Tom Branna, Chief Content Officer01.01.24
Believe it or not, US inflation rates fell from 7% in 2021 to 6.0% in 2022 to an estimated 3.1% toward the end of 2023. But price pressures continue to put pressure on consumers’ wallets and pocketbooks. That’s why demand declined for premium fabric care brands such as Tide, while sales of value formulas like All posted double-digit gains in 2023.
According to Circana, total laundry detergent sales rose 4.7% last year to more than $9.1 billion. But price-conscious consumers clearly held sway in the liquid category, where sales rose 3.4% to $6.4 billion.
Procter & Gamble’s Tide remains the market leader with nearly a 37% share in food, drug and mass, but sales fell 1.5% through November 5, 2023. In contrast, sales of private label liquids jumped more than 19% during the period. But don’t shed tears for P&G just yet. It’s new Ace detergent, which has been available in Latin America for years, cracked the top 20 in liquid laundry in the US. Ace sales soared nearly 77,000% to $29 million, according to Circana.
Executives in the category saw the shifts in real time.
“There has been a shift toward value-based propositions,” agreed Chris Albers, director of marketing, Carbona. “Inflation made people shift to private label or dollar stores.”
Dropps CEO Alastair Dorward agreed that the economy is always a concern and market conditions remain challenging. Still, fabric care remains a consumer staple.
“We know 2024 won’t be 2008; but political events can create supply chain issues and we can’t be certain that inflation has been beaten,” he said.
For what it’s worth, Federal Reserve Chair Jerome Powell agreed. Last month, he said it was too early to declare victory over inflation. Yet, observers predict the Fed will start cutting interest rates in 2024. That sentiment sent commodity prices soaring.
American Cleaning Institute (ACI) CEO Melissa Hockstad agreed that there is still plenty of turbulence to contend with in the new year, with fierce political battles alongside traditional market uncertainty.
“But our industry does well dealing with uncertainty. During covid we even built new facilities,” she recalled. “The cleaning product value chain is resilient.”
Hear Melissa Hockstad's insights on the detergent category and her preview of the American Cleaning Institute Annual Meeting and Industry Convention.
“We were late to e-commerce game,” admitted Albers. “But Amazon is now a top five customer. Sustainability, too, has been a big growth driver.”
Now, the Carbona executive is confident that dissolvable, waterless detergent sheets will further improve the company’s sustainability and profitability profile. Albers explained that the detergent sheet category is still emerging and dominated by native e-commerce brands. In contrast, Carbona has a decades-long heritage in retail.
“We are bringing our efficiency to the category and becoming the first true national detergent sheet brand,” he told Happi. “Plus, we have the first mover advantage.”
On top of all that, Carbona has a track record of successful sheet introductions. Its plant-based substrate that is already found in Carbona’s Color Grabber and Super White sheets.
New Carbona Laundry Detergent Sheets promise to dissolve completely, whether consumers wash in regular or short wash cycles or in cold, warm or hot water.
“There’s a real trend toward waterless—it’s unique and convenient,” he said. “It may have applications beyond laundry care.”
Stain removers have been the backbone of Carbona’s business. Last year, Carbona relaunched Stain Wizard as Pro Care Laundry Stain Scrubber. The product features a new package and new formula with enzymes to remove stubborn stains.
Sustainability is at the heart of Dropps. The unit dose, direct-to-consumer detergent brand got a new CEO a year ago when Dorward replaced founder Jonathan Propper. He may be new to Dropps, but Dorward’s sustainability journey began in 2003 when he joined Method and helped company founders Eric Ryan and Adam Lowry build a household cleaning startup that took on the leading multinationals in the category. SC Johnson acquired Method in 2017.
“Method taught me about building challenger brands in multibillion-dollar categories and building close consumer relationships,” recalled Dorward. “It’s great to be back in the category and working with a great team that Jonathan built.”
In turn, the company has posted great results in recent months. Dropps recorded record sales on Black Friday and there’s been tremendous growth on Amazon, too, according to Dorward.
“Our rankings are going up and up. We are becoming the No. 1 green laundry and autodish brand—ahead of names that have been around a long time,” he told Happi. “And it’s not just the eco-natural consumer. The innovator consumer is looking for the next great idea in laundry care. The innovators are embracing what we’re doing.”
As its audience expands, Dropps may begin looking for an even bigger stage.
