Tissue and Hygiene in Chile

【About this report】：

 

This market report provides market trend and market growth analysis of the Tissue and Hygiene industry in Chile. With this market report, you’ll be able to explore in detail the changing shape and potential of the industry. You will now be able to plan and build strategy on real industry data and projections.

The Tissue and Hygiene in Chile market research report includes:

§                        Analysis of key supply-side and demand trends

§                        Historic volumes and values, company and brand market shares

§                        Five year forecasts of market trends and market growth

§                        Robust and transparent market research methodology, conducted in-country

Our market research reports answer questions such as:

§                        What is the market size of Tissue and Hygiene in Chile?

§                        What are the major brands in Chile?

§                        What are the most dynamic tissue and hygiene categories?

§                        What are the major markets for tissue products sales?

§                        What are the major markets for hygiene products sales?

Why buy this report?

§                        Gain competitive intelligence about market leaders

§                        Track key industry trends, opportunities and threats

§                        Inform your marketing, brand, strategy and market development, sales and supply functions

Each report is delivered with the following components:
Report: PDF and Word
Market statistics: Excel workbook

Sample Analysis

EXECUTIVE SUMMARY

Confidence and consumption recover in 2010

After the 2009 economic crisis and the 2010 earthquake, Chilean consumers have regained their confidence in the economy and consumption has rebounded to pre-crisis levels. The tissue and hygiene market has evolved at a rapid pace over the last decade, taking advantage of an ever-larger number of Chileans demanding these products. In 2010, multiple product categories recorded growth, and many of these categories also saw impressive product innovations that responded to changing consumer demand with increasing precision. Consumers became more sophisticated and more discerning in their purchasing habits. Sales experienced overall growth over the review period.

The earthquake and its impact

On 27 February 2010, the central area of Chile was hit by an earthquake with a magnitude of 8.3 followed directly by a tsunami, killing hundreds of people and destroying houses, buildings, bridges and roads in many areas. The short-term impact of the tragedy was a dramatic reduction in economic activity. The government estimated that the economic cost of the earthquake was approximately US$29.7 billion; US$21 billion of which was due to damaged physical infrastructure.

Overall economic activity was affected in many distinct ways. While some categories suffered significant sales losses, other basic necessities experienced sales growth in the wake of the tragedy. In particular, sales of tissue and hygiene products in March and April 2010 registered an increase of 20%. These sales increases were driven by consumer fears of potential scarcities of certain products. In addition, there were many donations of these products. Finally, small retailers whose stocks of these products were destroyed by the earthquake had to replenish their inventory.

Increased competition will lead to enhanced market segmentation

The competitive environment is expected to be more intense over the forecast period as companies attempt to increase their market share in response to the burgeoning economic recovery. Major manufacturers in particular will employ advanced technology and more sophisticated promotional and marketing campaigns. It is anticipated that a wave of innovative products will be launched that target specific market segments and customer needs and feature more precise (and variable) pricing.

Will supermarkets grow in popularity?

Some tissue and hygiene products were distributed mainly through pharmacies or perfumeries. Lately, supermarkets/hypermarkets is gaining popularity and these outlets are likely to increase their percentage of distribution activity over the forecast period. There has been an expansion of these stores across the country, and consumers enjoy the fact that this channel provides them with a complete shopping experience, including non-food purchases. Moreover, supermarkets/hypermarkets are increasing the range and variety of tissue and hygiene products stocked in order to meet the needs of consumers.

What to expect in 2011

Despite the effects of the global economic crisis and the earthquake, in 2010 Chile experienced an increase in consumption and in consumer confidence. At the end of 2010, the Chilean economy anticipates growth rates in 2011 to outpace 2010, despite the recent sharp appreciation of the peso against the dollar that will hurt exporters. The Chilean economy is expected to continue experiencing rising incomes and consumption levels, as well as increased levels of international trade and foreign investment.

 

 

 

【Table of Contents】：

 

Tissue and Hygiene in Chile - Industry Overview

EXECUTIVE SUMMARY

Confidence and consumption recover in 2010

The earthquake and its impact

Increased competition will lead to enhanced market segmentation

Will supermarkets grow in popularity?

