Baby and Child-Specific Products in Guatemala

PROSPECTS

Population growth drives sales

Population growth is the main driver of sales in baby and child-specific products in Guatemala. Consumers of all incomes usually make the effort to bathe and care for their babies with the best products that they can afford, and baby-specific products are even found in small “tienditas” that cater to the lowest economic groups.

Brand extensions increase the competition

In recent years, several new brands entered baby and child-specific products, increasing the competition and the number of choices that consumers have. Some examples are Dove Baby (Unilever), Fisher Price (Coprodisa) and Nivea Baby, which re-entered the category in 2018.

Growth rates slow in 2018

Even though consumers make efforts to buy the best products for their babies and children, when economic troubles arise, they are forced to switch to more affordable brands, or try to use less product in order to make it last longer. 2018 was considered a hard year in the Guatemalan economy, and this is the main reason why baby and child-specific products registered a lower current value growth rate than was seen in 2017.

COMPETITIVE LANDSCAPE

Johnson & Johnson Guatemala leads baby and child-specific products

Johnson & Johnson Guatemala continued to lead baby and child specific products in value terms in 2018, thanks to strong brand loyalty and a large portfolio of products that is popular amongst all income segments in the market. The company has increased the number of products and value-added benefits available for consumers with higher disposable incomes, such as offering a complete line of lavender-infused products that promote good sleep and rest for babies.

New brands are constantly seen in the market

There are constant launches of new brands which offer baby and child-specific products in the market. Such is the case of the Burt’s Bees Baby brand, which is now being sold in department store Almacenes Siman, and Mustela Baby, which is seen in drugstores/parapharmacies.

A private label line enters baby and child-specific products

In 2018, Wal-Mart Centroamérica introduced its private label line Parent’s Choice in baby and child-specific products, with a line of personal care products that includes shampoo, body wash and moisturiser which are specially for night-time and have a calming effect on babies. Parent’s Choice was already present with nappies/diapers in Guatemala, and this brand extension gives consumers a wider selection of products and prices from which to choose.

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