IRI Pulse Report Household · register growth on household products and grew 1.1% in value sales...

PULSE REPORT

IRI Pulse Report Household

Welcome to the Pulse Q1 2014 edition for household. We hope you

find it useful. Please do not hesitate to contact us if you have any

questions or comments at [email protected].

Q1 2014

IRIworldwide.eu

PULSE REPORT

About the Report

2

• This household report is one of ten super category reports designed to show high-level

comparison and analysis for retail markets across major countries in Europe.

• This report contains data gathered from around Europe. This market was split into the

following categories: air fresheners, dishwashing, household cleaners, shoe cleaners,

cleaning supplies, insecticides, fabric detergents, fabric enhancers and paper disposables.

• The report highlights key metrics such as total sales figures, market trends, category

shares, winners and losers for Europe and for individual countries.

• The data has been sourced from IRI retail databases and Eurostat, the statistical branch of

administration for the European Commission.

• The countries included in the report are: France, Germany, Italy, the Netherlands, Spain

and the United Kingdom (UK).

• The market channels used for each country in this report are as follows:

Country Channels used

UK Hypermarkets, supermarkets, drugstores and impulse outlets

ES Hypermarkets, supermarkets, hard discounters, and drugstores, including the Canary Islands

DE Hypermarkets, supermarkets, hard discounters and drugstores

NL Hypermarkets, supermarkets, hard discounters and drugstores

IT Hypermarkets, supermarkets, small self service, hard discounters and drugstores

FR Hypermarkets and supermarkets

• For analytical purposes, the data sourced from available retail databases has been

consolidated to provide consistent results. However, for some countries it was not possible

to source data pertaining to certain categories. When this occurred, it has been documented

in the notes section found at the end of the report.

PULSE REPORT

On the Radar

3

ECONOMIC FIGURES INFLUENCING CONSUMER BEHAVIOUR

Source: Eurostat, September 2013

As predicted, all household categories were in value sales decline at a total European level. Over the last year, we have seen the two largest categories shift from the main driver of growth to the main driver of decline. Although this varies by country, it shows how important it is to continue to deliver growth in the areas of the market that have the greatest share.

POPULATION IN MILLIONS

UNEMPLOYMENT (%)

AVERAGE 12 MONTHS

INFLATION RATES

GDP IN MILLIONS (€)

Jan. 2012

Jan. 2013

Sep. 2013

Average 2012

Sep. 2013

Average 2012

2012 2013

(Estimate)

France 65.3 65.6 11.1 10.2 +1.2 +2.5 2 032 297 2 059 358

Germany 80.3 80.5 5.2 5.5 +1.8 +2.4 2 644 200 2 694 499

Italy 59.3 59.6 12.5 10.7 +1.8 +3.5 1 565 916 1 568 388

Netherlands 16.7 16.8 7.0 5.3 +3.1 +2.8 600 638 604 459

Spain 46.8 46.7 26.6 25.0 +2.3 +2.3 1 049 525 1 051 076

United Kingdom

63.4 63.8 7.5 7.9 +2.7 +3.7 1 901 001 1 854 920

PULSE REPORT

1,232 1,245 1,209 1,225 1,222 1,240

968 953 995 1,024 965 957

263 274 266 268 244 263

1,407 1,401 1,437 1,457 1,348 1,359

1,636 1,668 1,611 1,662 1,602 1,677

1,388 1,402 1,382 1,500

1,397 1,429

0

1,000

2,000

3,000

4,000

5,000

6,000

7,000

8,000

30-dic-12 31-mar-13 30-jun-13 29-sep-13 29-dic-13 30-mar-14

Millio

ns

Period Ending

France

Germany

Italy

Netherlands

Spain

UK

Global Trends

4

TOTAL EUROPE -1.1%

-3.6%

-0.6%

-1.2%

VALUE SALES IN MILLIONS (€)

