Retail Tissue in Costa Rica | Product Fact Sheet

Product Fact Sheet

RETAIL TISSUE IN COSTA RICA Market Overview MARKET HIGHLIGHTS

Retail tissue sees 1% negative growth in 2016 in current value terms Economy unbranded toilet paper products continue to affect value sales in 2016 Average unit price for toilet paper sees 4% value contraction in 2016 Kimberly-Clark Costa Rica SA continues to lead retail tissue sales with 41% value share

Drivers of Growth Volume growth rose in line with population growth with per capita consumption remaining close to 5.5kg in 2016.

Economy toilet paper continues to gain momentum with low to middle income earners with Walmart's private label and unbranded alternatives from China Additional innovations in smaller niches like paper towels and facial tissues has reinforced the leader's quality brand position.

Sales of Retail Tissue in Costa Rica

This category is estimated at CRC 81.2 billion in 2016 and is expected to climb to about 85.1 billion by 2021.

Competitive Environment Company shares and brand shares are concentrated in the top two companies Kimberly Clark (Scott, Kleenex) and SCA Consumidor Mexico (Nevax). They account for 68% of the company and brand share. Both international companies kept their leading roles in retail tissue sales in 2016, holding 41% and 27% retail value shares respectively.

Current Success Factors Market segmentation and product development to address the needs of untapped income segments of local buyers. For example Kimberly Clark launched moist toilet paper alternatives targeted to elderly consumers.

Kimberly-Clark also invested in developing added-value products to reinforce its position through brand extension with Duramax reusable and washable paper towels.

Kimberly Clark launched a new economy brand “Delsey” to compete with the unbranded toilet paper Economy toilet paper gains momentum with the wider low and middle income consumers. This is seen with Walmart’s private label and unbranded products from China

Future Success Factors Innovation in smaller sub-categories (facial tissues and paper tableware) will lead to greater opportunities in the coming years Further penetration of imported unbranded products may force major players to focus on the offering lowerpriced and bulk presentation economy products Brand loyalty will be cemented by availability and affordable pricing Premiumization strategies to target the expanding mid and upper consumers e.g. Kimberly Clark’s wet facial towels

Distribution

Most tissue products are bought through modern grocery outlet (which accounts for 72% of retailer’s shares) which benefit from broad market coverage while offering a wide assortment of brands and value alternatives at competitive unit prices. This scenario saw changing patterns over 20152016, with the relevance of small independent grocers, and in particular Chinese supermarkets accounting for 16% of toilet paper value sales in 2014 to 22% in 2016, gaining ground in toilet paper.

Pricing Supermarket

Napkins

Paper Towel Nevax Toalla 203g CRC 860

Nevax Servilletas 250 Sheets CRC 1,670

Scott Teresa 100 sheets CRC 850

Scott Toalla 242g CRC 1,090

Suli Toalla 417g CRC 1,025

Nevax 1,105g CRC 4,015

Charmin 330g CRC 2,295

Dos Pinos 100% Jugo de Manzana Brick Liquid Cartons 250ml 495 CRC

Suli Servilletas 100 Sheets CRC 515

Suli 688g CRC 1,785

Scott 500g CRC 2,189

Toilet Paper

Jumex Jugo Uva Brick Liquid Cartons 1 Litre 765 CRC

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Not just facts and figures About this factsheet This product factsheet was developed by exporTT using information gathered from our market survey to Costa Rica which was held on 5th – 14th February 2018 as we all our subscription based Euromonitor International Database.

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