Household Care in Ireland
Euromonitor International's Household Care in Ireland market report offers a comprehensive guide to the size and shape of the market at a national level. It provides the latest retail sales data, allowing you to identify the sectors driving growth. It identifies the leading companies, the leading brands and offers strategic analysis of key factors influencing the market - be they new product developments, packaging innovations, economic/lifestyle influences, distribution or pricing issues. Forecasts illustrate how the market is set to change.
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Tables: 84 | Publication date: Jul 2009
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Product coverage
Air care; Chlorine bleach; Dishwashing products; Insecticides; Laundry care; Polishes; Surface care; Toilet care products
Executive summary
Household care suffers negative growth
All household care categories in Ireland – with the exception of air care – experienced negative constant value growth in 2008. Air care increased, as the category experienced constant development and innovations. As a result, overall household care suffered negative constant value growth throughout the entire review period. Laundry care declined due to price wars in supermarkets/hypermarkets and the influence of discounters. Other key categories, such as dishwashing products and toilet care products, also experienced negative constant value growth. Dishwashing products, however, experienced a turnaround in performance in 2008. It was boosted by the launch of new product developments.
Green bandwagon makes way
Over the review period, it became evident that ‘going green’ made its way to Ireland, and household care manufacturers addressed the trend. In addition to multinationals already established, ethical and green conscious labels were small brands entering the scene, for example, Green Works and Melaleuca. To add strength, a large proportion of Irish consumers said that they would choose natural cleaning products over standard, if they were more readily available. In 2008, Ireland continued to see its consumers purchase products that were increasingly in line with their ethics. Household care was undeniably affected.
Private label races to close gap with multinationals
Multinationals Proctor & Gamble (Manufacturing) Ireland Ltd, Unilever Ireland Plc and Reckitt Benckiser Ireland Ltd maintained their top three positions in 2008. All three leading players continued to invest in communications and product development to maintain their established names and shares in household care. However, private label continued its creep up the ladder, as it benefited from an increasing perception of quality and value.
Supermarkets/hypermarkets stage a price war
Irish household care continued to benefit from the Groceries Order ban from 2006. This ban that encouraged supermarkets/hypermarkets to transition focus away from food has placed increased attention on categories such as household care. As a result, companies such as Tesco and Superquinn, increased their range of non-food products on promotion. This, in turn, encouraged Irish consumers to purchase a greater amount of these products.
Household care will ride the economic storm
Although Ireland was amongst the most victimised when the economic bubble burst, the country was also at the head of receiving aid from the EU. The Irish people are expected to remain on a budget, but they will also continue to spend in essential categories, such as household care, especially at a time when it is favourable to do so. Irish consumers will invest and pay increased attention to the care of their homes, and this will fuel growth in household care over the forecast period. Growth will, however, remain somewhat stagnant. Manufacturers will move away from new product launches highlighting functionality towards abstract properties, such as fragrance and colour. Air care currently focuses on these areas and, as a result, it is expected to exhibit the strongest constant value growth during the forecast period.
Key Trends and Developments
Battle of the Non Brands
Private label continued to make significant impact on the retail environment in Ireland over the review period. An improved perception among consumers drove sales, as an increased number of Irish consumers discovered the quality and value offerings of private label. Retailers, in turn, aimed for higher penetration and re-focused efforts on their own private label development. Across FMCGs there were categories where private label claimed significant share: in some categories, it even outpaced growth of multinational brands.
Private label growth was the result of a number of factors. After years where private label meant cheap and poor-quality, retailers realised that a larger range, with products across the price and quality spectrum, made sense both to consumers and also for their bottom line. This move towards own products as a mass-market phenomenon, with value, standard, and premium products (spread across a ‘good, better, best’ ladder), resulted in changing attitudes towards these goods amongst Irish consumers.
In addition, Ireland’s convenience category was more developed and advanced than that in other parts of the world. From petrol station forecourts to city centre convenience stores, Ireland had progressed beyond countries such as Spain, Germany, and even the UK. The convenience store model was based around large brands and a trusted name – where Coca-Cola, Cadbury, and even Persil and Fairy were of major importance to retailer and consumer alike. Price was also a key factor. Unlike Germans, for example, Irish consumers did not base their decisions on where to shop on price alone. The Checkout report showed that issues such as range, parking, store layout, product quality and Irish heritage meant much more to the Irish consumer than bargain prices.
Increased incomes in Ireland over the review period – despite the current crunch – also provided a financial cushion. This afforded the consumer freedom to worry about issues such as ethical sourcing and carbon footprints, with brands often quickest to play these cards through major marketing strategies. While large brands had capitalised on these new trends and fads, own products caught up and, in some cases, even led the way. The expansion of Marks & Spencer – a retailer often at the forefront of issues such as food safety, additive content and ethical sourcing – brought premium labels to a mass market across Ireland. This, in turn, made consumers increasingly willing to pay even sometimes more for own labels than for brands. This was not solely the case for Marks & Spencer but also for Tesco (Finest), Superquinn (SQ), Dunnes (Simply Better), and SuperValu (Supreme).
Current Impact
A survey commissioned by Checkout revealed that older consumers continued to have reservations about private label due to its unappealing heritage. Meanwhile, it stated that younger consumers – particularly more affluent – were much more favourable to the idea of private label. However, while other European countries showed private label accounting for approximately 40% of their markets, Ireland was unique in many respects with private label significantly affecting household care.
