Baby and Child-Specific Products in Guatemala

PRE-COVID-19 PERFORMANCE

Healthy growth for baby and child-specific products, but affluent consumers drive demand for less affordable options

While baby and child-specific products continued to record healthy current value growth in Guatemala in 2019, the rate of growth has been steadily slowing over the latter half of the review period. Products with a higher average unit price and are perceived to offer more specific properties attract a smaller more affluent urban consumer group.

Slowing demand for products with higher specific value in line with unstable economy

With an unstable political and economic climate in Guatemala in 2019, many consumers were seen trading down to more affordable baby and child-specific products or attempting to make products last for longer, leading to low volume growth for hair care, skin care and sun care. On the other hand, baby and child-specific toiletries continued to experience strengthening demand, offering a range of soaps and bath products created specifically for a baby’s sensitive skin.

Johnson's Baby retains convincing leadership in 2019, but Avon Kids gains strong value share

Baby and child-specific products continued to be led convincingly by multinational player Johnson & Johnson in 2019, benefiting from strong brand loyalty for Johnson's Baby and a large portfolio of products that is popular amongst all income segments. The company has increased the number of products that offer specific value for more affluent consumers such as offering a complete line of lavender-infused products that promote good sleep and rest for babies.

2020 AND BEYOND

COVID-19 impact

Value sales of baby and child-specific products are now expected to grow by 1% in 2020 at constant 2019 prices in light of the impact of COVID-19. This compares to an expected 3% rise 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

Despite marginally slower volume growth compared to 2019, baby wipes is set to record the strongest demand within baby and child-specific products in 2020, benefiting from the home seclusion trend. Parents are remaining at home with their young children with nurseries closed, resulting in regular changing of nappies, while some households also use these wipes for general cleaning around the home due to their easy accessibility and affordable price points.

Recovery and opportunities

Normalisation in terms of purchasing behaviour is set to return for baby and child-specific products from 2021 onwards, with value growth at constant 2019 prices strengthening towards the end of the forecast period. While demand will gradually improve for most areas of the category, baby wipes is predicted to record the strongest volume and value growth rates (at constant 2019 prices) over the forecast period, outperforming the review period.

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