SANITARY PROTECTION IN PERU - ANALYSIS

Country Report | Apr 2022

KEY DATA FINDINGS Market Sizes

Retail value sales decrease by 0% in current terms in 2021 to PEN589 million Sales of Sanitary Protection
Tampons is the best performing category in 2021, with retail value sales increasing Retail Value RSP - PEN million - Current - 2007-2026
by 2% in current terms to PEN6 million
Productos Sancela del Perú SA is the leading player in 2021, with a retail value share
589 Forecast
800
of 54%
Retail sales are set to grow at a current value CAGR of 5% (2021 constant value CAGR
of 2%) over the forecast period to PEN736 million
600

2021 DEVELOPMENTS
Return to activities outside of the home drives up demand for sanitary 400
protection in 2021
Overall demand for sanitary protection in Peru recorded a notable increase in 2021,
200
with volume sales close to pre-pandemic levels. This was due to restrictions on the
movement of the population introduced to control the spread of COVID-19 having been
significantly reduced, especially since April. A notable drop in the number of cases in
line with the country’s rollout of its vaccination programme, encouraged greater 0
mobility outside of the home, and motivated women to gradually resume outdoor 2007 2021 2026
activities such as exercise or socialising, which meant greater use and the need to
frequently change sanitary protection. However, this higher level of activity compared
to the home seclusion of 2020 was unable to achieve the dynamism of pre-pandemic Sales Performance of Sanitary Protection
years as remote working remained relevant for a significant number of Peruvians, % Y-O-Y Retail Value RSP Growth 2007-2026
while online learning for schools and universities also continued at home during 2021.

“Econo” packs are well-received as price factor remains relevant when

-0.0% Forecast
15%
purchasing sanitary protection
Towels, comprising both standard variants and slim/thin/ultra-thin options, recorded
the highest retail volume growth in 2021 compared to pantyliners and tampons, 10%
because these products have the highest penetration rate amongst Peruvian
consumers, and given their low cost, they are accessible to most females. In this sense,
the price factor is extremely relevant in the purchasing decision, which is why large 5%
packs of products, locally referred to as "econo packs", are offered by the most
important brands in the category. They continue to gain in popularity because they
offer towels in packs with a greater quantity of units compared to the classic and 0%
traditional eight or 10 units. Packs of 24, 30, 32, 36, 42, 60 and 84 units allow consumers
to make considerable cost savings overall due to lower unit prices, especially for
standard towels, but these options are also available for slim/thin/ultra-thin towels. -5%
Nevertheless, economising trends also continued to subdue the average unit price and
hinder value growth in 2021, a major factor explaining why volume outperformed value
growth, not only in towels but in sanitary protection as a whole. -10%
2007 2021 2026

Tampons most affected by pandemic, but sees gradual recovery due to

increase in physical activity by women
Sales of Sanitary Protection by Category
Tampons was the most negatively impacted category by the response to the pandemic Retail Value RSP - PEN million - Current - 2021 Growth Performance
in 2020 because women rarely left the home and did not need to use a product that
tends to be required when participating in greater physical activity such as swimming or Pantyliners
visiting the beach. Demand in January and February 2020 was normal, as these are 49,9
traditionally the months with the highest sales because the greater use of tampons Tampons
tends to coincide with the summer season in Peru, and the fact that the pandemic had 5,7
not been traced in the country at that time. However, the introduction of a lockdown by Towels
the government for almost four months once cases started to surge, followed by 533,4
restrictions on visiting public places that included the beach, swimming pools and Sanitary Protection Including In...
gyms, resulted in double-digit declines in retail volume and current value sales. 593,2
-5% 0% 5%
2021 witnessed a marginal improvement in demand due to greater mobility outside of
the home and an easing of restrictions linked to physical activity; however, both SANITARY PROTECTION 589,0 CURRENT % CAGR % CAGR
volume and value sales remained lower than pre-pandemic levels, because as the YEAR % 2016-2021 2021-2026
GROWTH
summer season progressed, new restrictions on visiting public places such as the
beach, swimming pools and gyms were reintroduced in line with another wave, with
February seeing a new strict lockdown.

