Cotton Wool/Buds/Pads in Venezuela

TRENDS

According to the National Institute of Statistics, imports of cotton dropped by 10% in value terms in 2014 compared with 2013, due to the lack of foreign currency and restrictions on importers obtaining US dollars. Furthermore, despite the Venezuelan government’s plans in 2012 to push up production with the support of technology transfers, provided through agreements with Argentina, Brazil, China and Syria for small- and medium-sized producers, including Guárico, Barinas and Portuguesa Cojedes, it did not achieve the goal, and in 2014 production continued to decline. According to estimated data from trade associations such as Fedeagro, national production does not cover even 5% of the market need. According to trade press, current production is around 5,000 hectares, combining the efforts of the public and private sectors.

COMPETITIVE LANDSCAPE

The leading player in cotton wool/buds/pads in 2014, with a retail value share of 49%, continued to be Johnson & Johnson de Venezuela. The company offers the leading brand Cotonetes, which sells a range of high-quality products at affordable prices. Many consumers are loyal to the brand, which has a long-standing presence in the country. The second-ranked player in 2014 was Algodones Venezolanos (thanks to its ALVE brand), with a 20% share of retail value sales. This national company is present in cotton wool and cotton pads. The brand Q-Tips from Unilever Andina de Venezuela reached a 12% share of value sales. In 2014 other brands increased their shares, such as well-known children’s products Melody and Chicco.

PROSPECTS

It is expected that cotton wool/buds/pads will increase by a value CAGR of 1% at constant 2014 prices, recording stable demand over the forecast period, as it is a priority product for many Venezuelan consumers. However, the maturity of cotton wool/buds/pads means that new brands or products are not anticipated.

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