Dishwashing in Argentina

PROSPECTS

Automatic dishwashing set to remain a niche category despite positive outlook

Automatic dishwashing has long been a niche category in Argentina. Despite having increased steadily in recent years, the household possession rate for dishwashers is still very low, with ownership of these appliances – and by extension demand for automatic dishwashing products – mainly confined to a small base of middle- and high-income consumers.

Worsening economic conditions encourage trading down in hand dishwashing

Despite high inflation and economic recession, hand dishwashing showed a slightly improved performance in volume growth terms in 2019. The category continued to benefit from the fact that together with laundry detergents, hand dishwashing products are among a handful of home care items considered necessities by most Argentinians.

Sustainability concerns likely to become more influential in dishwashing

While automatic dishwashing will remain a niche category in Argentina over the forecast period, its appeal should be broadened by growing concern about environmental issues among local consumers. This is because on average, dishwashers use around 50% less water per cycle than it takes to wash a full load of dishes by hand.

COMPETITIVE LANDSCAPE

Unilever and Procter & Gamble continue to lead but lose ground to smaller players

Unilever maintained a sizeable lead in dishwashing in 2019 thanks to the combined strength of its Ala, Cif and Sun brands. Procter & Gamble placed second, mainly due to the success of its Magistral brand.

Reckitt Benckiser and Unilever remain clear leaders in automatic dishwashing

The duopoly of Reckitt Benckiser and Unilever in automatic dishwashing persisted in 2019, with these two players dominating the category and Procter & Gamble finishing a very distant third. The top two companies both registered value share gains, partly due to high inflation but also because their early mover advantages, reputable brands and wide distribution networks ensured they were better placed to weather the deterioration in economic conditions than smaller competitors.

Cif becomes first dishwashing brand sold in 100% recyclable bottles in Argentina

In mid-2019, Cif became the first hand dishwashing brand in Argentina to be sold in 100% recyclable PET bottles. The switch to fully recyclable packaging for Cif is part of Unilever’s Sustainable Living Plan, a global initiative aimed at reducing the company’s environmental footprint.

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