Review period growth fuelled by focus on hygiene but hindered by economy
Home care benefited from a growing consumer focus on hygiene during the review period, as a result of increasingly crowded and polluted cities. However, many consumers faced strong economic constraints during the review period, with unemployment rising and strong rises in food, electricity and housing costs. This particularly impacted low-income consumers, who account for the majority of the population in South Africa and resulted in many seeking to economise in home care, thus constraining sales growth.
Cost-conscious consumers attracted by price promotions and multifunctional products
Declining constant value disposable income levels for many consumers in 2012 resulted in a strong focus on price in home care at the end of the review period. This resulted in constant value unit price decline for many product areas, as the leading players and retailers competed for share through price promotions. In addition, this focus on value boosted sales of multifunctional products such as multi-purpose cleaners, household antiseptics/disinfectants and hand wash detergents.
Multinationals dominate but face a growing challenge from private label
Multinationals continued to dominate sales of home care at the end of the review period, with Unilever, Reckitt Benckiser and SC Johnson being the leading players. Most consumers prefer the reassurance of a strong global brand, with these players also benefiting from strong marketing support, wide distribution and wide product ranges. However, all three of these leaders lost value share in 2012 over the previous year. This was due to consumers' financial constraints, with many switching to private label as a result. The strongest share gain seen among the major players was thus for Pick 'n Pay, a leading retailer that offers a wide and increasingly well-regarded private label range of home care.
Supermarkets continues to dominate sales
Supermarkets continued to dominate the distribution of home care at the end of the review period, maintaining a steady value share in 2012 over the previous year. This channel benefits from offering a wide product range, convenience and frequent price promotions. The increasing use of price promotions in supermarkets meanwhile resulted in the channel gaining share in volume terms in 2012, while maintaining a steady value share.
Steady growth to continue over forecast period
Home care is expected to continue to see a slow but steady constant value sales growth during the forecast period. Growth will continue to benefit from consumers' increasing focus on hygiene and cleanliness and from population growth. However, growth will be constrained by softening volume growth and increasing maturity in major product areas such as bleach, hand dishwashing, hand wash detergents and multi-purpose cleaners. In addition, widespread poverty will constrain growth and will prevent many consumers from trading up to more specialised or higher-priced home care such as polishes, household care wipes and floor cleaning systems or spot and stain removers.
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The Home Care in South Africa market research report includes:
- Analysis of key supply-side and demand trends
- Historic volumes and values, company and brand market shares
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Our market research reports answer questions such as:
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- What are the major brands in South Africa?
- What is the importance of the trend towards environmentally friendly products in home care?
- What are the main growth drivers of the home care market in South Africa?
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This industry report originates from Passport, our Home Care market research database.