Aircare: Inc Impact of COVID-19 - UK - September 2020

OVERVIEW
What you need to know
Key issues covered in this Report
COVID-19: Market context
Economic and other assumptions
Products covered in this Report
EXECUTIVE SUMMARY
The market
COVID-19 has led to increased engagement with the market
Figure 1: UK central forecast value sales of air care products (prepared 14 September 2020), 2015-25
Adapt to the new role of the home
Promote affordable luxury to keep consumers engaged
The impact of COVID-19 on air care
Figure 2: Short, medium and long term impact of COVID-19 on air care, 14 September 2020
The consumer 
Stress levels have influenced an increase in usage of premium formats
People use air care to make a place feel like home
Figure 3: Types of air care products used in the last 12 months, July 2019 and June 2020
Broaden the functionality of air care products around the home
Figure 4: Room(s) used for each of the following air care products in the last 12 months, June 2020
Target gift purchasing to increase exposure
Figure 5: Frequency of air care product purchase, June 2020
Focus on value, not price
Figure 6: Factors prioritised while choosing air care products, June 2020
Adjust packaging to make an immediate impact
Figure 7: Behaviours most interested in adopting while thinking about the environmental impact of air care products
Improve health profiles to avoid drift to alternatives
Figure 8: Attitudes towards air-care products, June 2020
Standard brands offer an all-round strong proposition
Own-labels are well placed to take market share
Premium brands need to reassert their positioning
Figure 9: Perceptions of different air care brand tiers, June 2020
Companies and brands
Reassert value to push back against own-label in the continuous non-electric segment
Figure 10: Brand shares in value sales of continuous non-electric air fresheners, year ending June 2020
Air Wick relies on essential oils to reverse decline in continuous electric segment
Figure 11: Brand shares in value sales of continuous electric air fresheners, year ending June 2020
Febreze’s functionality leads to a significant boost in the manual segment
Figure 12: Brand shares in value sales of manual air fresheners, year ending June 2020
Air care innovation will take on an important role in the festive period
Own-labels sense an opportunity in premium formats
Figure 13: New product development in the air care products category, by sub-category, January 2016-July 2020
THE IMPACT OF COVID-19 ON AIR CARE
The impact on the market
COVID-19 has led to increased engagement with the market
More time at home has created more usage occasions
Adapt to the new role of the home
Broaden functionality to fit new tasks carried out in the home
Promote air care as affordable luxury
Keep young people engaged with the market in spite of job losses
The impact on the consumer 
COVID-19 concerns will keep people at home
A need to reassert environmental credentials
Stress levels have influenced an increase in usage of premium formats
Make living spaces feel like home
Focus on value to avoid drift to own-label
Adjust to the renewed focus on health because of COVID-19
The impact on companies and brands
Use festive innovation to create feelings of familiarity
Own-labels sense an opportunity to increase luxury connotations
Brands can target mental wellbeing to support consumers
ISSUES AND INSIGHTS
COVID-19 encourages people to reassess the value of living spaces
Make an immediate impact with packaging adjustments
COVID-19 will increase the importance of a healthy profile
THE MARKET – KEY TAKEAWAYS
COVID-19 will influence an increase in air care sales
Adapt to the new role of the home
Retail habits have been impacted by the pandemic
MARKET SIZE AND FORECAST
Impact of COVID-19 on air care
Figure 14: Short, medium and long term impact of COVID-19 on air care, 14 September 2020
Air care market experiences value sales decline in 2019
A boost to the market in 2020 is expected
Figure 15: UK value sales of air care products (prepared on 14 September 2020), 2015-2025
A return to previous performance as life returns to normal
Align with the new functions of the home
Go further on sustainability to encourage usage
Health focus will drive the natural movement
Figure 16: UK central forecast value sales of air care products (prepared 14 September 2020), 2015-25
Market drivers and assumptions
