By Godson Umejiego, Correspondent USA
The household care and laundry sector has grown from US$187.7bn in 2019 to US$213.1bn in 2020 at a compound annual growth rate (CAGR) of 9.7 per cent, with a similar performance also seen for volumes. Both value and volume growth forecasts are expected to accelerate across the next three years, due to COVID-19 driving long-term changes in how consumers shop for these products, says GlobalData.
GlobalData’s report, ‘Global Household and Laundry Sector Overview’, reveals that premiumization is set to be a key trend for the sector, with the volume forecast growing by 6.8 per cent in 2020 and value outpacing with a 9.7 per cent increase. Premium positioning and innovative product launches are at the core of the growing premiumization within the sector. COVID-19 has aided the growth of the sector as consumers are more concerned about hygiene and cleanliness.
Globally, value is set to outpace volume, demonstrating that the trend towards valuing premium products in this sector are worldwide. Asia, however, is the regional frontrunner in terms of value and volume numbers, and has one of the highest forecast value growth figures, with a CAGR of 6.5 per cent over 2019–2023.
Consumer Analyst at GlobalData, Amira Freyer-Elgendy comments: “This is in part driven by new innovative anti-bacterial and germ-killing products, formula and solutions that are coming out of Asia, especially India. Innovations are key to stimulating the sector’s value. Efficacy, however, should remain front and centre for brands, by ensuring that claims underscoring a product’s potency are clearly highlighted on marketing materials and packaging.”
The key growing categories for 2020 in terms of value are paper products, dishwashing products and bleach. Notably, each category’s growth can be linked to COVID-19.
Freyer-Elgendy adds: “Consumers are willing to pay higher prices for staple products in this sector that help them feel safer. During COVID-19, consumers’ usual shopping habits were disrupted, leaving space for new routines to be established. Meanwhile, working from home is expected to become more of an established norm in almost every industry. Therefore, the surge in household and laundry products growth will not abate in the next three years because the shopping trends during the pandemic will likely become long-term habits.”