Euromonitor International updated the Home Care Forecast Model in August 2022, applying the latest macroeconomic consensus to review 2022-2026 category projections. This report reviews top line changes to this outlook, indicating the main challenges faced by the home care industry, examining the impact of price inflation on category performance, and reviewing the recent reporting on industry leaders from public trading updates.
This report comes in PPT.
The home care industry is facing serious challenges related to the current supply chain crisis and the cost increases associated with it. Raw material prices have increased sharply, and with it the cost for energy and transportation. This is leading to downtrading and downsizing among consumers across fmcg industries. Home care is benefiting from a lag effect of consumption stemming from the pandemic experience and a heightened recognition of home care as a key hygiene provider.
Economic tensions are supporting the existing industry drive for more sustainable solutions. Industry players have come to realise that their sustainability goals can also be profitable goals. More than ever before, circularity and cutting down on resources in production and transportation are proving essential, especially as companies will not be able to pass on all costs to consumers as inflationary effects are continuing to impact the industry.
Euromonitor’s Voice of the Industry survey reveals that 49% of businesses have responded to the ongoing inflationary pressure on their profit margins by increasing prices of some or all of their products. Those retail price increases also reflect in Euromonitor’s VIA price tracker, with frequent double-digit median price increases, comparing August 2022 with August 2021.
The leading home care players, Procter & Gamble and Unilever, are reporting strong H1 2022 results, benefiting from price increases and a less-than-expected impact of those increases on demand. While the industry is counting on the lasting positive effect of the pandemic on demand, price segmentation and “shrinkflation” are commonly observed strategies used by home care players to minimise the effect of brand migration and downsizing on their brands.
This is the aggregation of laundry care, dishwashing products, surface care, chlorine bleach, toilet care, polishes, air fresheners and insecticides.See All of Our Definitions
If you purchase a report that is updated in the next 60 days, we will send you the new edition and data extraction Free!