Total EU 27 740

DE 6 553

FR 5 708

IT 5 602

UK 4 896*

ES 3 941

NL 1 041

TOTAL HOUSEHOLD VALUE SALES AND % CHANGE VERSUS PRIOR YEAR

*based on an exchange rate of €1.150 to the pound

-0.7%

-4.3%

+1.1%

TOTAL HOUSEHOLD VALUE SALES FOR THE LAST SIX QUARTERS

Source: IRI retail databases; period ending 30 March 2014

PULSE REPORT

2 690

8 447

4 181

5 783

2 830

-3.2 -0.8 0.0 -0.9 0.3

Paper

Dis

posable

s

Fabri

c

Dete

rgents

Household

Cle

aners

Dis

hw

ash

Fabri

c

Enhancers

Mil

lio

ns

Total € Sales % € vs. YA

6.0%

9.7%

15.1%

30.5%

0.5%

1.9%

5.4%

20.8%

10.2%

Paper Disposables Fabric Detergents Household Cleaners

Dishwash Fabric Enhancers Air Fresheners

Cleaning Supplies Insecticides Shoe Cleaners

Europe

5

5 783

4 181

2 830

1 6531 487

519 149

8 447

2 690

Eu

ros,

in m

illi

on

s

CATEGORY VALUE SALES IN THE LAST YEAR

CATEGORY SHARE OF VALUE IN THE LAST YEAR

Europe includes: France, Germany, Italy, the Netherlands, Spain and the United Kingdom

TOP 5 CATEGORIES: EVOLUTION

Value sales (€) and % change versus year ago


KEY TRENDS

• France was the only country in Europe to

grow household sales, although Germany

and the UK declined at a slower rate than

the European total. However, all countries

grew versus the previous quarter.

• Sales were down -1.3% versus the prior

year with none of the household categories

in growth at a total European level. Fabric

detergents was previously one of the main

growth areas, but this has had a dramatic

turnaround and is now the category with

the largest decline. This is followed by

paper disposables, again a category which

historically drove the growth of the

household market.

• These two categories should act as a

warning to any category – within the space

of a few months, the largest area of

growth can become the largest area of

decline.

PULSE REPORT

Europe

6

CATEGORY INSIGHTS

• Fabric detergents became the largest area of decline at a European level. Although France,

Germany and the UK grew, there were significant declines in Italy and Spain which have

driven this trend. Powder, which saw significant decline in Spain and the UK, seemed to drive

this. Other formats were unable to achieve the levels of growth needed to offset this decline.

• Paper disposables continued to decline as France and Spain were unable to cover for the

losses seen in the UK and Italy. The UK decline was driven by private label in the soft sector,

whilst Italy declined across all sectors except napkins and wipes.

• Household cleaners were in decline in all countries with the exception of Germany. The

majority of the decline was seen in Italy, where all sectors are now in decline.

• Air fresheners were in decline across every European country. Although this was not the top

five in terms of share of household, this wide decline brings it into the bottom 5 performing

categories.

Europe includes: France, Germany, Italy, the Netherlands, Spain and the United Kingdom


TOP LOSERS: VALUE SALES CHANGE VERSUS A YEAR AGO (€)

TOP WINNERS: VALUE SALES CHANGE VERSUS A YEAR AGO (€)

8.6

0 2 4 6 8 10

Fabric

Enhancers

Millions

- 9.5

- 22.5

- 23.0

- 188.2

- 73.8

-200 -150 -100 -50 0

Insecticides

Dishwash

Air

Fresheners

Paper

Disposables

Fabric

Detergents

.

Millions

PULSE REPORT

7.8%

9.7%

14.4%

26.4%

0.6%

2.3%

5.6%

22.5%

10.7%


Dishwash Fabric Enhancers Cleaning Supplies

Air Fresheners Insecticides Shoe Cleaners

551

1 506

823

1 285

611

0.4 1.4 0.9 2.1 2.4

Paper

Dis

posable

s

Fabri

c

Dete

rgents

Household

Cle

aners

Dis

hw

ash

Fabri

c

Enhancers

Mil

lio

ns


France

7

KEY TRENDS

• France was the only country in Europe to

register growth on household products and

grew 1.1% in value sales versus a decline

of 1.1% for Europe.

• Moreover, France’s growth rate increased

since last quarter.

• Also, fast moving consumer goods (FMCG)

as a whole were far more dynamic than

household products, with 1.6% growth in

Q4 2013.

• Household growth mainly came from

‘essential’ categories, which include paper

disposables, fabric detergents and

dishwashing.

