Dishwashing in Costa Rica

PROSPECTS

As penetration of automatic dishwashers slowly improves, automatic dishwashing powders sees the highest growth in 2019

In 2019, value growth of dishwashing remained solid, with the category posting the same rate of growth that was seen in the previous year. While hand dishwashing continued to dominate sales due to low penetration of automatic dishwashers in the country, the penetration nevertheless continued to improve, and, indeed, it was automatic dishwashing powders that saw the highest growth over the year.

Demand for dishwashing environmentally friendly products and products with added benefits results in brand extensions with added value

While traditional demand for affordable and effective grease-cutting dishwashing formulations continues unabated, a growing number of middle- and high-income consumers are showing interest in products that offer specific benefits. Not only is there higher demand for liquid hand dishwashing capable of providing such additional benefits as hand care formulations (containing natural/functional ingredients such as oats, aloe and vitamin E), but also for environmentally friendly alternatives.

Larger packaging presentations and value packs of liquid and paste hand dishwashing will likely be on the horizon to satisfy diverse needs

Given the additional levels of availability and the developing self-care and environmental protection trends, dishwashing pastes, creams and bars are expected to continue losing relevance in Costa Rica over the forecast period in comparison to more concentrated liquid formats. However, more traditional and affordable solid dishwashing formats will undoubtedly be offered alongside concentrated and functional liquid alternatives, as many families use both types of products in their homes, depending on usage occasions (such as when hiring a housemaid or when washing the dishes on their own) and the types of dishes to be washed (such as highly greasy pots versus glasses/cups).

COMPETITIVE LANDSCAPE

Colgate-Palmolive and Irex maintain the leading positions despite rising penetration of low-priced private label products

Colgate-Palmolive Costa Rica with the regional Axion brand maintained its strong lead in dishwashing in 2019, followed by the domestic player Irex Costa Rica with IREX. Irex holds a substantial value share but it is nevertheless at some distance behind that of the leading player.

Brand loyalty continues to as private label and other domestic and imported products attract consumers with functional/performance claims and regular POS promotions

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

Multifunctional products that are environmentally friendly show greater promise

Multifunctional dishwashing products, such as hand dishwashing liquid with skin care benefits, are expected to grow. Environmental friendliness overlaps with many multifunctional products in this space.

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