Irish brands faced increased competition from unbranded rivals in 2008, but branded goods continued to be major business for retailers and consumers alike. St Bernard, Yellow Pack and Thrift were private label names not readily associated with quality. For many older Irish consumers, these were the names that sprang to mind when talking about private label or retailer products. Nevertheless, there was a hugely important and increasing role that retailers’ own labels played in Irish household care in 2008.
The growth of private label will not entirely harm the multinationals. Many Irish companies will also benefit from the development of new private label ranges at large retailers. A 2008 Tesco report revealed that Tesco’s own-label manufacturing deal with pork producer Granby had created 25 jobs at the company, and turnover had increased by 325% at vegetable producer, Country Crest, since it signed its first contract with Tesco in 1998. Yoghurt manufacturer, Glenisk, that currently counts Danone as a shareholder, also benefited from Tesco manufacturing contracts. With most large companies currently producing both branded and private label goods, the real question lies in whether there is a difference between branded and private label goods.
Outlook
In the UK, Asda has made claims over the superiority of its private label products compared with mass market brands. In 2005, it claimed that its Shades toilet paper product was the softest available – a claim that rival brand, Andrex, disputed but later had to concede. In Ireland, however, the concept of taste or quality comparisons is relatively rare. This may be due to the fact that face-offs through mainstream media between large supermarkets are not as predominant as in the UK. This is not to say that intense competition matches will not take place over the forecast period. Ireland may approach a stage when large retailers start to compete with big-name brands. Indeed, private label has already experienced a continuous increase – as seen in household care – and it is expected that this trend will progress.
In addition, innovation is costly. However, the combination of continuous new product development and clever marketing will allow many Irish and private label products to retain relatively strong positions in categories where they dominate, as currently in household care. Especially at a time when Irish consumers are suffering from the economic storm, retailers are expected to take advantage by communicating that quality can still be affordable.
Future Impact
The challenge for brands over the forecast period will be to ensure that they continue to innovate and stay ahead of the game. It is no coincidence that the best-selling products, such as Persil, Fairy, Finish, Ariel and Bold, are invariably the largest advertisers with the healthiest marketing budgets. This is because brands, just like private label, need to strive to create and then highlight effective points of difference between themselves and their competitors. Fairy, for example, is a basic product within household care, and the one where the cheapest product would usually win. However, through innovation, communication and the creation of clever market segmentation, a company like Proctor & Gamble (Manufacturing) Ireland Ltd has managed to create sufficient key points of difference to keep it ahead of its rivals.
Competition in household care in Ireland will continue to intensify over the forecast period. During this time, private label will benefit from good positioning due to the economic downturn, and consumers will be penny pinching and shifting perceptions of budget products. Household care is regarded by many consumers as a category where branding has scant relevance; thus manufacturers are becoming increasingly clever in their packaging and mirroring their branded counterparts. Competitive prices, high quality, new product launches and increased shelf space will also aid the growth of private label household care over the forecast period. As such, retailers will continue to promote their labels, making them as well established as their branded competitors. Laundry care and dishwashing products, in particular, will benefit from private label growth. The latter, for instance, penetrated Ireland in terms of retail value at 21% in 2008, compared to 18% in 2007. The retail value penetration of laundry care in Ireland in 2008 was 15% – from 10% in 2007. Private label is expected to continue increasing its share in Irish household care over the forecast period.
Supermarkets, such as Superquinn, is expected to cleverly position its value ranges to attract shoppers aiming to save money. Even major retailers like Tesco state that 25% of its customers have tried its new discount ranges. Others are expected to invest in their value lines and offer ranges emphasising ‘value’. Category leaders in household care, meanwhile, are expected to trim back their product portfolios to focus on fewer products. Major brands may consolidate, and even ‘B’ brands can expect a challenge as Irish consumers shift to private label.
Looser Legislation Opens Window for Household Care
Ireland is one of the toughest countries in terms of regulations and legislation, in spite of its laid-back reputation in life. The country, for example, was the first country in the EU to impose the smoking ban in the workplace. In the retail landscape, government legislation has had major influence on its evolution. Two worthy of mention are the Groceries Order and Retail Planning Guidelines.
In 2006, the end of the Groceries Order was announced. This Order that bans the selling of goods below their invoice price was introduced in 1987 to prevent small shops being driven out of business by large supermarket chains. Shortly after, in conjunction with the abolition, the Minister for Enterprise – Micheál Martin – announced that he would shortly strengthen the Competition Act to stop unfair price discrimination and ban ‘hello money’. Such attempts were to especially assist the small income consumers in Ireland that spent proportionately more on groceries. The ban would result in a sophisticated and economically efficient supply chain, while retailers would be able to offer a wider range of products.
The Retail Planning Guidelines for Planning Authorities have been in effect since 2001. They were amended in 2005 to remove the floor space cap on retail warehouses under certain circumstances. However, since the Guidelines came into force in 2001, Ireland underwent considerable change in terms of economic and social development, particularly in relation to population expansion and settlement patterns. Increased demand for retail outlets in existing and expanded towns and cities across the country, good planning and the need to reduce car dependency, as well as the need to ensure continued healthy competition in retail were primary objectives of the rule.
Considerable effects were not felt until 2007 – well into the review period. The Groceries Order ban encouraged supermarkets/hypermarkets to transition focus away from food into other areas, such as household care, as its margins were squeezed on grocery items. These major retailers expanded their range of household care and such products became well known on shelves. Companies such as Tesco that developed hypermarkets in Ireland increased the range of non-food products on promotion. This, in turn, encouraged Irish consumers to purchase an increased amount of these products.
