Surface Care in New Zealand

2021 DEVELOPMENTS

Value sales decline in 2021, but remain well above pre-COVID-19 levels

The COVID-19 pandemic had a significant positive effect on surface care in 2020, with consumers spending more time at home, and heightened awareness of hygiene and cleanliness having a positive impact on the category and driving significant growth. While in 2021 current value sales declined, they remained well above the pre-COVID-19 level.

Surface care one of the most segmented categories in home care

Surface care remains a highly competitive category, with the highest number of players of any home care category. While as in several other home care categories, Reckitt Benckiser and SC Johnson & Son are leading players in surface care, Colgate-Palmolive is another major player, holding second position in 2021.

Penetration of green brands grows

Environmental concerns have long influenced consumers’ decision-making in home care, and over the review period brands such as Ecostore and Earthwise grew from being niche local brands to fully-fledged players within the industry. While they have more premium price points than the mainstream brands, New Zealand’s success in combating the COVID-19 pandemic saw a buoyant local economy and growth in consumer spending, which was focused domestically due to the borders being closed.

PROSPECTS AND OPPORTUNITIES

Wipes likely to come under increased scrutiny

Increased focus on hygiene and cleanliness benefited sales of wipes over the review period, including in 2021. However, as sales of wipes increased, so too did the detrimental impact that their use had on the environment and on the local infrastructure.

Work from home trend likely to influence category dynamics over the forecast period

Although New Zealand remained relatively free from COVID-19 and suffered few lockdowns or restrictions, the pandemic led to significant changes in ways of working for New Zealanders, with working from home becoming more prevalent in 2021. This trend is expected to continue to grow over the forecast period, with many large companies across New Zealand looking to reduce their physical office space and embrace higher levels of remote working.

Product performance likely to be front of mind post-COVID-19

Product performance and efficacy are likely to be front of mind for consumers as New Zealand emerges from COVID-19. Antibacterial properties are therefore expected to be a key driver influencing consumers’ decision-making over the forecast period, due to the heightened awareness and sensitivity to cleanliness and hygiene that COVID-19 brought about.