Air Care - US - January 2019

OVERVIEW
What you need to know
Definition
EXECUTIVE SUMMARY 
Overview
Figure 1: Total US retail sales and forecast of air care, by segment, at current prices, 2013-23
The challenges and opportunities
Consumers doing more with less
Figure 2: Frequency of air care use, repertoire of air care product usage, October 2018
Long-standing formats losing favor amid ingredient concerns
Figure 3: Select reasons for using air care products less often, October 2018
Category engagement drops with age
Figure 4: Repertoire of air care product usage, five or more, by age, parental status, October 2018
Retail landscape highly fragmented, reflects save versus splurge mentality
Figure 5: Primary and secondary retailers shopped, by segment, October 2018
Mass most purchased, but not by much
Figure 6: Select candle shopping behaviors and attitudes, October 2018
Innovation areas provide additional usage occasions
Figure 7: Interest in innovations, October 2018
What it means
THE MARKET – WHAT YOU NEED TO KNOW
Air care product sales grow by 2%
Most spend allocated toward candles, vehicle segment leads growth
Scented household products threaten air freshener sales
Shifts in population will impact market growth
Natural, eco-friendly, free-from claims will be key to future growth
MARKET SIZE AND FORECAST
Air care market sees slight uptick amid recent struggles
Figure 8: Total US sales and fan chart forecast of air care products, at current prices, 2013-23
Figure 9: Total US retail sales and forecast of air care products, at current prices, 2013-23
FUTURE OF AIR CARE
Health and environmental concerns will drive future category claims
Figure 10: Total US retail sales and forecast of air care products, at current prices, by select US air care product launch claims, 2013-23
MARKET BREAKDOWN
Candles are largest segment, vehicle air fresheners see strongest growth
Figure 11: Total US retail sales of air care products, by segment, at current prices, 2016 and 2018
Other channels dominate sales
Figure 12: Total US retail sales of air care products, by channel, at current prices, 2013-18
MARKET PERSPECTIVE
Scented household products pose a threat to air care
MARKET FACTORS 
Population and living trends impact air care usage
Figure 13: Population aged 18 or older, by age, 2013-23
KEY PLAYERS – WHAT YOU NEED TO KNOW 
S.C. Johnson & Son maintains market lead, smaller players see growth
Brands incorporating natural, eco-focused claims see growth
Value candle brands struggle
Shake up the category by innovating around scent, experiences
MANUFACTURER SALES OF AIR CARE 
SCJ leads market, small brands see stronger growth
Sales of air care by company
Figure 14: MULO sales of air care products, by leading companies, rolling 52 weeks 2017 and 2018
WHAT’S WORKING?
Seasonality remains important for category
Figure 15: Share of US product launch claims, 2013-18*
Natural and eco-friendly meet demand for safer products
Figure 16: Share of US air care product launches with botanical/herbal, environmental friendly product claims, 2013 and 2018*
Laundry scents strike familiar cord, underscore scent substitution threat
Figure 17: MULO sales of home and vehicle air fresheners with identifiable laundry scents, rolling 52-weeks ending Oct. 7, 2018
WHAT’S STRUGGLING?
Mass brands, private label candles can’t live up to premium interests
Figure 18: MULO sales of select candles, by leading companies and brands, rolling 52 weeks 2017 and 2018
WHAT’S NEXT?
