Table of Contents
Executive Summary
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- Top takeaways
- Impact of COVID-19 on the natural household product market
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- Figure 1: Short, medium and longer term impact of COVID-19 on the natural household product market, May 2020
- The issues
- Natural brand growth is slowing
- A need to disinfect will further slow natural product growth
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- Figure 3: COVID-19 has shifted priorities away from natural toward disinfecting, by age, April 2020
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- Figure 4: Expect ethically sourced, plant-based and certified organic claims, by age, April 2020
- For mainstream consumers, the green premium is still a disincentive
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- Figure 5: Willingness to pay more for eco-friendly products, by natural product clusters, April 2020
- The opportunities
- Leverage the refill renaissance to attract young consumers
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- Figure 6: Interest in refillable packaging and at-home delivery, by age, April 2020
- Cause marketing can bring green consumers to mainstream brands
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- Figure 7: Care more about a brand’s causes than whether products are natural, by age, April 2020
- Innovate around long-term affordability
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- Figure 8: Frequency of purchase of natural household products, by age and income, April 2020
- What it means/what’s next
Impact of COVID-19 on the Natural Household Market
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- COVID-19 creates a household paradox
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- Figure 9: Short, medium and longer term impact of COVID-19 on the natural household product market, June 2020
- Opportunities and Threats
- Pitch disinfectants and natural products as complementary
- There’s an opportunity for better natural disinfectants
- Focus on germ prevention
- Agricultural constraints will threaten the natural ingredient supply chain
- For small eco brands, fortune or failure rests with their distribution model
- How the COVID-19 crisis will affect the natural household market’s key consumer segments
- COVID-19 will slow adoption among low-income consumers
- Seniors are most likely to shift from natural cleaners to disinfectants
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- Figure 10: COVID-19 has shifted priorities away from natural towards disinfecting, by age, April 2020
- How a COVID-19 recession will reshape the natural household product market
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- Figure 11: Frequency of purchase of natural household products, by age and income, April 2020
- COVID-19: natural household market context
The Market – What You Need to Know
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- Natural brands are outgrowing the market
- Consumers gain more options to avert plastic waste
- In the COVID-19 era, cleaning brands have become lifestyle brands
- Brands need to brace for reduced consumer spending
- COVID-19 could democratize internet access
Market Trends
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- Natural brands are slowing, but still outperform the market
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- Figure 12: Select natural brands – Fabric care, surface cleaning and air care vs. total market, percentage growth, 2016-19
- Consumers gain more options to avert plastic waste
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- Figure 13: Interest in plastic-free packaging, by age, April 2020
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- Figure 14: Responsibility for making food and beverage more sustainable, by gender and age, March 2019
Market Factors
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- In the COVID-19 era, cleaning brands have become lifestyle brands
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- Figure 15: Consumer worry about COVID-19 in the home vs. general exposure, April 2020
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- Figure 16: Cleaning frequency – More often, by consumer segmentation, January 2020
- Brands need to brace for reduced consumer spending
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- Figure 17: US unemployment and under-employment rate, January 2008-May 2020
- Figure 18: Consumer Sentiment Index, January 2007-May 2020
- COVID-19 could democratize internet access
Key Players – What You Need to Know
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- Big homecare conglomerates are exploring personal care and nutrition
- DTC drives convenience and sustainability; and now, safety
- Prepare for a new era of eco-friendly store brands
- Looking ahead: appliances will drive DIY chemical-free disinfection
What’s Happening?
