03.31.09
Natural, ‘Pseudo’ Natural Markets Post Gains in 2008
The natural personal care market in the U.S. exceeded $2 billion in sales at the manufacturers’ level, up nearly 19% from 2007, according to a new study from Kline & Company. According to Karen Doskow, associate project manager at Kline, consumers’ desire for safer products and their concern for the environment have combined with more mainstream availability of natural products to drive growth in the naturals market as well as the“pseudo-natural” or “naturally inspired” products market.
According to Kline, the availability of more affordable products with a natural positioning in mass retail channels has made natural personal care more accessible to the average consumer, and sales of these natural-inspired products are posting unprecedented growth.
The U.S. volume of Kline’s Natural Personal Care 2008: Competitive Brand Assessment and Ingredient Analysis examines 27 natural cosmetic and toiletry brands in the U.S. market and rates them on how natural they truly are. Despite the proliferation of natural claims, Kline’s research shows that truly natural products actually account for just over 40% of the market.
According to Kline, given the current economic climate, marketers will be assessing whether consumers will be willing to pay a premium for natural and organic products.
“Major marketers are in an excellent position to leverage the naturals proposition that began with the smaller niche players,” noted Carrie Mellage, director of Kline’s Consumer Products practice. “Manufacturing economies of scale, a stronger position for negotiating supplier agreements, and well-developed distribution channels will allow master brands like Unilever’s Dove and Colgate-Palmolive’s Softsoap to ride the naturals wave even during lean times.”
The European volume of the report, which profiles 26 brands, reveals that Europe continues to be a robust market for natural personal care products, posting a 15% gain in 2008 on top of a $3 billion sales base. Germany continues to lead the European naturals market, capturing nearly a third of the total market sales. Growth for truly natural brands has significantly outpaced increases for natural-inspired brands, driven by growing distribution and broadening consumer demand.
More info: www.KlineGroup.com
U.S. Wipes Demand To Hit $2.3 Billion by 2013
Demand for wipes in the U.S. is forecast to rise 3.9% percent per year to $2.3 billion in 2013, according to a new study from The Freedonia Group, Inc., a Cleveland-based market research firm.
Wipes will continue to benefit from features such as ease-of-use, disposability, portability and reduced risk of cross-contamination. However, growth will decelerate from the rates achieved during the 2003 to 2008 period, due to slower economic growth, increasing market maturity and a shift in preferences to more environmentally friendly consumer goods and cleaning methods.
According to Freedonia, convenience and innovation will remain driving forces in the consumer market, with household cleaning, hand and body and a number of other, small volume consumer wipes projected to register the strongest growth.
Growth in household care wipes will be propelled by the appeal of one-step, disposable wipes that provide a quick and convenient format for household cleaning chores. However, wipes that do not provide the cost and convenience benefits demanded by consumers are expected to drop out of the market.
Following the lead of the consumer market, new product innovations and expanding applications will drive demand for wipes in the industrial market. Manufacturing and health care will remain the largest segment, with special purpose products such as clean room and surface preparation wipes and personal bathing wipes projected to see the fastest growth.
More info: www.freedoniagroup.com
Male Grooming Continues to Offer Growth
When it comes to the men’s grooming market, it’s growing, but maybe not as fast it could be.According to a new report from Datamonitor, the male grooming market is continuing to expand, although at a slower rate than often expected. Datamonitor reports that much of the market continues to rely on products that are viewed as essential, while the indulgent and emotional nature often seen in the women’s personal care industry is rare among men.
“While the more lucrative women’s market is also continuing to grow, the potential of the male market remains enormous and will be important to manufacturers of consumer packaged goods (CPGs). The male grooming market needs a markedly different approach in order to succeed than the female market, however, due to some substantial differences in attitudes and behaviors that exist across genders,” noted Matthew Taylor, the consumer analyst at Datamonitor who authored the report.
Across most countries featured in the report, the split of populations is roughly equal by gender, but women continue to dominate spending in the personal care industry.
The survey revealed that price was the biggest influence on men when choosing personal care products. More than half of all male respondents felt that price had either a “high” or “very high” influence on their choice of products. This was a substantially higher response rate than for any other factor, although “habit/preferred brand” and “ease of use” also ranked as fairly important influencing factors among men, according to the consultancy.
Findings also showed that most men did not pay much attention to new products in the field of personal care. This, coupled with a low engagement, suggests that many men will simply stick with what they know. Half of all male respondents said that they did not seem to notice new products in cosmetics and toiletries. The equivalent figure for women was much lower at 28.7%.
More info: www.datamonitor.com
Spring Cleaning ‘09: Cheaper Products, More DIY
The economy is really hitting home, even when it comes to keeping house. While the vast majority of Americans still plan on “spring cleaning” this season, a new survey from The Soap and Detergent Association (SDA) suggests the economic downturn is having an effect on American’s household cleaning habits and purchases.
According to SDA’s 2009 Spring Cleaning Survey, 78% of respondents said the current economic condition has influenced their cleaning habits. For starters, more people are taking a DIY approach—60% say they’re doing more cleaning themselves instead of hiring a cleaning service. Secondly, 44% say they are buying less expensive cleaning products.
In regard to the most important qualities when it comes to cleaning purchases, Americans rank effectiveness (87%), cost (74%) and convenience (71%) as the top factors, followed by multi-purpose (67%) and time-saving (64%) benefits.
SDA’s survey also found that consumers are also increasingly seeking sustainability-related benefits in their cleaning products, as reflected by more consumers looking for those features in 2009 (61%) than reported in the 2008 survey (38%).
More info: www.cleaning101.com