Bath and Shower in the Philippines

PRE-COVID-19 PERFORMANCE

Largest category of bar soap driven by price increases as players continue to add value through innovation and use of natural ingredients

Bath and shower continued to be driven by a rise in unit prices rather than a significant increase in demand, particularly for the largest categories of bar soap and body power, which experienced ongoing maturity in 2019. Demand for bar soap is driven by habitual usage amongst local consumers, and offers an affordable price range compared to other products in the category such as body wash/shower gel for instance.

Body wash/shower gel strongest performer in volume terms, offering alternative option to number of categories

Body powder is another large category within bath and shower in the Philippines due to traditional usage, although this product has been negatively impacted by stories that have appeared in the media highlighting the potentially harmful side effects of regularly using talcum powder. In March 2018, the Food and Drug Administration for the Philippines issued an advisory warning that talcum powder should be kept away from the noses and mouths of children to avoid inhalation, leading to declining demand for the category that year and stagnant volume sales in 2019; one possible way to address these health concerns would be to produce alternative options with local company Intelligent Skin Care Inc introducing talc-free powder at the end of the review period.

Procter & Gamble retains overall leadership in 2019 due to presence in bar soap but loses ground to local player Cosmetique Asia Corp

Procter & Gamble Philippines Inc retained its convincing lead of bath and shower in 2019, mainly due to the strong position of its Safeguard brand in the largest category of bar soap. Safeguard has a long-standing presence in the Philippines and has built up a loyal and trusting following, as it is well-known for its antibacterial properties.

2020 AND BEYOND

COVID-19 impact

Value sales of bath and shower are now expected to grow by 16% in 2020 at constant 2019 prices in light of the impact of COVID-19. This compares to an expected 1% rise forecast for 2020 during research conducted at the end of 2019 before the spread of COVID-19.

Affected products within bath and shower

A number of bath and shower products are predicted to record stronger volume growth in 2020 in response to COVID-19 following scenes of panic buying in supermarkets and health and beauty specialist retailers. Particularly strong will be liquid soap due to the preventative health trend which is likely to lead to high demand for antibacterial hand sanitisers as local consumers remain cautious about the spreading of germs within the home; liquid soap is also perceived by some consumers to offer a more hygiene way of washing one’s hands compared to the traditional bar soap as there is limited contact due to the product being dispensed from a bottle.

Recovery and opportunities

Due to ongoing awareness of the need to be vigilant regarding the spreading of germs and greater awareness of strict personal hygiene, bath and shower is predicted to record a much stronger performance over the forecast period compared to the review period. While some normalisation is set to return from 2021 due to consumers having excess stock of many bath and shower products in 2020, demand is set to further strengthen for a number of products.

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