Home Laundry Products - US - August 2014

SCOPE AND THEMES
What you need to know
Definition
Data sources
Sales data
Consumer survey data
Abbreviations and terms
Abbreviations
Terms
EXECUTIVE SUMMARY
The market
Category sales slide continues
Figure 1: Total US sales and fan chart forecast of home laundry products, at current prices, 2009-19
Market segmentation
Largest segment faces the most pressure
Figure 2: Total retail sales of home laundry products, by segment, 2012 and 2014
Key players
Market share for top competitors changes little
Figure 3: Manufacturer sales of home laundry products, 2013 and 2014
The consumer
Liquid detergent still the go-to choice for most
Figure 4: Regular use of laundry products, April 2014
Stain-fighting power top priority for detergents
Figure 5: Laundry detergent attribute importance, April 2014
Feel and fragrance are defining attributes for fabric softeners
Figure 6: Fabric softener attribute importance, by gender and age, April 2014
Interest in convenience features increases with household size
Figure 7: Willingness to pay more for laundry product features, by household size, April 2014
Attitudes toward doing laundry
Figure 8: Attitudes toward doing laundry, any agree, April 2014
What we think
ISSUES AND INSIGHTS
For laundry detergent, getting smaller could be the way to grow
The issues
The implications
Boosting sales of fabric care in a detergent-centric market
The issues
The implications
A growing opportunity among aging boomers
The issues
The implications
TREND APPLICATION
Trend: FSTR & HYPR
Trend: Minimize Me
Trend: Many Mes
MARKET SIZE AND FORECAST
Key points
Sales and forecast of home laundry products
Figure 9: Total US sales and forecast of home laundry products, at current prices, 2009-19
Figure 10: Total US sales and forecast of home laundry products, at inflation-adjusted prices, 2009-19
Weakness in overall market poised to continue
Figure 11: Total US sales and fan chart forecast of home laundry products, at current prices, 2009-19
Forecast methodology
MARKET DRIVERS
Household income stabilizes but remains weak
Figure 12: Median household income in inflation-adjusted dollars, 2002-12
Economizing mindset and price promotions keep sales growth in check
Figure 13: Laundry detergent shopping behaviors, by household income, May 2013
Consumer confidence creeps up
Figure 14: Thomson Reuters/University of Michigan Index of Consumer Sentiment, 2009-14
Household growth slows, especially households with kids
Figure 15: Households, by presence of children, 2003-13
Population shifts make home laundry market more diverse
Figure 16: Households with children by race and Hispanic origin of householder, 2013
Figure 17: Population, by race and Hispanic origin, 2009-19
COMPETITIVE CONTEXT
Sales edge up for environmentally friendly brands
Figure 18: MULO sales of select environmentally friendly home laundry products, 2009-14
Innovative packaging and products
Private label goes natural
Sales of homemade detergent ingredients continue to rise
Figure 19: MULO sales of select laundry products commonly used to make laundry detergent, 2009-14
SEGMENT PERFORMANCE
Key points
Largest segment faces the most pressure
Figure 20: Total retail sales of home laundry products, by segment, 2012 and 2014
Multiple factors contribute to decline in detergent sales
Could more concentrated formulations give detergent sales a boost?
Figure 21: Total US sales and forecast of laundry detergent, at current prices, 2009-19
Scent boosters continue to boost liquid fabric softener segment sales
Figure 22: Total US sales and forecast of liquid fabric softener, at current prices, 2009-19
Bleach bounces back
Figure 23: Total US sales and forecast of bleach, at current prices, 2009-19
Fabric care sales edge down
Figure 24: Total US sales and forecast of fabric care, at current prices, 2009-19
Fabric softener sheet sales flat
Figure 25: Total US sales and forecast of fabric softener sheets, at current prices, 2009-19
RETAIL CHANNELS
Key points
Drug stores build on a small base
Sales of home laundry products, by channel
Figure 26: Sales of home laundry products, by channel, 2012 and 2014
Long-term trend favors price- and value-driven channels
Figure 27: Sales of home laundry products, by channel, 2009-14
LEADING COMPANIES
Key points
P&G dominates top segments
Church & Dwight gains with value-priced brands
Manufacturer sales of home laundry products
Figure 28: Manufacturer sales of home laundry products, 2013 and 2014
BRAND SHARE – LAUNDRY DETERGENT
Key points
Minimal share shifts mask intense competition and new product activity