What to expect in 2011

KEY TRENDS AND DEVELOPMENTS

Demographics changes create opportunities and challenges

Private label products become major market factor

The new post-crisis consumer

Supermarkets/hypermarkets strengthens dominance in retail sales

Buy more, pay less

MARKET INDICATORS

·                 Table 1 Birth Rates 2005-2010

·                 Table 2 Infant Population 2005-2010

·                 Table 3 Female Population by Age 2005-2010

·                 Table 4 Total Population by Age 2005-2010

·                 Table 5 Households 2005-2010

·                 Table 6 Forecast Infant Population 2010-2015

·                 Table 7 Forecast Female Population by Age 2010-2015

·                 Table 8 Forecast Total Population by Age 2010-2015

·                 Table 9 Forecast Households 2010-2015

MARKET DATA

·                 Table 10 Retail Sales of Tissue and Hygiene by Category: Value 2005-2010

·                 Table 11 Retail Sales of Tissue and Hygiene by Category: % Value Growth 2005-2010

·                 Table 12 Tissue and Hygiene Retail Company Shares 2006-2010

·                 Table 13 Tissue and Hygiene Retail Brand Shares 2007-2010

·                 Table 14 Penetration of Private Label by Category 2005-2010

·                 Table 15 Retail Sales of Tissue and Hygiene by Distribution Format: % Analysis 2005-2010

·                 Table 16 Retail Sales of Tissue and Hygiene by Category and Distribution Format: % Analysis 2010

·                 Table 17 Forecast Retail Sales of Tissue and Hygiene by Category: Value 2010-2015

·                 Table 18 Forecast Retail Sales of Tissue and Hygiene by Category: % Value Growth 2010-2015

DEFINITIONS

·                 Summary 1 Research Sources

Tissue and Hygiene in Chile - Company Profiles

Algodones Beta Ltda in Tissue and Hygiene (Chile)

STRATEGIC DIRECTION

KEY FACTS

COMPANY BACKGROUND

PRODUCTION

·                 Table 19 Algodones Beta Ltda: Production Statistics 2010

PRIVATE LABEL

CMPC Tissue SA in Tissue and Hygiene (Chile)

STRATEGIC DIRECTION

KEY FACTS

COMPANY BACKGROUND

PRODUCTION

·                 Summary 6 CMPC Tissue SA: Production Statistics 2010

COMPETITIVE POSITIONING

·                 Summary 7 CMPC Tissue SA: Competitive Position 2010

Durandin SAI, Laboratorios in Tissue and Hygiene (Chile)

STRATEGIC DIRECTION

KEY FACTS

COMPANY BACKGROUND

PRODUCTION

COMPETITIVE POSITIONING

·                 Summary 9 Laboratorios Durandin SAI: Competitive Position 2010

Papeles Industriales SA in Tissue and Hygiene (Chile)

STRATEGIC DIRECTION

KEY FACTS

COMPANY BACKGROUND

PRODUCTION

·                 Summary 12 Papeles Industriales SA: Production Statistics 2010

COMPETITIVE POSITIONING

·                 Summary 13 Papeles Industriales SA: Competitive Position 2010

Sancela Chile SA in Tissue and Hygiene (Chile)

STRATEGIC DIRECTION

KEY FACTS

COMPANY BACKGROUND

PRODUCTION

COMPETITIVE POSITIONING

·                 Summary 15 Sancela Chile SA Competitive Position 2010

Away-From-Home Tissue and Hygiene in Chile - Category Analysis

HEADLINES

TRENDS

·                 The AFH tissue and hygiene market is unique in that the product end user does not purchase the product, i.e., a company decides to supply these products without consultation if they are liked by the end users, both workers and customers, and are competitively priced. Nowadays, companies are increasingly concerned about the wellbeing of their employees and customers. There is a greater concern for hygiene as well as having a clean work environment. One area of focus to improve the working environment is to improve the quality and cleanliness of restrooms, both private and public, as it reflects the level of a company’s concern to provide comfort to its employees and customers.

COMPETITIVE LANDSCAPE

·                 CMPC Tissue SA is the leader in the institutional market, due in large part to its high technological and productive capacity which generates continuous improvements and innovations to both paper and dispenser products. During 2010, CMPC Tissue, with its brand Tissue, launched more than 10 innovations that focused on the various niche markets to deliver solutions specific to segmented consumer cohorts. This strategy goes hand in hand with the global trend to provide custom-made products for individual institutional clients that will help to generate savings by reducing consumption of tissue paper: Different customers, different needs.

