The most influential Megatrends set to shape the world through 2030, identified by Euromonitor International, help businesses better anticipate market developments and lead change for their industries.
Learn moreEuromonitor addresses your unique questions and challenges across all B2B and B2C industries and geographies through custom, tailor-made research projects, designed to your specific goals.
Learn moreSep 2016
US$1,325Added to Cart
If you purchase a report that is updated in the next 60 days, we will send you the new edition and data extract FREE!
If you purchase a report that is updated in the next 60 days, we will send you the new edition and data extract FREE!
The Home Care Q3 update sees further downward revision versus the Passport Baseline. This report focuses on developments in North America and the US specifically; how the key laundry care category is set to develop and how Henkel’s purchase of Sun Products might fit into this challenging environment. This major acquisition will see Henkel gain much opportunity in the world’s largest laundry care market but also exposes it to Sun’s declining product portfolio. Can Henkel right a listing ship?
Files are delivered directly into your account within a few minutes of purchase.
Gain competitive intelligence about market leaders. Track key industry trends, opportunities and threats. Inform your marketing, brand, strategy and market development, sales and supply functions.
Q3 sees the outlook for home care worsen slightly over what was seen in Q2, with a US$800 million downward revision softening to a US$1.1 billion downward revision, with Brazil and the US alone accounting for 50% of this figure.
While the Q2 Quarterly Statement covered the problems associated with Latin America, with a focus on Brazil, Mexico and Argentina, this Q3 Quarterly Statement focuses on North America, and the US in particular.
The US economy does not appear to be in the worst shape, but the home care industry does not seem to getting much joy here, even though the US population is forecast to expand by 1% annually over 2015-2020, which should be good news for volume and unit sales, but is not expected to translate into value growth.
Value sales in the key US laundry care category are forecast to decline by just over US$800 million as set out by the Passport Baseline, with the Q3 update seeing a further US$80 million downward revision. This highlights the increasingly commodity nature of the US laundry category, liquid detergents in particular.
Into this somewhat unusual environment came one of the biggest recent acquisitions, with Henkel purchasing Sun Products in a US$3.6 billion deal in June 2016. As a result of the acquisition, Henkel will become the second largest laundry care manufacturer in retail value terms in North America. It will benefit from scale, but will also inherit a raft of somewhat underperforming brands.
While there are many positives for Henkel, the medium term options for the company will be interesting to observe, particularly regarding how the company will use its new scale to ramp up expansion of its Persil brand and insulate itself from a category which continues to exhibit declining unit prices, driven by US retailers’ penchant for discounting.
Gain competitive intelligence about market leaders. Track key industry trends, opportunities and threats. Inform your marketing, brand, strategy and market development, sales and supply functions.