Nappies/Diapers/Pants in Dominican Republic

2021 DEVELOPMENTS

Volumes pick up as lockdown eases, but income issues slow recovery

Sales of nappies/diapers/pants were barely affected by the pandemic in 2020; these are products that consumers cannot do without. However, restrictions on store entry and a nationwide curfew meant that consumer access to these products, especially emergency purchases, was limited and as a result growth in volume terms slowed to zero in 2020.

Leaders lean on best distribution agreements and brand loyalty

The competitive environment for nappies/diapers/pants in the Dominican Republic is highly concentrated; Kimberly-Clark Republica Dominicana, Familia Sancela del Pacífico Ltda and Distribuidora Corripio CxA generated around four-fifths of total value sales in 2021, based on their respective Huggies, Pequeñín and Pampers brands. The strength of these players rests on highly preferential distribution agreements with the country’s leading modern grocery chains, as well as he wholesalers that are used by the colmados, the very small local grocery outlets that dominate grocery retail, have a limited selection of products and are frequently operated by a single person.

Return of product launches as category stabilises

Prior to the pandemic, the category had seen some innovation in early 2020, including Pequeñín Extraprotección from Familia Sancela del Pacífico, which claims to have improved absorbency with gel in the core, as well as making the nappy/diaper lighter, thinner and more flexible. However, as COVID-19 spread through the country, most companies put product development and launches on the back burner, with maintaining consistent supply and securing access to these products for vulnerable families who were unable to purchase products the priority.

PROSPECTS AND OPPORTUNITIES

Retail evolution offers opportunities for nappies/diapers/pants over the forecast period

The product landscape is set to shift over the forecast period, as modern grocery retailers continue to invest in new store openings and consumers start to shop in the channel. Historically, small local traditional grocery retailers have dominated the category, but these outlets have an extremely limited amount of space and therefore a narrow range of products.

Post-pandemic birth sage offers room for growth

The key opportunity for these products over the forecast period will be the country’s demographic changes. The government anticipates a surge in birth rates in the aftermath of the pandemic, a trend that is set to be confirmed by the forthcoming 2022 census.

Price sensitivity still strong, but emerging consumer trends offer scope for innovation, pricing

Although the category is set to see solid growth over the forecast period, as consumers trade up to the wider range of products that seem set to characterise the country’s retail environment, consumer price sensitivity will endure over the forecast period. Although the Dominican Republic appears to be making a better-than-expected recovery from the impact of the pandemic on the economy, unemployment remains high, and many lower income households that depend on informal work continue to suffer.