Eu

ros,

in m

illi

on

s





Value sales (€) and % change versus a year ago

1 285

823

611

444

322

133

33

1 506

551

PULSE REPORT

France

8




Millions

CATEGORY INSIGHTS

• Fabric detergents, the second largest category in household products, was only the fifth

contributor to growth. Value sales only grew by 0.4% versus around 5% in 2012. The strong

increase of the capsules segment was not sufficient to offset regression of all other product

forms. The economic context seemed to be weighing on the category’s health. Moreover,

during the last two or three years, fabric was benefiting from liquid compaction, but it seems

that now consumers are using the correct dose. Promotional activity still had an important

role in value sales.

• Fabric enhancers, the smaller category in household products, was the second contributor to

growth this quarter. The category was driven by a liquid compaction as in fabric detergents.

Many launches also contributed to the growth.

• Paper disposables and dishwashing grew mainly through promotional sales increases.

• Household cleaners still suffered from the structural decline of categories such as floor care

and bleach.

5.2

7.3

8.6

12.7

30.9

0 10 20 30 40

Paper

Disposables

Fabric

Enhancers

Dishwash

Household

Cleaners

Fabric

Detergents

- 0.5

- 10.9

-12 -10 -8 -6 -4 -2 0

Shoe Cleaners

Air

Fresheners

.

Millions

PULSE REPORT

5.6%

9.0%

15.1%

33.8%

0.4%

1.1%3.5%

21.0%

10.6%




597

2 191

1 004

1 358

695

-2.1 -1.4 2.5 -1.6 1.5

Paper

Dis

posable

s

Fabri

c

Dete

rgents

Household

Cle

aners

Dis

hw

ash

Fabri

c

Enhancers

Mil

lio

ns


Germany

9

KEY TRENDS

• The household market experienced a slight

decline, driven by losses in the paper

disposable and fabric detergent categories.

• Hypermarkets, one of the major channels,

incurred losses and was the major reason

for the category decline. Losses were

majorly contributed by sub-channels, such

as 800-1499 square meter (sqm) and

>5000 sqm.

• Promotions contributed to around 21% of

total sales, however, there has been dip in

promotions which was one of the reasons for

category decline.

• Discounters showed positive development

with growth from both hard and soft

discounters. Growth in fabric detergents and

household cleaners categories led to the

sales boost.

Eu

ros,

in m

illi

on

s




Value sales (€) and % change versus year ago


1 358

1 004

695

370 233

28

2 191

597

77

PULSE REPORT

Germany

10

CATEGORY INSIGHTS

• Household cleaners led the category driven by value growth of toilet bowl cleaner/stones in

all channels. Major channels with positive development were discounters (hard discounters)

and drug stores, together contributing to approximately 52% of market share fueled by

higher promotions. Hypermarkets, the major channel, showed a flat growth rate. Private

label held around 30% of share with a flat growth rate.

• Fabric enhancers development was driven by positive growth in the laundry additives

category. Discounters, especially hard discounters, were driving the growth. Although

hypermarkets are the major channel, they are declined in value. Private label had around

19% share and grew with a pump in sales in hard discounters.

• Insecticides also showed development, with a pump in sales from hypermarkets and hard

discounters. Private label had around 20% of the market share and showed flat growth.

• Due to heavy losses in the major categories toilet paper and paper napkins, paper

disposables showed a huge decline. Losses in hard discounters pulled down overall sales

growth. Drug stores also declined, adding to the losses.

• Fabric detergents showed decline mainly driven by the dip in sales in all purpose washing

detergents. Hypermarket (40% of market share) was the major declining channel with a dip

in promotions and led to the overall decline. Hard discounters played a major role in pumping

up sales, but were unable to mask the losses from hypermarkets and drug stores. Private

label held around 22% of market share, but showed a slight decline, mainly driven by losses

in hypermarkets.

• The dishwash category declined, mainly driven by losses in the hand dishwashing sector.

Losses in hypermarkets led to overall decline. Although discounters and drug stores showed

slight positive growth, they were unable to offset the losses. Private label was one of the

major manufacturers with approximately 40% market share, but showed a slight decline

driven by losses in hypermarkets and soft discounters.




