more within online promotional strategies over the forecast period

As local consumers become more informed and gain additional expertise regarding online selling platforms (while increasing their interaction with social media content), the importance of developing relevant digital platforms will continue to increase within baby and child-specific products over the forecast period, requiring major players to provide relevant information regarding the main features of their brands and their advantages in comparison to alternatives. Besides the need to develop strategic information with regard to product formulations and specifications, this situation is expected to make room for the use of popular local celebrities (including both experienced and new mothers) capable of influencing other consumers.

COMPETITIVE LANDSCAPE

Major traditional international players continue to dominate sales

Johnson & Johnson de Costa Rica and Colgate-Palmolive continued to lead baby and child-specific products in Costa Rica in 2017, as they continued to take advantage of consolidated brand awareness amongst different generations of local consumers. Economies of scale are associated with their manufacturing and distribution, and they are capable of reaching a wide range of retailing formats across the country (including healthcare specialists as well as modern and traditional grocers).

New products continue gaining momentum by targeting mid- and higher-income consumers

A broader base of emerging brands capable of providing differentiated benefits (based on a combination of brand image and higher-end formulations) continued gaining momentum amongst local mid- and higher-income consumers. Such brands leveraged on higher performance standards that most local parents tend to expect from these products.

Digital sales are expected to gain ground over the forecast period

In spite of the incipient nature of online retailing in Costa Rica as of 2017, millennials who are set to become parents over the forecast period are expected to play an increasing role within overall sales of baby care products in Costa Rica, thus becoming more interested in making more-convenient and informed purchasing decisions. In this context and due to the rising penetration of smartphones and personal computers, a larger base of mid- and high-income consumers is expected to begin searching for the most suitable products for their babies online.

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