Current Impact
The Groceries Order abolishment was good for consumers – it provided competition, choice, value and convenience. It was also good for retail as a whole, because it allowed individual entrepreneurs to compete with large multiples. It was good for producers and suppliers because it banned predatory practices that would put them out of business. It increased competition in the category, leaving consumers paying competitive prices and having increased choice as to where they could shop and what they could buy.
Changes in legislation affected household care manufacturers in a number of ways. Initially, household care experienced decreased prices, as sophisticated retailers used a host of measures to attract consumers to their stores. These included price offers, vouchers, promotional discounts, new categories of goods and blanket advertising in national dailies. However, over the review period, the change in food prices increased as a reflection of changes in global commodities, affecting supermarket price wars. Supermarkets/hypermarkets is the main distributor of grocery items as well as non-food items in Ireland, such as household care, and the initial downward trend in prices was spread across the range of products on offer. Irish consumers increased what they spent on household care. This eventually created a demand for premium products that offered convenience and efficiency.
The effects of the Retail Planning Guideline amendments were also realised over the review period, as supermarkets/hypermarkets and large food stores became increasingly prominent. Proficient public transport links and pedestrian friendly infrastructure developed near retail outlets. Retail warehouses, retail parks and large shopping malls were additionally developed and encouraged a greater number of retailers to enter the arena.
Massive expansion in retail space took place over the review period. Local economies increased in comparison to the time when legislation was stricter. This resulted in an increased range of household care products available to Irish consumers. It also increased the amount of global brands seen on store shelves, as many of the larger stores were global chains. Subsequently seen in household care, Irish labels lost out to global counterparts. Irish consumers became increasingly concerned with purchasing recognisable brands rather than with the locality of their products.
Outlook
Many of the major supermarkets/hypermarkets in Ireland, such as Tesco and Aldi, are reporting impressive growth, especially in times of recession and fear of consumers’ slashed spending. These retail outlets are proving popular for the Irish consensus, offering attractive promotions and offers. This trend is expected to continue, as retail legislation will persist and large retailer demand will become increasingly influential. This is currently evident in the spectacular boom of Tesco. It is likely to become a dominant force in the Irish retail landscape over the forecast period. It will mirror its progress in the UK, and yield progressive authority for larger outlets as it seeks to win larger consumer bases.
Local shops and family run stores are expected to dwindle over the forecast period. Ireland will move away from its traditional retail practices, becoming increasingly car dependent and mega shopping. However, such transport dependency and dulling local communities can develop a variety of health problems, and such adverse social effects could eventually lead to a backlash and government intervention. Ireland tourism is also a major component, and pride of the nation and the changing landscape will transform the perception of life in the country. The government may see this as a threat and step in to preserve small vibrant communities and traditional Irish retailing.
Future Impact
The long-term effects of the changes in legislation will only be significantly felt over the forecast period, as it takes time for the economy to adjust to new regulations. At the same time, the recession will also come into play, as it has currently done so with inhibited retail construction and tighter retail consumption. Commodity prices will also make a major impact. As supermarkets/hypermarkets gets larger and offers an increasing range of non-grocery items, household care will be an important attraction to lure customers into stores. Retailers will also continue their own label lines in times of frugal spending and will stock global brands that are usually recognisable to Irish consumers. Domestic brands will falter. Global household care brands are expected to dominate as a direct result of a monopoly of large retailers and the decline of small shops. Small shops will continue to struggle during the forecast period, as competition will be tough in light of the marketing and economic scale of global brands.
Independent wholesaling could eventually crumple as small shops go out of business. Withstanding small shops could experience devastating consequences, as major suppliers will not be interested in trading with or supplying these independent outlets. Remaining independent shops will, therefore, feel pressured to exit. This could eventually lead to the dissolving of domestic household care brands such as Malone’s that is already experiencing a steady decline in value share. Neither will large retailers stock low volume niche products such as Malone’s as they do not earn sufficient revenue.
Irish Household Care Weathers Economic Storm
In 2008, Ireland was the first country in the Eurozone to officially fall into recession. According to the Central Statistics Office, the country’s once-booming economy shrank by 0.3% in the first quarter of 2008and by 0.5% in the second. Dubbed the Celtic Tiger during the late 1990s, the Irish economy faced its toughest time since being hit by high unemployment and emigration in the 1980s. Furthermore, house prices slipped 14% from their peak. Like other countries experiencing the recession, lower levels of new house building had a major restrictive influence on growth in the second quarter. Other factors contributing included high commodity prices, global financial market problems, weak demand in trade and poor exchange rate movements. However, in spite of the credit crunch, a decrease in home purchases and general dwindle of consumer spending, household care did not suffer in value sales in Ireland over the review period.
Current Impact
Research conducted in the last quarter of 2008 showed that 70% of people started looking more closely at their spending and 73% believed in possible savings. This research into Irish consumer behaviour by BT said that ‘staying in is the new going out’ for the Irish, as 16% and 18% of punters aimed to cut back on going to the pub and eating out, respectively. The survey also revealed that 19% cited rising fuel costs as the major reason for scaling down, although inflation was also listed as a top concern. Similarly, respondents gave a variety of areas of target cutbacks, with 29% looking closely at household bills, 12% saying they would reduce calls from mobile phones, and 21% claiming they would start shopping in Lidl or Aldi, the fast growing discounters. However, it is unclear how these attitudes translate in real terms, especially when consumers are looking for value and not just price.
Looking for value, not just price, was primarily the reason Ireland’s household care experienced modest growth over the review period, with current value CAGR of 1%. Unlike its neighbouring UK that also experienced substantial effects from the economic downturn, Ireland continued to experience value sales increase. 2008 saw retail sales at EUR257 million, an increase from EUR253 million in 2007. The majority of categories in Irish household care exhibited continuous growth, with the exception of chlorine bleach and polishes.
