Nappies/Diapers/Pants in Costa Rica

2021 DEVELOPMENTS

Heightened hygiene awareness and young parents’ use of e-commerce boost sales

The country reported its lowest birth rate of the last 20 years in 2020, with a further drop recorded in 2021. The health and economic effects of the Coronavirus (COVID-19) pandemic played a role in this development.

Promotions maintain interest among a price-sensitive consumer base

As many households had to tighten their budgets, they looked for more cost-efficient options in 2020, but also into 2021. This often saw a move out of the category entirely to washable cloth nappies, especially as many parents had more time to wash these products due to government restrictions on their movements.

High brand recognition and wide product ranges keep Huggies and Pampers ahead of the field

Kimberly-Clark Costa Rica’s Huggies continued to dominate retail value sales in 2021, followed by Procter & Gamble Interamericas de Costa Rica’s Pampers. Both brands benefited from high consumer recognition and a wide range of products.

PROSPECTS AND OPPORTUNITIES

Improving economic situation and heightened hygiene awareness predicted to push use of disposable products

The category is expected to see healthy retail volume and current value (constant 2021 prices) growth. Offsetting projected steady decreases in the birth rate and a declining 0-3-year-old population, more consumers are set to shift to disposable nappies/diapers/pants as consumer confidence is restored in line with an improving economic situation, including higher disposable incomes levels.

Private label expected to gain traction through expanding shelf space and wider product ranges

Emerging brands are expected to continue to be supported more actively in the forecast period. This includes private label options, as manufacturers and retailers try to widen pack sizes and price ranges to provide consumers with more options and help them to adjust their spending in line with family budgets.

Ecological versions set to add value to offers and stimulate sales

Meanwhile, small premium brands are set to gain sales via selected retailers, as players bid to add value and differentiate their lines and products from the competition. For example, the Mexico-based BioBaby brand, available from Automercado supermarkets, offers eco-friendly nappies/diapers and training pants, made with biodegradable materials.