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IN-WASH SCENT BOOSTERS:

A GAME CHANGER FOR LAUNDRY CARE?


May 2016
INTRODUCTION
SCENT BOOSTER MARKET LANDSCAPE
WHERE DO SCENT BOOSTERS FIT IN?
THE SCENT MATRIX AND RETAILING SPACE
FUNCTIONING SCENT BOOSTERS
DOWN THE DRAIN THEN UP IN THE AIR
MICROENCAPSULATION: A WAY FORWARD
IN HOME CARE
WHERE NEXT FOR SCENT BOOSTERS?
RECOMMENDATIONS
INTRODUCTION

Scope

All values expressed in this report are in US dollar terms, using a fixed Disclaimer
exchange rate (2015). Much of the information in this
briefing is of a statistical nature and,
2015 figures are based on part-year estimates. while every attempt has been made
to ensure accuracy and reliability,
Other laundry boosters figures are not published in Passport but bespoke data Euromonitor International cannot be
held responsible for omissions or
points are available for access via the home care industry research team errors.
Figures in tables and analyses are
Scent Boosters calculated from unrounded data and
US$400 million may not sum. Analyses found in the
briefings may not totally reflect the
Blues/Bluing companies opinions, reader
US$108 million discretion is advised.

Whitener
US$101 million Scent boosters is the biggest
newcomer in the home care
market, which has been given
Laundry Sanitiser
Other Laundry US$67 million
considerable attention by global
detergent brand makers. Using
Boosters microencapsulation technology,
Colour Catcher this product line is likely to
US$1,192 million US$32 million change how laundry care
categories are positioned, add
Colour Enhancer to the landscape of other
US$32 million categories such as air care, and
even premiumise the laundry
Mixed Boosters detergents market.
US$152 million
Other
US$300 million

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INTRODUCTION

Global landscape for scent boosters

The US is currently the biggest in-


wash scent boosters market globally.
It has the longest exposure to this
format of the developed markets as it
was developed there following
product development by Procter &
Gamble and Henkel in 2011.
However, the US was not the first
market to have established the
category as it already existed
prominently in Indonesia and to some
extent in Italy. Such markets were
driven either by social need for
fragranced apparel or due to product
development by local players.

Although limited to a handful of markets, the scent boosters format is expecting to expand geographically
over the 2015-2020 forecast period. A mixture of growth from a low base as well as further geographic
expansion is expected to maintain double-digit growth for the category.
P&Gs Unstopables scent booster range and Henkel's Purex Crystals were the key drivers for this
market in terms of value sales to 2015, and there appears to be space for more brands to enter the
category over the medium term. This has contributed to a currently estimated US$400 million global
scent boosters market in 2015, with the US accounting for 83% of global value.

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A GAME CHANGER FOR LAUNDRY CARE?
INTRODUCTION

Scent boosters timeline: 2011-2015

North North North


America America America
2011 2012 2013 2014 2015

Japan Western
Europe

Although product development had been limited to Purex Crystals and the expansion of P&Gs
Unstopables, the introduction of Gain was a significant milestone for the US market and since 2014 there
has been something of an explosion in geographical and brand expansion.

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INTRODUCTION

Derived from fabric softeners

One of the key aspects determining a consumers


choice of fabric softener is the scent or fragrance.
Softener Although there are other aspects such as freshness
longevity, static control, ironing ease, or fabric softness
- one of a consumers primary selection decisions for
fabric softeners is based on its most tangible feature -
the scent or fragrance.
Fragrance Scent boosters derive from various dynamics in the
fabric softeners market. Exploiting a key purchase
driver of fabric softeners, and avoiding the multi-
functionality positioning by adopting a task-specific
Freshness position, thus scent boosters have carved themselves
Longevity a corner on the laundry care shelf.
Avoidance of multi-functional products in mature
laundry care markets is a common theme, as
consumers often perceive them as less effective due
Static Control to over-formulation. The roll-out of scent boosters in
such markets is possibly perceived in better light due
to the formats task-specific function. Laundry care
products that specialise are also likely to minimise
Ironing Ease formula combinations and maximise fabric care wash
quality.

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A GAME CHANGER FOR LAUNDRY CARE?
INTRODUCTION

Scent boosters key product positions

Given that scent boosters are related to fabric softeners, the


category derives some of its key positions from the latter category.
Exploiting a key purchase driver of fabric softeners, scent
boosters task-specific functionality plays to multiple positions: Olfactory
olfactory (ie scent/fragrance); storage (ie items retain freshness
in the wardrobe for an extended period); and hygiene (through
odour elimination). As a result, the category creates some shelf
space for itself in the laundry aisle.
These three positions will determine the success of marketing
scent boosters. Any success will also depend on aspects such as
climate and consumer culture toward scents. In Indonesia, for Storage
example, where humidity and high temperatures contribute to
sweat and body odour being absorbed by clothing throughout the
day, the use of scent boosters combats this problem. Therefore
such dynamics drive and maintain sales of scent boosters in
Indonesia.
In the UK, due to the mixed dynamics of a temperate climate and
growing wardrobe sizes due to the influence of fast fashion, the
need for wardrobe storage will grow. In addition, a combination of Hygiene
odour-conscious consumers and higher household disposable
incomes will develop demand for items that smell straight-from-
the-wash with long storage periods.