PROSPECTS

·                 The Chilean economy is expected to have a stronger performance over the forecast period. On average, GDP growth is expected to exceed 5% over the first four years of the forecast period, which will drive higher activity across productive categories, as well as leading to robust growth in families’ consumption. Based on higher activity, all AFH products should experience growing demand, not only because more people will be employed but also because they will have more money for entertainment, dining out and travelling.

CATEGORY DATA

·                 Table 20 Away-From-Home Sales of Tissue and Hygiene by Category: Value 2005-2010

·                 Table 21 Away-From-Home Sales of Tissue and Hygiene by Category: % Value Growth 2005-2010

·                 Table 22 Away-From-Home Sales of Tissue and Hygiene by Distribution Format: % Analysis 2005-2010

·                 Table 23 Away-From-Home Sales of Tissue and Hygiene by Category and Distribution Format: % Analysis 2010

·                 Table 24 Forecast Away-From-Home Sales of Tissue and Hygiene by Category: Value 2010-2015

·                 Table 25 Forecast Away-From-Home Sales of Tissue and Hygiene by Category: % Value Growth 2010-2015

Cotton Wool/Buds/Pads in Chile - Category Analysis

HEADLINES

TRENDS

·                 Chilean customers have generally moved towards higher value-added products that offer additional convenience, a trend that holds true in the case of cotton products. Demand has shifted from bulk cotton wool to products in different presentations; for example, cotton buds/pads have gained popularity. Consumers have demonstrated that they are willing to pay extra for products that are easy to use and which are customised for baby care and beauty usages. Cotton wool is still used as part of first aid kits for homes and cars. Slowly, more players have introduced cotton pads, and retailers have started to place them on shelves to facilitate better display. There are usually one or two brands available in each store, one of which could be the retailer’s own brand.

COMPETITIVE LANDSCAPE

·                 Lastrade Hermanos Ltda is the leader in the institutional market, primarily serving hospitals. It also has the second largest share in the retail space. Algodones Beta Ltda is the leader in retail, and it counts Santa Isabel and Montserrat as captive distribution channels, while Lastrade serves Unimarc exclusively and shares distribution rights in Lider and Jumbo. Lastrade’s brands include Americano (wool), Cotobel (pads) and Cotonitos (buds). In cotton buds, the company recognises the opportunity to take advantage of its strong brand recognition, but has not yet done so.

PROSPECTS

·                 Sales are expected to increase at a CAGR of 3% in constant value over the forecast period, which is faster than the growth observed over the review period. The faster rate is because prices of raw materials are expected to continue rising and manufacturers are not going to continue reducing margins.

CATEGORY DATA

·                 Table 26 Retail Sales of Cotton Wool/Buds/Pads: Value 2005-2010

·                 Table 27 Retail Sales of Cotton Wool/Buds/Pads: % Value Growth 2005-2010

·                 Table 28 Retail Sales of Cotton Wool/Buds/Pads by Type: % Value Breakdown 2007-2010

·                 Table 29 Cotton Wool/Buds/Pads Retail Company Shares 2006-2010

·                 Table 30 Cotton Wool/Buds/Pads Retail Brand Shares 2007-2010

·                 Table 31 Forecast Retail Sales of Cotton Wool/Buds/Pads: Value 2010-2015

·                 Table 32 Forecast Retail Sales of Cotton Wool/Buds/Pads: % Value Growth 2010-2015

Incontinence in Chile - Category Analysis

HEADLINES

TRENDS

·                 Unlike other tissue and hygiene products, demographic trends will spur growth in the incontinence category. Due to improvements in healthcare, diet and lifestyle, the world's population is aging and increasing demand for incontinence products. In Chile in 2009 about 13% of the population was over 60, which compared with 9% in 1990. At the same time that this segment is increasing, senior citizens are more affluent than previous generations, and often they are healthy enough to enjoy retirement. Incontinence products have become a valuable way of helping them to remain active, without limitations.

