Dishwashing in Turkey

PROSPECTS

Volume sales of dishwashing decline in 2018 for first time in more than 10 years

Dishwashing registered negative volume growth in 2018, after steady annual growth for more than a decade, as a consequence of the dramatic deterioration in the Turkish economy, as well as to skyrocketed retail unit prices. Along with the fact that consumers were very cautious about purchasing every sort of fast-moving consumer goods, including dishwashing, they also started consciously using only as much product as they perceive necessary.

Volume sales of dishwashing are set to rebound early in the forecast period

Dishwashing is set to post a rebound and demonstrate an upward trend in both volume and value terms starting early in the forecast period. This will be mainly owing to the prospective increase in volume sales of dishwashers, which is pointed out by the relatively lower household penetration rate of dishwashers in Turkey, compared to the rest of Western Europe.

Hand dishwashing will continue to grow thanks to strong consumer habits

Despite healthy volume and value growth that automatic dishwashing demonstrated, hand dishwashing did not diminish in Turkey. In contrast, the category protected its annual volume sales base over the review period.

COMPETITIVE LANDSCAPE

Reckitt Benckiser leads the category thanks to its dominance in automatic dishwashing

Reckitt Benckiser has enjoyed the advantage of pioneering the transition from powder to tablet format in automatic dishwashing, which has led the company to lead the category, and it continued to hold the highest value share in dishwashing in 2018. Following the swift transition within automatic dishwashing, other international players, such as Henkel and Procter & Gamble, also entered the category along with their new product developments, which brought ensured that the category was dominated by international players over the review period.

Affordable dishwashing products are gaining ground

Whilst the majority of dishwashing in Turkey was generated by highly recognised international brands, private label gradually gained ground over the review period, parallel with the outlet expansion of popular discounter chains, particularly BIM and A101. As of 2018, private label, mainly BIM and A101’s private label lines, gained remarkable value share, as a respectable proportion of consumers opted for more affordable options due to the marked decline in their purchasing power.

Branded dishwashing products will be much more visible in emerging retailing concepts

As a responsive strategy against the rise of economy products within dishwashing, category players that offer branded dishwashing started to seek alternative ways to protect their value shares towards the end of the review period. For instance, Procter & Gamble opted to launch Fairy’s automatic dishwashing tablets in BIM, whilst all international brands, namely Finish, Fairy and Pril were available in the country’s most widespread discounter chain A101 on a frequent basis, relying on the healthy growth of such retailing concepts in Turkey.

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