The leading brand in household cleaners in Ireland, Cif, re-launched its cream range over the review period. It offered a new concept, pack and communication under the strapline of ‘Rejuvenate your favourite things’. Products such as Cif Cream proved popular with consumers in a time of frugal spending, as its powerful and versatile formula could also be used to clean shoes, garden furniture, and even hub caps. Such multi-purpose cleaners were popular in 2008.
During the recessionary times when spending was dubious, Irish consumers spent less time going out and more time being entertained and entertaining at home. As a direct result, less time was also spent on their cleaning habits. At a time when socialising at home was increasingly popular, a survey of 4,000 women by household disinfectant brand, Zoflora, found that approximately 80% said they would be embarrassed if someone visited and they had not had the chance to tidy first. Meanwhile, a fear of chemicals, fear of germs, and a fear of toxic ingredients was the force behind new product development and marketing. In addition, recent high profile food scares heightened consumer concerns over food safety and its preparation at home. Along with health and wellness trends, the sanitation of one’s home palpably surpassed the doom of the spiralling economy.
Outlook
A mere year is the only difference in Ireland’s economy. Prior to 2008, it was in great shape, escaping the shadow of the UK, nourishing a vibrant economy, hosting approximately 1,000 foreign companies enabling export of goods and services into the European marketplace, reversing centuries of emigration – in fact quite the opposite with many entering the country for employment. However, the economic bubble has burst. Construction is at a standstill, house prices have slumped, unemployment is at 11.4% and rising rapidly and – once again – citizens are looking abroad for work. Consumer confidence is unclear, though it is expected to remain steady over the forecast period. The EU is supporting the Irish economic recovery in a number of ways. Also, grocery retailers and supermarkets/hypermarkets can expect to offer extensive promotions to encourage consumer spending. Supermarket giant, Tesco, has already announced it would slash prices in recession-hit Ireland by approximately 22% to woo customers.
As a result of the recession, instead of cutting back on spending altogether, consumers can expect to reap the benefits of a grocery price war. Lidl was the first to respond to Tesco’s price reduction, by stating that it would also cut prices across a wide range of its goods. Many leading retailers, such as Dunnes and Superquinn, are also expected to respond similarly. They cannot afford to stand by idly. Ireland’s household care, in effect, can expect to remain stagnant, if not steady, over the forecast period.
In addition, the European Central Bank has currently made major strides in helping the most affected countries of the economic downfall – one of which is Ireland. To help stabilise housing prices, the Central Bank has pledged to purchase approximately EUR60 billion in Eurozone covered bonds in a key initiative to stimulate the flagging Eurozone economy. The Bank is expected to provide further assistance to Irish banks to support Irish small and medium sized enterprises. The European Social Fund is also providing EUR375 million to help retrain and upskill the Irish workforce. This is a much-needed financial support at a time when unemployment is increasing in Ireland. EU leaders are also expected to provide EUR110 million to help build the new East-West electricity connector between Ireland and Wales. This will help to create jobs and protect energy supplies into the future. The Common Agricultural Policy will also provide EUR1.8 billion to Irish agriculture, to rural Ireland and to the Irish food category. EUR1.3 billion of this will be in direct payments to Irish farmers. The list of beneficiaries is expected to continue.
Future Impact
Although Ireland was amongst the most victimised when the economic bubble burst, the country is also at the head of receiving aid from the EU. Irish people are expected to remain on a budget, but they will continue to spend in essential areas. Growth in household care in Ireland is anticipated to decline totally by 2% in constant value terms over the forecast period. Sales will remain stagnant in terms of value but should appreciate in steady sales due to manufacturer innovations and retailer price wars. Manufacturers will develop multi-functional products – a prime example of why categories such as chlorine bleach suffered over the review period due to its limited use. Retailers will carry many more product types and variants, giving consumers option. Household care is a category that is heavily promoted, and consumers are expected to continue to purchase products they see on offer. Household care products are essentials for staying in lifestyles, and entertaining at home in Ireland will continue to be not only trendy but also inexpensive.
Irish consumers will continue their desire in paying increased attention to their homes. This, in turn, is expected to fuel growth in premium products in household care during the forecast period, as consumers take pride in their homes. At the same time, consumers may turn to cheaper labels as household care can easily be substituted without too much sacrifice in quality. Multinationals will benefit as their products are well advertised. They also innovate in convenience and, therefore, will continue to dominate many product areas, especially those with high brand loyalty, such as air care. Private label is also expected to make further inroads over the forecast period, and it is expected that domestic brands across Irish household care will eventually exit. Many domestic brands have already vanished, due to the superior quality, marketing and prices offered by global brands and private label.
Innovation Adds a Scent of Holistic Fragrance
Scent is one of the most powerful senses and, in FMCG, it is driving innovation. Cosmetics and toiletries, especially, is experiencing new product development driven by smell. Sniffing a certain fragrance allows the consumer to signal a season or make mundane activities, such as cleaning the toilet, just a little more enjoyable. Fragrance has affected household care in massive ways. Many industry experts agree that it is fragrance of goods that completes the sale. Adding fragrance is also a competitive advantage in driving performance for many brands. Tropical fruit variations, for instance, is a trend that extends beyond fragrances for household products and can be seen in food, beverages and cosmetic application.
