PL cleansers : affordability, quality and sustainability

Sales growth has been slowing down, but labels are still keeping a high focus on sustainability and specialization.

The high need for household hygiene and cleaning of the months of the Covid-19 emergency last year is now suffering a setback. Based on data by Osservatorio Assocasa, in collaboration with NielsenIQ, in the year ending August 2022, the growth rate of the household cleanser market didn’t exceed 1.2%. Sanitizers (+14.3%) and laundry aids (+2.3%) are among the best-performing segments, whereas cleansers and washing machine cleaners have recorded a less significant increase (+0.1% and +1.1% respectively). In terms of distribution channels, an overall downward trend was recorded, which was offset by the outstanding performances of drugstores (+4.8%) and discounts (+7.7%). The increase in the price of raw materials and energy costs has favored mainly large-scale distribution brands, which, besides being affordable, also ensure quality performances and more sustainability.

A Market Influenced By The Increase In Prices

“Overall, PL cleanser sales trends have been very positive - commented Carrefour - and, specifically, a significant growth has been recorded in the dishware and fabric segment. Throughout the year 2022, consumers consolidated this trend. We’ll continue betting on these two categories this year adding new products to the fabric softener supply, where the market has now shifted towards larger sizes.” Also in Iper La grande points of sales this section recorded a positive trend in 2022, both in terms of volume and value. “Actually, it was more of a value rather than a volume growth - specified Antonio Matarrese and Rosa Tufano, Private Label Cleanser Segment Buyer and Shopper Analyst and Cleanser Category Manager at Iper La grande i . This resulted from the price increase for the final consumer due to the higher inflation rate recorded since the first half of the year. In terms of trends, the increase in PL product incidence on expenditures is significant. This shows that households struggling due to the sharp rise in prices, in order to limit spending, in addition to cutting volumes are buying products belonging to lower price ranges. And this trend has been recorded in all segments.”

Balance Between Product Quality And Price Positioning

For Moroni Amato Group,the supply of PLs to the main brands of large-scale distribution has always been a relevant factor. For this reason, over the years, significant investments have been made to provide a complete service with industry analysis, ad-hoc formulas, graphic study and adaptation, and logistics service. “In view of the experience and knowledge of the market we operate in - explained Tomas Beggio, Sales Director at Moroni Amato - our role is often that of consultants for our clients’ projects. In 2022, PL accounted for slightly more than half of our total turnover, while our brands accounted for the remaining part. In the Italian distribution industry, our main collaborations with PLs have historically been with major drugstore specialized labels and discounters. On the one hand, it is also true that our supply has always had the approval of consumers due to product quality and correct price positioning, which has contributed to such growth. Last year and for 2023 we’ve built new partnerships, and we’re currently developing projects for important large-scale brands, which will be launched and available on our shelves before summer.”

Best Value For Money Leading Consumptions

Fabrizio Mancinelli, No Food and Pet Food Product Manager at Despar Italia , confirms that affordability is among the purchase drivers for PL cleansers: “Last year, our private label cleanser section recorded an increase by 25.6% in value and 6.7% in volume, despite the high inflation rate, which is affecting everyone. The dishwasher segment recorded the most interesting performance in terms of increase in revenue (+27%) and volume (+8.6%). Customers have acknowledged a better value for money in PL compared to market leaders, which, in several cases, have changed their formula and reduced the product quantity. The trend for the new year doesn’t seem to differ from the previous one. Consumers have notably appreciated the new air fresheners under our label in our supply. Conversely, a significant decrease in sanitizing products has been recorded, after a surge in sales during the Covid-19 pandemic.”

In 2022, the Despar cleanser segment recorded an increase by 25.6% in value and 6.7% in volume.

ECO-FRIENDLY ASSORTMENTS ON THE RISE

Sustainability is one of the main strategic goals of Despar Italia. The company has implemented policies aimed to reduce their environmental impact and foster a more sustainable development model also for the products under their brand. “We’re moving in this direction also for the whole household cleanser production chain - added Fabrizio Mancinelli - for which we’re working on a new portfolio of more sustainable and competitive products. Hence, the use of raw materials of natural origin whenever possible, sustainable packaging made of 30%-100% recycled plastic, which are equally effective in terms of reference benchmarks and ensure the right performance. The main categories involved in this transformation are degreasers, limescale removers, liquid and spray glass, and all-purpose cleansers with new allergen-free scents” .l

QBerg analyzes the Personal Hygiene market in the Web FMCG distribution channel. What emerges?

QBerg, Italian Research Institute, leader in price intelligence and multichannel strategy-analysis services (flyers, physical stores, e-commerce and newsletters), analyzed the supply trend of the Personal Hygiene Market (Shower Gel, Liquid Soap, Intimate Skin Care, Intimate wipes, talcum powder, Salts/Oils/Starches) in the web channel in 2022. The used parameters were: Display Share, TOP5 Producers and PL Display Share and Average Price.

Undoubtedly, in 2022, the highest Visibility share (Display Share in technical terms) on the FMCG Websites was offered to Shower Gel products (47.3%), followed by Liquid Soaps at 19.8% and by Intimate Soap (16.0%) . Then, from all the other segments, starting from 7.6% of solid Soaps , up to 0.4% of Salts/Oils/Starches .

Comparing these to 2021 figures, the visual loss of Shower Gel products (-6%) is clear in 2022, while all the other segments increased their presence, in particular Personal Hygiene Accessories,Intimate Soap, Intimate wipes and Salts/oils/starches (about +10%).

The TOP5 Producers (Bolton Group, Colgate Palmolive, Paglieri, Sodalis Group, Unilever) have the relative majority on the total of the products on the FMCG Websites. However, in 2022 we outlined:

● A reduction of the presence in some important segments, such as Shower Gel, which in 2022 recorded 24% (-11% compared to 2021) and Solid Soaps, which in 2022 decreased by 2.2% and 18% compared to 2021.

● An increase in Intimate Hygiene product presence, such as Detergents and Wipes (20% and 16%, respectively)

● The supply of liquid soaps remains unchanged and Talcum Powder and Salts/Oils/ Starches see a moderate increase (4% and 7%, respectively).

PLs , already a distinct minority in the visibility spectrum of Personal Hygiene products, reduced quite noticeably their Display Share in 2022 compared to 2021 on our FMCG websites.

The main decrease is recorded for Solid Soaps (-30%), for Shower-Gel (between 6% and 15%), Personal Hygiene Accessories , Intimate wipes . The visibility decrease is minor for Liquid Soaps (-6% vs 2021), which in 2022 was 2.4 of visible product total.

In 2022, average prices of Personal Hygiene products on websites were unvaried compared to 2021 . However, there were interesting fluctuations among the segments:

● On a positive note, large fluctuations for Solid Soaps, whose average price was €2.54 in 2022 (+32% compared to the previous year). On a negative note, the Personal Hygiene Accessories trend decreased to €2.45 (-15% compared to 2021);

● Slight negative fluctuations for Intimate hygiene products: both detergents and wipes decreased in price by 5%, ending up costing€3.86 and €2.09, respectively.

● Average prices in 2022 for Shower gel, Liquid Soaps, Talcum powder and Salts/Oils/Starches were quite steady compared to 2021.l

Fabrizio Pavone Marketing Manager and Business Development of QBergg