Homecare Client Materials: Secondary Research
A summary of key findings, insights, and statistics for all documents in the “secondary” folder has been provided below. Only nine documents have been examined as the folder contains two files named “Evolving eCommerce_ Household Care_ Incl Impact of COVID-19 - US - August 2020.”
2017 Apr Healthy Pets, Happy Owners Passport by Euromonitor
- Several companies have developed products that focused on improving or monitoring the wellbeing of pets. Non-food solutions include dog mattresses (Casper), connected pet monitors (Petcube), noise aversion treatments for dogs (Sileo), and activity trackers for dogs (Fitbark). Key companies in the global premium cat and dog food market include Colgate-Palmolive, Diamond Pet Foods, Mars’ Perfect Fit, Blue Buffalo, and Maggie Rep SRL.
- The value sales of therapeutic dog and cat food in the UK and North America have grown by over 20% from 2011 to 2016. Between 2011 and 2016, the value sales in the UK increased by 21.9% to $79 million. During the same period, the value sales in North America rose by 24.1% to $10.9 billion.
- Naturally healthy pet foods have experienced various levels of success (and failure) in different markets. Successful products based on sales or growth include Switchgrass Natural Cat Litter (US), Alpha Spirit hypoallergenic, grain-free dog food (Slovakia), Snac'oOlijf olive-based cat treat (Belgium), SchesirFruit (Italy), and Natureais grain-free premium dog food (Bulgaria). Products that “failed” include Nologois organic pet food (Greece) and Clan de File wet dog and cat food (Russia).
- Various companies have adopted a “humanization” approach for pet products. They have developed products that focused on issues typically associated with humans. Some of the products created include Ginipet dog food with red ginseng (skincare), Beef Bone Broth with Turmeric (joint health), and Sheba Amuse YasashiiFish Soup (senior cats).
- Several pet food brands have focused on marketing their products as local, ethical and sustainable. Open Farm marketed its Certified Humane Dry Cat Food as “Canada’s first ethically sourced pet food.” BozitaNaturals Originals has promoted its pet foods as “made in Sweden and produced with as much Swedish ingredients as possible…”
- From 2016 to 2021, the global pet care market's value sales are forecasted to grow by a CAGR of 2.4% to $117 billion. Dog ($6.7 billion) and cat ($3.6 billion) food will account for the majority of the total absolute value growth of $13.3 billion. The growth in this space is driven by the rise of online retailing, awareness of pet obesity, and alternative protein sources.
2017 European Commission Report on European Attitudes Toward the Enviro
- A majority of Europeans (56%) felt that “protecting the environment is very important to them personally.” The three most important environmental issues are climate change (51%), air pollution (46%), and the growing amount of waste (40%). The main sources of information about the environment include television news (58%) and the Internet or online social networks (42%).
- A vast majority of Europeans (81%) agreed that “environmental issues have a direct effect on their daily life and their health.” A large majority of Europeans are concerned about the impact of plastic products on their health (74%) and the environment (87%). Most Europeans are also worried about the impact of chemicals present in everyday products on their health (84%) and the environment (90%).
- The measures that Europeans have considered as “potentially effective in tackling environmental problems” include investing in research and development to identify technological solutions (35%), introducing heavier fines for breaches (34%), ensuring better enforcement of legislation (31%), and introducing stricter legislation (30%). A large majority of Europeans (87%) believed that they could “play a role in protecting the environment.” Most Europeans thought that big companies and industry (79%), citizens (66%), and their national government (67%) are not doing enough to protect the environment.
- Most Europeans thought that “decisions to protect the environment should be taken jointly” within the European Union (67%). A vast majority of Europeans (83%) agreed that the EU should be able to “check that environmental laws are being applied correctly in their country.” A vast majority of Europeans (85%) also agreed that the EU should “invest more money in projects and programs supporting the environment, nature conservation and climate action throughout the EU.”
- There is limited awareness among Europeans about the EU ecolabel (27%) and other country-specific environmental labels. Only 30% of Europeans who are “aware of ecolabels have bought a product carrying the EU ecolabel.” A majority of Europeans agreed that “products carrying the EU ecolabel are environmentally friendly.”