COMPETITIVE LANDSCAPE

·                 The market share for incontinence products in Chile is divided between Kimberly-Clark (Plenitud, Mimi and Poise), CMPC Tissue (Cotidian) and PISA (Tena) with the remainder controlled by other various competitors. Kimberly-Clark has consolidated its leadership in this category in 2010, capturing 74% of share in value terms. The company gained ground quickly after the introduction of Depend Plenitud and Poise, which revolutionised the category, because they offered a modern and discreet alternative for people to deal with their incontinence problems. Also in 2009, Kimberly-Clark launched gender-specific disposable underwear; this action was credited with growing its share in the category and improving overall results.

PROSPECTS

·                 The Chilean population is expected to continue aging. 34% of women aged over 65-years-old have incontinence problems. This is a promising growth market, based on the fact that by 2050, 40% of the Chilean market will be older than 50-years-old. At the same time, it is expected that older people tend to improve their economic situation; thus they will allocate resources to products which make them feel good and enable them to remain active. Incontinence products are expected to play a relevant role in helping them to accomplish their plans.

CATEGORY DATA

·                 Table 33 Retail Sales of Incontinence by Category: Value 2005-2010

·                 Table 34 Retail Sales of Incontinence by Category: % Value Growth 2005-2010

·                 Table 35 Incontinence Retail Company Shares 2006-2010

·                 Table 36 Incontinence Retail Brand Shares 2007-2010

·                 Table 37 Forecast Retail Sales of Incontinence by Category: Value 2010-2015

·                 Table 38 Forecast Retail Sales of Incontinence by Category: % Value Growth 2010-2015

Nappies/Diapers/Pants in Chile - Category Analysis

HEADLINES

TRENDS

·                 Despite birth rates that are beginning to level out and high market saturation marked by very high levels of market penetration, nappies/diapers/pants holds moderate levels of opportunity for companies which can carve out market share in higher-value added products, as well as drive additional consumption of units per consumer in the low- and middle-income cohorts.

COMPETITIVE LANDSCAPE

·                 Procter & Gamble Ltda was the leading player in nappies/diapers/pants in Chile in 2010, accounting for a 50% share of value sales. Its Pampers brand offers a wide range of nappies which suit children’s needs in each stage of their development. Pampers heavily invests in advertising and product development in order to maintain an updated offering which allows it to retain customers and brand awareness.

PROSPECTS

·                 Sales are expected to increase at a CAGR of 2% in constant value terms over the forecast period, which is similar to that observed over the review period.

CATEGORY DATA

·                 Table 39 Retail Sales of Nappies/Diapers/Pants by Category: Value 2005-2010

·                 Table 40 Retail Sales of Nappies/Diapers/Pants by Category: % Value Growth 2005-2010

·                 Table 41 Nappies/Diapers/Pants Retail Company Shares 2006-2010

·                 Table 42 Nappies/Diapers/Pants Retail Brand Shares 2007-2010

·                 Table 43 Forecast Retail Sales of Nappies/Diapers/Pants by Category: Value 2010-2015

·                 Table 44 Forecast Retail Sales of Nappies/Diapers/Pants by Category: % Value Growth 2010-2015

Retail Tissue in Chile - Category Analysis

HEADLINES

TRENDS

·                 In addition to causing damage to cellulose production plants (crippling their production in the month of March), the earthquake affected production plants that process cellulose derivatives such as toilet paper and regular paper. This worsened production and distribution problems that companies faced both within their facilities from earthquake damage and from damaged transportation routes, and reduced the availability of products to consumers. Shortages were aggravated by additional demand from consumers in the post-earthquake period. Distribution problems included multiple day delays in the product distribution chain and stoppages in plants due to power outages and damage to machinery. However, customers stocking up on tissue products was the main factor that caused shortages.

COMPETITIVE LANDSCAPE

·                 CMPC Tissue is the leader in retail tissue sales, with a 77% value share. Papeles Industriales SA holds the second highest share at 11%. The remainder of the market share is divided among other firms, with Kimberly-Clark controlling a marginal percentage.

PROSPECTS

·                 Sales are expected to increase at a CAGR of 4% in constant value terms over the forecast period.