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A GAME CHANGER FOR LAUNDRY CARE?
INTRODUCTION

Culture of scent will be key to sales

Culture of scent is important for the development


Familiarity of the scent boosters category within a market.
This is because it will determine the degree of
acceptability of scents and the olfactory palates
relevant to each countrys culture.
Cosmetic Acceptability
As illustrated in the Japan versus the UK value
sales performance of scent boosters, scent
acceptability is likely to slow down further growth in
Intensity the former due to determinants such as the culture
of scent. The resulting determinant of a culture of
scent will impact six aspects of scent acceptability.
The aspects (shown left) highlight some of the
Pleasantness most important aspects of a scents success in a
market. Familiarity and cosmetic acceptability are
the defining factors, while the remaining four are of
secondary importance to a consumers choice in
Memory using scent boosters.
The success of brands such as P&Gs Gain
Fireworks has been primarily due to the familiarity
Edibility of the Gain scent and it being the primary purchase
decision for the consumer; a cosmetic function that
is acceptable to US consumers.

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A GAME CHANGER FOR LAUNDRY CARE?
INTRODUCTION

Scent booster success: Conscious process and tangible benefits

An additional aspect for the recent success of scent boosters in developing markets has been that
consumers perceive the laundry aid to add a tangible benefit to their wash. The process of adding a scent
booster to a wash reinforces the belief that value is added to the washing quality. This conscious process
and the tangible enhancement in the wash is what makes a consumer accept the premium price point.
Furthermore, as the consumer is the conscious instigator, this is further supported by the observable
sensory experience during the post-wash stage. With a scent booster you can tell its working, unlike a
laundry sanitiser where there is no directly observable visual experience to ascertain the function of such a
laundry aid; the consumer does not directly see the antibacterial or sanitising function taking instant effect.

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A GAME CHANGER FOR LAUNDRY CARE?
SCENT BOOSTER MARKET LANDSCAPE
SCENT BOOSTER MARKET LANDSCAPE

Scent boosters outside the US

Given that the US is the largest scent


boosters market globally, outside this
market much of the global market
presence is derived from a mix of
markets with contrasting dynamics.
Fabric freshners or pewangi, as they
are known in Indonesia, existed before
2006 and the market has established
itself as the second largest scent
boosters market globally in value and
volume sales. The prominence of this
category in Indonesia derives from the
hot climate that creates demand for
well-fragranced apparel and a desire
for apparel and personal hygiene
conveyed via scent.
Italy has also seen a long-term
presence for this product via product
development by a smaller global home
care player, Stanhome Inc. However,
marketing spend per unit has failed to
match that of the worlds leading home
care player, P&G.

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Winners and stragglers in scent boosters

In Indonesia, regardless of the weak rupiah-US$


exchange rate and a mass-market price point, the
category's volume sales gained enough tract on the
global stage. Indonesias established presence of scent
boosters transformed the category to become a core
item in Indonesian households washing routines and
yet it maintains a double digit value sales growth rate in
2014-2015.
Japanese consumers were exposed to scent boosters
relatively late compared to Indonesia. The success of
scent boosters in Japan has operated successfully in a
culture that favours scent neutrality. The commonly-
held belief that Japanese consumers prefer subtler
scents verging on scent neutrality has been challenged
by the category's year-on-year sales success of almost
US$10 million over the 2013-2015 period.
In the UK, the category witnessed sales of over US$1
million in its first year of entry - only to triple the
following year. UK consumers acceptability of premium
price points for laundry aids combines with a varied
laundry wash mix of fabric softeners and other laundry
additives, a much more accepting culture toward scents
and wider modern retailer channel availability.

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SCENT BOOSTER MARKET LANDSCAPE

Scent boosters: Competitive landscape

Scent booster competitive overlap shows a similar degree of overlap as home care overall. Although P&Gs
key competitor in fabric softeners is Unilever, its primary competitors in scent boosters are Henkel - globally
- and Church & Dwight in North America only.
Henkel was one of the first companies to open up the scent boosters market, in 2011, as a line extension of
its Purex Crystals brand, and temporarily took advantage of being the first leading company to enter this
category. Henkel was initially able to hold its ground to some extent as P&Gs key competitor in the scent
boosters category, only to lose it later to P&Gs expansion strategy.
Church & Dwights scent booster was able to pre-empt P&Gs Downy odour eliminator positioning, but in
line with its company-wide strategy did not invest in geographic presence beyond North America.
Unilever and Reckitt Benckiser (RB) have not developed a scent booster range similar to the
aforementioned brand manufacturers. This so far could be a missed opportunity, although the formers
approach is to concentrate scent intensity in its current range of Comfort fabric softeners. This is to prevent
cannibalisation of its fabric softener sales, a risk other players are willing to take.

