Home Care in Guatemala

Positive performance in 2018

The home care market continued to see positive performance in 2018 with growth being driven by several factors, such as population growth, urbanisation and expansion of the consumer base. The increased appearance of economy brands and small inexpensive packaging has allowed consumers at the lower end of the market to begin using home care products such as in-wash spot and stain removers that used to be unaffordable to them.

Promotions commonly seen in home care

Leading brands participating in the home care market tend to be active with marketing and promotional campaigns in order to drive sales. One of the most common promotions within home care products that is also popular with customers is to obtain free products or “atados” as they are known in Guatemala.

Modern channel retailers register stronger growth rates

Guatemala is a country with a large consumer base at the lower economic end of the market. By tradition, these consumers tend to do their household shopping through independent small grocers that offer them several advantages such as: 1) location, with over 110,000 stores estimated to exist countrywide, these stores are accessible by walking to the majority of consumers; 2) Pack sizes, these stores usually have smaller pack sizes such as 100ml liquid pouches, that are more affordable by the unit, even if they are more expensive than larger pack sizes; and 3) Credit, these stores usually offer “fiado”, in-store credit, based on trust, as consumers do not have to apply for store credit and are not charged any interest.

Economy brands and private label continue to grow

Growth of economy and private label brands continues to be strong in Guatemala, mainly because consumers are price sensitive and are willing to switch between brands in order to save money. At the end of 2017, Wal-Mart Centroamerica began introducing its Great Value private label brand, which is competing with leading domestic and imported brands.

Positive performance expected to continue

Home care is expected to see positive growth in all categories; some will post faster growth and others will slow down after recording strong growth rates towards the end of the review period. Mature categories such as bleach, are expected to stabilise after the strong price decline seen in the last two years, and will begin to show mature growth rates, mainly driven by population growth.

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