In addition, manufacturers are using fragrance to focus on complex ‘ethical’ consumer types. They are producing goods that are positioned to implicate efficacy through the use of a ‘clean’, ‘natural’ or ‘green’ name, such as Rainwater Fresh, Pure Cotton and Linen Breeze. Such efforts are allowing retail to build fragrance formulations that have strong initial impact and long-term success that is highly desired by consumers. It is an evolution from the natural/green movement with a true focus on the wellness trend, calming, nurturing ingredients that add value to products.
Consumers are also seeking spa-like experiences by purchasing products that evoke such a setting. Eucalyptus Mint and Lavender, for instance, are becoming household names rather than distant occasional indulgences. In terms of wellness, ‘superfruits’ is also a buzz term from nutritional care to cosmetics and toiletries, and currently the household care category is getting a piece of the pie. An increasing number of products are touting pomegranate, acai and goji berry variants to appeal to consumers. Indeed, fragrance is driving innovation across FMCG markets.
Current Impact
As people are spending a greater amount of time and money creating the perfect atmosphere at home, fragrance has become a key element in household care innovation. The category is currently flooded with products in formats across the range, including not only air care but laundry detergents, dishwashing soap, and polishes. Multinational manufacturers have picked up on the home fragrance trend, and have started developing products with a scent. The top three producers accounted for the vast majority of sales in 2008 – Proctor & Gamble (Manufacturing) Ireland Ltd, Unilever Ireland Plc and Reckitt Benckiser Ireland Ltd. Behind the innovation and growth lies a number of trends that are moving the fragrant household care category from commodity to luxury. Where the demand was once preserved for air fresheners designed to mask unpleasant odours, clever marketing has led to a complete change in consumer perception. Increasingly, scents are being launched to reflect a season or mood and consumers are responding. Manufacturers are marketing their goods not so much to cover odours but more to clean and leave a personal and aesthetic ambience to one’s home.
No longer merely ‘air fresheners’, air care is a more familiar term, and mass market multinationals are focusing efforts on making the products more visually appealing. Allegro Holdings Ltd, with its Glade, held second position in Irish air care in 2008, with 27% share of brand retail value. Allegro designed Glade Glass Scents, an air freshener contained in an ornamental glass cube. The company also took third place with its Ambi-Pur brand, releasing its Solo range. This is a line of electrical diffusers with a choice of colour panels to suit any room scheme. Air Wick by Reckitt Benckiser secured first place, with 36% brand retail value share in 2008. It created an air freshener that ‘looks as good as it smells’ with an innovative and stylish ‘diffuser’ penned Air Wick Aqua Essences. Coupled with a heavy marketing spend, the Air Wick brand comes in three ‘natural’ fragrances – Freesia and Jasmine, Morning Mist and Magnolia and Cherry Blossom. Proctor & Gamble entered air care in Ireland in 2007, adding to its fabric odour neutraliser line. The company launched Febreze Light and Refresh candles, available in four variants – Morning Dew, Vanilla Cream, Cotton Fresh, and Apple Spice. The company is increasingly stealing value shares from other multinationals as it expands within the household care categories. The company, as well as other major players, are attending to the fact that fragrance is a key driver in consumers’ purchasing decisions. In 2008, the top six selling aromas in Ireland were citrus fruits, in first place, followed by lavender, clean/fresh, jasmine, apple and vanilla. Multinationals are incorporating these smells in their products and developing aesthetic fusions. They are even particular about the name they place on these scents to give an appealing impression. In the UK, Procter & Gamble extended its Lenor Infusions range in 2008. It launched Lenor Touch Effects, available in three ‘energising’ scents: Burst of Sunshine, Breath of Fresh Air and Barefoot in the Grass. It is only a matter of time before Ireland sees a similar suit.
In laundry care, there is not as much focus on actual washing capability as there is on locking in fragrance. Over the review period, Unilever released Persil with Microcapsules that contain pods of fragrance that ‘lock’ into fabric when it is washed. These burst upon movement to deliver a ‘just washed fragrance’ for up to 28 days. The company further invested in promoting new ‘fresh release’ technology across all Persil ranges that gives ‘Just washed freshness all day long’. Unilever had revealed that its goal was to engage women of the household on an emotional level through their TV advertisements and in-store activities. Unilever also re-launched its Surf with Essential Oils portfolio with a focus on smell. The sunshine variant added a fragrance of lemon and bergamot in addition, while the tropical product added ylang ylang. The lavender and oriental blossom remained unchanged: however, its packaging was tweaked to give bolder colours.
Over the review period, Proctor & Gamble launched its new laundry detergent to offer ‘luxurious’ fragrance. Bold 2-in-1 Infusions became available in three distinctive fragrances – White Diamond and Lotus Flower, Ruby Jasmine and Amethyst Rose. Again, the range was developed in response to increased demand for premium, luxurious laundry products, and consumers were willing to pay more for ‘up to seven days of additional fragrance’.
In fabric conditioners, Unilever invested further in the launch of its more natural range, Comfort. Comfort Naturals taps both into the organic, natural and simple trend as well as the fragrance and aesthetic trend. Aimed at women with young families and older shoppers that will trade up to premium products, Comfort is offered with three variants – Olive Blossom blended with Cotton Extract, Jojoba Oil & fragrance of White Orchid and Aloe Vera. They are also only available in concentrate to reduce the brand’s environmental impact.
Elsewhere, fragranced products have been at the forefront, with Procter & Gamble’s Bold development of its Crushed Silk & Jasmine fragrance and Ariel’s addition of Ariel with Febreze.