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SCENT BOOSTER MARKET LANDSCAPE

Scent boosters: P&Gs territory

Regardless of Henkels early entry, Purex Crystals geographic limitation to North America
and limited brand expansion paved the way for P&G to take over pole position in the global
scent boosters market. P&G created line extensions across at least five of its laundry care
ranges, while Henkel kept it narrow by developing Purex and, only recently Vernel.
Henkel failed to succeed and exploit its first-mover advantage, despite expansion of its scent
booster portfolio, due to the fact that it does not possess the same level of brand equity and
geographic breadth as its key rivals, P&G and Unilever. P&G has overtaken the competition
through cross branding and geographic expansion.
There are still opportunities to exploit given that the geographic breadth is limited to a handful
of markets. There is an opportunity for Henkel to approach markets where it is not exposed to
this category, but it will need to analyse the prevailing culture of scent where these
opportunities exist.

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Scent booster success story: P&G appears unstoppable

Scent boosters were launched in line with a fabric softeners portfolio in 2011, given that scent is identified
as one of the primary reasons why consumers choose to purchase brands.
The scent booster positioning was extended across brands and categories in 2013, ranging from Gain to
Bounce, allowing the P&G portfolio to grow sevenfold from US$38 million in 2011 to US$271 million in
2015.
P&G then moved beyond brands and expanded positioning opportunities by opting for functions such as
odour eliminator and freshness longevity.
This expansive approach by P&G allowed it to overtake Henkels Purex Crystals value sales in the second
year of the products launch, resulting in it generating revenues three times the size of the latter.

Brand Range Expansion Line Extensions

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A GAME CHANGER FOR LAUNDRY CARE?
WHERE DO SCENT BOOSTERS FIT IN?
WHERE DO SCENT BOOSTERS FIT IN?

Where do scent boosters fit in? Depends on the laundry load

For a wash load consumers typically use a mix


of laundry detergents and fabric softeners with
further options including spot and stain removers
or bleaches. This differs from one market to Fabric
another due to variations in climate and washing Detergent
cultures.
Softener
The entry of laundry boosters, in developed
markets, has added a further dimension by
expanding the possible shopping basket for
laundry care products.
The addition of laundry boosters has surprisingly Spot and
not resulted in a change in the price points for Stain Bleach
fabric softeners. Rather, it has impacted spend Remover
on spot and stain removers, a category that
does not overlap in terms of functionality with
scent boosters.
Consumer priority for wash load additives
appears to have shifted from general laundry Other
aids such as spot and stain removers towards Boosters Laundry
boosters. This may be an indication of
consumers changing wash priorities, moving
Aids
from the visual, ie spotless or whiteness,
towards the olfactory, ie scent or fragrance.

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Fast fashion help elevate the olfactory in washing


Downy Unstopables is positioned as an aid that Unstopables is convincing consumers to pay for a
elevates the olfactory effect, maintains wardrobe task-specific product at a relatively higher point
freshness, and deals with unpleasant odours. This based on a dynamic in the apparel market; namely
product is primarily non-essential to the washing fast fashion.
process and adds little to the convenience aspect Per unit consumption in apparel is on the up in
of washing, but nevertheless justifies its premium developed markets due to the value-priced fast
price point. fashion outlets and items that are available. As a
result, fast fashion consumption expands wardrobe
content size and the need for maintaining clothes
freshness becomes more essential as wear-per-
item frequency and share of worn-items drop. Here
freshness longevity from scent boosters plays
hand in hand with maintenance of the less-worn
share of the wardrobe.
Changing apparel market dynamics along with the
non-essential nature of scent boosters underpin
the premium price point for scent boosters, thus
raising the price per typical wash. In constant
terms, the addition of laundry boosters on the
shelves of supermarkets has been key to a 19%
rise in the price per typical wash load* in the US
market.
Notes: *Typical wash: Weighted volume sales (based on average dosage) measuring wash that uses spot and stain removers and no bleach

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US laundry care category price share per typical wash* in 2011

Liquid Fabric Spot and Stain


Liquid Detergents Laundry Boosters
Softeners Removers

US$0.11 US$0.07 US$0.13 US$0.22


per typical wash* per typical wash* per typical wash* per typical wash*

22%
price share per typical
13%
price share per typical
25%
price share per typical
41%
price share per typical
wash* wash* wash* wash*

Notes: *Typical wash: Weighted volume sales (based on average dosage) measuring wash that uses spot and stain
removers and no bleach; Unit price: Constant US$

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Laundry boosters gain higher share of typical wash* in the US in 2015

Liquid Fabric Spot and Stain


Liquid Detergents Laundry Boosters
Softeners Removers

US$0.11 US$0.06 US$0.13 US$0.32


per typical wash* per typical wash* per typical wash* per typical wash*

17%
share per typical wash*
10%
share per typical wash*
21%
share per typical wash*
52%
share per typical wash*

Notes: *Typical wash: Weighted volume sales (based on average dosage) measuring wash that uses spot and stain
removers and no bleach; Unit price: Constant US$

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Laundry boosters raise US spend per typical wash*

Liquid Fabric Spot and Stain


Liquid Detergents Laundry Boosters
Softeners Removers

22%
drop in share of spend
20%
drop in share of spend
14%
drop in share of spend
26%
rise in share of spend
per typical wash* over per typical wash* over per typical wash* over per typical wash* over
2011-2015 2011-2015 2011-2015 2011-2015

19%
rise in constant price per typical wash*

Notes: *Typical wash: Weighted volume sales (based on average dosage) measuring wash that uses spot and stain
removers and no bleach; Unit price: Constant US$

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Scent boosters from low-base and premium pricing

Consumers forgoing their spot and


stain removers for scent boosters
seems like an odd exchange as
they are not directly substitutable.
It makes sense if consumers
perceive both items as premium
additives, and value their price
above that of their functionality.
In addition, scent boosters relative
premium price point aided in the
double-digit value sales growth
over 2011-2015, with 15% growth
for spot and stain removers.
Scent boosters success was also
supported by the consistent growth
pace of the complementary fabric
softeners market.
Fabric softeners ongoing growth
and expansion in and towards
developing laundry care markets is
likely to further maintain double-
digit value sales growth for the
global scent boosters market.

