Table of Contents
Executive Summary
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- Top takeaways
- As the pandemic wanes, consumers resolve to use more natural
- Sustainable packaging will be a growing platform for competition
- Green will evolve to stand for better convenience
- Impact of COVID-19 on the natural household consumer
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- Figure 1: Short-, medium- and long-term impact of COVID-19 on the natural household consumer, June 2021
- Opportunities and challenges
- Learn how to retain newly won consumers
- Target parents as lead users
- Build natural portfolios around “hero ingredients”
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- Figure 2: Expect familiar, natural ingredients, by gender, January 2021
- Natural disinfectants have potential in a post-COVID world
Target Audience – Key Takeaways
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- Target audience by the numbers
- Impact of COVID-19 on the natural household consumer
- Energy policy could level the cost playing field
Target Audience by the Numbers
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- Figure 3: Consumers by natural clusters, January 2021
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- Figure 4: Reasons for using more natural homecare products this year vs last year, April 2020 and January 2021
- Impact of COVID-19 on the natural household consumer
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- Figure 5: Percentage growth in multi-outlet sales of select natural surface cleaning brands vs total market, 2017-20
- During the pandemic, mainstream consumers boosted natural homecare sales
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- Figure 6: Percentage growth in multi-outlet sales of select natural surface cleaning brands vs total market, 52 weeks ending April 18, 2021
- Figure 7: Short-, medium- and long-term impact of COVID-19 on natural household care, June 2021
- Lockdown
- Re-emergence
- Recovery
- Learnings from the last recession
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Market Factors
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- Growing consumer confidence and disposable income means higher natural product sales
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- Figure 8: Consumer confidence and unemployment, 2000-April 2021
- Figure 9: Disposable personal income change from previous period, January 2007-April 2021
- How will new energy policies impact natural brands?
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- Figure 10: Interest in products that are sustainably sourced and plant-based, by age, January 2021
- Energy policy could level the cost of the playing field
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- Figure 11: Saving money is the top homecare goal, by income, January 2021
Companies and Brands – Key Takeaways
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- Seventh Generation makes steel part of a closed loop system
- P&G looks to flexible pouches for convenience and plastic reduction
- In the name of sustainability, the old becomes new again
- The mainstreaming of natural will make the green niche obsolete
- Sustainable packaging is the low-hanging fruit
- Link green to convenience
- Consider natural disinfectants
Competitive Strategies
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- Seventh Generation makes steel part of a closed loop system
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- Figure 12: Interest in home delivery refill systems, by age, January 2021
- P&G looks to flexible pouches for convenience and plastic reduction
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- Figure 13: Seventh Generation Zero Plastic and Ariel’s refill pouches
- In the name of sustainability, the old becomes new again
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- Figure 14: Interest in familiar, natural ingredients, by gender, January 2021
- Figure 15: P&G’s 9 Elements
- Natural becomes a platform for retailer exclusivity
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- Figure 16: Botanical Origin Laundry Detergent and NBD Surface Cleaner
- Homecare brands are borrowing personal care formats
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- Figure 17: Prioritize water conservation in homecare, by age and gender, January 2021
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- Figure 18: Love Home and Planet Vetiver & Tea Tree Scented Re-Wear Dry Wash Spray
- The mainstreaming of natural will make the green niche obsolete
Market Opportunities
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- Sustainable packaging is the low-hanging fruit
- Link green to convenience
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- Figure 19: Convenience is more important than sustainability, by age and gender, January 2021
- Natural disinfectants have potential in a post-COVID world
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- Figure 20: Interest in natural disinfectants, by age, January 2021
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- Figure 21: Defunkify natural laundry detergent
The Consumer – Key Takeaways
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- As the pandemic abates, consumers embrace natural again
- Improving efficacy is playing a more important role in natural adoption
- Now is the time to double down on transparency efforts
- Across consumer clusters, germ-management is the common ground
- Fewer consumers are abandoning natural brands
- Parents will drive growth in the recovery
Product Usage
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- As the pandemic abates, consumers embrace natural again
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- Figure 22: COVID-19 has shifted priorities away from natural toward disinfecting, April 2020 and January 2021
- Natural is growing in every homecare category
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- Figure 23: Any natural purchase by homecare segment, April 2019, April 2020 and January 2021
- Age is the biggest natural purchase indicator
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- Figure 24: Household surface cleaners and laundry detergent, any natural brand purchase, by age, January 2021
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- Figure 25: Interest in “free from” household products, by age, January 2021
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- Figure 26: Preference for familiar surface cleaning brands, by age, July 2020
Change in Usage of Natural Products
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- Consumers who are increasing their use of natural have remained constant
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- Figure 27: Change in use of natural products, April 2019, April 2020 and February 2021
- Exploratory natural consumers growing their natural involvement
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- Figure 28: Change in use of natural products – More often, by natural product clusters, January 2021
- The pandemic widened the natural income gap; it will narrow it again
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- Figure 29: Use natural products more often, by age and income, April 2019, April 2020 and January 2021
Reasons for Using Natural Products More Often
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- Improving efficacy is playing a more important role in natural adoption
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- Figure 30: Reasons for using natural household products more often, January 2021
- An opportunity to attract first-time users
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- Figure 31: Reasons for using natural household products more often, by natural product clusters, January 2021
Retailers Shopped
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- Across all retail channels, ecommerce sees the highest growth
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- Figure 32: Retailers shopped for both natural and mainstream household care products, January 2021
- Young consumers usher in a new era of ecommerce
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- Figure 33: Select retailers shopped for both natural and mainstream household care products, by age, January 2021
- Heavy natural shoppers buy the most online
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- Figure 34: Buy natural products online, by natural product clusters, January 2021
- Figure 35: Buy mainstream products online, by natural product clusters, January 2021
Prioritized Ingredient Claims
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- Now is the time to double down on transparency efforts
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- Figure 36: Preferred ingredient claims, January 2021
- Free-from, sustainable sourcing and familiar ingredients will drive trial of natural
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- Figure 37: Preferred ingredient claims, by mainstream and natural consumer clusters, January 2021
Cleaning Goals
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- Efficiency and germ management top the list of goals
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- Figure 38: Cleaning goals, January 2021
- Across consumer clusters, germ-management is the common ground
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- Figure 39: Cleaning goals, by mainstream and natural consumer clusters, January 2021
Attitudes toward Household Products
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- As COVID-19 risk declines, fewer consumers are abandoning natural
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- Figure 40: Attitudes toward natural household products, January 2021
- For the financially stressed, disinfecting is a way of taking back control
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- Figure 41: Pandemic-driven shift from natural to disinfectants, by financial situation, January, 2021
- Natural-dominant consumers and parents will drive growth in the recovery
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- Figure 42: Willingness to use more natural products once pandemic is over, by natural consumer cluster and parental status, January 2021
- Natural disinfectants could gain traction
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- Figure 43: Interest in natural disinfectants, by natural consumer cluster, January 2021
- The green premium is still a natural adoption barrier
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- Figure 44: Willing to pay more for eco-friendly products, by natural consumer cluster, January 2021
Appendix – Data Sources and Abbreviations
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- Data sources
- Sales data
- Consumer survey data
- Abbreviations and terms
- Abbreviations
- Terms
Appendix – Consumer
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- Figure 45: Base table for product usage, any natural brand purchase, April 2020 and April 2019
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