Nappies/Diapers/Pants in Peru

2021 DEVELOPMENTS

Gradual return to mobility outside of the home and the presence of promotions drive up greater demand for nappies/diapers/pants in 2021

Demand for nappies/diapers/pants notably improved in 2021 following the drop the previous year due to home seclusion and economising, which included reducing the number of units used each week or turning to reusable cloth nappies/diapers. Overall volume sales reached close to pre-pandemic levels, although junior nappies/diapers fully recovered to surpass 2019 levels, in line with an easing of mobility restrictions that encouraged mothers to resume normal activities.

Large packs enjoy higher preference for both price factor and lower frequency of purchase

Consumers of nappies/diapers/pants are showing a greater preference for large packs containing a higher number of units (such as 56, 66, 72, 76, 80, or 86 units) or are appreciating multi-pack promotions, offering cost savings when they purchase two or three packs at a time. This preference is due to several reasons.

E-commerce sees significant development during pandemic, but remains a small channel with strong growth potential

E-commerce sales of nappies/diapers/pants received a significant boost following the emergence of the pandemic, as it became a distribution channel activated by both main retailers and online platforms from brands. E-commerce offers a convenient and alternative solution to consumers who do not want to leave their homes for essential products.

PROSPECTS AND OPPORTUNITIES

Growth to continue in subsequent years due to prolonged used of nappies/diapers in Peru

Demand for nappies/diapers/pants is expected to continue to gain growth momentum over the course of the forecast period, although performances within the category are expected to differ. Growth is unlikely to occur due to a greater user population, since Peru continues to see declining birth rates for a number of reasons including an increasing number of women postponing having children until an older age, with the number of families having only one or two children also increasing in the country over the review period.

Price will remain relevant factor in purchasing decisions of Peruvian parents

Price will remain an extremely relevant factor when local parents consider which nappies/diapers/pants to purchase, not only due to the high consumption rate associated with babies, which means a notable expense for families, but also because the economy continued to lag following the pandemic, impacting the incomes of households. Many Peruvians were made unemployed or worked in sectors that were restricted by sanitary measures, resulting in reduced hours and lower incomes that struggled to adequately recover at the end of the review period.

Competition between brands to intensify in traditional grocery retailers given its relevance as a distribution channel for local consumers

Traditional grocery retailers will remain a relevant distribution channel for nappies/diapers/pants because it is often favoured by local consumers due to proximity and the offer of competitive prices. Some consumers preferred to visit modern channels such as especially supermarkets and hypermarkets during the pandemic, because they remained in operation, while traditional independent small businesses had difficulties in serving the public during the initial stages or found it challenging to obtain supplies.