Nappies/Diapers/Pants in Mexico

2021 DEVELOPMENTS

Players engage in price promotions to capture consumers

Retail volume sales continued to drop in 2021, largely due to the declining 0-3-year-old population in the country. Despite the Ministry of Health’s expectation that the stay-at-home measures to stem the spread of Coronavirus (COVID-19) would lead to an increase in the number of babies born in 2020, the opposite was the case.

Kimberly-Clark leverages wide distribution, strong marketing, high visibility and innovation to maintain dominant position

Kimberly-Clark, with its Kleen Bebé and Huggies brands, continued to dominate retail value sales of nappies/diapers/pants in Mexico in 2021. Alongside widespread distribution, prominent shelf positioning and strong marketing, the company also regularly introduces new products.

New entrants increase offer of economy and eco-friendly products

Major players continued to innovate in 2021, offering products that were claimed to last longer, while also focusing on natural ingredients, in order to differentiate offers and gain a competitive advantage. Towards the end of the review period, Huggies was extended with the launch of the new Eco Protect range of lightweight nappies/diapers claiming better absorption and more softness.

PROSPECTS AND OPPORTUNITIES

Large captive audience offers sales potential despite birth rate stagnation

Nappies/diapers/pants is expected to see a rebound in retail volume sales in the forecast period. However, at the end of the forecast period retail volume sales of nappies/diapers are projected to remain short of the 2019 level.

Price promotions to join with marketing investments to win over consumers

With the Mexican economy still under pressure, there is expected to be a growing focus on value for money in the short to medium term. The ongoing high price-sensitivity in the country is predicted to prolong the use of price promotions, such as discounts, more content for the same price, and the bundling of nappies/diapers with other products, such as baby wipes.

Improving infrastructure and special deals offer further growth opportunities for e-commerce

E-commerce witnessed a strong leap in retail value share in nappies/diapers/pants due to the COVID-19 crisis, with consumers beset by home seclusion looking for convenient and safer shopping options. As more consumers gain access to the internet and become familiar with and confident in shopping online, supported by logistics and infrastructure improvements, the channel is predicted to continue to develop and grow in the forecast period.