Dishwashing in Brazil

2021 DEVELOPMENTS

Fewer consumers isolating at home slows demand for dishwashing

Dishwashing is set to record a notable slowdown in value and volume growth noted in comparison to 2020’s inflated demand due to the pandemic and home seclusion. However, overall demand remains high, while current value sales continue to record double-digit growth due to a further rise in the average unit price.

High exchange rates and input prices highlight inflation

As previously noted in 2020, the cost of raw materials has continued to rise in 2021 due to the surge in global demand for basic household products, particularly those relating to cleaning and hygiene, which has resulted in pressure and general instability within the production chain. Moreover, dishwashers, and therefore demand for the smaller category of automatic dishwashing, has also been influenced by the macroeconomic scenario, namely the overvaluation of the US dollar against the Brazilian currency Real.

Disinfecting claims within hand dishwashing

Within overall home care, disinfecting claims on packaging, promotional materials and advertisements have become increasingly relevant as a product feature, and thus, as a brand strategy. This framework is due to the pandemic, whereby consumers’ awareness of the quality of products relating to efficacy in terms of cleaning and hygiene has grown.

PROSPECTS AND OPPORTUNITIES

Marketing campaigns focus on new consumers

Dishwashing is becoming increasingly competitive in Brazil, while targeting new consumers. Companies have created cross-industry marketing campaigns to expand the target audience with appealing sales strategies.

Product launches promote sustainability and higher quality

In 2021, new launches have been placing a greater focus on sustainability and on improving the product's specific value, in addition to consumers’ perceptions. Flora Produtos de Higiene e Limpeza Ltda has expanded the product portfolio of hand dishwashing brand Minuano.

High inflation as a driver for alternative distribution channels

In terms of channel distribution, e-commerce continues to register high value growth in 2021, although it still represents a low share in overall dishwashing. Nevertheless, the impact of increasing inflation on prices across home care is encouraging consumers to search for aggressive promotions and discounts to reduce expenditure, which is an important market driver.