Millions

24.2

8.7

2.7

1.9

0.4

0 5 10 15 20 25 30

Household

Cleaners

Fabric

Enhancers

Insecticides

Shoe

Cleaners

Air

Fresheners

- 36.2

- 10.1

- 0.7

- 29.2

-40 -30 -20 -10 0

Cleaning

Supplies

Dishwash

Fabric

Detergents

Paper

Disposables

.Millions

PULSE REPORT

8.3%

9.8%

17.3%

28.6%

0.7%3.2%

3.7%

18.4%

10.0%


Fabric Enhancers Dishwash Cleaning Supplies


548

1,602

9691,033

562

-6.9 -2.9 -2.6 -2.0 -2.7

Paper

Dis

posable

s

Fabri

c

Dete

rgents

Household

Cle

aners

Fabri

c

Enhancers

Dis

hw

ash

Mil

lio

ns


Italy

11

KEY TRENDS

• The Italian macro economical scenario is

still in recession, but the recovery is slowly

consolidating. There are some weak signals:

decrease of the spread, decrease of non-

performing loans, increase of industrial

orders, increase of bank deposits and

increase of highway traffic and business

trips.

• Hopefully, this weak signal will help

consumption, the labor market and the

confidence of households.

• FMCG showed negative trends, but food and

beverage markets became quite positive in

value. Home and personal care markets

were still very negative beside the positive

trend of the drugstore channel that is

smoothing this strong negative trend.

• The general downturn affected both private

labels and branded products. Branded

products were strong, increasing

promotional pressure while private label

slowed their share increase.

Eu

ros,

in m

illi

on

s






1 033 969

562 463

208 177

41

1 602

548

PULSE REPORT

Italy

12

CATEGORY INSIGHTS

• Compared to food and beverage, household categories were even more negative both in

volume and in value.

• Every important market of household cleaning was very negative and there were still no

positive categories. There were only some exceptions regarding smaller “base and low cost”

markets such as muriatic acid, turpentine, dry cleaners, bleach or soaps.

• Among the top 5 household categories, every one is deeply decreasing. Only paper

disposable had a decrease of around 2.0%, thanks to napkins and wipes.

• Dishwashing decreased by 2.7%, thanks to the lower drop of auto dishwashing, helped by

some good launches.

• In fabric detergents, the top negative market, only machine washing decreased less than

average in value and was quite stable in volume, thanks to the higher and higher promotions

in terms of price reduction and special packaging with special offers.

• In fabric enhancers, softeners (the biggest market of the segment) decreased less than

3.0%, supported by higher promotions, while the second big market, laundry additives,

decreased by 7.0%, due to the premium price of the products.

• Only machine descalers increased thanks to new comers in this category.

• Private label market share was over 20%, but for the first time has settled.




Millions

0 0 0 0 0 0 0

- 76.6

- 26.0

- 16.6

- 16.1

- 32.7

-100 -80 -60 -40 -20 0

Insecticides

Fabric

Enhancers

Household

Cleaners

Paper

Disposables

Fabric

Detergents

.Millions

PULSE REPORT

4.8%8.4%

16.4%

33.4%

0.2%

0.7%3.0%

22.7%

10.5%




The Netherlands

13

Eu

ros,

in m

illi

on

s






237

170

109

48 35

8 2

347

86

86

347

170

237

109

-2.5 -9.2 -2.9 -2.5 -7.0

Paper

Dis

posable

s

Fabri

c

Dete

rgents

Household

Cle

aners

Dis

hw

ash

Fabri

c

Enhancers

Mil

lio

ns


KEY TRENDS

• Although we still saw a little value growth

in total FMCG, household categories

remained in decline. Loss in volume

increased.

• Both service supermarkets and hard

discounts stores showed loss in value and

volume. Drug stores did show growth for

total household due to extra promotional

value sales.

• The biggest growth within drug stores was

out of laundry detergent segment. Both

hard discount and service supermarkets

showed huge declines in this segment.

PULSE REPORT

The Netherlands

14




Millions

0 0 0 0 0 0 0

- 11.0

- 7.3

- 6.5

- 6.0

- 9.0

-12 -10 -8 -6 -4 -2 0

Fabric

Detergents

Fabric

Enhancers

Air

Fresheners

Paper

Disposables

Dishwash

.

Millions

CATEGORY INSIGHTS

• Paper disposables had slight growth in Euro sales within both drug stores and hard discount.