- Nearly half of the respondents (47%) felt that their country's air quality has worsened over the past ten years. Europeans have viewed “stricter pollution controls on industrial and energy production activities” (41%) as the most effective way to combat air pollution. The two most commonly taken individual actions by Europeans to reduce emissions are reducing car use (35%) and upgrading to more energy-efficient equipment (32%).
The Natural Household Consumer - US - June 2019 (Full Report)
- Consumers in the US are beginning to embrace green consumerism. This is driven by their awareness of environmental issues such as water scarcity and plastic waste. Household products that target environmentally conscious consumers include Comfort Concentrado, DAY 2 Dry Wash Spray, and Biokleen.
- Key players in the natural household products market include green niche brands and companies that focused on affordability or innovative products. Method, Seventh Generation, Babyganics, and other green niche brands have experienced improved distribution and larger research and development budgets as a result of being acquired by mainstream global conglomerates. Several companies in this space have developed affordable products without compromising efficacy or sustainability and products that offer convenience and sustainability.
- The US natural household consumer has been described as “complex and sometimes contradictory but is also evolving.” Committed natural consumers are more willing than mainstream consumers to pay more for natural household products. Compared to the general population, consumers aged 18-34 are far more likely only to buy green (household) products.
- Like mainstream consumers, committed natural consumers in the US also purchase their products with the greatest frequency at mass merchandisers. They are also more likely than mainstream consumers to shop at natural food stores and online stores. This shows that the “availability of natural products – while improving – is still not representative in mainstream retailers.”
- Among natural household shoppers, 37% are using natural products more often than the previous year. Compared to the general population, exploratory natural consumers are more likely to come back for more natural products. Among parents, those with children aged five and under are “most eager to switch to safer products because children are usually more vulnerable to toxins.”
- Among consumers who used more natural products than the previous year, the top motivators are safety (62%), reduced environmental impact (62%), and healthier than mainstream products (55%). Within the same group, parents with children aged five and under placed more importance on safety (70%) than reduced environmental impact (55%). Competitive pricing has encouraged more lower-income consumers (annual income below $25,000) to increase their natural household product usage over the last year (55%).
- Both natural and mainstream consumers agreed that affordability and effectiveness are the most important attributes for the perfect natural product. Due to the lack of definition for “natural,” both types of consumers are confused with the definition of natural products. Unlike mainstream consumers, natural consumers are more interested in innovative products that drive recycling and waste reduction.
- Both natural and mainstream consumers agreed that the most important goals for household cleaning are efficiency (90%), money-saving (84%), reducing germs (82%), and limited exposure to harsh chemicals (80%). The importance of sustainable sourcing has the largest gap in ascribed importance by the mainstream (39%) and natural consumers (63% to 81%). Creating a germ-free environment is a unifying factor among consumers, regardless of demographics groups and the level of natural product usage.
The Natural Household Consumer - US - June 2019 (PPT)
- This PowerPoint presentation provides the main points from the full report.
- The top takeaways include size being an important factor for green niche brands to grow, all types of consumers valued effective cleaning, convenience, and product safety, and green premium is not sustainable as increased natural product usage is driven by growing affordability.
- The main issues in the natural household products market include expanding natural product distribution due to consolidation, most consumers being concerned with waste and water issues, and slow natural product adoption due to perceived high cost and poor performance.
- The opportunities include brands focusing on enhancing convenience to drive natural product adoption and why heavy sampling efforts are likely to convert skeptical mainstream consumers.
- In conclusion, consumers across “all demographic groups and all levels of green consumerism want their household products to be affordable and work well.” As the consolidation of green niche brands accelerates, natural brands will receive increased distribution and R&D and marketing support from their deep-pocketed parent companies, which will make their products more effective, available, and affordable. As mainstream consumers also care about the environment, brands that meet “basic cost and performance criteria have an opportunity to reinvent the green niche to stand for efficacy, health, convenience and economy, and that will appeal to nearly everyone.”
