Surface Care in Latin America

Delivery

This report comes in PPT.

Key Findings

Growth slips into decline in 2022

Although consumers still have heightened hygiene levels compared to pre-COVID-19, after slowing in 2021, growth dipped into negative territory in real value terms in 2022. However, the size of the demand spike seen in 2020, meant that Latin American surface care sales were still above pre-pandemic levels in 2022. Home care disinfectants recorded a large fall in sales in 2022, but it had also seen unprecedentedly dynamic demand in 2020, as consumers strived to keep their homes clean.

Regional players remain important in Brazil

Considering Brazil’s large geographic size, regional home care brands play an important role in surface care. Gtex Brasil, owner of the Urca brand, acquired four small home care manufacturers in 2022. This has added five additional factories to the company’s production operations and could enable it to gain share in the coming years, by strengthening its presence in regional markets.

E-commerce remains a minor channel, despite gains made during the pandemic

Although it still remains a relatively small channel, with a share of less than 5%, e-commerce recorded very strong growth across the region in 2020, with consumers isolated at home and concerned about spending time in store-based retailers with the COVID-19 virus in circulation. Nevertheless, the online sales share will likely remain relatively limited, given most surface care products are easy to pick up when doing a one-stop shop in a supermarket or discounter.

Expansion of wipes category in the pandemic will help drive future growth

After a decline in 2022, albeit following very dynamic growth in the two previous years, home care wipes are expected to see positive growth over the forecast period. Distribution was expanded during the pandemic, with these products appearing in more small local grocers, while the assortment of available brands and products also increased due to COVID-19.