Nappies/Diapers/Pants in Costa Rica

PROSPECTS

Affordability and segmentation set the pace in 2018

Besides the prevalent price-based competition seen amongst the leading players since 2015, products offering different types of growing stages and mobility claims (which make use of words such as “cruisers” and “movers”), along with the promotion of hypoallergenic and products with natural, such as Bio Baby and Huggies Natural Care, increased in relevance in nappies/diapers/pants in 2018. New performance products tend to focus on more mature babies and toddlers (particularly for pants), who are seen as the key development opportunities in order to extend the use occasions for these products.

Brands aim to provide a complete range

There is a growing trend towards providing complete baby care solutions for babies, with parents being willing to engage with particular brands if they are capable of addressing their main performance expectations at affordable unit prices, which often include complementary lines of baby care products, such as toiletries and rash treatments, and baby wipes, along with their core nappies/diapers products. This helps to increase brand awareness in the context of rising levels of competition.

Added-value developments expected to focus on internet-based campaigns

As younger millennial consumers become more informed and gain additional expertise though online shopping sites, while increasing their use of social media platforms, the importance of developing brand sites specific for the Central American region will continue to grow over the forecast period, requiring major players to provide relevant information about the main performance features of their brands and their advantages in comparison to other products. If manufacturers offer relevant content in regard to product specifications and their respective use occasions and performance claims, this will provide promotional opportunities based on local influencers’ endorsements, focusing on young parents providing reliable testimonials about new added-value products and more specialised brand extensions, focusing on demand from middle- and high-income households.

COMPETITIVE LANDSCAPE

Established international manufacturers continue to dominate sales

Kimberly Clark Costa Rica SA and Procter & Gamble Interamericas Costa Rica remained ahead in volume and value sales in nappies/diapers/pants in Costa Rica in 2018. They continued to benefit from strong brands that have developed a tradition of use amongst generations of local consumers.

New brands emerging

A number of emerging brands, such as Bio Baby (Automercado) and Parents’ Choice (Walmart) are capitalising on providing differentiated value products, some with higher end natural formulations, allowing them to continue gaining momentum amongst local middle- and high-income consumers, leveraging the higher performance standards, that most millennial parents tend to expect from these products offer. High-end imported brands capable of meeting such expectations continue to develop by targeting more educated parents, who tend to opt for higher value alternatives if they can afford them, as they believe that they will be safer and capable of providing additional functional advantages for their children.

Affordable added-value products anticipated to appeal millennial consumers over the forecast period

It is anticipated that added-value products, such as those using natural ingredients and higher quality fabrics, will continue to develop additional sales momentum during the forecast period, leveraging their rising quality, performance and environmentally friendly characteristics amongst more educated millennial consumers. In this context, it is anticipated that smaller local and imported brands will promote higher quality options based on the use of essential oils, such as lavender and camomile, and more absorbent and gentle fabrics, allowing them to consolidate their respective market niches amongst higher income local families.

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