Outlook
The original spur for growth in home fragrance will continue to hold true over the forecast period, as consumers will continue to place as much importance on decor as on aroma. However, the forecast period will also reveal new motivating factors behind purchases. In the first instance, consumers will purchase home fragrance products, opening interest in new aromatic formats such as candles as part of a bathing or relaxation ritual that mimics the atmosphere of spas. Multinational home fragrance brands are currently taking advantage of such aestheticism. Ambi-Pur, for example, launched a range of scented candles, including Soothing Bath. By adding aromatherapy properties to home fragrance, let alone household care products, manufacturers will be able to command a higher price point. The popularity of aromatherapy will have an impact, as shoppers see the added value in creating a certain ambience.
Another motivating factor that will affect household care over the forecast period is the trend of staying at home to cook, dine, entertain and relax. The Irish will continue to be keen on creating a soothing atmosphere through the use of scented products, especially when times are tough outside the home and people associate home with comfort. Entertaining indoors, especially over special festivities, has enabled development in air care in particular. Procter & Gamble launched Scentstories disks celebrating the Holidays in the UK, containing scents such as Making a Gingerbread House and Cookies Warm from the Oven. It is expected that these products will be marketed in Ireland also.
The final major factor that will continue to affect household care in Ireland is that people are working longer and harder than ever before. In spite of the many job losses in Ireland over the review period, many are still busy, time-strapped and living and working on the go. The average householder is doing less housework. Shortcuts, such as fragrant cleaners, could help make a house appear clean and also facilitate the cleaner feel with scent. Time pressure and the increasing importance of leisure commitments have and will continue to erode the traditional values that used to put housekeeping as a top priority. This shift in lifestyles has seen a departure from housekeeping and the loss of skills to keep a house clean and fresh. As such, there will be a demand for products that allow consumers to tidy up with minimum effort. Fragrance will be key, as it adds value to household care products.
Future Impact
Current consumers of household care products in Ireland are looking for products to make everyday household tasks easier and pleasant – they are also willing to invest in a better experience. This has been observed by laundry detergents, and presents a great opportunity for the category to boost profits, build sales, and drive incremental category value. Other categories such as dishwashing, for instance, picked up on the fragrance trend in 2008, when Procter & Gamble added two new dishwashing products to its Fairy line. Fairy Clean & Care is currently available in Cucumber & Aloe Vera, Silk & Orchid and Almond variants. The product presents itself to contain natural extracts, helping to keep hands soft and moisturised while leaving the dishes ‘squeaky clean’.
The one factor that might conflict with the fragrance trend is the fact that fragranced products are normally promoted as premium and are, thus, targeted towards a limited demographic. Differentiation with new or added benefits is important in a category like household cleaners merged with fragrance where most products are commoditised. Figuring out how much consumers are willing to pay for this is the problem. With the economy in question, also, many Irish consumers are trading to private label. In the US, the share of private label has declined steadily over the last four years of the review period, where strong branding has discouraged them to switch. In the EU, however, primarily the UK, private label products have become increasingly sophisticated and there has been an overall increase in trust in private label. It has evolved from being perceived as a cheap imitation of the real thing to quality products offering good value for money. Should private label develop with fragrance variants, household care could expect to flourish and coincide large names.
More Green in the Irish
There is no doubt that Irish consumers are becoming increasingly ‘green’. Currently, it is almost taboo not to have an ethical conscience. By choosing carefully, consumers have had a proactive and positive impact on the environment by adjusting their shopping habits without compromising their lifestyles. Manufacturers have identified and addressed the importance of this trend in categories across retail – food, clothing, appliances, and other ‘lifestyles’ items – revolutionising categories such as household care. New players have entered the field to tap into the green clean arena.
Current Impact
Saving the earth might need global treaties and international cooperation, but Ireland is currently increasingly seeing green on a local level. Its first eco-village progressed over the review period. Outside Dublin, Cloughjordan welcomed a 67-acre site where natural features, solar panels and cutting-edge technology were just a few environmentally savvy features. The scheme has been in preparation since 2005, and is now up and running. Two-thirds of the eco-village’s 130 sites for low-energy homes have been secured, and a small number of houses are in the final stages of readiness for their pioneering occupants.
Irish consumers, as well as manufacturers, are taking an increasingly proactive approach to helping Mother Nature. Green Works has entered household care. It is a range of cleaning products that claims to be ‘an environmentally friendly alternative to the usual chemical based products on the shelves’. This breakthrough line of natural cleaning products has been introduced to meet the demands of the Irish consumer, as 64% said they would choose natural cleaning products over standard cleaning products, if they were readily available. Green Works is made from biodegradable components, never tested on animals, and packaged in bottles that can be recycled. The Green Works line includes three natural cleaning products for use in the home, kitchen and bathroom.
Similarly, companies like Melaleuca are entering Irish household care through internet and non-store door-to-door sales and distribution. Melaleuca’s philosophy is that consumers should not have to choose between effective cleaning power and the safety of one’s home, health or environment. The company’s line of EcoSense cleaners ranges from laundry care to bathroom cleaners. Although its distribution is small scale, Melaleuca’s presence is an example of Ireland’s increasingly green machine.
Multinationals, over the review period especially, opened their eyes to the green bandwagon by providing laundry aids that could work at lower temperatures and use less water. Procter & Gamble, for instance, campaigned Ariel’s ability to save up to 41% of the energy consumed in washing clothes. Assertions of energy savings, implied cost savings and even general benefits for the world are enabling multinationals an important competitive edge in terms of convincing consumers to trade to environmentally friendly alternatives.