CATEGORY DATA

·                 Table 45 Retail Tissue Sales by Category: Value 2005-2010

·                 Table 46 Retail Tissue Sales by Category: % Value Growth 2005-2010

·                 Table 47 Retail Tissue Company Shares 2006-2010

·                 Table 48 Retail Tissue Brand Shares 2007-2010

·                 Table 49 Forecast Retail Tissue Sales by Category: Value 2010-2015

·                 Table 50 Forecast Retail Tissue Sales by Category: % Value Growth 2010-2015

Sanitary Protection in Chile - Category Analysis

HEADLINES

TRENDS

·                 In 2010, sanitary protection sales increased by 5% in current value terms. This is faster than observed during the review period, when sales grew at a CAGR of 2% in current terms. Some companies explain that they have increased prices due to higher costs of oil and other raw materials. But also this can be explained by the trend of using higher quality products that tend to cost more. During 2010, there has been some innovation, especially in pantyliners.

COMPETITIVE LANDSCAPE

·                 Sanitary protection in Chile was led by Procter & Gamble Ltda in 2010, which held a 41% market share in terms of total sales. The company retails the brands Always, Ladysan (towels) and Tampax (tampons), which accounted for approximately 30%, 20% and 57% of value sales in their own categories respectively, in 2010. Procter & Gamble has led the introduction of products targeted towards all ages, lifestyles and usage occasions. The company benefits from a wide product portfolio, competing in various categories within the tissue and hygiene market, not only in sanitary protection, but also in nappies/diapers and wipes with well-known brands.

PROSPECTS

·                 Sanitary protection is expected to be affected by demographic changes. On one hand there has been an increase in the female population aged 14-64-years-old. That provides a growth opportunity for pantyliners, which has a low penetration rate among Chileans. Therefore, it is expected that pantyliners will perform better than the rest of the sanitary protection market over the forecast period.

CATEGORY DATA

·                 Table 51 Retail Sales of Sanitary Protection by Category: Value 2005-2010

·                 Table 52 Retail Sales of Sanitary Protection by Category: % Value Growth 2005-2010

·                 Table 53 Retail Sales of Tampons by Application Format: % Value Analysis 2005-2010

·                 Table 54 Sanitary Protection Retail Company Shares 2006-2010

·                 Table 55 Sanitary Protection Retail Brand Shares 2007-2010

·                 Table 56 Forecast Retail Sales of Sanitary Protection by Category: Value 2010-2015

·                 Table 57 Forecast Retail Sales of Sanitary Protection by Category: % Value Growth 2010-2015

Wipes in Chile - Category Analysis

HEADLINES

TRENDS

·                 According to the industry players, the most significant factor of the year for these products and for the entire disinfectant market in general was the earthquake in February 2010. There was a temporary but significant jump in sales, consumption, inventories, etc. This was not so in the penetration of products, which remained unchanged.

COMPETITIVE LANDSCAPE

·                 During 2010, all purpose cleaning wipes experienced growth of 45% in terms of sales. Clorox has driven growth in all purpose cleaning wipes; it offers a greater variety of products in more formats. Clorox arrived in Chile in 2008 and faced almost no competition. Thanks to its dominance in all purpose cleaning wipes, Clorox held an 81% share of household care wipes and floor cleaning systems sales in 2010, and this is expected to continue. Clorox's major competitors are Lysol (from Reckitt Benckiser Chile SA) and Virutex (from Virutex Ilko). A new competitor, Virginia (with its brand Igenix) is expected to enter the market soon. Increased competition is coming from other brands including Lysol and Virutex to gain second place in terms of market share. There are other brands with minimal levels of market share.

PROSPECTS

·                 Sales are expected to increase at a CAGR of 5% in constant value terms over the forecast period, which is slower than the growth observed over the review period. The slower rate is because consumers became more cautious about their spending and wipes are an expensive product, replaceable with other cleaning products.

CATEGORY DATA

·                 Table 58 Retail Sales of Wipes by Category: Value 2005-2010

·                 Table 59 Retail Sales of Wipes by Category: % Value Growth 2005-2010

·                 Table 60 Wipes Retail Company Shares 2006-2010

·                 Table 61 Wipes Retail Brand Shares 2007-2010

·                 Table 62 Forecast Retail Sales of Wipes by Category: Value 2010-2015

·                 Table 63 Forecast Retail Sales of Wipes by Category: % Value Growth 2010-2015