P&G pushes unit dose form and revamped liquid line
Tide goes low with Simply Clean & Fresh
Church & Dwight gives OxiClean starring role in detergent segment
Manufacturer sales of laundry detergent
Figure 29: Manufacturer sales of laundry detergent, 2013 and 2014
Figure 30: Key purchase measures for the top brands of laundry detergent, by household penetration, 52 weeks ending Dec. 29, 2013 (current) and Dec 29, 2012 (year ago)
BRAND SHARE – LIQUID FABRIC SOFTENER
Key points
P&G gets bounce from Downy and Gain scent boosters
Snuggle launches unit dose scent boosters
Manufacturer sales of liquid fabric softener
Figure 31: Manufacturer sales of liquid fabric softener, 2013 and 2014
Figure 32: Key purchase measures for the top brands of liquid fabric softener, by household penetration, 52 weeks ending Dec. 29, 2013 (current) and Dec 29, 2012 (year ago)
BRAND SHARE – BLEACH
Key points
Clorox sees bleach share slip as segment sales rebound
Private label and value-tier make gains
Manufacturer sales of bleach
Figure 33: Manufacturer sales of bleach, 2013 and 2014
Figure 34: Key purchase measures for the top brands of bleach, by household penetration, 52 weeks ending Dec. 29, 2013 (current) and Dec 29, 2012 (year ago)
BRAND SHARE – FABRIC CARE
Key points
OxiClean strengthens its position in a crowded segment
P&G combats OxiClean, extends beyond laundry room
Manufacturer sales of fabric care
Figure 35: Manufacturer sales of fabric care, 2013 and 2014
Figure 36: Key purchase measures for the top brands of fabric care, by household penetration, 52 weeks ending Dec. 29, 2013 (current) and Dec 29, 2012 (year ago)
BRAND SHARE – FABRIC SOFTENER SHEETS
Key points
Private label continues to cut into brand sales
Manufacturer sales of fabric softener sheets
Figure 37: Manufacturer sales of fabric softener sheets, 2013 and 2014
Figure 38: Key purchase measures for the top brands of dishwashing liquid, by household penetration, 52 weeks ending Dec. 29, 2013 (current) and Dec 29, 2012 (year ago)
INNOVATIONS AND INNOVATORS
Detergents dominate home laundry new product launches
Figure 39: Home laundry new product launches, by type, 2009-2014
Most detergent launches still in liquid form, but unit dose continues to gain
Figure 40: Laundry detergent new product launches, by form, 2009-2014
Packaging innovation
Laundry process innovation
Leveraging fragrance further
Arm & Hammer offers scents linked to national parks
P&G Sweet Dreams line an effort to make fragrance functional
Fragrance-free product represents first significant extension of Tide Pods line
MARKETING STRATEGIES
Ads ask, why Tide Pods?
The power of multiple ingredients
Figure 41: Tide Pods, “Three Things” TV spot, 2014
Savings versus multiple products
Figure 42: Tide Pods, “Pop in Savings” TV spot, 2014
No over-filling
Figure 43: Tide Pods, “Pop in Savings” TV spot, 2014
Downy promotes dual usage of Unstopables and Infusions
Figure 44: Downy, “Mixmatched Girl” TV spot, 2014
Downy base brand shifts to softness
Figure 45: Downy, “Irresistible Bed” TV spot, 2014
“Tide that”: an effort to extend brand beyond the laundry room
Figure 46: Tide Oxi, “Tide That” TV spot, 2014
OxiClean extends into laundry detergent
Figure 47: OxiClean Laundry Detergent, “Shaking Up the Detergent Aisle” TV spot, 2014
RESPONSIBILITY FOR DOING LAUNDRY AND SHOPPING FOR LAUNDRY PRODUCTS
Gender gap in laundry responsibility may be narrowing
Figure 48: Responsibility for doing laundry and shopping for laundry products, by gender and age, April 2014
USAGE OF LAUNDRY PRODUCTS
Key points
Liquid detergent still the go-to choice for most
Unit dose poised to overtake powder detergent
Scent boosters still have considerable upside
Fabric care products less likely to get regular use
Figure 49: Usage of laundry products, April 2014
Young adults use a wider array of laundry products
Figure 50: Regular use of laundry products, by gender and age, April 2014
Larger households use more varied line-up of products
Figure 51: Regular use of laundry products, by household size, April 2014
LAUNDRY DETERGENT ATTRIBUTE IMPORTANCE
Key points
Stain-fighting power top priority for consumers
Cold water effectiveness a priority for many
Figure 52: Laundry detergent attribute importance, by gender and age, April 2014
Lower-income consumers especially interested in fragrance
Figure 53: Laundry detergent attribute importance, by household income, April 2014
FABRIC SOFTENER ATTRIBUTE IMPORTANCE
Key points
Feel and fragrance are defining attributes for fabric softeners
Duration of fragrance nearly as important as fragrance itself
Figure 54: Fabric softener attribute importance, by gender and age, April 2014