Outlook
Environmental ‘green’ credentials will continue to be an important consumer concern over the forecast period. In terms of new ‘green’ household cleaner launches over the forecast period, there is no doubt that the category will be geared, or at least include, environmentally friendly products. Irish consumers are taking increasingly proactive strides by purchasing products that are in line with their ethics and partaking in more ‘green’. Over 2007, Ireland more than doubled its EU electronic recycling target in 2007, as reported by WEEE (Waste Electrical and Electronic Equipment). In addition, on the employment scene, pubs across the country are set to go green in a bid to cut costs and combat the 10,000 predicted job losses over the coming years. They will install water-saving devices in toilets and switch off lights in unoccupied areas in a bid to slash energy bills.
The government is expected to play a role in the green trend in Ireland over the forecast period. With reports of oil prices finally declining, Ireland announced that, by 2020, 10% of cars would be electric. Businesses will be able to write off 100% of the cost in taxes. Although oil prices are dropping, EU law makers will continue to make dramatic changes in environmental policy. This will influence consumers and manufacturers alike.
Future Impact
The economy in Ireland was at the bottom of consumer worries during most of the review period but, after the official arrival of the economic recession, it may be that the environment takes a back seat. Consumers may opt for budget prices rather than premium or specific products, such as environmentally friendly household care goods. However, the category sustained the economic downturn and should remain steady over the forecast term. Retailers will continue the green trend as they open a greater number of ‘green’ supermarkets. Giants such as Tesco and Asda are continuing to invest in eco-stores. Manufacturers will also continue their attempts in developing green products, as they cut their packaging costs, appeal to consumers, and even assist retailers with shelf space.
Detachment, however, may continue to exist between notions of carbon footprint and household care. This is simply because other FMCG markets, namely packaged food, have made a great impact on the Ireland economy and ultimately the environment. The efficiency of related household appliances, such as dishwashers, washing machines and tumble dryers, will inevitably come under greater scrutiny than household care products. Experts will likely focus increasingly on issues expected to affect the long term – the amount of water and energy these appliances use – as opposed to the actual products, and this will also help in the short-to-medium term. Nonetheless, it is expected that most mainstream household care companies, such as Proctor & Gamble and Unilever, will continue their attempts with going green. As a result, consumers will continue to find environmentally friendly household care products appealing.
Table of contents
HOUSEHOLD CARE IN IRELAND : MARKET INSIGHT
EXECUTIVE SUMMARY
Household care suffers negative growth
Green bandwagon makes way
Private label races to close gap with multinationals
Supermarkets/hypermarkets stage a price war
Household care will ride the economic storm
Key Trends and Developments
Battle of the Non Brands
Looser Legislation Opens Window for Household Care
Irish Household Care Weathers Economic Storm
Innovation Adds a Scent of Holistic Fragrance
More Green in the Irish
MARKET INDICATORS
Table 1 Households 2003-2008
MARKET DATA
Table 2 Sales of Household Care by Sector: Value 2003-2008
Table 3 Sales of Household Care by Sector: % Value Growth 2003-2008
Table 4 Household Care Company Shares 2004-2008
Table 5 Household Care Brand Shares 2005-2008
Table 6 Sales of Household Care by Distribution Format: % Analysis 2003-2008
Table 7 Sales of Household Care by Sector and Distribution Format: % Analysis 2008
Table 8 Forecast Sales of Household Care by Sector: Value 2008-2013
Table 9 Forecast Sales of Household Care by Sector: % Value Growth 2008-2013
APPENDIX
DEFINITIONS
Summary 1 Research Sources
LOCAL COMPANY PROFILES - IRELAND
IRISH DRUGS LTD - HOUSEHOLD CARE - IRELAND
STRATEGIC DIRECTION
KEY FACTS
Summary 2 Irish Drugs Ltd: Key Facts
Summary 3 Irish Drugs Ltd: Operational Indicators
COMPANY BACKGROUND
PRODUCTION
Summary 4 Irish Drugs Ltd: Production Statistics 2008
COMPETITIVE POSITIONING
Summary 5 Irish Drugs Ltd: Competitive Position 2008
MALONE'S OF DUBLIN LTD - HOUSEHOLD CARE - IRELAND
STRATEGIC DIRECTION
KEY FACTS
Summary 6 Malone’s of Dublin Ltd: Key Facts
COMPANY BACKGROUND
PRODUCTION
COMPETITIVE POSITIONING
Summary 7 Malone’s of Dublin Ltd: Competitive Position 2008
MELALEUCA IRELAND PLC - HOUSEHOLD CARE - IRELAND
STRATEGIC DIRECTION
KEY FACTS
Summary 8 Melaleuca: Key Facts
COMPANY BACKGROUND
PRODUCTION
COMPETITIVE POSITIONING
RATHBORNE CANDLES LTD - HOUSEHOLD CARE - IRELAND
