01.08.09
Green Is a Woman’s Color: Females More Likely to Buy
According to Green 2008: Consumer Attitudes and Behaviors from The NPD Group, Inc., more than half of consumers surveyed consider themselves extremely or very interested in environmentally-friendly products. But women appeared to have a stronger interest in green products than men (57% vs. 47%). In addition, women are significantly more likely to be purchasing “green” products and more willing to pay a higher price.
Interestingly, more men than women consider themselves to be well-informed about green products.
“While men may be well-informed and have less interest in the category than women, the question to ask is why—is it the fact they are well-informed that is making them less interested, or is it a case where they don’t know what they don’t know?,” said Mark Delaney, director of The NPD Group’s home division. “In either scenario, manufacturers and retailers need to drive marketing and education efforts that will help the less-involved consumer understand the benefits of ‘green’ and what makes a product ‘green.’”
When using environmentally-friendly versions of products, consumers place an emphasis on those that seem to offer an immediate return on their investment, according to NPD. Recycled products, compact fluorescent light (CFL) bulbs and Energy Star-rated appliances are the environmentally-friendly products currently used by most respondents. Hybrid cars top the list of items respondents plan to use in the future.
Organic soap, detergent or household cleansers were currently used by 26% of respondents, compared to CFL bulbs (64%) and Energy Star appliances (60%). According to the survey, 18% said they plan to use organic soap, detergent or household cleanser and 15% said they planned to use organic beauty or cosmetic supplies.
More info: www.npdgroup.com
Natural Polymer Demand Is Rising
Natural polymer demand is expected to grow 7.1% annually to $4 billion in 2012, according to new data from the Freedonia Group. The best opportunities are anticipated in packaging areas as a result of the increased availability and cost competitiveness of novel polymers such as polylactic acid (PLA).
Further growth will be threatened by climatic and political uncertainties for products such as guar gum and gum arabic, as well as competition from synthetic alternatives. With many natural polymers procured offshore, imports are expected to continue to account for a large share of indigenous demand.
According to the Natural Polymers study, cellulose ether demand is expected to rise 4.2% a year through 2012, accounting for about one-third of all natural polymer demand. Methyl cellulose will dominate the cellulose ether market due to its widespread use in construction materials such as plaster, mortar, grouts, stucco and wallpaper pastes. Best cellulose ether opportunities are anticipated for microcrystalline cellulose (MCC), particularly in pharmaceutical applications.
Demand for starch and fermentation products will expand at a double-digit pace to $1.1 billion in 2012 based on greater availability and improved production technologies for polymers including PLA, starch blends and hyaluronic acid. Falling prices will also boost volume demand. Polylactic acid will see significant growth in packaging areas such as thermoformed containers. Hyaluronic acid demand will be fueled by an aging population, generating strong demand for dermal injections and orthopedic treatments, according to the company.
Robust growth is anticipated for protein-based polymers such as collagen, with further advances threatened by competition from longer-lasting alternatives such as hyaluronic acid. Exudate and vegetable gum demand will be bolstered by opportunities for guar gum in food and beverage applications. Good opportunities are anticipated for marine polymers such as carrageenan and alginates, mainly in food and beverages and wound dressings.
More info: www.freedoniagroup.com
Satisfaction with Personal Care, Cleaning Products Remains High
The American Customer Satisfaction Index (ACSI), a national economic indicator of customer evaluations of the quality of products and services, continues to worsen—a trend that began in 2007—but the deterioration for the third quarter was small, according to the University of Michigan’s Ross School of Business. The good news is, the personal care and cleaning products sector held its own.
The ACSI, produced by the University of Michigan in partnership with the American Society for Quality (ASQ) and CFI Group, is updated each quarter with new measures for different sectors of the economy replacing data from the prior year. The overall ACSI score for a given quarter factors in scores from approximately 200 companies in 44 industries and from government agencies over the previous four quarters. The ACSI lost 0.1%, which drops the Index score to 75 on a 100-point scale.
The decline in buyer satisfaction has precipitated a softening of consumer demand, with household spending actually falling in the third quarter for the first time in 17 years. Despite the overall drop in ACSI, many companies are actually improving customer relationships.
In years past, rising customer satisfaction has helped sustain economic growth via consumer spending even though wages did not improve much. But as the financial crisis has led to a credit crunch and a contracting economy with high unemployment, the ability of households to spend money is now seriously curtailed.
“The good news is that there has been not been a collapse in customer satisfaction, but rather that the slide in ACSI might be flattening; the bad news is that customer satisfaction will not contribute to aggregate consumer spending as much as it used to. Households are strapped for cash, have little savings and credit is tight,” said Claes Fornell, founder of the ACSI. “But for individual companies, customer satisfaction actually matters even more in a recession. Now is the time to make sure customers don’t leave and that margins don’t evaporate. Firms without strongly satisfied customers will face a very difficult challenge.”
ACSI reported there was no change in the industry score for personal care and cleaning products, which remains at a record high of 85. Clorox remains atop the industry (87), but is joined this year by Unilever (which was up 1% to 87) and Colgate-Palmolive, which improved dramatically (with a 7% rise to 87) in great part because of its oral care product lines, such as toothpaste, teeth whiteners and electric toothbrushes.
According to Prof. Fornell, Colgate-Palmolive’s 87 is an all-time high for the company.
“Colgate-Palmolive has had a bumpy ride over the past few years, possibly because of a restructuring that began in 2005. The company has cut costs by closing almost one-third of its plants. It has reduced the size of its workforce by 12% while shedding certain product lines, such as its laundry detergent brands, in order to allocate more resources to oral care and pet food. Customer satisfaction appears strong in the oral care product lines, but weaker for pet food,” he said.
Companies bucking the trend and improving customer satisfaction this quarter are strengthening one of their most important assets—the health of their customer relationships, according to Prof. Fornell. “This is as difficult to do in hard economic times as it is necessary. Companies that make sure their customer relationships stay intact or grow stronger are in a better position to reap benefits once the economy gets better.”
More info: www.theacsi.org
To Tell the Truth: More Companies Take Honest Approach
Today's beauty product marketers are less likely to mask the truth than those of yesteryear. According to Mintel Beauty Innovation—a new service from the Chicago market research firm that monitors beauty and personal care launches globally—manufacturers are shining a light on ingredients and formulations.
Mintel reports that more than one in seven global beauty product launches this year has either been organic, ethical or all natural. In 2007, just one in nine fit that criteria. In the U.S., manufacturers are moving even faster. Nearly 30% of U.S. beauty products launched this year were organic, ethical or all natural, up from 23% in 2007.
“Beauty companies increasingly take a more honest approach to personal care,” noted Nica Lewis, head consultant, Beauty Innovation. “As people tire of insincere celebrity culture, we see more manufacturers using pure, natural elements in their products.”
In recent months, the honest trend goes even further. “Some of the latest beauty products incorporate ingredients from Indian Ayurveda or Traditional Chinese Medicine,” Ms. Lewis added. “These ancient remedies have antioxidant or whitening properties that are being used to enhance contemporary, natural and organic formulas.”
More info: www.mintel.com