Bath and Shower in Peru

PROSPECTS

Decrease in volume caused by economic stagnation

Since bar soap is the largest subcategory, any variation directly affects overall bath and shower volume and value. In 2018, there was a fall in volume for bar soap and this is mainly due to the fact that consumers have seen their purchasing power decline or must use the same amount of money to purchase the basic basket of goods whose prices have risen.

Liquid soap and body wash keep penetrating

Since 2015, liquid soap has shown the largest growth because consumers realise that it is more hygienic than traditional bar soap, while manufacturers have worked to offer products with lower unit prices in order to make them accessible to a larger portion of the population. One example is the brand Aval from Intradevco Industrial that has 400ml bottles which can be half the price of other brands, as well as Boreal, a private label from Supermercados Peruanos, that sells 500ml bottles.

Consumers are not sophisticated

Consumers like natural ingredients but do not look for products that have 100% of their components natural; they are satisfied with products that incorporate only one natural ingredient, which is usually widely advertised by the manufacturer, such as Protex with oat, Dove with coconut milk, Spa with fruits or natural flowers or Nivea with milk protein. The industry is mainly focused on promoting sensorial aspects of the products such as aroma or softness because consumers do not show interest in organic products, or added-value benefits, such as firming, anti-stress, anti-ageing which are still underdeveloped.

COMPETITIVE LANDSCAPE

Manufacturers have not introduced major innovations

Over the past two years, there have not been any important launches and manufacturers continue to focus on promoting basic benefits, such as germ protection and fragrance. The only change seen every year is the introduction of new aromas or ingredients such as pomegranate or coconut but there are no innovations in product properties or major benefits.

Traditional retailers lead distribution

Since bar soap is a basic consumer product, it is sold in the same places as groceries such as small independent grocery stores and market stalls, but it is also found in traditional pharmacies. However, in the last decade, the penetration of the modern channel has increased due to the expansion of supermarkets and hypermarkets, but mainly of pharmacy chains.

Presence of private label limited

Given the strength of several brands in this category, mainly manufactured by multinational companies, the presence of private label remains small. Modern retailers tend to focus on categories that have less appeal to branded players.

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