The Natural Household Consumer_ Incl Impact of COVID-19 - US - June 2020
- This report is largely an updated version of the 2019 edition that included some 2020 survey data and the impact of COVID-19 on the natural household market.
- Due to the COVID-19 pandemic, 48% of US consumers have shifted away from natural cleaners towards traditional disinfectants. This rises to 55% for those aged 65+ as they are most susceptible to the virus and are “likely acting on their higher level of vulnerability.” The increased unemployment rate during the pandemic will slow the adoption of natural household products among low-income consumers.
- During the COVID-19 pandemic, natural homecare brands’ lifestyle focus has “shifted to protecting the family through germ management.” As natural household products typically carry a premium, “economically stressed consumers would put aside their natural aspirations and gravitate toward mainstream products until the economy returns to growth.” As more consumers go online during the pandemic, smaller natural household brands can take advantage of this trend to improve outreach via social media and grow their sales.
- The COVID-19 pandemic has resulted in the popularity of homemade products as an alternative to high-demand cleaners that went out of stock in stores and online. The rise in consumers adopting DIY chemical-free disinfection solutions is driven by special appliances. They include the o3Waterworks sanitizing spray bottle that allows users to transform tap water into aqueous ozone and Eco One pitcher that lets consumers make their own electrolyzed water.
- The percentage of consumers in the US who have increased their natural product usage over the past year grew from 37% in 2019 to 45% in 2020. This figure is notable as the COVID-19 pandemic has created an unprecedented demand for disinfecting products, not including natural alternatives. However, when the pandemic ends, it is expected that consumers will be using more natural household products and will be “especially receptive to natural disinfectants with a strong proof of concept.”
Evolving eCommerce_ Household Care_ Incl Impact of COVID-19 - US - August 2020
- COVID-19 has elevated the importance of both household care products and ecommerce as they become vital parts of the survival strategy for consumers in the US. Both the pandemic and the economic downturn may encourage consumers to trade down to value-priced products, but only to the degree that they believe cutting costs will not compromise health. In 2021, this “heightened focus on cleaning to avoid illness will boost the entire category, with premium and budget brands all gaining sales.”
- The COVID-19 pandemic has driven the value sales of ecommerce higher than at general merchandise stores. Due to the pandemic, the percentage of consumers buying online grew by 20% over the past year. The most obvious casualties of the pandemic are brick and mortar retailers that have been “slow to grow their ecommerce presence.”
- Even though older consumers are less likely to shop online, they have expressed concern about shopping in-store due to increased exposure to COVID-19. Household care brands can attract older consumers to their sales sites by “promoting senior-specific convenience in line with wellbeing.” Technologies and services such as voice-controlled shopping, ordering from previous shopping lists, and basic home delivery are likely to benefit seniors more than younger populations.
- The COVID-19 pandemic has been identified as the main factor that drove an extraordinary number of consumers online. The percentage of consumers who buy household products online has increased substantially over the past year, especially in the second quarter of 2020. There has been a “palpable shift to ecommerce” among omnichannel shoppers.
- It is believed that “for many consumers, trial of online retail has the potential to change their shopping habits.” Brands should attempt to reach “consumers with financial incentives for their first online purchase when the motivation for ecommerce is peaking.” However, there is also a “relatively small group of consumers who do not find the convenience and relative safety of ecommerce to be compelling.”
- The COVID-19 pandemic is expected to reshape long-term shopping behaviors. 42% of consumers are buying more household products online. 36% of consumers are also buying larger quantities online so that they last longer.
- Household care brands are “reinventing packaging to reduce breakage and spillage while in transit.” They are collaborating with online retailers and packaging manufacturers to create packaging that is better suited for ecommerce. For example, DTC brand Truman’s is selling reusable bottles with concentrated refill cartages.
- Large household care companies such as Clorox, P&G, and SC Johnson are either “building DTC capabilities or have brands that are well-suited for a stronger DTC positioning.” Some DTC brands are also pursuing an omnichannel presence by selling their products as big retailers. This may suggest a future where “mass merchandisers and other major retailers could use a DTC model to sell their private labels.”