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Second best to liquid tablet detergents

Liquid tablet detergents was the home care


markets fastest growing category over the review
period, with a 50% value CAGR over 2011-2015.
Although scent boosters are thriving from a low
base, liquid tablet detergents attribute most of
their vast growth to investment in geographic
expansion, higher marketing spend, and
expansion among private label and local
companies.
Scent boosters low base growth over 2011-2015
is due to a combination of dynamics. First, the
high degree of complementarity with the steadily-
growing fabric softeners category. Secondly,
growing consumer wardrobes and the falling
share of worn items in those wardrobes leading
to rising demand for freshness longevity.
Other home care categories, such as kitchen
cleaners, were a distant second with their single-
digit value CAGRs. Scent boosters and liquid
detergents are beginning to show a steep drop in
growth rates, but this will be dependent on the
expansionary strategies of their key proponents,
P&G and Henkel, or those of new entrants.

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but outperforming other laundry boosters

Relative to other laundry boosters, scent boosters have driven the category. Only scent boosters, laundry
sanitisers and blues/bluing have out-performed the median other laundry boosters value CAGR over 2011-
2015. It appears that booster categories that deal with the visual aspects of a laundry wash, ie whiteners,
colour catchers and colour enhancers, have witnessed a decline in consumer demand over the same
period.
This is possibly an indication of changing consumer preferences - in developed laundry care markets - and
with that brand manufacturers priorities. It could be said that there is a shift from visual enhancement of the
washing towards enhancement of other sensory features, such as olfactory or hygiene.

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THE SCENT MATRIX AND RETAILING SPACE
THE SCENT MATRIX AND RETAILING SPACE

Retailing space glass ceiling

Fabric softeners dominate laundry aid shelves in many of the developed markets modern grocery
channels, while scent boosters are in turn left with limited space. In the UK, for example, merchandising
space in 2014 and 2015 was limited, but instead of concentrating on new space P&G exploited the halo
effect of fabric softeners marketing and equity to cultivate sales.
Scent boosters are also able to overcome the retailing space glass ceiling with a limited range of scents by
promoting scent personalisation. Consumers can vary the fragrances by controlling scent combination and
dosing for intensity. Thus, regardless of a finite variation of scents, their combination offers a wider yet still
finite number of scents.
Any expansion strategy for scent boosters will be dependent on retailing space availability in the new
markets. In the context of developing markets that is likely to be the case as their modern grocery retailing
coverage is significantly smaller.

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THE SCENT MATRIX AND RETAILING SPACE

Global growth may be limited by retailing space

Modern Grocery Retailing (sq m per Canada 1,483 sq m


000 households)
US 1,478 sq m
In the context of US supermarket
shelves, merchandising space Ireland 1,069 sq m
might not be a significant issue UK 691 sq m
given that the country has the Japan 487 sq m
second largest modern grocery
retail selling space per household. Indonesia 125 sq m
However, the issue arises when
scent boosters look to expand in
markets where such retailing space
is relatively smaller.
In this context, the push to promote
scent personalisation could play a
key role in the success of this
category, especially for P&Gs
range given that this is the USP of
its products.

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THE SCENT MATRIX AND RETAILING SPACE

Is scent personalisation the solution to limited space?

Scent personalisation in Downy/Lenor


Squeeze Unstopables is provided via two means: intensity;
and sniff and/or combination. This is the brands USP for
the category, which is further supported by the
Squeeze and Sniff feature of the packaging
whereby consumers are able to pre-test the
scents.
Downy/Lenor Unstopables offers signature
scents across its home and fabric laundry care
range allowing P&G to take advantage of the
brand scent equity from its fabric softener variant.

Unstopables Scents
Downy/Lenor offers a combination of seven scents
giving the consumer a scent matrix of 42 scents
with the further ability to control scent intensity via
dosage.
Consequently the brands are able to confidently
introduce a matrix of scents without cannibalising
signature ones by marketing the option of sticking
to familiar ones or making personalised
adjustments by promoting possible combinations of
fragrances.

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Scent matrix can override retailing space

4x15=72??
4 Downy/Lenor Unstopables scents and 15 Lenor fabric softener scents

The outcome of scent booster personalisation is a


scent matrix. This overcomes the merchandising
space barrier and builds on fabric softener brand
equity while allowing for a wider range of scents.
Using the scent matrix, P&G offers consumers the
experience of experimentation and interactivity with
what is typically perceived as a necessary chore. By
offering a multitude of choice in scents, consumers
take a more active role in the washing process.
Companies can potentially utilise the
complementary portfolios of fabric softeners and
scent boosters to promote their ranges via laundry
care bundles, laundry collections, such as with P&G,
or mix and match purchases at the retailing level.