“I launched Method in Target and I’ve introduced brands in Walmart,” Dorward recalled. “Shopping is an omnichannel experience. We want to open the aperture of meeting the consumer where they like to shop. Post-covid shopping habits continue to evolve.”
Sustainability has been an innovation driver at Kao, too. The company’s last launch came in September 2022 with the debut of MyKirei Easy-Spray Laundry Detergent. The formula features “breakthrough proprietary palm kernel BIO-IOS technology.” This plant-based surfactant is sustainably sourced from remnants of palm and delivers heavy duty cleaning and odor-eliminating power. It offers a clean, fresh, naturally breezy fragrance, too, according to Kao.
“MyKirei is committed to purposeful, innovative, and sustainable products without compromising human safety and performance,” explained Sonya Duarte, brand assistant, consumer care, AEMEA, consumer care business, USA.
“In many applications we are able to use biobased materials. Most cleansing ingredients within our products are plant sourced, as well as some of the moisturizing and emulsifying materials.”
(Looking for insights from Henkel and its Persil brand? Click here.)
Dorward noted that sustainability has moved from the province of “quirky militant activists with anti-growth and anti-business points-of-views,” to something mainstream. Dropps eschews plastic packaging in favor of paperboard with good reason—67% of paperboard gets recycled, compared to just 9% of plastic, according to Dorward.
“Paperboard has always been a part of Dropps’ proposition and will continue to innovate with the material,” he promised. “In the UK, the bulk of monodose is in paper boxes. It will be interesting to see if the industry follows suit.”
He may be on to something. Dorward points to Dropps’ high Net Promoter Score (NPS). Developed by Bain & Co., it is a well-defined metric of consumer delight, he explained.
“We have an NPS of 73—we are industry-leading and that gives me great comfort.”
Carbona expects to increase its share of the laundry category with a white space launch that’s in-line with trends like convenience and sustainability. The new product will debut in August.
No one can be sure what’s ahead in 2024, but the American Cleaning Institute provides an excellent assessment of the past year and its crystal ball is pretty accurate, too. One reason for ACI’s accuracy is due to multiple face-to-face meetings with its members. ACI companies say it is impossible to get new chemicals through a maze of regulatory policies, she said.
“As we look at 2024, we will work with association allies and Congress,” Hockstad explained. “There are new chemistries that must move forward—sustainable surfactants and additives—but it is taking upward of several years for approval. When the Toxic Substances Control Act (TSCA) was renewed, timelines were put in place for new chemistry getting approved. We want EPA to stick to those deadlines.”
Elsewhere, ACI continues to engage with EPA and provides feedback on a range of issues including 1,4-dioxane, packaging and ethylene oxide. As reported in Happi, ACI was named an EPA Partner of the Year for the third year in a row. That strong relationship with EPA was on display when PVOH film came under attack by NGOs. ACI rallied its members and EPA dismissed the claims.
ACI expects federal legislative activity to slow in 2024 due to preoccupation with the upcoming Presidential election. In contrast, the Association is gearing up for a very busy 2024 at the state level. There, post-consumer recycled packaging and extended producer responsibility are major issues. At the same time, issues such as chemical management and 1,4-dioxane are expected to appear on state dockets, too.
“California is at the top of the list and keeps us very busy,” noted Hockstad.
To combat misinformation, ACI and its members continue to champion good science and get studies in the hands of legislators and reporters. For example, ACI showcased a novel method to evaluate low levels of 1,4-dioxane precisely and accurately in finished products. According to ACI, the method’s robustness was demonstrated with a 10-laboratory round-robin exercise that showed excellent analytical results from different testing labs. This new method will be valuable to evaluate consumer products impacted by government regulation to limit 1,4-dioxane concentrations in complex matrices.
Another example is ACI’s Cleaning Chemistry Catalog. The online database provides information on the safety of ingredients.
“We are the voice of the cleaning products industry,” asserted Hockstad. “We are building trust with various media outlets. Our communications team has been recognized with awards from several PR and marketing organizations.”
To hear more from Hockstad, click here.
To remain in front, the ACI has implemented several programs in the past year. The Sustainable Feedstocks Initiative is intended to drive the use of more sustainable feedstocks in ingredients and products throughout the industry. Early adopters of the initiative include Henkel, IFF, Inolex, Novozymes and Twin River Technologies. All have pledged to:
According to Circana, total laundry detergent sales rose 4.7% last year to more than $9.1 billion. But price-conscious consumers clearly held sway in the liquid category, where sales rose 3.4% to $6.4 billion.
