Soap, Bath and Shower Products - UK March 2012 Executive Summary

Despite the pervading economic gloom and consumer aversion to spending over the odds on the category, soap, bath and shower products are scrubbing up nicely. This is largely down to high consumer usage rates, which are buoyed by the must-have nature of daily cleansing products and the general cultural opinion that cleanliness is not an option but an obligation. Bar soaps and bath additives have, however, seen their share of the market cannibalised by more convenience-oriented shower products and liquid soaps. The time is ripe for these rather old-fashioned cleansing formats to be repositioned as accessibly priced stress-busting luxuries tailored to the needs of the cost-conscious post-credit crunch consumer. -Brd Costello, Senior Beauty Analyst The market FIGURE 1: Best- and worst-case forecast value sales of soap, bath and shower products, 2006-16

SOURCE: Mintel estimates

The soap, bath and shower (SBS) category enjoyed fairly steady if unremarkable annual sales growth between 2006 and 2011 except in 2009 when a spike in sales of liquid soaps and shower gels boosted business. In the five-year period sales increased by 11%, with negative growth recorded only in 2010. This performance during a period of intense economic turmoil underscores the resilience of the category, which comprises must-have accessibly priced daily grooming products.
This report is supplied in accordance with Mintel's terms and conditions. Supplied to Anglia Ruskin University. Mintel Group Ltd. 1

Looking ahead, the category is set to repeat this performance and grow by 11% between 2011 and 2016, though at a steadier pace than over the past five years. While consumers, in general, are price conscious in reaction to the economic climate, SBS products remain indispensable and so are, to a large extent, buffered from economic uncertainty. Shower products, which accounted for 48% of 2011 sales and over half of new product introductions, are a star performer within the SBS market. Sales grew by 26% between 2006 and 2011 and are expected to rise by 17% between 2011 and 2016. Liquid soaps are also on a skyward trajectory with sales expected to increase by 28% between 2011 and 2016. The segment is already on a high based on a strong 2006-11 performance buoyed by worldwide health scares, which inspired public health hand-washing campaigns and a particular spike in sales in 2009. Bath additives and bar soaps, meanwhile, are hindered by an old-fashioned image and an ageing consumer base. Both segments are expected to report negative growth in the medium term. Market factors
The image element

Women are more likely than men to be image conscious and to want to appear well groomed, making them a key target for soap, bath and shower brands. On the flipside, however, almost half of men feel the urge to look attractive to the opposite sex, which offers brands an angle to pursue when marketing to males. Lynx does just this with its line of shower gels, for instance.
Skin conditions

Skin complaints such as eczema and acne are experienced by close to one in five adults in the UK, suggesting a fairly strong market for products that cater to sensitive skin.
Curtailed spending

The economic environment has inspired many consumers to adjust their spending patterns in an effort to bolster their household budgets. The proportion of adults willing to spend more to secure quality products decreased by 8 percentage points between 2007 and 2011, for instance. This is bad news for the soap, bath and shower category an already discount-oriented business as it limits brands ability to raise prices based on product innovations. Consumers are well aware that they can get the brands they prefer at the price they want to spend by being canny about their purchases. To that end, stockpiling of preferred products when they are on special offer is rife across the board.
Demographic shifts

The UKs population is growing. The number of UK inhabitants is set to rise by 3.4% or 2.1 million between 2011 and 2016. This will buoy the market somewhat given that penetration rates of soap, bath and shower products are high based on shower and soap products positioning as daily essentials. Companies, brands and innovation
This report is supplied in accordance with Mintel's terms and conditions. Supplied to Anglia Ruskin University. Mintel Group Ltd. 2

FIGURE 2: Product launches within the UK soap, bath and shower market, % share,

by sector, 2007-11

SOURCE: Mintel GNPD

Shower products accounted for the majority of SBS launches in 2010 and 2011. Bath additives, which take third place in terms of sales (18% of total category turnover or 118 million), are in second place in terms of launch activity (18% of new product introductions). Contrary to the successful shower segment, bath additives have lost share of newness as consumers take more time- and water-saving showers over more luxuriant baths. Launch activity within soaps did not mirror market value in 2011 with the lower-value solid format accounting for slightly more introductions than liquids. More than two thirds of product launches carry a botanical or herbal claim, which is not to say they are natural, but rather that they contain some ingredients derived from nature. The claim has grown in popularity since 2007 when just over half of products were said to have botanical or herbal content. Meanwhile, after a peak in introductions in 2009, organic products slipped to 13% of launches in 2011. The organic segment, while garnering much media attention, remains relatively niche. Also in the natural arena, products with an aromatherapy claim also saw a spike in introductions in 2010 and accounted for a quarter of launches in 2011.

This report is supplied in accordance with Mintel's terms and conditions. Supplied to Anglia Ruskin University. Mintel Group Ltd.