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A GAME CHANGER FOR LAUNDRY CARE?
FUNCTIONING SCENT BOOSTERS
FUNCTIONING SCENT BOOSTERS

Fabric softeners: Operating beyond softness

In the 1980s, much of the fabric softener marketing was targeted toward claims of softness, static control
and ease of ironing. In the 2010s that perspective has shifted towards a combination of freshness longevity
and, to a lesser extent, softening. Much of the recent innovation addressed daily wear issues with features
such as Comforts scents that are triggered upon movement.
To consumers, fabric softeners in recent years have become less about fabric maintenance and more
about lasting cleanness and freshness. The onset of fast fashion and its somewhat high wear-out feature
has skewed consumer concern towards sensory elevation and away from fabric maintenance. Unilevers
Comfort Intense illustrates this shift in marketing in its tagline intense freshness when compared to
Snuggles 1980s tagline of Snuggly softness.
Nowadays, a more scientific approach is being taken, such as Downy shifting the positioning of fabric
softeners towards fabric maintenance rather than fragrancing. This illustrates how P&G is vacating the
fragrance arena of fabric softeners to open the path for scent boosters to take the lead, and for fabric
softeners to concentrate on the fabric maintenance arena.
1980s 2000-2010 Now

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A GAME CHANGER FOR LAUNDRY CARE?
FUNCTIONING SCENT BOOSTERS

Scent boosters specialised function

As explained in the previous slide, as P&Gs products begin to shift fabric softeners away from the scent/
fragrance driver arena and towards the four other characteristics - see slide 5 - scent boosters will become
more task-specific in its positioning. This will further open up marketing options within scent boosters to sell
such products as a close complementary item akin to shampoos and conditioners.
Consumers are likely to be open to the task-specific positioning, especially as confidence in multi-functional
products is undermined by the perception that they are less effective. This is likely to attract spendthrift
consumers, while frugal ones are likely to be unwilling to pay for additional laundry aid items.
Brand manufacturers will have to be careful about conflicting formulations that could diminish the efficacy of
one function over another. This is illustrated by the success of 2-in-1s and combination personal care
products versus much more multi-functional ones.

Shampoo and
3-in-1 2-in-1 conditioner

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FUNCTIONING SCENT BOOSTERS

Task-specific to multi-functional

Initially scent boosters were assigned a task-specific Static Control


positioning until brand manufacturers began to extend
their laundry detergent or fabric softener lines to cover
this white space in the laundry care category.
The onset of Febreze or Arm & Hammer licensing has
introduced the task-specific laundry care category to
the multi-functional arena. The former, positioned Odour Neutralisation
towards its key claim of odour neutralisation, and the
latters stain removal properties allowed the newly-
established category to utilise the halo effect of these
well-established brands to drive its value sales.
Scent boosters secondary claims help further
integrate such laundry boosters as part of the core Stain Removal
laundry shopping basket. With the likes of P&Gs
Bounce or Church & Dwights Arm & Hammer Clean
Scentsations, which are well established in other parts
of the laundry care market, they can exploit what is the
core claim as secondary to the scent-boosting one.
The use of niche or well-acknowledged washing
functions of a brand with existing equity is expected to
further support scent boosters gain in the laundry aids
market. This may result in shifting demand away from
task-specific spot and stain removers.

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A GAME CHANGER FOR LAUNDRY CARE?
FUNCTIONING SCENT BOOSTERS

Scent boosters combination design

Multi-functional products have suffered from their perceived lower efficacy. From a technical perspective,
using the analogy of 2-in-1 shampoos/conditioners, there is a functionality clash - as with surfactants versus
humectants. This conflict in terms of formulation can be a determinant in whether to position scent boosters
as specialist products or multi-functional ones.
Maintaining scent boosters as specialised products to be used simultaneously with fabric softeners may be
perceived by consumers as offering better olfactory and/or visual wash results.
One brand extension by Downy Unstopable - Shimmer Premium - hints at a direction towards less
specialised laundry aids by including a splash of fabric softener in the item, threatening possible
cannibalisation of the fabric softeners range.

Combination

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A GAME CHANGER FOR LAUNDRY CARE?
FUNCTIONING SCENT BOOSTERS

Encapsulated functions

Sportswear value sales are growing across almost all markets and with that there is a rise in the wardrobe
share of synthetic fibres. Given these are the primary textiles of sports apparel, the need for odour
elimination will be aligned with consumer wardrobe maintenance and freshness longevity.
Scent boosters tied to odour elimination, eg Downy Fresh Protect, or to stain removal, eg Arm & Hammer
Clean Scentsations, mark a step towards shifting scent boosters into the core laundry shopping basket.
By positioning a line extension towards sportswear, brand manufacturers are able to build on the odour
elimination/neutralisation position. With that they can add functions that are in line with sports activities.
One such approach is the use of energising aromatherapeutic scents delivered in microcapsules - akin to
the calming ones in the previous slide - possibly a next step for P&Gs Febreze Odor Defense range.

