The Impact of Coronavirus on Home Care

April 2020

This report outlines Euromonitor International’s initial review and statement on the impact of the Coronavirus (COVID-19) pandemic on the global home care industry. In a very fluid and rapidly developing situation, this report seeks to provide a rapid review, as well as a framework for subsequent reporting. At a time when a third of the global population are in lockdown, the home care industry has much to offer in terms of support for consumers’ rapidly changing lifestyle’s and priorities.

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Key findings

Hygiene and efficacy

The COVID-19 pandemic has served to focus the home care market in two distinct areas: preserving home hygiene and therefore health; and the promise of efficacy, without compromise. While hygiene has always been a priority, the efficacy versus sustainability angle that has quickly developed is an interesting obstacle for both the industry and consumers to navigate. Just when consumers’ apparent chemophobia was rising as a trend.

Accelerated growth

  More time at home, more things to clean, more meals to cooks, more pans to clean is a simple formula to promote home care growth during lockdown, but mapping this against heightened threat, we can see greater portions of disposable income set aside to support home care purchases as consumer priority lists have suddenly been reassessed.

The hygiene ecosystem 

Gone are the days when home care could count on being the undisputed hygiene provider in the home. Evidence from South Korea has seen rising sales of refreshing wardrobes for clothing, such as LG’s Styler, whilst strong sales of air purifiers have been generated during lockdown in China.

Inversion of sustainability

The puzzle for the industry is how to balance hygiene with sustainability, as it is only provided by heat (energy), chemicals or appliance technology (energy), meaning the long-term challenge will be to balance heightened demand within the context of sustainability.

Beginning of the end

Huge investment in delivery services by chained retailers will push far more home care and grocery products through the e-commerce channel long term. It seems inconceivable that brands and retailers facing a significant existential threat from Amazon (and similar e-commerce giants) won’t take this opportunity to fight back and win time. We could be looking at the beginning of the end of the ‘traditional’ supermarket grocery shop; it has always been on the horizon.

Scope
Key findings
Home care and COVID-19
Home care ubiquity and low barrier to participation
Threat and consumer education as consumption driver
India and home insecticides
Four basic drivers of COVID-19 home care consumption
The hygiene ecosystem: Future collaboration or battlefront
COVID-19 in context
Global GDP is likely to contract in 2020 under the baseline scenario
The COVID-19 pandemic impacts both supply and demand
In our baseline view, the pandemic peaks in June 2020
Three scenarios examine the impact of a more severe outbreak
Our view in short
Forecasts for Real GDP growth in 2020 under different scenarios
Financial markets on risk-off mode as COVID-19 entered Italy
China: An early glimpse into the economic cost of the virus
COVID-19 highlights need for supply chain diversification
Fiscal stimulus a challenge with restrictions on expenditure
What could alleviate the economic effects of the pandemic?
What could exacerbate the economic impact of the pandemic?
The situation in home care
COVID-19 impact at a glance
Routes to disruption
Home care response to macro environment
Home care supply chain holds strong
E-commerce becomes a critical channel
The five-step consumer progression of COVID-19 for home care
Consumer behaviour and consumption patterns…
Overall market dynamics
No evidence of supply chain disruption in Western Europe
Major push for e-commerce in China and other markets globally
Weak infrastructure creates uncertainty in Indian market
Sales growth in Latin American markets most pronounced within bleach
Differences between developed and developing markets are evident
Forecast growth in developing markets at risk
Global home care company value shares
Main challenges for Procter & Gamble
Timely: 22 February launch in the US, P&G team up with Microban
Main challenges for Unilever
Beyond fresh opportunity for clothes sanitisers outside the wash?
PMS Group’s JIK promoted with ‘+ bleach’ in South Africa
Main challenges for Reckitt Benckiser
Reckitt Benckiser brands amongst most trusted for hygiene
Reckitt Benckiser could see opportunities in laundry additives
Main challenges for Henkel
Options to develop ADW into grocery shopping sanitiser
Key insights: COVID-19 scenarios
Outlook for home care
Outlook for home care continued
About Euromonitor International’s Macro Model
About Euromonitor International’s Macro Model

Home Care

This is the aggregation of laundry care, dishwashing products, surface care, chlorine bleach, toilet care, polishes, air fresheners and insecticides.

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