Nappies/Diapers/Pants in Argentina

PRE-COVID-19 PERFORMANCE

Falling birth rate hits volumes

The birth rate fell steadily in Argentina during the review period, dropping below 17 per 1,000 of the population in 2019. This shrinking of the potential consumer base for nappies/diapers/pants inevitably had a negative impact on the category, leading to continued volume decline in the final year of the review period.

Changes in the distribution environment

Although unemployment did not rise dramatically in Argentina at the end of the review period, a significant number of people lost their jobs. Moreover, in the face of economic difficulties, many families looked to generate extra income to avoid making drastic cuts to expenditure.

Huggies and Procter & Gamble dominate, but rivals emerging

The Argentinean nappies/diapers/pants category saw a high level of concentration at the end of the review period. Multinationals, Kimberly-Clark and Procter & Gamble, are the clear leaders in the category, with their Huggies and Pampers brands, respectively.

2020 AND BEYOND

COVID-19 impact

While growth figures have been revised to take account of the impact of COVID-19, sales of nappies/diapers/pants in Argentina are expected to fall by 2% in 2019 constant value terms in 2020, approximately the same as the growth forecast in the 2020 edition of tissue and hygiene published in February 2020 (pre-COVID-19).

Affected products within nappies/diapers/pants

Most nappies/diapers/pants products are relatively unaffected by COVID-19, though some trading down is possible across categories. The only category expected to see some positive impact, mainly from an increased focus on health and wellbeing due to the pandemic, is disposable pants, which may see its emergence from a low base very slightly enhanced.

Recovery and opportunities

Even once COVID-19 is under control, nappies/diapers/pants will face challenging conditions due to the falling birth rate in Argentina, as well as the pandemic’s exacerbation of the country’s economic crisis. A more challenging economic environment is likely to lead to consumers trading down to less expensive products, being more frugal in their use of products, or turning to resources such as nappy/diaper banks.

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