Household Cleaning Products: The Market - US - May 2008

Table of Contents

• Scope and Themes
• What you need to know
• Definition
• Data sources
• Sales data
• Abbreviations and terms
• Abbreviations
• Terms
• Executive Summary
• Key themes
• Market size and forecast--flat overall, buoyed by individual product wins
• Competitive context--dozens of products; five leading companies
• Segment performances
• Household surface cleaners
• Rug/upholstery/fabric cleaners
• Sponges/scouring pads
• Cleaner clothes/wipes
• Furniture polish
• Floor cleaners/wax removers
• Revenue growth comes from non-traditional channels
• Clorox and Lysol lead market
• Product development activity essential
• Market Size and Forecast
• Key points
• Revenue growth curtailed by shift in sales to Wal-Mart and lower volume sales
• Brands matter
• Connecting with the customer is key
• Innovation helps spur sales in a mature category
  • Figure 1: Total U.S. sales and forecast of household cleaning products at current prices, 2002-12
  • Figure 2: Total U.S. sales and forecast of household cleaning products at inflation adjusted prices, 2002-12
• Competitive Context
• Key points
• Line extensions and product innovations are the principal means of competition
  • Figure 3: U.S. new household cleaning product introductions, 2002-07
• Three companies control more than half of category sales
• "Clean enough" is the new standard
• Segment Performance--Overview
• Key points
• Wipes continue to shine
• Rugs less popular but more protected
  • Figure 4: FDMx* sales and forecast of household cleaning products at current prices, by segment, 2002-12
  • Figure 5: FDMx* sales of household cleaning products, by segment, 2005 and 2007
• Segment Performance--Household Surface Cleaners
• Key points
• Surface cleaner segment sales are underperforming the category
• As go new products/innovations, so go sales
  • Figure 6: FDMx* sales and forecast of household surface cleaners, 2002-12
  • Figure 7: FDMx* sales of household surface cleaners, by type, 2005 and 2007
• Segment Performance--Rug/Upholstery/Fabric Cleaners
• Key points
• Hard surface flooring has reduced the demand for rug cleaners/treatments
• There is always room for a needed product
  • Figure 8: FDMx* sales and forecast of rug/upholstery/fabric cleaners, 2002-12
• Segment Performance--Sponges and Scouring Pads
• Key points
• 3M' s Scotch-Brite leads the way
• Private labels account for 16% of segment sales
  • Figure 9: FDMx* sales and forecast of sponges and scouring pads, 2002-12
• Segment Performance--Cleaning Cloths/Wipes
• Key points
• A high-flying segment settles down
• All-purpose wipes dominate the segment
  • Figure 10: FDMx* sales and forecast of cleaning cloths/wipes, 2002-12
  • Figure 11: FDMx* sales of cleaning cloths/wipes, by type, 2005 and 2007
• Segment Performance--Furniture Polish
• Key points
• Sampling of furniture wipes damaged traditional polish sales
• Little innovation, no lift in sales
  • Figure 12: FDMx* sales and forecast of furniture polish, 2002-12
• Segment Performance--Floor Cleaners/Wax Removers
• Key points
• Consumers like Swiffer
• Hard floor surfaces in vogue
  • Figure 13: FDMx* sales and forecast of floor cleaners/wax removers, 2002-12
• Retail Channels
• Key points
• 70% of sales but no revenue growth
• Everyday low prices hurt revenue growth across major channels
• Wal-Mart sets the retail tone
• Green movement sparks growing interest in natural products
  • Figure 14: U.S. sales of household cleaning products, by retail channel, 2005 and 2007
• Retail Channels--Discounters
• Key points
• Sales through discounters holding steady
  • Figure 15: U.S. sales of household cleaning products at discount stores/supercenters/warehouse clubs, 2002-07
• Retail Channels--Supermarkets
• Key points
• To keep sales in-house, supermarkets need to get creative
• Build store brand sales
  • Figure 16: U.S. sales of household cleaning products at supermarkets, 2002-07
• Retail Channels--General Merchandise Stores
• Key points
• Discounters aren' t the only place to find brand names for less
  • Figure 17: U.S. sales of household cleaning products at general merchandise stores, 2002-07
• Retail Channels--Natural and Other Channels
• Key points
• Natural cleaning products are a match for the natural food channel
  • Figure 18: Natural product supermarket retail sales of household cleaners, at current and inflation adjusted prices, 52 weeks ending March, 2006-08
• Green products take some getting used to