Household Surface Cleaners Incl Impact of COVID-19 - US - October 2020
- The COVID-19 pandemic has “strengthened demand for household cleaners and disinfectants, driven by closer attention to home hygiene amid concerns about the virus.” The pandemic-led recession has elevated the status of household cleaning products. The pandemic is expected to “reshape how consumers clean indefinitely, sustaining demand for household surface cleaners as a new generation of household cleaners emerge with a greater understanding and focus on protecting their home from disease-causing germs.”
- Due to the COVID-19 pandemic, household surface cleaners have become “a part of daily conversation, gaining considerable popularity due to a comprehensive shift toward cleaning and disinfection.” Brands will need to work hard to keep household cleaning products from reverting to the pre-pandemic, low-involvement commodities. They now have an opportunity to “engage new audiences in new ways, such as digitally, and showcase how their products do more than merely clean, but transform lives.”
- Only the most innovative brands can calm consumers’ anxiety by developing disinfectants that are proven against COVID-19. Before the pandemic, most consumers did not differentiate between products that kill bacteria or viruses. A new class of virus-killing products will be created as “consumers look for brands that specifically call out what the product is effective against, namely coronaviruses.”
- The COVID-19 pandemic has shifted “emphasis away from natural interests toward disinfection.” However, green niche as “natural products that are versatile with proven efficacy and germ-killing have nearly universal appeal.” The perceptions of natural products’ efficacy are improving as more traditional brands acquired their way into the category and the influx of green private labels.
- During the COVID-19 pandemic, private label has seen unprecedented growth within the surface cleaner space. Even though name brands will continue to benefit as consumers turn to trusted comforts, they must work even harder in a recession. Premium own-labels will be presented larger and longer-term opportunities presented to “balance natural inclinations with disinfection, without the added spend.”
- The COVID-19 pandemic has provided household cleaning brands an opportunity to “strengthen their online positioning by ensuring that they’re well represented across new tools and formats, including DTC, social shopping, and voice-controlled commerce.” Adults aged 55+ may be attracted to shop online through “the convenience of home delivery, sending alerts when items restocked, or the ability to order automatically from past purchases.” Their routine approach to shopping the category and interest in refillable cleaning products suggests that they are a prime target for DTC brands.
Euromonitor Consumer Trend Report 2020
- Technologies powered by artificial intelligence (AI) are becoming mainstream (Beyond Human trend). Consumers are beginning to embrace the idea of using AI-driven robots for their welfare, convenience, and comfort. Companies responding to this trend include Ubtech Robotics (robotic toys), Brain Corp (automated floor scrubbers), Furhat Robotics (conversational AI), and Toyota Motor Corp (support robots).
- Driven by being accustomed to shorter content, consumers are “constantly seeking personalized, authentic, and appealing channels” (Catch Me in Seconds trend). These channels include shorten ads, friends’ social media posts, friends and family recommendations, independent consumer reviews, loyalty rewards programs, and online influencers. Companies responding to this trend include Fendi/Toplife (hybrid “drops”), Google (Google Maps), Instagram (Stories), and Quibi (streaming platform for videos under ten minutes).
- Due to congested roads and overcrowded public transportation, consumers seek transport options that are “modular and personalized to their individual needs” (Frictionless Mobility trend). The growth of shared mobility services allowed consumers to “pay as they go,” which reduced car ownership. Companies responding to this trend include BlueSG (electric car-sharing service), Citymapper (unlimited bus rides), Volocopter (on-demand air taxi service), and Whim (subscription-based transportation service).
- Businesses are taking steps towards “authenticity and inclusion, putting disability at the core of new product developments” (Inclusive for All trend). They are partnering with local organizations and disabled communities to “provide insights on new product developments from the initial design stage through marketing and promotion.” Companies responding to this trend include Apple (disability-inclusive emojis), Kohl Kreatives (free-standing brushes), ThisAbles/IKEA (functional furniture), and Starbucks (signing coffee shop).