Supermarkets tried to get share back with high promotional pressure. Until now, this has not

been successful. Supermarkets were the only group in decline. The only volume growth for

paper disposables was in hard discount, mainly due to the introduction of the latest moving

annual total (MAT) within moist toilet paper and moist tissues.

• Total detergents were under pressure, but showed a high increase within drug stores both in

value and volume. Promotional sales are driving the positive drug stores’ sales. The growth in

drug stores has had a negative impact on sales in supermarkets.

• Dishwashing products declined in growth again. After a long period of high promotional sales,

promotional pressure is declining within both drug stores and supermarkets. Also, hard

discount gained territory from supermarkets and drug stores.

• Air freshener volume declined within supermarkets, drug stores and hard discount. Although

hard discount showed an increase in value, this was by far not enough for total market

growth.

PULSE REPORT

6.6%

9.0%

15.1%

30.2%

0.4%

2.6%

6.6%

20.0%

9.5%


Fabric Enhancers Dishwash Cleaning Supplies


358

1 203

597

772

375

-4.7 0.1 -0.5 1.5 0.4

Paper

Dis

posable

s

Fabri

c

Dete

rgents

Household

Cle

aners

Fabri

c

Enhancers

Dis

hw

ash

Mil

lio

ns


Spain

15

KEY TRENDS

• The FMCG market had a positive trend in

2013 with 0.5% growth, but demand was

still negative. Only fresh products had a

flat demand. The rest of the sectors,

including food, beverages, household,

perfumeries and baby, declined, with

household declining at the fastest rate.

• Even though the household sector fell in

demand and value in total this year, there

are still channels where the trend was

positive. Not only big supermarkets, but

small supermarkets, saw a flat trend.

Proximity stores over performed.

• In an unusual trend, private label

performed worse than the household

market and only grew in medium

supermarkets. Manufacturer brands

decreased too, but less than private label.

Eu

ros,

in m

illi

on

s






772

597

375

261 256

104

15

1 203

358

PULSE REPORT

Spain

16

CATEGORY INSIGHTS

• All segments grew in paper disposable. However, the tendency in volume was negative, so

the price increase would explain the value growth. In the toilet paper sector, the growth of

big packs drove up the category.

• Dishwashing grew because of hand dishwashing products. Within this sector, the

concentrated products grew ahead of the category, particularly for private label in big

supermarkets.

• Powder decreased in the detergent category and hand detergents and delicate detergents

pulled down the category as well. Also, promotional levels have decreased slightly.

• Air fresheners decreased due to lost sales in all of the segments, except automatic air

fresheners. This is one of the most injured categories in household. Even private label

decreased and only the new launches in automatic air fresheners grew.

• Household cleaners decreased in specific cleaners and private label. Manufacturer brands

decreased, but less. No segment saw a positive trend, only a few small segments remained

flat.




Millions

0.4

1.4

1.5

18.2

0 5 10 15 20 25 30

Paper

Disposables

Cleaning

Supplies

Dishwash

Fabric

Enhancers

- 38.5

- 3.1

- 2.5

- 0.9

- 4.9

-50 -40 -30 -20 -10 0

Shoe Cleaners

Insecticides

Household

Cleaners

Air

Fresheners

Fabric

Detergents

.Millions

PULSE REPORT

9.2%

10.4%

12.6%

32.7%

0.4%

0.6% 1.1%

22.4%

10.6%


Fabric Enhancers Dishwash Air Fresheners

Cleaning Supplies Shoe Cleaners Insecticides

510

1 599

619

1 098

519

-3.8 1.9 0.1 -2.7 0.8

Paper

Dis

posable

s

Fabri

c

Dete

rgents

Household

Cle

aners

Fabri

c

Enhancers

Dis

hw

ash

Mil

lio

ns


The United Kingdom

17

KEY TRENDS

• The UK was just behind the European

market growth rate for household value

sales (-1.2% versus -1.1%) with the sales

growth rate falling behind France, Germany

and Spain.

• A poor Q2 2013 impacted growth, but over

the latest quarter value sales increased.

• Paper disposables, followed by fabric

detergents, drove the decline whilst other

categories saw marginal growth – notably

fabric enhancers and dishwash.