Disrupt scent sameness
Create unique experiences
Home automation will drive smart air care forward
THE CONSUMER – WHAT YOU NEED TO KNOW 
Slight shifts in product usage reflect challenges and opportunities
Usage motivations two pronged while health concerns persist
Convenience, cost influence shopping for air fresheners, essential oils
Younger candle users driven by lifestyle interests
Familiar scents in adjacent categories could pique interest
Younger adults, parents drive air care innovation interest
AIR CARE USAGE
Shifts in usage shaped by ingredient concerns, new formats
Figure 19: Repertoire of air care product usage, December 2016 and October 2018
Figure 20: Air care usage, December 2016 and October 2018
Lifestage drives air care usage
Figure 21: Usage of select air care products, by age, parental status, October 2018
Figure 22: Repertoire of air care product usage, by age, parental status, October 2018
Hispanics, particularly Millennials, engaged in category
Figure 23: Repertoire of air care product usage – five or more, by Hispanic origin and generation, October 2018
Figure 24: Air care usage, by Hispanic origin and generation, October 2018
CHANGES IN AIR CARE USAGE 
Nearly one third using air care more often
Figure 25: Frequency of air care usage, October 2018
Usage frequency sheds light on core target groups
Figure 26: Using air care more often – Percent difference from average, by age, parental status, Hispanic origin, living location, October 2018
REASONS FOR USING AIR CARE MORE
Functional and experiential needs drive increased usage
Figure 27: Reasons for using air care products more often, October 2018
Millennials, parents find most benefits to air care
Figure 28: Reasons for using air care products more often, by generation and parental status, October 2018
REASONS FOR USING AIR CARE LESS 
Health concerns, cost hinder air care usage
Figure 29: Reasons for using air care less, October 2018
RETAILERS SHOPPED FOR AIR FRESHENERS AND ESSENTIAL OILS 
Convenience drives choice of retailer
Figure 30: Marianos air care inventory (alongside household paper products), Oak Lawn (Chicago), November 2018
Figure 31: Retailers shopped for air fresheners and essential oils, October 2018
25-34-year-olds shop across channels
Figure 32: Retailers shopped for air fresheners and essential oils, by age, October 2018
SHOPPING FOR CANDLES 
Candle purchases made at variety of retailers
Figure 33: Retailers shopped for candles, October 2018
Figure 34: TJMaxx & HomeGoods, Chicago, November 2018
Younger shoppers shop around, older adults stick to traditional retailers
Figure 35: Select retailers shopped for candles, by age, October 2018
Mass brands lead, but not by much
Figure 36: Candle brand preferences, by age, October 2018
Figure 37: Interest in mass candle brand improvements, by age, October 2018
Change of season triggers purchases, particularly for those 45+
Figure 38: Bath & Body Works Email flyer, November 2018, Seasonal candle
Figure 39: Candle purchase drivers and challenges, by age, October 2018
INTEREST IN SCENTS 
Food and beauty ingredients should migrate into air care
Figure 40: Interest in scents, October 2018
18-44’s open-minded when it comes to new scents
Figure 41: Interest in select scents, by age and gender, October 2018
INTEREST IN INNOVATIONS 
Innovations could provide additional usage occasions
Cleaning the air could be the next “big thing”
Health and wellness evolves beyond aromatherapy
Smart technology will drive future growth of air care market
Customization for a more personalized scent experience
Figure 42: Interest in innovations, October 2018
Customizable and on-the-go air care drive appeal
Figure 43: Interest in customizable and portable air care innovations, have not used, but interested in trying, by age, October 2018
18-54’s, parents drive interest in tech innovations
Figure 44: Interest in select technology air care innovations – Have not used, but interested in trying, by age, parental status, October 2018
Air care innovations have prime audience among urban dwellers
Figure 45: Interest in select innovations – Have used, by living location, October 2018
APPENDIX – DATA SOURCES AND ABBREVIATIONS
Data sources
Sales data
Fan chart forecast
Consumer survey data
Abbreviations and terms
Abbreviations
Terms
APPENDIX – THE MARKET 
Figure 46: Total US retail sales and forecast of air care products, at inflation-adjusted prices, 2013-23
Figure 47: Total US retail sales and forecast of air care products, by segment, at current prices, 2013-23
Figure 48: Total US retail sales of air care products, by segment, at current prices, 2016 and 2018
Figure 49: Total US retail sales and forecast of candles, at current prices, 2013-23
Figure 50: Total US retail sales and forecast of home air fresheners, at current prices, 2013-23
Figure 51: Total US retail sales and forecast of vehicle air fresheners, at current prices, 2013-23
Figure 52: Total US retail sales of air care products, by channel, at current prices, 2013-18
Figure 53: Total US retail sales of air care products, by channel, at current prices, 2016 and 2018
APPENDIX – KEY PLAYERS 
Figure 54: MULO sales of candles, by leading companies and brands, rolling 52 weeks 2017 and 2018
Figure 55: MULO sales of home air fresheners, by leading companies and brands, rolling 52 weeks 2017 and 2018
Figure 56: MULO sales of car air fresheners, by leading companies and brands, rolling 52 weeks 2017 and 2018
APPENDIX – THE CONSUMER 
Figure 57: Air care product launches with aromatherapy claims, 2013-17
Figure 58: Households, by presence of related children, 2007-17