Procter & Gamble’s Tide remains the market leader with nearly a 37% share in food, drug and mass, but sales fell 1.5% through November 5, 2023. In contrast, sales of private label liquids jumped more than 19% during the period. But don’t shed tears for P&G just yet. It’s new Ace detergent, which has been available in Latin America for years, cracked the top 20 in liquid laundry in the US. Ace sales soared nearly 77,000% to $29 million, according to Circana.
Executives in the category saw the shifts in real time.
“There has been a shift toward value-based propositions,” agreed Chris Albers, director of marketing, Carbona. “Inflation made people shift to private label or dollar stores.”
Dropps CEO Alastair Dorward agreed that the economy is always a concern and market conditions remain challenging. Still, fabric care remains a consumer staple.
“We know 2024 won’t be 2008; but political events can create supply chain issues and we can’t be certain that inflation has been beaten,” he said.
For what it’s worth, Federal Reserve Chair Jerome Powell agreed. Last month, he said it was too early to declare victory over inflation. Yet, observers predict the Fed will start cutting interest rates in 2024. That sentiment sent commodity prices soaring.
American Cleaning Institute (ACI) CEO Melissa Hockstad agreed that there is still plenty of turbulence to contend with in the new year, with fierce political battles alongside traditional market uncertainty.
“But our industry does well dealing with uncertainty. During covid we even built new facilities,” she recalled. “The cleaning product value chain is resilient.”
Hear Melissa Hockstad's insights on the detergent category and her preview of the American Cleaning Institute Annual Meeting and Industry Convention.
Waterless Options
Carbona has been a mainstay in the household cleaning category for more than a century. Now, the Pine Brook, NJ-based company is entering the detergent category with a unique offering—laundry sheets. It’s part of Carbona’s global ambition to double sales by 2030. To get there, Carbona is stepping up new product launches as well as its omnichannel presence. The sheets debut this month.“We were late to e-commerce game,” admitted Albers. “But Amazon is now a top five customer. Sustainability, too, has been a big growth driver.”
Now, the Carbona executive is confident that dissolvable, waterless detergent sheets will further improve the company’s sustainability and profitability profile. Albers explained that the detergent sheet category is still emerging and dominated by native e-commerce brands. In contrast, Carbona has a decades-long heritage in retail.
“We are bringing our efficiency to the category and becoming the first true national detergent sheet brand,” he told Happi. “Plus, we have the first mover advantage.”
On top of all that, Carbona has a track record of successful sheet introductions. Its plant-based substrate that is already found in Carbona’s Color Grabber and Super White sheets.
New Carbona Laundry Detergent Sheets promise to dissolve completely, whether consumers wash in regular or short wash cycles or in cold, warm or hot water.
“There’s a real trend toward waterless—it’s unique and convenient,” he said. “It may have applications beyond laundry care.”
Stain removers have been the backbone of Carbona’s business. Last year, Carbona relaunched Stain Wizard as Pro Care Laundry Stain Scrubber. The product features a new package and new formula with enzymes to remove stubborn stains.
Sustainability is at the heart of Dropps. The unit dose, direct-to-consumer detergent brand got a new CEO a year ago when Dorward replaced founder Jonathan Propper. He may be new to Dropps, but Dorward’s sustainability journey began in 2003 when he joined Method and helped company founders Eric Ryan and Adam Lowry build a household cleaning startup that took on the leading multinationals in the category. SC Johnson acquired Method in 2017.
“Method taught me about building challenger brands in multibillion-dollar categories and building close consumer relationships,” recalled Dorward. “It’s great to be back in the category and working with a great team that Jonathan built.”
In turn, the company has posted great results in recent months. Dropps recorded record sales on Black Friday and there’s been tremendous growth on Amazon, too, according to Dorward.
“Our rankings are going up and up. We are becoming the No. 1 green laundry and autodish brand—ahead of names that have been around a long time,” he told Happi. “And it’s not just the eco-natural consumer. The innovator consumer is looking for the next great idea in laundry care. The innovators are embracing what we’re doing.”
As its audience expands, Dropps may begin looking for an even bigger stage.
“I launched Method in Target and I’ve introduced brands in Walmart,” Dorward recalled. “Shopping is an omnichannel experience. We want to open the aperture of meeting the consumer where they like to shop. Post-covid shopping habits continue to evolve.”
