The Q3 2020 update indicates a minor downgrade in an otherwise growing home care industry. As the global economy enters recession, consumers are re-evaluating their expenditure priorities as a result of the changes brought about by the pandemic. Negative income effects are, however, likely to be counterbalanced by a rise in cleaning frequency, with consumption primarily driven by the apparent health threat and consumer efforts towards minimising the risk of virus transmission.
This report comes in PPT.
The Q3 update of August 2020 reveals a general downgrade for growth in the home care industry, as the global economy is forecast to enter its worst recession since the 1930s. At the same time, consumers worldwide are re-evaluating their cleaning and hygiene practices in the face of COVID-19. Home care products are broadly regarded as essential in the context of home hygiene; therefore, when trying to understand consumption drivers in home care, considerations around income are of secondary importance.
Faced with a clear threat to their health, consumers started to adopt new cleaning routines during 2020. This has resulted in a surge in demand for cleaning products, especially those with disinfecting properties. An increase in cleaning frequency and the expansion of cleaning routines globally were further supported by government and industry-led education campaigns. The more hygiene-centric, health and prevention-orientated mindset adopted during the pandemic is likely to persist, providing fertile soil for a strong home care performance in the coming years.
Home seclusion, due to restrictions on movement during the pandemic, further supports the trend towards preventative health. As consumers spend more time at home, this generally creates more cleaning occasions. A good example is door handles. Aside from new cleaning occasions, the general cleaning frequency has increased for the same reason. Flexible working will support this development over the forecast period.
In markets with the necessary infrastructure in place, consumers migrated to e-commerce when governments announced restrictions on movement, to avoid exposing themselves to the risk of infection when visiting a physical store. A significant proportion of consumers are expected to continue purchasing at least some of their products online.
This is the aggregation of laundry care, dishwashing products, surface care, chlorine bleach, toilet care, polishes, air fresheners and insecticides.
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