Eu

ros,

in m

illi

on

s






1 098

619 519

450

52 30 21

1 599

510

PULSE REPORT

The United Kingdom

18

CATEGORY INSIGHTS

• Fabric enhancers drove growth this quarter more than the other categories combined.

Concentrated conditioners were the largest part of the market and the source of growth with

Unilever and Procter & Gamble driving this at the expense of private label.

• Dishwashing product growth was driven by the machine sector, with hand now in decline

after a long period of growth. Machine growth came from private label, which was also the

area of decline for the hand sector. Overall, category growth came from more effective

promotions and at higher promoted prices.

• Fabric detergents were still positive, but no longer driving household growth. Main wash

declined, driven by Procter & Gamble powder, but there was some growth in liquid formats

following new product development. Growth came from the wash treatment sector, where,

again, powder was the source of decline whilst capsules grew.

• Household cleaners declined after a lengthy period of growth. This was driven by toilet rim

blocks across most manufacturers, whilst bleach saw value growth from price increases.

• Paper disposables declined heavily and were the key reason for the overall household decline

in the UK. This was driven by price declines in the soft sector, as this has not driven sufficient

volume to cover for the loss in value. The soft sector decline was driven by private label and

Kimberly Clark.




Millions

13.6

9.9

3.8

1.3

0.5

0 5 10 15

Air

Fresheners

Fabric

Enhancers

Dishwash

Insecticides

Household

Cleaners

- 1.9

- 45.0

- 43.1

-50 -40 -30 -20 -10 0

Shoe Cleaners

Fabric

Detergents

Paper

Disposables

.Millions

PULSE REPORT

Final Notes

19

Notes on category definitions for countries

Due to the diverse products found in individual countries across this market, it was necessary

to consolidate the available data into the categories in this report. In some cases, it wasn’t

always possible to align products across all 6 countries, hence the need to highlight any

anomalies in the report. Those exceptions are listed below:

Shoe cleaners

• The Germany and France data in this report includes leather cleaning products.

Tools

• The UK data in this report only contains rubber gloves for this category.

• The Germany data in this report does not include mops, brushes or rubber gloves.

Fabric enhancers

• The UK data in this report does not include stain remover or fabric bleach products.

• The Italy data in this report does not include tumble dry enhancers.

• The Spain data in this report does not include anti-lime scale for laundry, tumble dry

enhancer or fabric storage products.

Paper disposables

• The France data in this report does not include wet wipes.

• The UK data in this report does not include paper napkins.

PULSE REPORT

Resources

20

About IRI. IRI is a leader in delivering powerful market and shopper information, predictive analysis and the foresight

that leads to action. We go beyond the data to ignite extraordinary growth for our clients in the CPG, retail and over-

the-counter healthcare industries by pinpointing what matters and illuminating how it can impact their businesses

across sales and marketing. Move your business forward at IRIworldwide.eu

Arlington Square, Downshire Way, Bracknell, Berkshire RG12 1WA, Tel +44 (0) 1344 746000

Copyright © 2014 Information Resources, Inc. (IRI). All rights reserved. IRI, the IRI logo and the names of IRI products and services

referenced herein are either trademarks or registered trademarks of IRI. All other trademarks are the property of their respective owners.

FOR MORE INFORMATION

Please contact Sam Cialis, Senior Insight Manager,

IRI at [email protected] or

+44 (0)1344 746005 with questions or comments about this report.

To gain insight into opportunities across specific categories, segments, channels or retailers,

contact your IRI client service representative regarding custom analyses leveraging the

following resources:

• IRI InfoScan Census® is a syndicated retail tracking service that enables manufacturers

and retailers to acquire industry insights used to make better business decisions. IRI

InfoScan Census utilises the data that IRI collects from grocery, drug and mass merchandise

retailers to provide the most comprehensive and accurate syndicated data offering in the

FMCG sector. With access to accurate, granular detail by category, geography, measure and

time period, clients have the tools needed to develop marketing and sales strategies based

on product performance, distribution and promotion responsiveness. All data about

household comes from IRI InfoScan Census.

• IRI Consulting provides strategic insights and advice, leveraging a variety of data sources,

predictive analytics, enabling technologies, and business analyses to help FMCG

manufacturers and retailers address significant sales and marketing issues effectively.

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