Dishwashing in Costa Rica

PROSPECTS

Additional functional benefits continue to boost dishwashing in 2018

Despite the traditional demand for affordable and effective grease-cutting dishwashing formulations, a broader base of local mid- and high-income consumers continued to gain an interest in specific products. This was particularly the case for liquid hand dishwashing capable of providing additional performance claims such as hand care formulations (based on natural/functional ingredients such as oats, aloe and vitamin E), as well as environmentally-friendly alternatives.

Innovative liquid formats to gain additional momentum

Although continuing to account for a significant proportion of hand dishwashing sales over the forecast period, dishwashing pastes, creams and bars are expected to continue losing relevance in comparison to more concentrated liquid formats, based on additional levels of availability and the developing self-care and environmental protection trends. However, more traditional and affordable solid dishwashing formats are anticipated to continue to be offered alongside concentrated and functional liquid alternatives, with many families using both types of products in their homes, depending on usage occasions (such as when hiring a house maid or when washing the dishes on their own) and the types of dishes to be washed (such as high grease pots versus glasses/cups).

COMPETITIVE LANDSCAPE

Traditional players continue to lead dishwashing

Despite the rising penetration of low-priced private label products across most Walmart retailers, recognisable brands such as the regional Axion (Colgate-Palmolive) and the domestic IREX remained ahead in value sales during 2018, maintaining a clear competitive advantage based on their consolidated logistics networks, which are capable of guaranteeing brand availability across a vast number of traditional and modern grocery retailers in the country, where they are capable of providing good levels of segmentation and competitive unit prices.

Consumers search for greater value savings

New economy products such as Wal-Mart’s private label lines and other imported and domestic products such as Salvo (Procter & Gamble) in addition to local brand Florex, continued to gained sales momentum based on point of sale promotional activities and multiple types of functional/performance claims, which include personal and environmental benefits. Therefore, brand loyalty continued to fade, particularly as local consumers’ economic confidence continued to drop, where families (especially women) continued to develop an additional interest in searching for regular promotions and discounts.

New specific alternatives to continue gaining penetration

As a broader base of low- and mid-income consumers becomes better informed about specific dishwashing products in terms of their functional benefits (including skin and environmental care claims) in addition to their disinfecting and grease-fighting properties, the demand for more efficient and concentrated proposals will be reflected in the further migration from more generic paste and creams towards liquid and gel presentations. In this context, affordable but specific functional alternatives such as Wal-Mart’s private label Great Value, are expected to continue gaining sales momentum across all Walmart retailing formats (ranging from discounters to hypermarkets), where privileged point of sale availability and aggressive unit prices will capitalise on local consumers’ evolving preferences.

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