Bath and Shower in the Philippines

2020 IMPACT

Stockpiling of essential bath and shower products with greater focus on antibacterial variants supports stronger performance for category in 2020

Due to the essential nature of bath and shower in the Philippines, the announcement of a lockdown in early 2020 as a result of the pandemic resulted in initial panic buying amongst consumers, with many retailers experiencing product shortages. This led to the government issuing a directive that restricted the purchase of any type of product to a maximum of five items to help reduce stockpiling of essential goods.

Leader Procter & Gamble regains lost share due to antibacterial positioning of its bar soap Safeguard

Procter & Gamble Philippines Inc retained its convincing lead of bath and shower in 2020 where it gained notable value share, mainly due to the strong position of its Safeguard brand in the largest category of bar soap, and therefore benefiting from the upturn in demand for this product in the wake of the pandemic. 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.

Greater demand for hand sanitisers drives up average unit price of liquid soap

With a greater shift in priorities regarding the search for bath and shower products with antibacterial properties due to the preventative health trend, demand for liquid soap, which tends to be purchased by more affluent consumers, who are likely to have been less impacted financially by the pandemic, marginally increased in 2020. However, double-digit current value growth for the category was driven up by rising average unit prices due to greater demand for antibacterial variants and particularly hand sanitisers.

RECOVERY AND OPPORTUNITIES

Higher value growth due to continual focus on antibacterial options, but overall demand will weaken over early part of forecast period due to previous stockpiling

With stockpiling behaviour witnessed for bar soap and body wash/shower gel in particular in 2020, overall demand for bath and shower is set to decline in 2021/2022, a trend further supported by lingering price sensitivity and a prioritising of expenditure. Nevertheless, with the virus remaining in circulation heading into the forecast period, the preventative health trend is likely to see further demand for particular variants of these products, especially antibacterial soap, and hand sanitisers, helping to support higher value growth (at constant 2020 prices) compared to volume growth over the forecast period.

More informed consumers and the regaining of purchasing power will encourage trading up

Another way for players to add value to bath and shower over the forecast period as consumers regain their purchasing power and confidence will be through the offer of multifunctional products with specific properties such as extra moisturising, firming, and even anti-ageing which particularly appeal to Filipino consumers. The home seclusion trend also allowed consumers to spend greater time browsing online, with some using this time to become more informed about the products they use, and which products suits their needs.

E-commerce likely to gain further share

While modern grocery retailers significantly benefited from a shift amongst consumers to one-stop shopping during the pandemic, resulting in notable declines for health and beauty specialist retailers and department stores due to store closures, e-commerce also gained ground due to the convenience and perceived safety of home delivery. Purchases of bath and shower products through e-commerce are set to continue to rise over the forecast period, even after the threat of the virus wanes, with this channel likely to remain popular amongst younger tech-savvy consumers who appreciate the cost savings that can be found online.