STRATEGIC DIRECTION
KEY FACTS
Summary 9 Rathborne Candles Ltd: Key Facts
COMPANY BACKGROUND
PRODUCTION
COMPETITIVE POSITIONING
Summary 10 Rathborne Candles Ltd: Competitive Position 2008
LAUNDRY CARE IN IRELAND
HEADLINES
TRENDS
COMPETITIVE LANDSCAPE
PROSPECTS
SECTOR DATA
Table 10 Household Penetration of Washing Machines 2003-2008
Table 11 Sales of Laundry Care by Subsector: Value 2003-2008
Table 12 Sales of Laundry Care by Subsector: % Value Growth 2003-2008
Table 13 Sales of Laundry Detergents by Type: Value 2003-2008
Table 14 Sales of Laundry Detergents by Type: % Value Growth 2003-2008
Table 15 Sales of Laundry Aids by Type: Value 2003-2008
Table 16 Sales of Laundry Aids by Type: % Value Growth 2003-2008
Table 17 Sales of Standard versus Concentrated Fabric Softeners: % Analysis 2004-2008
Table 18 Laundry Care Company Shares 2004-2008
Table 19 Laundry Care Brand Shares 2005-2008
Table 20 Laundry Detergents Company Shares 2004-2008
Table 21 Laundry Detergents Brand Shares 2005-2008
Table 22 Laundry Aids Company Shares 2004-2008
Table 23 Laundry Aids Brand Shares 2005-2008
Table 24 Forecast Sales of Laundry Care by Subsector: Value 2008-2013
Table 25 Forecast Sales of Laundry Care by Subsector: % Value Growth 2008-2013
DISHWASHING PRODUCTS IN IRELAND
HEADLINES
TRENDS
COMPETITIVE LANDSCAPE
PROSPECTS
SECTOR DATA
Table 26 Household Penetration of Dishwashers 2003-2008
Table 27 Sales of Dishwashing Products by Subsector: Value 2003-2008
Table 28 Sales of Dishwashing Products by Subsector: % Value Growth 2003-2008
Table 29 Dishwashing Products Company Shares 2004-2008
Table 30 Dishwashing Products Brand Shares 2005-2008
Table 31 Forecast Sales of Dishwashing Products by Subsector: Value 2008-2013
Table 32 Forecast Sales of Dishwashing Products by Subsector: % Value Growth 2008-2013
SURFACE CARE IN IRELAND
HEADLINES
TRENDS
COMPETITIVE LANDSCAPE
PROSPECTS
SECTOR DATA
Table 33 Sales of Surface Care by Subsector: Value 2003-2008
Table 34 Sales of Surface Care by Subsector: % Value Growth 2003-2008
Table 35 Sales of Household Care Wipes and Floor Cleaning Systems by Type: Value 2003-2008
Table 36 Sales of Household Care Wipes and Floor Cleaning Systems by Type: % Value Growth 2003-2008
Table 37 Surface Care Company Shares 2004-2008
Table 38 Surface Care Brand Shares 2005-2008
Table 39 Household Care Wipes and Floor Cleaning Systems Company Shares 2004-2008
Table 40 Household Care Wipes and Floor Cleaning Systems Brand Shares 2005-2008
Table 41 Forecast Sales of Surface Care by Subsector: Value 2008-2013
Table 42 Forecast Sales of Surface Care by Subsector: % Value Growth 2008-2013
CHLORINE BLEACH IN IRELAND
HEADLINES
TRENDS
COMPETITIVE LANDSCAPE
PROSPECTS
SECTOR DATA
Table 43 Sales of Chlorine Bleach: Value 2003-2008
Table 44 Sales of Chlorine Bleach: % Value Growth 2003-2008
Table 45 Chlorine Bleach Company Shares 2004-2008
Table 46 Chlorine Bleach Brand Shares 2005-2008
Table 47 Forecast Sales of Chlorine Bleach: Value 2008-2013
Table 48 Forecast Sales of Chlorine Bleach: % Value Growth 2008-2013
TOILET CARE PRODUCTS IN IRELAND
HEADLINES
TRENDS
COMPETITIVE LANDSCAPE
PROSPECTS
SECTOR DATA
Table 49 Sales of Toilet Care Products by Subsector: Value 2003-2008
Table 50 Sales of Toilet Care Products by Subsector: % Value Growth 2003-2008
Table 51 Toilet Care Products Company Shares 2004-2008
Table 52 Toilet Care Products Brand Shares 2005-2008
Table 53 Forecast Sales of Toilet Care Products by Subsector: Value 2008-2013
Table 54 Forecast Sales of Toilet Care Products by Subsector: % Value Growth 2008-2013
POLISHES IN IRELAND
HEADLINES
TRENDS
COMPETITIVE LANDSCAPE
PROSPECTS
SECTOR DATA
Table 55 Sales of Polishes by Subsector: Value 2003-2008
Table 56 Sales of Polishes by Subsector: % Value Growth 2003-2008
Table 57 Polishes Company Shares 2004-2008
Table 58 Polishes Brand Shares 2005-2008
Table 59 Forecast Sales of Polishes by Subsector: Value 2008-2013
Table 60 Forecast Sales of Polishes by Subsector: % Value Growth 2008-2013
AIR CARE IN IRELAND
HEADLINES
TRENDS
COMPETITIVE LANDSCAPE
PROSPECTS
SECTOR DATA
Table 61 Sales of Air Care by Subsector: Value 2003-2008
Table 62 Sales of Air Care by Subsector: % Value Growth 2003-2008
Table 63 Air Care Fragrances Rankings by Value 2006-2008
Table 64 Air Care Company Shares 2004-2008
Table 65 Air Care Brand Shares 2005-2008
Table 66 Forecast Sales of Air Care by Subsector: Value 2008-2013
Table 67 Forecast Sales of Air Care by Subsector: % Value Growth 2008-2013
INSECTICIDES IN IRELAND
HEADLINES
TRENDS
COMPETITIVE LANDSCAPE
PROSPECTS
SECTOR DATA
Table 68 Sales of Insecticides by Subsector: Value 2003-2008
Table 69 Sales of Insecticides by Subsector: % Value Growth 2003-2008
Table 70 Spray Insecticides by Type: % Value Breakdown 2006-2008
Table 71 Insecticides Company Shares 2004-2008
Table 72 Insecticides Brand Shares 2005-2008
Table 73 Forecast Sales of Insecticides by Subsector: Value 2008-2013
Table 74 Forecast Sales of Insecticides by Subsector: % Value Growth 2008-2013