  • Figure 19: Sales of household cleaning products through natural supermarkets, by segment, 2006 and 2008
• Online retailers are promoting household cleaning product offerings
  • Figure 20: U.S. sales of household cleaning products at other* channels, 2002-07
• Market Drivers
• Less time being spent on household chores
  • Figure 21: Hours spent doing housework 1976 and 2005
• Age considerations
  • Figure 22: Population by age, 2002-12
• Less carpet, more hard surface flooring
  • Figure 23: U.S. wholesale sales of floor covering products, 2002 & 2007
• New product introductions essential
  • Figure 24: U.S. new household cleaning product introductions, 2002-07
• Consumers more interested in green products
  • Figure 25: Consumer awareness of ' green' products or services, February 2008
• Leading Companies
• Key points
• Branding is critical to sales and profitability
• Market share concentrated in the hands of just a few companies
• Figure 26: FDMx* sales of leading household cleaning products companies, 2005 and 2007
  • Brand Share--Household Surface Cleaners
• All-purpose cleaners and disinfectants
• Key points
• Brand extensions can be effective
• Line extensions reinvigorate the brand
• Targeting helps to differentiate brands
  • Figure 27: FDMx* brand sales of all-purpose cleaner/disinfectant, 2005 and 2007
• Toilet bowl cleaners and disinfectants
• Key points
• Lysol and Clorox brand franchises are dominant
• Disposable toilet brush concept wanes
  • Figure 28: FDMx* brand sales of toilet bowl cleaner/disinfectant, 2005 and 2007
• Non-abrasive tub and tile cleaners
• Key points
• Scrubbing Bubbles drives growth in the segment
• An innovative subsegment
  • Figure 29: FDMx* brand sales of non-abrasive tub and tile cleaners, 2005 and 2007
• Glass cleaner/ammonia
• Key points
• Windex leads the way
• Innovation is limited
  • Figure 30: FDMx* brand sales of glass cleaner/ammonia, 2005 and 2007
• Drain cleaner
• Key points
• Drano and Liquid-Plumr dominate
  • Figure 31: FDMx* brand sales of drain cleaner, 2005 and 2007
• Brand Share--Rug/Upholstery/Fabric Cleaners
• Key points
• Smoking bans curtail the need for deodorizers
• Smaller players with targeted products can make inroads
  • Figure 32: FDMx* brand sales of rug/upholstery/fabric cleaners, 2005 and 2007
• Brand Share--Sponges and Scouring Pads
• Key points
• Scotch-Brite registered 30% increase 2005-07
• Scouring pads wear out their welcome
  • Figure 33: FDMx* brand sales of sponges and scouring pads, 2005 and 2007
• Brand Share--Cleaning Cloths/Wipes
• Key points
• Clorox shines among dull leading brands
• Private label and other brands make inroads
  • Figure 34: FDMx* brand sales of cleaning cloths and wipes, 2005 and 2007
• Brand Share--Furniture Polish
• Key points
• Pledge rolls along
  • Figure 35: FDMx* brand sales of furniture polish, 2005 and 2007
• Brand Share--Floor Cleaners/Wax Removers
• Key points
• Consumers keep buying Swiffer
• New flooring surfaces inspire demand for new products
  • Figure 36: FDMx* brand sales of floor cleaners/wax removers, 2005 and 2007
• Brand Qualities
• Clorox (The Clorox Company)
• Lysol (Reckitt Benckiser)
• Scrubbing Bubbles (SC Johnson)
• Swiffer (P&G)
• Method (Method Products)
• Innovation and Innovators
• Key points
• Convenience leads new product positioning claims
  • Figure 37: U.S. new household cleaning product introductions, by category, 2005 and 2007
  • Figure 38: Top FIVE product claims in hard surface care, 2008
• Innovators
• Scrubbing Bubbles
• Method
• Clorox Green Works
• O-Cel-O
• Fabuloso
• Natural brand leaders
• Advertising and Promotion
• Key points
• Advertising themes
• Responsible moms will use this product
  • Figure 39: Clorox Anywhere Hard Surface Spray television ad, 2007
  • Figure 40: Clorox cleaner range television ad, 2007
  • Figure 41: Clorox Green Works television ad, 2008
• Just when you thought your bathroom was clean...
  • Figure 42: Lysol Deep Reach toilet cleaner television ad, 2007
  • Figure 43: Lysol liquid toilet cleaner television ad, 2007
• Effectiveness is what counts
  • Figure 44: Easy Off Bam television ad, 2007
  • Figure 45: Formula 409 all-purpose cleaner television ad, 2007
  • Figure 46: Kaboom bathroom cleaner television ad, 2007
• Company expenditures
  • Figure 47: U.S. media spending for leading household cleaning brands, 2005 and 2006
  • Figure 48: Febreze television ad, 2007
  • Figure 49: Mr Clean with Febreze television ad, 2008
• Appendix: Trade Associations