Nappies/Diapers/Pants in Guatemala

2021 DEVELOPMENTS

Nappies/diapers/pants remains reasonably resilient to economic fallout of COVID-19

Nappies/diapers/pants in Guatemala has been comparatively well insulated from the negative economic impact of COVID-19, as these products are essential for families with infants and toddlers, and parents inevitably prioritise spending on the needs of their children when household budgets are squeezed. Together with the fact that birth and fertility rates in the country are still relatively high despite having fallen steadily in recent years, this ensured overall demand remained buoyant in 2021, with total volume and current value growth rates improving slightly from 2020.

New born and junior nappies/diapers most exposed as birth rate decline deepens

While birth rates in Guatemala have been falling for several years, the pace of decline has accelerated during the pandemic. According to RENAP (The National Registry of Persons), in 2020 a total of 335,000 births were registered in the country.

Leading brands Huggies and Pampers increase price-based promotions

Huggies from Kimberly-Clark remained the leading brand in nappies/diapers/pants in value sales terms by a wide margin in 2021, with Procter & Gamble’s Pampers finishing second. These two brands are renowned for offering high quality standards and superior protection, and benefit from strong recognition among Guatemalans.

PROSPECTS AND OPPORTUNITIES

Demographic trends and innovation will help to sustain robust demand

Nappies/diapers/pants looks set to perform well throughout the forecast period, with total volume and current value sales projected to grow steadily from 2022 and all categories expected to record consistently positive results. Together with relatively high birth rates, the fact that per capita consumption of these products in Guatemala is still comparatively low will support overall expansion, particularly as the local economy continues to recover from the impact of COVID-19.

Companies will continue developing more eco-friendly products and pack types

As is the case globally, environmental concerns are gaining influence in the purchasing decisions of consumers in Guatemala. In response, players in nappies/diapers/pants are increasingly attempting to improve their sustainability credentials by expanding their offer of products and packaging solutions made with natural ingredients and recyclable materials, with leading brand Huggies having been to the fore in this regard in recent years.

Convenience factor will limit competitive threat from reusable cloth nappies/diapers

While their appeal remains niche overall, reusable cloth nappies/diapers have gained popularity in Guatemala in recent years thanks to growing concerns about environmental sustainability. With the latter trend having only been reinforced by the pandemic, interest in such products should continue to rise over the forecast period.