Brazil nappies market: R$6.4 billion industry in 2012

Procter & Gamble do Brasil SA, with the Pampers brand, is the leader in the Brazil nappies market with a 29% value share. The company?s success is attributed to a large portfolio, high brand recognition and strong investments in marketing and advertising. The company is racing to increase its production capacity to supply the demand as Pampers often suffers shortages. In 2012, the company launched a worldwide campaign as one of the official sponsors of the London Olympic Games, supporting six Brazilian athletes to promote the Pampers brand. For the 2016 Rio de Janeiro Olympic Games, the manufacturer is already looking for new athletes to sponsor.

Nappies/diapers/pants continued to see a strong performance in 2012, with retail volume and current value sales seeing respective growth of 7% and 11%, compared to the CAGRs of 11% and 16% noted over the review period. The slight slowdown seen in 2012 was due to the increasing penetration of nappies/diapers/pants in Brazilian households, which has made it increasingly difficult to make easy gains.

Nappies/diapers/pants is expected to see CAGRs of 4% in both constant value and volume terms over the forecast period, boosted by rising disposable income primarily among lower and middle class households. This will combine with the relatively low penetration rate and the trade-up towards more sophisticated items. Aware of the growing success of added-value products providing higher profit margins, manufacturers will increasingly invest in product innovation in order to differentiate from competitors and gain market share. However, this trend should occur only gradually, as fast increasing unit prices combined with stagnating purchasing power could push consumers to opt for cheaper products.

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