Home Care: Quarterly Statement Q3 2021

August 2021

This briefing looks at changes in Euromonitor International’s home care forecasts across the 54 markets covered by the Industry Forecast Model, as part of our quarterly forecast review. A more positive economic outlook during this quarter has led to a further upgrade to our sizes forecast. The US (and Mexico to an extent) as well as major European economies stick out in terms of economic recovery. The ongoing second wave in India implies high demand for home hygiene.

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Key Findings

A more positive economic outlook in Q3 

The global economy continued to recover from its decline in 2020. While the overall situation remains volatile with continuous regional spikes in infection and a risk of new vaccine-resistant virus mutations, widespread vaccination programs, especially in developed markets, helped to boost the economy with a positive knock-on effect on disposable income and consumer confidence.

Home care experiences the second quarterly baseline upgrade in a row

Relative to the USD1.1 billion value sales upgrade in Q2, further improvement in economic circumstances and consumer confidence in Q3 resulted in the projection of an additional USD962 million in global home care value sales by 2025. Combined, this equates to an increase in value sales of 1.3% compared with our Q1 projection from February this year.

Upgrade most pronounced in Western Europe

During this quarterly update, Western Europe accounts for the biggest proportion of additional value sales with more than 44% of added expenditure deriving from a more positive outlook for the region. On a country level, the US topped the list once again, contributing an impressive USD199.2 million to the overall value sales upgrade. A decline in infection numbers in India, following a dramatic increase in infection rate and virus-related deaths in Q2, led to a marginal downgrade of the country’s value sales projection as low disposable income households rationalise their expenditure.

Q3 developments re-emphasise importance of sustainability as a strategic priority

Despite an increased focus on hygiene as a result of the pandemic, the status of sustainability as the main industry driver remained unchanged. Recent announcements of new strategic partnerships and Henkel’s acquisition of Swania SAS’s green brand portfolio in France reflect the industry’s intensifying efforts towards a more sustainable conduct and a growing appetite for greener product and packaging solutions among consumers.

Introduction

Scope
Key Findings

Q3 Home Care Update

Hard and soft driver effects in the home care forecast model
Further upgrades in Q3 lead to a more positive value growth outlook
COVID-19 scenarios: Assessing macro-scenario impact on home care
The US once again shows the highest quarterly forecast upgrade
Continuous laundry care growth in the US following peak in 2020
Recovery of laundry care in Mexico as economy bounces back
Henkel acquires Swania SAS in France to extend green label offering
Growing relevance of sustainable product claims
Unilever and Procter & Gamble announce paper-based packaging
Long-term discussion of key drivers

Q3 Macroeconomic Update

Strong global economic recovery underway
Downside risk factors remain significant
Real GDP annual growth forecasts and revisions from last quarter, AE
Real GDP annual growth forecasts and revisions from last quarter, EMDE

About our Industry Forecast Model

Euromonitor International and COVID-19: forecasts and analysis
Data and reporting timeline
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