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- Big homecare conglomerates are exploring personal care and nutrition
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- Figure 19: Products using popular skincare ingredients
- Concentrates drive convenience, savings and sustainability
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- Figure 20: Interest in refillable packaging, by age, April 2020
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- Figure 21: Jaws and Truman’s concentrated refills
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- Figure 22: Interest in plastic-free packaging, by age, April 2020
- Loop continues to evolve
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- Figure 23: Clorox Disinfecting Wipes in a reusable container
- Prepare for a new era of eco-friendly store brands
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- Figure 24: Dish care and surface cleaning products from Target’s Ever Spring
- Figure 25: Any eco-friendly or ethical claims, name brands vs. store brands, 2015-May 2020
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- Figure 26: Any natural household product purchase (NET), by age and household income, April 2020
What to Watch
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- Looking ahead: appliances will drive DIY chemical-free disinfection
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- Figure 27: Sanitizing spray bottle from o3Waterworks and the Eco One pitcher from Ecolox Tech
- Figure 28: Expect familiar natural ingredients, by gender, April 2020
The Consumer – What You Need to Know
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- Surface cleaners and air care have the highest natural purchase
- Natural brands are gaining penetration
- The young and higher-income are increasing their natural investment
- Trial drives natural product adoption
- Refillable packaging has strong appeal
- Mainstream and green consumers are polarized in packaging priorities
- Affluent seniors want skin-friendly products
- Health and efficacy are the top homecare goals
- During the pandemic, consumers have moved from natural to disinfecting products
Product Usage and Frequency of Use
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- Motivations for natural purchases differ by category
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- Figure 29: Select attitudes and behaviors toward air care ingredients, by repertoire of product usage, November 2019
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- Figure 30: Purchase of household care products, by brand type, April 2020
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- Figure 31: Purchase of any natural laundry detergent and fabric care products, by age and income, April 2020
- Natural brands are gaining penetration
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- Figure 32: Change in use of natural products, April 2019 and April 2020
- The young and higher-income are increasing their natural investment
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- Figure 33: Change in use of natural products, by age and income, April 2020
- Trial drives natural product adoption
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- Figure 34: Change in use of natural products – More often, by natural product clusters, April 2020
Reasons for Using Natural Products More Often
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- Planetary health has become the top reason for going green
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- Figure 35: Reasons for using more natural household products more often, April 2019 and April 2020
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- Figure 36: Select reasons for using more natural household products more often, by natural product clusters, April 2020
Importance of Packaging and Claims
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- Refillable packaging has strong appeal
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- Figure 37: Interest in packaging attributes, April 2020
- Plastic-free and refillable packaging especially interest younger consumers
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- Figure 38: Interest in refillable packaging and plastic-free packaging, by age, April 2020
- Mainstream and green consumers are polarized in packaging priorities
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- Figure 39: Interest in packaging attributes, by mainstream and natural product clusters, April 2020
- There’s a need for simple formulations and transparent brands
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- Figure 40: Eco-friendly claims, April, 2020
- Affluent seniors want skin-friendly products
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- Figure 41: Free-from and sustainably sourced claims, by age and income, April 2020
- Free-from and sustainable sourcing will convert the mainstream consumer
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- Figure 42: Eco-friendly claims, by mainstream and natural product clusters, April 2020
- Simple, understandable and transparent will rule future
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- Figure 43: TURF analysis – Eco-friendly household product ingredients, April 2020
- Methodology
Cleaning Goals
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- Health and efficacy are the top homecare goals
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- Figure 44: Household cleaning goals, April 2020
- Affordable natural disinfectants will appeal to financially stressed consumers
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- Figure 45: Select household cleaning goals, by financial situation, April 2020
- Mainstream consumers will seek affordable, natural disinfectants
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- Figure 46: Household cleaning goals, by natural product clusters, April 2020
Attitudes toward Natural Household Products
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- During the pandemic, disinfecting has become a priority
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- Figure 47: Attitudes toward natural household products, April 2020
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- Figure 48: COVID-19 has shifted priorities away from natural toward disinfecting, by age, April 2020
- Even ideological green consumers are prioritizing disinfection
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- Figure 49: COVID-19 has shifted priorities away from natural toward disinfecting, by natural product clusters, April 2020
- The cultural context: young consumers are loyal to ethical brands
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- Figure 50: Clorox “Build a Monument” statues in Buenos Aries
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- Figure 51: Care more about a brand’s causes than products, by age, April 2020
Appendix – Data Sources and Abbreviations
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- Consumer survey data
- Abbreviations and terms
- Abbreviations and terms
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