Febreze Odor Defense range

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FUNCTIONING SCENT BOOSTERS

Functional scents

There is only so far and long that scents and scent combinations can go to attract consumers attention.
Shifting product positioning towards more functional or multi-functional attributes could help develop
scent booster brands like stand-alone ones.
Claims, such as calming or aiding sleep, for scents provide the product with a healthy connotation,
evidenced by P&Gs Sweet Dreams Collection. Fragrances that can be worn at night to help consumers
sleep and refresh bed linen simultaneously can work to allay consumers fears about carcinogenic
content. As a result, this opens up space for natural ingredients or aromatherapy, assuming such an
option has a relatively low cost.
The move of air care and fabric freshener lines towards the aromatherapy and/or aromachology spaces,
ie functional scents, is already available with the line extensions developed by Henkels Purex Crystals.
It is likely that brand manufacturers will continue to take the premium path of developing the product to
attract more affluent consumers.

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FUNCTIONING SCENT BOOSTERS

Space for scent neutrality

Home care consumers, especially in developed markets, are


inundated with a multitude of scents from the various products in their
washing and surface care cupboards. As a result, there is little space
left for scent boosters in a homes fragrance spectrum. Scent
boosters defining aromas will end up being lost among a plethora of
fragrances.
In turn this could elevate demand for scent-neutral detergents, most
of which are typically brand extensions positioned as hypoallergenic.
However, the scent-free alternative must be uniquely sold for its scent
neutrality rather than its hypoallergenic claim given that the latter is
perceived to reduce efficacy with the removal of allergy-causing active
or excipient ingredients.
Brand manufacturers recognise that scent neutrality would be a step
away from the scent matrix promoted via Downy/Lenor Unstopables
and a contradiction in terms. Consumers opt for perfume-free
alternatives in order to avoid aggravating any skin or breathing
complaints, therefore avoiding scent boosters, unless non-
hypoallergenic scent-free laundry sanitisers are branded in
conjunction with brands of scent boosters.
The complimentary category positioning of scent boosters with fabric
softeners can work hand in hand with that of neutral detergents. Scent
boosters can add to a wash-spend per kg and combined with scent
neutral detergents without cannibalising on fabric softener sales.

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DOWN THE DRAIN THEN UP IN THE AIR
DOWN THE DRAIN THEN UP IN THE AIR

Bad ideas leading to good ideas

Consumer ingenuity has played an interesting and indirect role in the product development of the Downy/
Lenor Unstopables range. Some US consumers - under their own initiative - have used the laundry booster
as a candle melt room deodoriser following on from the growing popularity of wax melts.
Regardless of the ensuing social media uproar over the carcinognic content of scent boosters as potential
wax melts, marketers identified a demand for laundry fresh scents among air care products.
The interest in laundry-scented deodorisers in combination with the premiumisation strategy of P&Gs air
care range and that of scent boosters fell in line with the overarching brand strategy of the laundry aids and
air care portfolios, so this proved a win-win situation.

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DOWN THE DRAIN THEN UP IN THE AIR

Unstopables exploits consumers ingenuity

Taking advantage of consumers ingenuity, P&G was able to turn this into a revenue source for the
Unstopables brand. In line with Febreze licensing, Unstopables has expanded its portfolio to move beyond
laundry aids and cross over to the air care category.
The premium home dcor positioning utilised by the Unstopables air care range will differentiate the brand
from P&Gs odour-eliminating brand - Febreze. As a result, P&G is able to establish the former with a
stand-alone identity and build on its licensing possibilities.
Opportunities will be intentionally limited to the premium segment of laundry care but open up spaces
across other premium home care categories. This is something that Unstopables is already witnessing via
its expansion towards quasi premium-priced candle air care, other air fresheners and fabric fresheners.

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A GAME CHANGER FOR LAUNDRY CARE?
MICROENCAPSULATION: A WAY FORWARD
IN HOME CARE
MICROENCAPSULATION: A WAY FORWARD IN HOME CARE

Microencapsulation technology: Beyond scent boosters

Microencapsulation is a key technological development behind scent boosters, requiring protection of the
active ingredient against - eg enzymatic - degradation. In addition this should be able to accurately control
the release rate of the active ingredient during the washing process.
The potential of microencapsulating whiteners, laundry sanitisers and colour enhancers can take liquid
laundry detergent closer to the cleaning quality of its powder counterpart. However, this will be dependent
on two aspects: first, the impact on margins of liquid detergents which currently are more attractive than
powders; second, integrating bleaching agents or spot removers in liquid detergents can potentially
cannibalise laundry aids sales if its all in the detergent.
Scent boosters that complement laundry detergents brands, such as Gain Fireworks, sell on the basis of
their fragrance. However, consumers can opt for a scent-neutral detergent to use in conjunction with Gain
Fireworks, potentially cannibalising sales of its detergents line.

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MICROENCAPSULATION: A WAY FORWARD IN HOME CARE

Microencapsulation in laundry aids

When a consumer looks at their home care cupboard they are typically faced with a plethora of laundry
detergents and surface care products. It is likely that many consumers would prefer to cut down on the
number of items or opt for multi-functional ones.
In turn, brand manufacturers are contemplating utilising microcapsule technology to combine many task-
specific items or integrate the functions of laundry aids for convenience. One such potential is the
microencapsulation of laundry sanitisers in spot and stain removers, a concept that could work for RBs
Dettol laundry sanitiser and its Vanish range.
Building on such technology there have been advances whereby the rate of release is controlled or timed
to take place when the environmental conditions outside the capsule are ideal. With that, a combination of
various laundry aids is likely to require variable microcapsules depending on their function and the
combined product.

