Deodorants in Argentina

2021 DEVELOPMENTS

Consumers continue to keep deodorant usage low to save money

Home seclusion negatively affected demand for deodorants during the pandemic, with the overall category registering a negative volume growth in 2020 and only a marginal recovery in 2021. Remote work and restrictions on social events that kept consumers at home meant that deodorants were used less frequently (as consumers did not need to worry about their personal odour).

Perceived to be less economical, deodorant sprays increasingly give way to creams and roll-ons

Although deodorant sprays remained the largest category in deodorants in 2021, consumers are increasingly replacing deodorant sprays with rival formats such as creams and roll-ons. Although deodorant spray products are not necessarily more expensive than creams and roll-ons, the latter alternatives are perceived to offer greater durability and are therefore seen to be more economical.

Cannon Puntana endures reduced visibility in supermarkets and hypermarkets for much of the pandemic to avoid lower profitability

Cannon Puntana, the third largest company in deodorants, redefined its sales strategy, as it was unwilling to allow its products to be sold via the national Precios Maximos programme. This government initiative was launched to prevent significant price increases of essential products in supermarkets and hypermarkets and in March 2020 deodorants was added to this list.

PROSPECTS AND OPPORTUNITIES

Ongoing economic difficulties will continue to undermine demand for deodorants

Ongoing economic difficulties, exacerbated by efforts to curb the spread of COVID-19, are set to continue to undermine demand for deodorants throughout much of the forecast period. As such, the recovery of deodorants will continue to be slow with a full recovery to pre-pandemic volume levels not expected until 2024.

Despite shifting marketing messaging, leader Unilever may lose share to direct selling companies and smaller players

Unilever is expected to continue leading deodorants sales in Argentina in the coming years, despite the continued erosion of its value share. This is true even with its 2021 Rexona brand marketing campaign.

Heightened hygiene-consciousness will sustain demand for deodorants with antibacterial claims

Deodorants with antibacterial properties were the primary beneficiaries of growing demand for hygiene-orientated products during the pandemic and will continue to perform well over the forecast period as consumers continue to pay more attention to such claims. Antibacterial brands such as Unilever’s Rexona saw their value shares increase considerably during the last couple of years in contrast to brands that are more associated with skin care, such as Unilever’s Dove.