Household Paper Products - UK - January 2006

INTRODUCTION AND ABBREVIATIONS
Definitions
Consumer research
ACORN
Advertising data
 ABBREVIATIONS
PREMIER INSIGHT
Maximising profits from the growing number of bathrooms
Developing the role as home furnishings
Developing secondary usage
Developing aloe vera as a brand for children
Dashboard dining is a growing trend
New furniture solutions
Levering cold and flu remedy brand identities
EXECUTIVE SUMMARY
More bathrooms, more households
Higher levels of consumption
Kitchen towels are star performer
Good and bad news for brands
Technology-driven launches
Above-the-line spend falling
The rise of the multiples
Facial tissue usage
People more important than bathrooms
Future potential
MARKET DRIVERS
Shopping lists
Figure 1: PDI and consumer expenditure, 2000-05
PDI driving NPD
Usage levels
An ageing population
Figure 2: UK Population age breakdown, 2000 and 2005
More homes to supply…
Figure 3: Household stock, 2000-05
…but fewer people in each house
Figure 4: Housing stock by household size, 2000 and 2005
More bathrooms
Figure 5: Percentage of households with 1, 2 or 3 or more bathrooms, 2001-05
Home designers
Changing living and eating habits
Figure 6: Agreement with selected lifestyle statements, 2001-05
The own-label threat
Figure 7: Agreement with selected lifestyle statements, 2001-05
‘Me-too’ products
 INCIDENCE OF COMPLAINTS
Figure 8: Incidence of complaints in the last 12 months, 2001-05
Flu declining
Hayfever rising
The green issue
Figure 9: Agreement with lifestyle statements about environmental issues, 2001-05
MARKET SIZE
Figure 10: UK retail sales of household paper products, 2000-05
Volume growth over and above value
A note of caution
Figure 11: UK retail sales of household paper products, by type, 2001, 2003 and 2005
Kitchen towels underpinning the market
MARKET SEGMENTATION
More toilet rolls sold
Figure 12: UK retail sales of toilet tissue, 2000-05
But market value slipping
Figure 13: UK estimated retail sales of toilet tissue, by category, by value, 2003 and 2005
Sub-sectors stable
Recycled/economy remain small
Kitchen towels
Figure 14: UK retail sales of kitchen towels, 2000-05
Value keeping up with volume
Developing a premium sector
Facial tissues
Figure 15: UK retail sales of facial tissues, 2000-05
Decline in standard section
Figure 16: UK estimated retail sales of facial tissues, by sector, by value, 2003 and 2005
THE SUPPLY STRUCTURE
 BRAND SHARES – TOILET TISSUE
Figure 17: Leading brand shares within the toilet tissue sector, 2003 and 2005
Puppy power
But other brands declining
Velvet re-branding
 KITCHEN TOWELS
Figure 18: Leading brand shares within the kitchen towel sector, 2003 and 2005
Own-label dominates
 FACIAL TISSUES
Figure 19: Leading brand shares within the facial tissue sector, 2003 and 2005
Kleenex losing share
The impact of own-label pricing
 COMPANIES AND BRANDS
Kimberly Clark Ltd
SCA Hygiene Products (UK) Ltd
Georgia Pacific GB Ltd
Procter & Gamble
 OTHER COMPANIES
LPC (UK) Ltd
Kruger
Others
NEW PRODUCT DEVELOPMENT
 INTRODUCTION
Technology-driven launches
Retailers tracking the brands
Blurring product usage
Character merchandising
Bringing prices down
Packaging
Forecast
ADVERTISING AND PROMOTION
Significant cutbacks
Figure 20: Main monitored media advertising expenditure on household paper products, 2000-05
Falls in advertising-to-sales ratio
Figure 21: Main monitored media advertising expenditure on household paper products, 2000-05
A varied picture
Spend on facial tissues has collapsed
Figure 22: Main monitored media advertising expenditure on household paper products, 2004
TV dominates
 COMPANY/MANUFACTURER SHARE
 TOILET TISSUE
Figure 23: Main monitored media advertising expenditure on toilet tissue, 2004 and 2005
Kimberley Clark focusing on newer brands
Other companies cutting back
 KITCHEN TOWELS
Figure 24: Main monitored media advertising expenditure on kitchen towels, by company and brand, 2004 and 2005
More exposure for Brenda and Audrey
 FACIAL PAPER TISSUES
Figure 25: Main monitored media advertising expenditure on facial paper tissues, by company and brand, 2004 and 2005
Heavyweight support for new sub-brands
Seasonality in media spend
