The Natural Household Consumer: Incl Impact of COVID-19 - US - June 2020

OVERVIEW
What you need to know
Key issues covered in this Report
Definition
EXECUTIVE SUMMARY 
Top takeaways
Impact of COVID-19 on the natural household product market
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
Figure 3: COVID-19 has shifted priorities away from natural toward disinfecting, by age, April 2020
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
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
Figure 6: Interest in refillable packaging and at-home delivery, by age, April 2020
Cause marketing can bring green consumers to mainstream brands
Figure 7: Care more about a brand’s causes than whether products are natural, by age, April 2020
Innovate around long-term affordability
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
COVID-19 creates a household paradox
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
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
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
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
Natural brands are slowing, but still outperform the market
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
Figure 13: Interest in plastic-free packaging, by age, April 2020
Figure 14: Responsibility for making food and beverage more sustainable, by gender and age, March 2019
MARKET FACTORS 
In the COVID-19 era, cleaning brands have become lifestyle brands
Figure 15: Consumer worry about COVID-19 in the home vs. general exposure, April 2020
Figure 16: Cleaning frequency – More often, by consumer segmentation, January 2020
Brands need to brace for reduced consumer spending
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 
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?
Big homecare conglomerates are exploring personal care and nutrition
Figure 19: Products using popular skincare ingredients
Concentrates drive convenience, savings and sustainability
Figure 20: Interest in refillable packaging, by age, April 2020
Figure 21: Jaws and Truman’s concentrated refills
Figure 22: Interest in plastic-free packaging, by age, April 2020
Loop continues to evolve
Figure 23: Clorox Disinfecting Wipes in a reusable container
Prepare for a new era of eco-friendly store brands
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
Figure 26: Any natural household product purchase (NET), by age and household income, April 2020
WHAT TO WATCH
Looking ahead: appliances will drive DIY chemical-free disinfection
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 
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
Motivations for natural purchases differ by category
Figure 29: Select attitudes and behaviors toward air care ingredients, by repertoire of product usage, November 2019
Figure 30: Purchase of household care products, by brand type, April 2020
Figure 31: Purchase of any natural laundry detergent and fabric care products, by age and income, April 2020
Natural brands are gaining penetration
Figure 32: Change in use of natural products, April 2019 and April 2020
The young and higher-income are increasing their natural investment
Figure 33: Change in use of natural products, by age and income, April 2020
Trial drives natural product adoption
Figure 34: Change in use of natural products – More often, by natural product clusters, April 2020
REASONS FOR USING NATURAL PRODUCTS MORE OFTEN
Planetary health has become the top reason for going green
Figure 35: Reasons for using more natural household products more often, April 2019 and April 2020
Figure 36: Select reasons for using more natural household products more often, by natural product clusters, April 2020
IMPORTANCE OF PACKAGING AND CLAIMS 
Refillable packaging has strong appeal
Figure 37: Interest in packaging attributes, April 2020
Plastic-free and refillable packaging especially interest younger consumers
Figure 38: Interest in refillable packaging and plastic-free packaging, by age, April 2020
Mainstream and green consumers are polarized in packaging priorities
Figure 39: Interest in packaging attributes, by mainstream and natural product clusters, April 2020
There’s a need for simple formulations and transparent brands
Figure 40: Eco-friendly claims, April, 2020
Affluent seniors want skin-friendly products
Figure 41: Free-from and sustainably sourced claims, by age and income, April 2020
Free-from and sustainable sourcing will convert the mainstream consumer
Figure 42: Eco-friendly claims, by mainstream and natural product clusters, April 2020
Simple, understandable and transparent will rule future
Figure 43: TURF analysis – Eco-friendly household product ingredients, April 2020
Methodology
CLEANING GOALS 
Health and efficacy are the top homecare goals
Figure 44: Household cleaning goals, April 2020
Affordable natural disinfectants will appeal to financially stressed consumers
Figure 45: Select household cleaning goals, by financial situation, April 2020
Mainstream consumers will seek affordable, natural disinfectants
Figure 46: Household cleaning goals, by natural product clusters, April 2020
ATTITUDES TOWARD NATURAL HOUSEHOLD PRODUCTS
During the pandemic, disinfecting has become a priority
Figure 47: Attitudes toward natural household products, April 2020
Figure 48: COVID-19 has shifted priorities away from natural toward disinfecting, by age, April 2020
Even ideological green consumers are prioritizing disinfection
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
Figure 50: Clorox “Build a Monument” statues in Buenos Aries
Figure 51: Care more about a brand’s causes than products, by age, April 2020
APPENDIX – DATA SOURCES AND ABBREVIATIONS
Consumer survey data
Abbreviations and terms
Abbreviations and terms