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A GAME CHANGER FOR LAUNDRY CARE?
MICROENCAPSULATION: A WAY FORWARD IN HOME CARE

Scent boosting on the surface: The rise of nanocapsules?

Where Febreze goes then scent boosting is likely to follow, as observed with the licensing strategy that
stretched the brand beyond fabric freshening to surface care via brands such as Flash. Scent booster
brands such as Downy/Lenor Unstopables can potentially utilise a similar expansionary strategy and extend
the portfolio to the surface care category.
For many markets scent/fragrance is not
considered a top driver in the purchase decision for
surface care products, but it rises in importance in
warm climate markets. Mexican consumers have
been very open to the idea of adding well-known
air care scents to their surface care products, as
with Brasso and Air Wick, or development of
technology that offers an optimum delivery of scent
from bottle to surface, as with the Pinol Trapeado
Diario.
This development of microencapsulated scents
can be applied to deliver other functions such as
disinfectants or surface stain removers.
The potential of utilising nanocapsules - depending
on their cost impact - can allow for distribution via
spray devices and to embed the fragrance into the
surface ready for release upon application rather
than via the packaging.

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WHERE NEXT FOR SCENT BOOSTERS?
WHERE NEXT FOR SCENT BOOSTERS?

From premium to super premium laundry detergents

Scent boosters can potentially alter the way consumers look at their laundry care basket. Rebranding
laundry care from a necessary chore to a lifestyle value-adding activity can help segment and elevate the
price point of some laundry detergents. Examples such as The Laundress and Frey detergents illustrate
how brands are breaking the mould for the somewhat generic nature of laundry care products competing on
wash quality rather than price.
The onset of designer label, safe detergents by the aforementioned brands, integrated with higher-end
perfumes and fragrances and sold at a premium price point is potentially the next step for scent boosters.
Taking advantage of major premium perfume brands is one direction this segment is likely to approach.
The designer label, safe aspect has the further advantage of having a small range of surfactants in its
formula when compared to the wide surfactant cocktail seen in most mainstream brands. The provision of a
wardrobe-specific surfactant along with premium perfumed boosters will help laundry care attract premium
price points.

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WHERE NEXT FOR SCENT BOOSTERS?

Parallel markets: Home textiles

Using microcapsules in potential parallel categories such as


home textiles, home appliances and other laundry care
products can further expand scent-boosting functionality
beyond home care products.
Encapsulated fragrances in home textiles using
microencapsulation technology, as used in Serta pillows
have already been developed and sold. The potential for bed
textile sales in Asian markets is considerable, indicating the
possibility of increased pillow consumption, but this depends
on the price points and affordability of such products.

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WHERE NEXT FOR SCENT BOOSTERS?

Licensing opportunity: On the Febreze bandwagon

Licensing opportunities for brands, eg Unstopables, can play along with parallel markets, following a path
similar to Febreze. Ranging from appliance companies, evidenced by Bissell vacuum cleaners with their
odour-eliminating filters, to air filters, the potential for aromatic scent boosters can expand beyond the home
care category.
Scent booster makers and ingredient manufacturers can open the doors to a wider market using
microencapsulation technology or developing nano types. Scent boosters can change the game for the
home care market by increasing the influence of fragrances in the purchase decision of consumers or by
integrating various product lines where it was chemically not possible previously.

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WHERE NEXT FOR SCENT BOOSTERS?

Where fabric softeners goes, so can scent boosters

Potential for scent boosters in developing or emerging markets such as Thailand or


Vietnam is possible. Although price points are higher than those for fabric softeners -
as in developed markets - the product can be introduced as an inexpensive small
pack similar to monodose detergent sachets in India or Downy/Lenor Unstopables
trial packs as in the US and the UK.
Mexico offers one such option utilising the trial pack promotional campaign
approach, namely Vernel Crystals. This new pack includes only two doses of scent
booster. It targets price-sensitive consumers through its affordability (less than
US$1) and it also targets new consumers who are encouraged to first try the product
before paying for a larger pack. This follows the trend for making brands more
affordable through the offer of smaller pack sizes.

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WHERE NEXT FOR SCENT BOOSTERS?

Scent boosting the developing world

Fabric softener purchases are driven by a lifestyle desire to appear and smell clean, a trend that
commonly occurs in markets such as Thailand and Vietnam. Such purchases tend to transcend
across income groups, redefining fabric softeners as a necessary cleaning product instead of a
luxury purchase. The likes of China and Brazil, where fabric softener value sales enjoy year-on-year
growth rates of over 4%, illustrate the potential demand for apparel freshness.
In developed markets, especially the US and the UK, it is a different story since fabric softener
performance is stagnant. Yet there is much space for growth of demand for apparel maintenance.
Consumer spend-per-wash still has space to grow if offered a product, such as scent boosters that
brings in a tangible result in a wash and plays a role in apparel maintenance, especially as apparel
ownership per capita is rising. Also consumers are likely to opt for the added-value in their wash if it
builds on its builds up its image as a lifestyle brand, as seen with The Laundress and Frey laundry
care products.