FIGURE 3: Product launches within the UK soap, bath and shower products, % share,

by company, 2010

SOURCE: Mintel GNPD

The soap, bath and shower category is more segmented than some other personal care categories, such as hair colourants and deodorants, partly because of the involvement of retailer own-labels. In addition, the category bridges both fun and functional positionings, which allows for greater involvement from higher-end branded players such as Molton Brown and LOccitane, for instance. The ranking of the top ten companies in terms of product launches includes mass-oriented beauty behemoths, such as Unilever; private-label lines by Boots and Marks & Spencer; mail order giant Avon; and masstige players LOccitane and Occo. The consumer FIGURE 4: Usage of soap, bath and shower products, by type, and by gender, 2011 Base: adults aged 15+

This report is supplied in accordance with Mintel's terms and conditions. Supplied to Anglia Ruskin University. Mintel Group Ltd.

Taken from the TGI survey of around 25,000 adults SOURCE: GB TGI, Kantar Media UK Ltd Q4 2011(Jul-Jun)/Mintel Male and female usage levels of soap and shower products are more or less on par, thanks to them being the basic tools used for daily hygiene rituals. Bath additives is the only category that shows a marked difference by gender, with women being more than twice as likely as men to use bath liquids, oils or salts. While women have a slight lead on men when it comes to using liquid handwash and shower gels, men are ever so slightly more likely to use bar soap, a category which has an old-fashioned bent.
FIGURE 5: Attitudes towards bathing and cleansing, November 2011

Base: 1,496 internet users aged 16+ who use any soap, bath and shower products

This report is supplied in accordance with Mintel's terms and conditions. Supplied to Anglia Ruskin University. Mintel Group Ltd.

SOURCE: Toluna/Mintel

Women (58%) are more likely than men (45%) to recycle shower and bath product packaging, while older adults are much more likely than their younger counterparts to do this. Reluctance to recycle in this area is likely linked to convenience (ie not having separate recycling bins in bathrooms) as well as age; young adults generally are less likely to take the time to sort their recycling from their general rubbish. Older adults are also more likely to take showers rather than baths with the aim of saving water, another environmental concern. Key analysis: Manufacturers looking to secure a permanent place in consumers shower cubicles could offer branded shower tidies, with an area designed to store empty bottles to be later transferred to recycling bins. For consumers keen to conserve energy, brands could offer shower gel bottles that change colour when they come into contact with water. Different temperatures could activate varying colours. A very vibrant shade, for instance, could indicate that the water temperature is very hot and so is using excessive energy (and leading to higher energy bills for the consumer).
Pamper partner

Just over half of women consider a long bath as their favourite pampering treat. Indeed, a quarter of women stay in the bath so long that they become wrinkled/ dehydrated. Parents of young children also see the bathing ritual as a treat, likely because the indulgence does not require much expenditure or the hiring of a babysitter. In addition, young adults are also particularly likely to enjoy a soothing bath (51% of 16-24s). Key analysis: The bathroom is a sanctuary as much for frazzled young parents as it is for teens and twentysomethings. As household budgets are squeezed and evenings out may be out of the reach of many, bathing offers
This report is supplied in accordance with Mintel's terms and conditions. Supplied to Anglia Ruskin University. Mintel Group Ltd. 6

a moment of soothing escapism in a stressful world. Bath additives are a key accompaniment to this and with clever marketing could become an accessible indulgence akin to colour cosmetics, a category renowned for being buoyed by times of economic uncertainty (a phenomenon known as the lipstick index).
Coming to terms with germs

Fighting cold and flu germs is a major motivator when it comes to using hand sanitisers a quarter of adults use the product for this reason, with women (30%) being more cautious about catching such illnesses than men (19%). Adults in their mid-twenties and mid-forties are particularly keen users for this reason, as are adults with young children. Parents of young children (24%) also use sanitisers to ward off bacteria and germs. Everyday illnesses are clearly a bugbear for parents, which opens up opportunities for child-oriented brands, such as Johnsons Baby and Burts Bees, to enter the sanitiser category. What we think Soap, bath and shower products are practical purchases and, to a large extent, adults are reining in their spending on such items since they can generally get their preferred brands either at knock-down prices or as part of multi-purchase promotions. How then can manufacturers hope to significantly increase value sales in the future? One option would be to behave like consumers and take a practical approach to the category. Brands should examine their product offerings and ensure they are meeting consumer expectations to the nth degree. Take, for instance, the fact that almost three in ten women who use SBS products find it difficult to open them while their hands are wet. A minor technical hitch perhaps, but with todays time-pressed consumer needing to account for almost every minute of their busy day this is precious time wasted. It is also an opportunity for brands to engage with consumers in a meaningful way rather than being invigorated by their shower gel, as 55% of women who use shower products wish to be, they are likely frustrated. This hardly encourages fondness for brands. Again, looking at the category from a pragmatic viewpoint, brands would do well to take note of the one in five women who use SBS products who find residues behind in their bath/ shower. Given that half of women who use bath additives consider bathing their ultimate pampering treat, being obliged to scrub the tub after a bath hardly adds to the relaxation process. Manufacturers with flawless formulations could play on the fact that their products leave nothing behind but moisturised skin and a sense of wellbeing. In a pragmatic category, such attention to practical attributes in addition to bells-and-whistle claims such as hydrating formulations and invigorating fragrances could just persuade consumers to trade up ever so slightly.

This report is supplied in accordance with Mintel's terms and conditions. Supplied to Anglia Ruskin University. Mintel Group Ltd.