Cleaning Products: Opportunities in El Salvador

During 2020, total sales of cleaning chemical products in the Salvadoran market reached $143 million, 13% more than what was reported in 2019, with Guatemala, Honduras, Costa Rica and Mexico being the main suppliers of local companies.

Friday, February 19, 2021

institutional channel, which have shown an average annual growth of 5% in the last five years, according to a study by the Foreign Trade Promoter of Costa Rica (Procomer).

You may be interested in "Cleaning Products: Business Goes Up 23%"

The document points out that El Salvador is the 3rd importer of Cleaning Chemical Products (PQL) in the region, being supplied 42% from Guatemala (washing and cleaning preparations, toilet soap and ethyl alcohol), 23% from Honduras (soap except toilet soap), 8% from Costa Rica (scrubbing pastes, washing and cleaning preparations) and 8% from Mexico (toilet soap, disinfectant). Given that 99% of the companies are SMEs, they could also source PQL from retail outlets, such as supermarkets or hypermarkets.

"El Salvador offers opportunities, since distributors are willing to value new suppliers and products; there is a slow but growing trend towards value-added products, mainly in more demanding industries; the good image of Costa Rican products and companies; 0% tariffs; mutual recognition of registrations; and finally, a wide logistical offer. On the other hand, the small size of the market, the strong price competition, and the participation of countries such as MEX, HON, GTE and USA, which are recognized suppliers of these products, must be considered", adds the report.

The importation of PQL is carried out by distributors, which in turn may sell to other smaller distributors (often regional), or to cleaning services companies, which in many cases are part of the distributing company, a common model in the country, the study highlights.

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Cleaning Products: Business Goes Up 23%

January 2021

From January to June 2020, Central American countries imported soaps and cleaning preparations for $88 million, 23% more than what was reported in the same period of 2019, a rise that was reported in the context of the beginning of the pandemic that caused the covid-19 outbreak.

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Cleaning Products: Purchases from U.S. up 6%

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From January to March 2019, countries in the region imported soaps and cleaning preparations for $37 million, and purchases from U.S. companies grew 6% over the same period in 2018.

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From January to September 2018, countries in the region imported $107 million worth of soap and cleaning preparations, and purchases from U.S. companies grew 5% over the same period in 2017.

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From January to June of last year, countries in the region imported soaps and cleaning preparations for $71 million, and 60% were purchased by companies in El Salvador and Guatemala.

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