Polishes in Costa Rica

2021 DEVELOPMENTS

Demand for polishes declines in 2021 due to not being perceived as an essential product

Polishes experienced a marginal improvement in retail value terms, but negative growth in volume terms in 2021, driven by the larger furniture polish category that overtook floor polish as the largest category in value terms during the year. However, floor polish remained the largest category in volume terms but was unable to register volume growth in 2021.

Volume growth remains depressed in 2021 thanks to lack in innovation but attempts to stir interest by launching new product formats

Volume growth rates of polishes were negative over the entire review period, including 2021, with the category lacking any significant innovation. However, manufacturers of polishes started to focus on products that offer extra benefits or specific needs for materials, such as marble, granite, or stainless steel.

SC Johnson remains leading player in 2021, taking value share from second placed Reckitt Benckiser

Polishes saw further consolidation in 2021 with the leader SC Johnson de Centroamerica SA strengthening its leadership by gaining notable value share from Reckitt Benckiser Centroamerica SA and smaller players under “others”. The multinationals, SC Johnson and Reckitt Benckiser, dominate polishes with more than 85% of value share as a result of consumers’ strong awareness of their brands Klaro, Pledge, Brasso and Rex, respectively, in addition to wide distribution and an affordable value for money ratio with both traditionally engaging in strong promotional campaigns.

PROSPECTS AND OPPORTUNITIES

New affordable brands expected to enter competitive landscape during the forecast period

Polishes is predicted to record a stronger performance in terms of constant retail value sales growth over the forecast period compared to the review period, driven by furniture polish, remaining the largest retail value category. However, demand for shoe polish and floor polish is set to further decline in volume terms.

Brands likely to drive demand with functional and performance claims during the forecast period

Brands are likely to launch new products during the forecast period, focussing on convenience, thus adding more wipes, sprays and aerosol presentations to their ranges. Further movement within this area will be more capable of targeting millennials’ concerns in relation to their personal and environmental wellbeing.

Innovation in timesaving and cost-effective alternatives expected during the forecast period

Innovation is likely to focus on floor polish and furniture polish during the forecast period as these two categories offer the greatest potential for further growth. Competition is likely to come in the form of cost-efficient and time-saving alternatives such as multi-surface polishes that offer more value for money.