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PROSPECTS AND OPPORTUNITIES Competitive Landscape

Pantyliners offers significant growth potential but requires greater Company Shares of Sanitary Protection
marketing of benefits and a greater presence in traditional channels % Share (NBO) - Retail Value RSP - 2021
Pantyliners recorded a weak performance in 2021 compared to towels and tampons, Productos Sancela del Pe... 54.0%
which could be linked to the fact that these products might be considered as non-
essential for some women compared to other types of sanitary protection. Moreover, Kimberly-Clark del Perú ... 18.4%
the benefits offered by pantyliners are not particularly well-known in Peru, with these Productos Tissue del Per... 12.4%
products hindered by their limited presence in traditional grocery retailers, which is a
particularly relevant distribution channel in Peru. These combined factors explain its Procter & Gamble Perú SR... 5.6%
low penetration of the Peruvian female population, but at the same time, offer an
important opportunity for future growth, since there is significant room to expand. Johnson & Johnson del Pe... 3.1%
Therefore, it is vital for players to invest in communicating the benefits of using Others 6.6%
pantyliners and to expand their distribution, especially to connect with women who
tend to shop in traditional grocery retailers to purchase their sanitary protection needs.
It will also be essential for players to offer extremely competitive prices or bulk packs
to attract price-sensitive consumers.
Brand Shares of Sanitary Protection
Maturity of towels where pricing and marketing by brands will remain % Share (LBN) - Retail Value RSP - 2021
relevant
Nosotras 54.0%
Towels had already reached an important level of maturity in Peru at the end of the Kotex 18.4%
review period, which was reflected in its significant level of penetration amongst the
female population, as well as the presence of brands such as Nosotras and Kotex that Ladysoft 12.4%
enjoy solid performance history in the category and offer trusted products, since no
Always 5.6%
major product innovations had been noted. In this sense, towels is predicted to record
low but stable growth over the forecast period, driven by the organic growth of the Stayfree 1.6%
female population and by the use of a greater number of units due to more accessible
Carefree 1.4%
prices offered by bulk packages containing a higher greater number of units. Referred
to as "econo packs", these products are offered by the main brands in the category and ob 0.0%
are well-received by price-sensitive consumers in particular.
Others 6.6%
In addition to the pricing factor, competition between brands points to the connection
5-Year Trend
with loyal consumers, where marketing and their involvement with various public Increasing share Decreasing share No change
campaigns tend to generate a greater sense of positive sentiment towards a brand. For
instance, Nosotras ran a campaign to address school bullying called "Bullying for
loving", while Kotex and Ladysoft have both run campaigns aimed at tackling the stigma
that still surrounds menstruation in some areas of Peru to ensure that it is no longer a
taboo subject.

Tampons set to recover in demand terms over the forecast period, but
value sales will remain subdued
The use of tampons in Peru is associated with the user's physical activity, especially for
sports, in addition to visiting the beach or swimming pool. Therefore, traditionally sales
tend to be relatively higher during the summer months. In this sense, demand for
tampons is expected to gradually improve over the course of the forecast period,
although some restrictions relating to the pandemic remained in Peru heading into
2022 including some regions of the country being on high alert, while those wanting to
access public spaces such as the beaches, swimming pools and lakes in areas
designated as of moderate concern had to show proof of vaccination.
The overall size of tampons is extremely small in Peru, and therefore it could offer
favourable growth expectations in the future; however, it still remains a niche product,
present only in modern channels. Given the negative impact on demand during the
pandemic, it could take time to regain the dynamism that it had previously shown,
especially as these products have a very limited presence in the media and its benefits
and form of use are not widely explained. Therefore, producers may reduce the
average unit price of tampons to attract consumers and drive up volume sales, which is
predicted to hinder the recovery of value sales (at constant 2021 prices) over the
forecast period.

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