Soap Market in Costa Rica

If Colgate Palmolive's deal to purchase Costa Rica's Punto Rojo goes ahead, the market will be divided between the company and Unilever Central America.

Monday, September 2, 2013

At the moment the process of purchasing Punto Rojo by Colgate Palmolive is underway. The transaction is subject to approval from the Commission to Promote Competition (Coprocom). If the purchase is approved, Punto Rojo will manufacture the same products for the transnacional and then transfer the process.

The Costa Rican company currently sells $33 million worth of products a year. If the sale is approved, the only company left operating on a large scale would be Grupo Irex, manufacturer of laundry soap. In the area of ​​antibacterial soaps and toiletries there is no other local company.
Laundry soap is the segment that generates the most revenue and is led by Unilever Central America, Procter & Gamble and Punto Rojo. According to Euromonitor, in 2012 laundry soap generated revenue of $90.5 million.

"I guess Colgate will invest more in advertising and have more product available in supermarkets, which could eventually affect us, but ultimately we have different customers," said Andrea Becerra, founder of Aromas para el Alma.



More on this topic

Costa Rica: Concentration in Soap Market

March 2014

With the authorization of the acquisition of Punto Rojo by Colgate Palmolive the market has been divided up between two great competitors.

Unilever and Colgate Palmolive are now the two main competitors in the market for soaps in Costa Rica, after the Ministry of Economy, Trade and Industry authorized the acquisition of Punto Rojo requested by Colgate Palmolive.