Figure 26: Main monitored media advertising expenditure on household paper products, by quarter, 2004
Tissue spend concentrated in the winter
Timing linked to brand owners
DISTRIBUTION
Figure 27: Retail distribution of household paper products, 2001-05
The rise of the multiples
Distress purchases and c-stores
THE CONSUMER
 FACIAL TISSUES
Figure 28: Usage of facial tissues, in the last 12 months, 2005
Tissue usage
Women use more tissues
Very young and the old are key determinants of purchase
Figure 29: Heavy usage of facial tissues, by presence of children and lifestage, 2005
Long-suffering Londoners
Figure 30: Usage of facial tissues by complaints suffered from in the last 12 months, 2001-05
The impact of feeling really ill
Facial tissues – Product type
Figure 31: Type of facial tissues used, 2002-05
Not practising what they preach
 TOILET PAPER (MAIN SHOPPER)
Figure 32: Usage of toilet paper, in the last 12 months, 2002-05
Heavy usage becoming more common
More bums on seats
Quality versus volume
Toilet tissue product type
Figure 33: Type of toilet paper used, 2002-05
Standard predominates, others are niche
THE CONSUMER – DETAILED DEMOGRAPHICS
 FACIAL TISSUES
Figure 34: Usage of facial tissues, in the last 12 months, by gender, age, socio-economic group, presence of children, marital status, working status, household size, region, lifestage and Mintel's Special Groups, 2005
 TOILET PAPER
Figure 35: Usage of toilet paper, in the last 12 months, by gender, age, socio-economic group, presence of children, marital status, working status, household size, region, lifestage and Mintel's Special Groups, 2005
THE CONSUMER – ATTITUDES AND BEHAVIOURS
Figure 36: Attitudes towards kitchen roll, August 2005
Usage reflects marketing
Women in the kitchen
Cooking skills
Wiping up the children
Branding for children
Opposite ends of the country
Targeting users
Keeping it to hand
Developing the role of kitchen towel as a fashion accessory
 ATTITUDES TOWARDS ALOE VERA TOILET TISSUE
Figure 37: Attitudes towards aloe vera toilet tissue, August 2005
Concerns about cost
Women more likely targets
Potential for children’s use
Opportunities for retailers
ATTITUDES AND BEHAVIOURS – DETAILED DEMOGRAPHICS
Figure 38: Usage of kitchen roll, by gender, age and socio-economic status, August 2005
Figure 39: Usage of kitchen roll, by presence of children, lifestage and Mintel’s Special Groups, August 2005
Figure 40: Attitudes towards kitchen roll, by marital and working status and household size, August 2005
Figure 41: Usuage of kitchen roll, by region and ACORN catgeory, August 2005
Figure 42: Attitudes towards kitchen roll, by media usage, commercial TV viewing and supermarket usage, August 2005
Figure 43: Attitudes towards kitchen roll, by gender, age and socio-economic status, August 2005
Figure 44: Attitudes towards kitchen roll, by presence of children, lifetsage and Mintel’s Special Groups, August 2005
Figure 45: Attitudes towards kitchen roll, by marital and working status and household size, August 2005
Figure 46: Attitudes towards kitchen roll, by region and ACORN catgeory, August 2005
Figure 47: Attitudes towards kitchen roll, by media usage, commercial TV viewing and supermarket usage, August 2005
Figure 48: Attitudes towards aloe vera toilet tissue, by gender, age and socio-economic group, August 2005
Figure 49: Attitudes towards aloe vera toilet tissue, by presence of children, lifestage and Mintel’s Special Groups, August 2005
Figure 50: Attitudes towards aloe vera toilet tissue, by marital and working status and household size, August 2005
Figure 51: Attitudes towards aloe vera toilet tissue, by region and ACORN catgeory, August 2005
Figure 52: Attitudes towards aloe vera toilet tissue, by media usage, commercial TV viewing and supermarket usage, August 2005
THE FUTURE
Figure 53: Forecast of the market for household paper products, by value, 2005-10
Price rises due
The effect of PDI
Figure 54: PDI and consumer expenditure, 2005-10
Moving more sophisticated
Number of households continuing to rise
Figure 55: Household stock, by household size, 2005-10
But household size falling
Changing age profile
Figure 56: Projected UK population by age, 2005-10
Own-label developments