- Consumers are seeking “outcome-based goods to address specific mental wellbeing needs and prevent the physiological effects of stress, worry, and sleeplessness” (Minding Myself trend). They are attracted to products that provide mood enhancement, relaxation, stress relief, anxiety relief, and brain function boost. Companies responding to this trend include The Nue Co (functional fragrances), Recess (hemp-infused carbonated water), The Good Patch (hemp-infused topical patches), and Three Spirit (non-alcoholic spirits).
- With high-speed internet access and innovative goods and services, consumers are allowed to stay in their personal broadband-connected safe spaces, where they are “free from the distractions of the world around them” (Multifunctional Homes trend). As companies increasingly embrace remote work, consumers have more free time to engage in at-home activities. Companies responding to this trend include Heal (doctor house call service), Mirror (interactive fitness studio), Wecasa (in-home beauty and household services), and Rappi (grocery, food delivery, and other services).
- Consumers are expecting brands to provide personalized products and services but are “growing concerned about who has access to their data and how it is used” (Private Personalization trend). When consumers “trust that companies will use their data responsibly,” they are more likely to share data that allows companies to tailor their products or services. Companies responding to this trend include Alias (smart speakers eavesdropping prevention), Digi.me/UBDI (data monetization), Reflectacles (facial recognition prevention), and Open Meals (customized sushi).
- Consumers are seeking to “adopt and appeal to a sense of individuality and growing national identity from local inspiration” (Proudly Local, Going Global trend). This has driven the rise of local consumer brands and encouraged multinational companies to localize their production or acquire established local players. Companies responding to this trend include Adire Textiles (authentic fabric making tradition), Allbirds Footwear (eco-friendly apparel and footwear), and Nollywood (Nigeria’s film industry).
- Consumers are “embracing sustainability through longer-lasting products” by supporting brands that focused on reusing instead of recycling (Reuse Revolutionaries trend). The reuse economy allows companies to save materials, prevent valuable products from going to landfills, reduce the price volatility of raw materials, decrease supply chain risks, and boost resource efficiency. Companies responding to this trend include KitKat (reusable paper packaging), Algramo (by the gram refillable system), Feel the Peel (circular juice bar), and Ecover (hand dishwashing liquid detergent).
- The increasing awareness of air pollution is impacting consumer choices (We Want Clean Air Everywhere trend). Brands are beginning to position themselves to target these environmentally conscious consumers. Companies responding to this trend include Cambridge Mask Co. (stylish and colorful face masks), Drunk Elephant (skin protection from air pollution), and Plume Labs (mobile air quality measuring device).
Euromonitor German Consumer 2020
- The German consumer landscape is getting “older, richer, and more diverse.” The COVID-19 pandemic has encouraged German consumers to adopt a holistic approach to wellness. Consumers in Germany are also “shifting from eco-conscious behavior to more all-rounded sustainable behavior.”
- Germany is one of the few developed nations in Europe that has resisted the shift to card payments. However, the New Gen consumers have been leading the shift away from cash payments since the late 2010s. This trend is driven by factors such as fewer privacy fears, improved convenience, and hygiene.
- German consumers' main obstacles to embrace new technology include the “implications on privacy and the higher pricing of the tech-advanced solutions.” However, the COVID-19 pandemic and New Gen German consumers are expected to accelerate behavioral changes toward technology over the coming decades. This trend is driven by New Gen consumers who are “willing to let go of some privacy in exchange for better experiences and more convenience,” and future German consumers, in general, placing less emphasis on thrifty spending.
- Due to their predictable working environments, German consumers are typically less likely to use restaurant delivery services or other digital convenience-oriented services. They also prefer visiting a travel agent in person instead of using online agencies to plan their annual vacations. However, during the pandemic, German consumers quickly adapted to digitization, and more consumers began shopping and ordering food online.
- In general, German consumers are willing to “invest in products and experiences within their home.” In the long term, they are expected to purchase innovative products with “time-saving aspects geared towards convenience despite higher prices.” German consumers are also seeking to pair their emphasis on hygiene with “sustainability for increasingly ethical living.”