Lower-income fabric softener users prioritize scent/fragrance
Figure 55: Fabric softener attribute importance, by household income, April 2014
INTEREST IN LAUNDRY PRODUCT FEATURES
Key points
Opportunities to differentiate in a variety of areas
Laundry process simplification
Deeper cleaning
Ingredient-specific benefits
Figure 56: Interest in and willingness to pay more for laundry product features, April 2014
Interest in convenience features increases with household size
Figure 57: Willingness to pay more for laundry product features, by household size, April 2014
ATTITUDES TOWARD DOING LAUNDRY
Key points
Time-savings and convenience hold strong appeal
For many, detergent alone is effective enough
Doing laundry still a source of emotional satisfaction
Figure 58: Attitudes toward doing laundry, April 2014
Women 18-54 more emotionally engaged in laundry
Figure 59: Attitudes toward doing laundry, strongly agree, by gender and age, April 2014
RACE AND HISPANIC ORIGIN
Blacks, Hispanics more likely to use powder detergents, liquid fabric softeners
Figure 60: Regular use of laundry products, race/Hispanic origin, April 2014
Power to remove tough stains a priority in all groups
Figure 61: Laundry detergent attribute importance, by race/Hispanic origin, April 2014
Fragrance a key priority for Black and Hispanic fabric softener users
Figure 62: Fabric softener attribute importance, April 2014
Blacks, Hispanics willing to pay more added-value features
Figure 63: Willingness to pay more for laundry product features, by race/Hispanic origin, April 2014
Black consumers take pride in laundry knowhow
Figure 64: Attitudes toward doing laundry, any agree, by race/Hispanic origin, April 2014
CONSUMER SEGMENTATION
Figure 65: Cluster groups, April 2014
Practicals
Demographics
Approach to laundry
Opportunity
Disengageds
Demographics
Approach to laundry
Opportunity
Super Washers
Demographics
Approach to laundry
Opportunity
Cluster characteristic tables
Figure 66: Attitudes toward doing laundry, any agree, by cluster groups, April 2014
Figure 67: Attitudes toward doing laundry, any agree, by cluster groups, April 2014
Figure 68: Responsibility for doing laundry and shopping for laundry products, by cluster groups, April 2014
Figure 69: Regular use of laundry products, by cluster groups, April 2014
Figure 70: Laundry detergent attribute importance, by cluster groups, April 2014
Figure 71: Fabric softener attribute importance, by cluster groups, April 2014
Figure 72: Willingness to pay more for laundry product features, by product preference groups, April 2014
Cluster demographic tables
Figure 73: Cluster groups, by demographic, August 2013
Cluster methodology
CUSTOM CONSUMER GROUPS
Product preference groups
Naturalists use variety of products, opportunity for eco-friendly laundry regimen
Figure 74: Regular use of laundry products, by product preference groups, April 2014
All-in-Ones value cleaning performance
Figure 75: Laundry detergent attribute importance, by product preference groups, April 2014
Power Seekers value sensory benefits as well
Skin-friendliness important to Naturalists
Figure 76: Fabric softener attribute importance, by product preference groups, April 2014
APPENDIX – OTHER USEFUL CONSUMER TABLES
Responsibility for doing laundry and shopping for laundry products
Figure 77: Responsibility for doing laundry and shopping for laundry products, by household income, April 2014
Figure 78: Responsibility for doing laundry and shopping for laundry products, by household size, April 2014
Figure 79: Responsibility for doing laundry and shopping for laundry products, by race/Hispanic origin, April 2014
Regular use of laundry products
Figure 80: Regular use of laundry products, by household income, April 2014
Laundry detergent attribute importance
Figure 81: Laundry detergent attribute importance, by household size, April 2014
Fabric softener attribute importance
Figure 82: Fabric softener attribute importance, by household size, April 2014
Willingness to pay more for laundry product features
Figure 83: Willingness to pay more for laundry product features, by gender and age, April 2014
Figure 84: Willingness to pay more for laundry product features, by household income, April 2014
Attitudes toward doing laundry
Figure 85: Attitudes toward doing laundry, any agree, by household income, April 2014
Figure 86: Attitudes toward doing laundry, any agree, by household size, April 2014
APPENDIX – INFORMATION RESOURCES INC. BUILDERS PANEL DATA DEFINITIONS
Information Resources Inc. Consumer Network Metrics
APPENDIX – TRADE ASSOCIATIONS