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Laundry Detergents, Fabric Conditioners and Fabric Care: Inc Impact of COVID-19 - UK - October 2020
Overview
 
What you need to know 
Value sales of the laundry category are expected to fall by 0.7% to £1.53 billion in 2020, continuing the decline seen in the market pre-COVID-19. Despite the fall in sales, 19% of adults who do laundry say they have increased their laundry frequency. Discounting and bulk buying - particularly during the stockpiling phase in February and March – have therefore had a particular impact on sales for the rest of the year. Going into another lockdown period in November, as announced by the government on 31 October, may lead to another spike in sales of laundry products, but will again limit sales later heading into 2021.

The economic impact of COVID-19 has yet to be fully felt. In 2021, sales of more discretionary products may dip as cautious spenders reassess what products are truly necessary. This may encourage a shift towards own-label, impacting upon the usual reliance that consumers place on branded products in this market.

However, COVID-19 also offers brands opportunities to appeal to consumers in new ways. Brands can leverage the rise in hygiene-related behaviours to push a more health-focused approach to laundry. While usage of antibacterial laundry cleansers and washing machine cleaners has not yet increased markedly, higher sales indicate that health-conscious consumers are using them more regularly. On-the-go sanitising products will help to reassure consumers that they are limiting their chance of being exposed to the virus, particularly as their routines return to something more like normal.

Similarly, face masks offer a chance to differentiate product ranges. Introducing scented products that can make wearing a mask more pleasant or working with dermatologists to create products that minimise facial skin irritations will appeal to a new target audience.

Key issues covered in this Report
●	The impact of COVID-19 on the laundry market
●	Launch activity and innovation opportunities for 2021 and beyond
●	Laundry frequency, and change in laundry frequency compared to a year ago
●	Reasons behind changes in laundry frequency
●	Interest in on-pack claims for laundry products
●	Attitudes towards doing the laundry and laundry products
●	Laundry behaviours

COVID-19: Market context
This update on the impact that COVID-19 is having on the market was prepared on 2 November 2020.

The first COVID-19 cases were confirmed in the UK at the end of January, with a small number of cases in February. The government focused on the ‘contain’ stage of its strategy, with the country continuing to operate much as normal. As the case level rose, the government ordered the closure of non-essential stores on 20 March.

A wider lockdown requiring people to stay at home except for essential shopping, exercise and work ‘if absolutely necessary’ followed on 23 March. The Health Protections Regulations 2020 came into effect on 15 June allowing the reopening of all non-essential stores in England and the mandatory use of face coverings on public transport. Pubs, restaurants, hotels and hairdressers reopened on 4 July and beauty salons reopened on 13 July. The use of face coverings in shops and supermarkets became mandatory on 24 July.

On 21 September, the alert level was moved from 3 to 4, which means transmission is high or rising exponentially. New restrictions took effect from 24 September, including a 10pm curfew on pubs, restaurants and bars in England. On 23 September, the government announced that all shop staff must wear face coverings and people were advised to work from home if possible. On 30 September, lockdown measures were tightened across the North East of England. On 14 October, the COVID-19 tier regulations came into force, replacing the existing lockdown regulations, defining three levels of restrictions to be applied as necessary in local areas.

On 31 October, the prime minister announced the decision to impose another stay-at-home order in England, initially from 5 November until 2 December. As part of this this, it was announced that the government’s Job Retention Scheme would be extended until December, after it was due to end at the end of October. Wales and Northern Ireland have implemented their own restrictions including a limited-period “circuit breaker”, while Scotland has created a different tier system with different regulations at each level.

Economic and other assumptions
Mintel’s economic assumptions are based on the Office for Budget Responsibility’s central scenario included in its July 2020 Fiscal Sustainability Report. The scenario suggests that UK GDP could fall by 12.4% in 2020, recovering by 8.7% in 2021, and that unemployment will reach 11.9% by the end of 2020, falling to 8.8% by the end of 2021.

The current uncertainty, however, means there is wide variation on the range of forecasts, which is reflected in the OBR’s own scenarios. In its upside scenario, economic activity returns to pre-COVID-19 levels by Q1 2021. Its more negative scenario, by contrast, would mean that GDP doesn’t recover until Q3 2024.

Products covered in this Report
This Report examines the retail market for the following laundry detergent, fabric conditioner and fabric care products:

●	Main wash laundry detergents offered to the consumer in a range of product formats, including: powders, liquids, gels, tablets and capsules/liquid tablets. This includes standard and concentrated, biological, Non Biological, two-in-one and ‘colour’ products.
●	Special wash detergents, which includes detergents for hand washing and delicate fabrics.
●	Rinse conditioners used in addition to laundry detergents in order to soften, freshen and/or make drying and ironing easier, and available as standard and concentrated liquids.
●	Tumble dry enhancers offered as fragrance-impregnated sheets that are designed for use in tumble dryers.
●	Stain removers that take away stains and include both pre-wash and in-wash products in powder, liquid, gel, tablet and spray format.
●	Whiteners and colour care products used with laundry detergents for helping to maintain the brightness of colours and whiteness of whites without bleaching.
●	Ironing aids that include products for ironing such as fragranced ironing waters and starch liquids or sprays.

Excluded

Clothes-washing detergents sold in launderettes are excluded from the market size of this Report.

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