Figure 17: Key drivers affecting Mintel’s market forecast (prepared 14 September 2020), 2015-2025
A different type of recession compared to 2008
Figure 18: UK value sales of air care, 2007-2017
Forecast methodology
MARKET SEGMENTATION
Non-electrical air fresheners keep the lead
Figure 19: UK retail value sales of air care products, by segment, 2018-20 (est)
Manual air fresheners see significant growth 
Continuous electric segment pushes natural ingredients
Car fresheners see opportunities to grow
CHANNELS TO MARKET
Grocery multiples continue to dominate but discounters gain 
Retail habits impacted by the pandemic
Figure 20: UK retail value sales of air care, by outlet type, 2018-20 (est)
Overcome online shopping limitations 
MARKET DRIVERS
Consumer confidence remains robust…for now
Figure 21: Trends in consumer sentiment for the coming year, July 2011-August 2020
Position air care as support for wellbeing in the home
Figure 22: Causes of stress over the last 12 months, February 2018
Interest in ingredients is growing
The next step towards healthy products
COMPANIES AND BRANDS – KEY TAKEAWAYS
Own-labels are increasing their presence
Use festive innovation to create feelings of familiarity
Febreze’s odour-removal reputation drives manual segment
MARKET SHARE
Own-labels dominate the continuous non-electric segment
Figure 23: Brand shares in value sales of continuous non-electrical air fresheners, year ending June 2019 and 2020
Air Wick experiences decline in value sales
Figure 24: Brand shares in value sales of continuous electrical air fresheners, year ending June 2019 and 2020
Febreze’s odour-removal reputation drives manual segment
Figure 25: Brand shares in value sales of manual air fresheners, year ending June 2019 and 2020
LAUNCH ACTIVITY AND INNOVATION
Air care NPD continues to grow
Figure 26: NPD in the household care sector, by category, January 2016- August 2020
Use festive innovation to create feelings of familiarity
Figure 27: New product development in the air care products category, by sub-category, January 2016-July 2020
New product launches drop in 2019
Figure 28: New product development in the air care products category, by launch type, January 2016- August 2020
Febreze relaunches aerosol ranges
Figure 29: Example of P&G Febreze relaunches, 2019
Brands up focus on packaging changes
Figure 30: Examples of new packaging launches in the air care category, 2019
SC Johnson pushes its Glade brand
Figure 31: New product launches in air-care category, by ultimate company and other, 2019
Own-labels sense an opportunity to engage consumers
Figure 32: New product launches in air-care category, by own-label vs branded products, January 2016-August 2020
Own-labels target segments on the rise
Figure 33: Examples of premium launches from own-label brands, 2020
Air care ingredients take centre stage
Figure 34: Leading claims in the air care products category, based on top claims for 2019, January 2018 – July 2020
A shift towards more natural formulations
Figure 35: Examples of air care products launches with botanical/herbal claims, 2019
The environment still means something to consumers
Figure 36: Examples of air care product launches with both environmentally friendly packaging and recycling claims, 2019
Functional claims have dipped but remain crucial
Floral remains the most prominent scent
Figure 37: Leading fragrances in air care product launches, by top fragrance component groups in 2019, January 2018-August 2020
Air care supporting mental wellbeing  
Figure 38: Examples of air care product launches containing lavender, January - July 2020
Glade uses music to aid escapism
Figure 39: SC Johnson Glade automatic spray products designed for use alongside Spotify playlists, February 2020
ADVERTISING AND MARKETING ACTIVITY
RB and P&amp;G are the major advertising investors 
Figure 40: Total above-the-line, online display and direct mail advertising expenditure on air care products, by leading advertisers, 2019
Figure 41: Total above-the-line, online display and direct mail advertising expenditure on air care products, by leading brands, 2019
Air Wick Essential Mist bets on aromatherapy
Figure 42: Air Wick ‘Experience the power of scent’ advert, 2020
Febreze with a beat
Figure 43: Febreze ‘Nobody Do It Fresher’ #FebrezeSong, 2019
Glade teams up with Spotify
Figure 44: Glade teams up with Spotify, 2020
New focus on digital advertising 
