Toilet Care in Turkey

PROSPECTS

Positive value growth is expected in toilet care thanks to the prospective volume growth in more value-added products

Toilet care benefited from dynamic economic growth, which led to a marked rise in the purchasing power of consumers and posted drastic volume and value growth until the later stages of the review period. However, particularly onwards from 2014, when the healthy economic growth stopped, volume growth of toilet care significantly has slowed down as stagnation in the income level has forced consumers to switch back to general products rather than task-specific home care.

Without improvement in economic conditions toilet care volume sales are set to stagnate, but value sales still set to be positive

Over the forecast period, consumers in Turkey are expected to continue to struggle against economic hardship as there has been no significant sign pointing to a recovery in the short run. Consequently, toilet care will record a stagnant volume CAGR, as it is predicted that the majority of the consumers will continue to be very cautious in their daily expenditures, including home care, and thus, they will largely prefer products that serve multiple needs, such as multipurpose cleaners and bleach.

Diminishing purchasing power of consumers will cause fiercer price competition in the category

Positive developments in the economy not only reinforced volume sales in toilet care, but also constant value sales and, accordingly, the category’s profitability until the later stages of the review period when the Turkish lira started to freefall and the unit cost of toilet care rapidly rose for the companies. On the other hand, stagnation in the domestic demand forced category players to make limited changes in the price tags and consequently, profitability in the category sharply fell at the end of the review period.

COMPETITIVE LANDSCAPE

Türk Henkel Kimya maintains its leadership in toilet care

Largely owing to the particular strength of its Bref brand in ITBs and in-cistern devices, Türk Henkel Kimya San ve Tic continued to lead toilet care in Turkey in 2018. In fact, the company dominated especially rim blocks over the review period, thanks to offering a significantly wider presence and more extensive product portfolio under Bref brand compared to its other international counterparts, namely Mr Muscle of SC Johnson & Sons and Unilever’s Domestos.

Domestic players are expected to gain ground in the category during the forecast period

Over the review period, international companies enjoyed their first-mover advantages and extensive distribution networks and dominated toilet care, as Henkel pioneered the category growth in ITBs and in-cistern devices and SC Johnson & Sons and Unilever dominated toilet liquids. At the end of the review period, in order to boost their value sales in a highly competitive market, a number of mid- and low-tier home care companies opted to widen their product portfolios by entering new categories.

Files are delivered directly into your account within a few minutes of purchase.