Sustainability has been an innovation driver at Kao, too. The company’s last launch came in September 2022 with the debut of MyKirei Easy-Spray Laundry Detergent. The formula features “breakthrough proprietary palm kernel BIO-IOS technology.” This plant-based surfactant is sustainably sourced from remnants of palm and delivers heavy duty cleaning and odor-eliminating power. It offers a clean, fresh, naturally breezy fragrance, too, according to Kao.
“MyKirei is committed to purposeful, innovative, and sustainable products without compromising human safety and performance,” explained Sonya Duarte, brand assistant, consumer care, AEMEA, consumer care business, USA.
“In many applications we are able to use biobased materials. Most cleansing ingredients within our products are plant sourced, as well as some of the moisturizing and emulsifying materials.”
(Looking for insights from Henkel and its Persil brand? Click here.)
The Year Ahead
“Known unknowns” are a given in a post-covid world. That said, every fabric care company continues to invest in order to boost formula efficacy. Most are looking at packaging, too.Dorward noted that sustainability has moved from the province of “quirky militant activists with anti-growth and anti-business points-of-views,” to something mainstream. Dropps eschews plastic packaging in favor of paperboard with good reason—67% of paperboard gets recycled, compared to just 9% of plastic, according to Dorward.
“Paperboard has always been a part of Dropps’ proposition and will continue to innovate with the material,” he promised. “In the UK, the bulk of monodose is in paper boxes. It will be interesting to see if the industry follows suit.”
He may be on to something. Dorward points to Dropps’ high Net Promoter Score (NPS). Developed by Bain & Co., it is a well-defined metric of consumer delight, he explained.
“We have an NPS of 73—we are industry-leading and that gives me great comfort.”
Carbona expects to increase its share of the laundry category with a white space launch that’s in-line with trends like convenience and sustainability. The new product will debut in August.
No one can be sure what’s ahead in 2024, but the American Cleaning Institute provides an excellent assessment of the past year and its crystal ball is pretty accurate, too. One reason for ACI’s accuracy is due to multiple face-to-face meetings with its members. ACI companies say it is impossible to get new chemicals through a maze of regulatory policies, she said.
“As we look at 2024, we will work with association allies and Congress,” Hockstad explained. “There are new chemistries that must move forward—sustainable surfactants and additives—but it is taking upward of several years for approval. When the Toxic Substances Control Act (TSCA) was renewed, timelines were put in place for new chemistry getting approved. We want EPA to stick to those deadlines.”
Elsewhere, ACI continues to engage with EPA and provides feedback on a range of issues including 1,4-dioxane, packaging and ethylene oxide. As reported in Happi, ACI was named an EPA Partner of the Year for the third year in a row. That strong relationship with EPA was on display when PVOH film came under attack by NGOs. ACI rallied its members and EPA dismissed the claims.
ACI expects federal legislative activity to slow in 2024 due to preoccupation with the upcoming Presidential election. In contrast, the Association is gearing up for a very busy 2024 at the state level. There, post-consumer recycled packaging and extended producer responsibility are major issues. At the same time, issues such as chemical management and 1,4-dioxane are expected to appear on state dockets, too.
“California is at the top of the list and keeps us very busy,” noted Hockstad.
To combat misinformation, ACI and its members continue to champion good science and get studies in the hands of legislators and reporters. For example, ACI showcased a novel method to evaluate low levels of 1,4-dioxane precisely and accurately in finished products. According to ACI, the method’s robustness was demonstrated with a 10-laboratory round-robin exercise that showed excellent analytical results from different testing labs. This new method will be valuable to evaluate consumer products impacted by government regulation to limit 1,4-dioxane concentrations in complex matrices.
Another example is ACI’s Cleaning Chemistry Catalog. The online database provides information on the safety of ingredients.
“We are the voice of the cleaning products industry,” asserted Hockstad. “We are building trust with various media outlets. Our communications team has been recognized with awards from several PR and marketing organizations.”
To hear more from Hockstad, click here.
To remain in front, the ACI has implemented several programs in the past year. The Sustainable Feedstocks Initiative is intended to drive the use of more sustainable feedstocks in ingredients and products throughout the industry. Early adopters of the initiative include Henkel, IFF, Inolex, Novozymes and Twin River Technologies. All have pledged to:
- Identify relevant feedstocks, risks and sustainability opportunities across cleaning ingredient portfolios.
- Increase the use of more sustainable feedstocks and feedstocks created with more sustainable production practices across cleaning ingredient portfolios.
- Collaborate across the cleaning products value chain to drive increased transparency, availability and adoption of more sustainable feedstocks.