Figure 45: Total above-the-line, online display and direct mail advertising expenditure on air care products, by media type, 2019
Figure 46: Air Wick ‘Introducing Botanica by Air Wick: new exotic fragrances’ advert, 2020
Nielsen Ad Intel coverage
BRAND RESEARCH
Brand map
Figure 47: Attitudes towards and usage of selected brands, August 2020
Key brand metrics
Figure 48: Key metrics for selected brands, August 2020
AromaWorks seen as caring about health
Figure 49: Attitudes, by brand, August 2020
Air Wick, Ambi Pur and Glade are noted for accessibility
Figure 50: Brand personality – macro image, August 2020
Yankee Candle has a reputation for high performance
Figure 51: Brand personality – micro image, August 2020
Brand analysis
Febreze is a trusted odour-remover
Figure 52: User profile of Febreze, August 2020
Yankee Candle carries premium associations
Figure 53: User profile of Yankee Candle, August 2020
Air Wick pushes aromatherapy to aid brand image
Figure 54: User profile of Air Wick, August 2020
Glade has a potential advantage on value
Figure 55: User profile of Glade, August 2020
Ambi Pur’s shift to Febreze brand will positively impact sales
Figure 56: User profile of Ambi Pur, August 2020
Wax Lyrical is likely to increase its ethical profile
Figure 57: User profile of Wax Lyrical, August 2020
AromaWorks’ therapeutic products provide a point of difference 
Figure 58: User profile of AromaWorks, August 2020
THE CONSUMER – KEY TAKEAWAYS
Stress levels have influenced an increase in premium formats
Broaden functional air care for different occasions in the home
Packaging changes can make an immediate impact
Reassure about health with greater transparency
THE IMPACT OF COVID-19 ON CONSUMER BEHAVIOUR
Concerns will keep people at home
Figure 59: Concern of exposure risk to COVID-19/coronavirus, 28 February – 30 July 2020
Hygiene measures threaten usage of air care products
Figure 60: Reckitt Benckiser, Dettol All in One Disinfectant Spray launches, 2016-20
Consumers invest in their home environment
Figure 61: Spending expectations in the last three months and over the next three months, August 2020
The environment has grown in prominence
Figure 62: Change in priority given to the environment since the COVID-19 outbreak, 7-14 May 2020
AIR CARE PRODUCT USAGE
Stress levels influence increase in premium formats
Figure 63: types of air care products used in the last 12 months, July 2019 and June 2020
People use air care to make a place feel like home
Stress relievers to take on more prominence
Increase in botanical herbal claims may reassure consumers
Other air care product penetration remains stable
WHERE AIR CARE PRODUCTS ARE USED
Sprays are used for bathroom functionality
Figure 64: Room(s) used for each of the following air care products in the last 12 months, June 2020
Broaden functional air care for different occasions in the home
Opportunities to increase usage in the kitchen
AIR CARE PRODUCT PURCHASE FREQUENCY
Purchasing tends to be infrequent
Figure 65: Frequency of air care product purchase, June 2020
Target gifting to increase exposure
IMPORTANT PURCHASE FACTORS
Price focus may lead to trading down
Improve perceptions of value, not just price
Figure 66: Factors prioritised while choosing air care products, June 2020
Use health and wellbeing to promote higher quality
INTEREST IN ENVIRONMENTAL BEHAVIOURS
The environment still matters
Figure 67: Behaviours most interested in adopting while thinking about the environmental impact of air care products
A chance to reengage through refills
Figure 68: Ecover Zero sensitive washing up liquid, 2020
Partner with recycling agencies and promote these collaborations
Figure 69: Air care product launches carrying the TerraCycle logo, 2019-20
The environment is unlikely to encourage a switch to unscented products
ATTITUDES TOWARDS AIR CARE PRODUCTS
Transparency will become an expectation
Figure 70: Attitudes towards air care products, June 2020
Improve health profiles to avoid drift to alternatives
Health comes into focus during COVID-19
PERCEPTIONS OF AIR CARE BRAND TIERS
Standard brands are all-rounders
Figure 71: Perceptions of different air care brand tiers, June 2020
Own-labels are well placed to take market share
Premium brands need to reassert their position
Figure 72: Perceptions of different air care brand tiers, June 2020
APPENDIX – DATA SOURCES, ABBREVIATIONS AND SUPPORTING INFORMATION
Abbreviations
Consumer research methodology