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WHERE NEXT FOR SCENT BOOSTERS?

Case study: Indonesias pewangi

Scent boosters appears like a relatively new product, however it has existed in Indonesia for over 10 years.
Indonesia has the third largest market globally for other laundry boosters in volume terms at over 40,000
tonnes in 2015, but seventh in value terms at US$35 million for the same year.
Fabric fresheners or pewangi often replace the role of fabric softeners in Indonesia for mass-market
consumers due to their low price points. Furthermore, they are typically used during the laundry process or
the final rinse. Both softeners and pewangi are increasingly considered core items for Indonesias typical
wash load.
Indonesia's case study presents the potential for sales in emerging markets. It highlights where climate and
consumer demand for freshness can be sufficient drivers for affordable - rather than premium - scent
boosters and to support a global expansion strategy for the category.

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RECOMMENDATIONS
RECOMMENDATIONS

Account for limited retailing space

Expanding scent booster sales in newly


entered markets such as the UK and Ireland US 1,478 sq m
is likely to be supported by the fact they have
the demographic and market factors that
would underpin demand for such a product. Ireland 1,069 sq m
Demographic factors such as growing
average disposable incomes - due to
France 864 sq m
growing middle-income households - and
market factors such as a developed modern
grocery retailing channel will help promote UK 691 sq m
and raise spend per wash through premium
laundry aid lines. This is the case whether
coming from a developed or developing Mexico 511 sq m
laundry care market - such as the UK,
France, Ireland and Mexico.
Given that potential scent booster markets
have the above requirements, it is then down
to the merchandising possibility. The success
of scent boosters can be hindered by limited
retailing space in the new markets which can
be overcome by innovative marketing
positionings such as P&Gs scent matrix.

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A GAME CHANGER FOR LAUNDRY CARE?
RECOMMENDATIONS

Premium price point is viable, globally

In spend per-wash terms, there was an increase


Laundry Boosters Laundry Boosters of US$0.11 in laundry boosters spend in a typical
2011 2015 wash* in the US between 2011 and 2015. At
times of economic crisis spend-per-wash is likely
US$0.04 US$0.15 to drop and to stay lower, even in periods of
recovery, primarily due to habit persistence.
per typical wash* per typical wash*
Scent (functional) boosters are likely to halt or

275%rise in constant price


reverse that drop in spend per-wash as
consumer awareness of the product is raised
and channel distribution is expanded.
terms A booster that speaks to consumer demand for
fast fashion and the ensuing growth of wardrobe
content in developed markets will enjoy success,
due to an increasing need for maintaining clothes
within storage.
In developing markets, locating an intersection
between a prudent premium price point and
relevant functionality for clothes maintenance will
help brand manufacturers find demand for such
items beyond middle- and high-income
households. The single-sachet approach will
Notes: *Typical wash: Weighted volume sales based on a wash that
uses spot and stain removers and no bleach offer an affordable price point, but with a reduced
Unit price: Constant US$ re-purchase rate for low-income households.

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A GAME CHANGER FOR LAUNDRY CARE?
RECOMMENDATIONS

Scent boosters wash results must be more pronounced

Like much of laundry care, there


are various drivers that will
determine consumer purchase
choice. In the scent boosters
category, consumers are
Freshness Longevity
already being introduced to a
multitude of functional
positionings.
With this multitude of positions
scent boosters can potentially
Odour Elimination
shift demand away from other
laundry aid categories such as
spot and stain removers, and
even fabric softeners. This will
be driven by factors such as Fabric Maintenance
price and washing quality, the
act of forgoing other laundry
aids for one that provides a
more tangible sensory result.
Aromachology

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A GAME CHANGER FOR LAUNDRY CARE?
RECOMMENDATIONS

Licensing and cross-category innovations to sustain growth

Given the low base growth and


geographic expansion of scent
boosters, brand manufacturers have
Home to look towards different options to
Footwear sustain that momentum. In turn
Textiles revenue generation will be sourced
from alternative marketing
approaches such as licencing or
cross-category brand expansion.
As witnessed with Febreeze across
various CPGs, scent booster brands
Personal Small
have to exploit the successful initial
Hygiene Appliances growth of this category from niche to
being a stand-alone item.
Opportunity for expansion will not
be restricted to home care
categories alone, and possibilities
may be present across a wider array
Surface Home of categories.
Care Hygiene

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RECOMMENDATIONS

Key takeaway: There is considerable space for this product

1SCENT MATRIX REDUCES


RETAIL SPACE NEED

2
PREMIUM PRICE POINT VALID
GLOBALLY

3
THERE IS A GREATER
TANGIBILITY FACTOR

4
THINK BEYOND HOME CARE
TO SUSTAIN GROWTH

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A GAME CHANGER FOR LAUNDRY CARE?
FOR FURTHER INSIGHT PLEASE CONTACT
Amin Alkhatib
Home Care Analyst

Follow me on Twitter @ AminAl_EMI


amin.alkhatib@euromonitor.com

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