2013
NORTH AMERICAN DISH MARKET STUDY
INTRODUCTION
The US homecare products market has stalled. Five years of declining value, halted
only by last year’s flattening market, has created a challenging environment.
The slow economic recovery has seen
cautious consumers continue to reduce
spending. A cost-cutting mentality has
seen them trade-down while lower priced
brands in both dishwashing and laundry
have performed well and grown in value.
CAUTIOUS CUSTOMERS
CONTINUE TO REDUCE
SPENDING
But, where some categories have seen a marked shift towards
‘private-label’ products, the growing preference for tablets has made dishwashing a
difficult category for private-labels to gain traction in.
While consumers seek ‘value’ they remain prepared to invest in premium products
that meet their most pressing priorities – and we see market growth driven by three
key consumer demands: convenience, product efficacy and increasingly, fragrance.
The indications are that the need for convenience, the desire for a high-quality
clean and the ban on phosphates in dishwashing products have all been key
factors in the continued growth of premium ‘all-in-one‘ tablets.
Indeed, the growing preference for
tablets is anticipated to increase
competition in the near future. As
manufacturers battle for share amongst
dishwasher owners, product innovation
that addresses consumers’ greatest
concerns will secure that vital
discretionary expenditure.
TABLET PREFERENCE
EXPECTED
TO RISE
DEMOGRAPHIC INFLUENCES
The cleaning habits of two influential emerging consumer groups are shaping the
US homecare products market.
‘Milllennials’ aged 15-30 now
account for 22% of the
population and their preference
for easy, low-effort cleaning is
driving convenience-based
innovations in both products
and packaging. In terms of
preference they are more
likely to purchase ‘green’,
environmentally-friendly products.
HISPANICS
16%
OF THE POPULATION
4.5%
LOVE CLEANING
MILLENIALS
22%
OF THE POPULATION
HATE CLEANING
HISPANIC MILLENIALS
LOVE CLEANING, BUT WANT
EASE AND CONVENIENCE
Conversely, Hispanics – who account for 16% of the population (making them the
US’ largest minority group) – are highly engaged with the cleaning process.
Research shows that they tend to follow a thorough three-step process of
‘cleaning’, ‘disinfecting’ and ‘aromatizing’.
While fragrance is an important component in Hispanic cleaning habits, across the
market, the fragrance complexity of dishwashing products is expected to be a key
factor in sales going forward.
ROBUST CONSUMER DEMAND FOR INCREASINGLY
SOPHISTICATED, LONGER LASTING
FRAGRANCES
A shift towards ‘experience-oriented’ household fragrances, driven by the recession,
has already made a leap within dishwashing products. Seen as a product differentiator
and a way of creating interest in a mature sector, this trend answers consumer
demands for ‘affordable luxury’ and a desire to reflect cleanliness and freshness.
DRIVERS OF SALES VOLUMES
60%
OF US HOUSEHOLDS
OWN AN AUTOMATIC
DISHWASHER
The US Dishwasher market is mature, with penetration remaining flat around the
60% mark.
There is a combination of economic factors at work impacting on consumer goods
expenditure. Slow economic growth, continued unemployment, declining household
incomes as well as pressure on household expenditure, and a decline in
home-ownership saw sales of dishwashers stall last year. However, a slight
improvement in sales to adults under 35 indicates some recovery in the housing market.
5.6
MILLION
DISHWASHERS SOLD IN 2012
Dishwasher ownership is concentrated in higher-income
households and the likelihood of ownership increases with
income – 86% of households with an income of $150k+ own
an automatic dishwasher. However, more than half of
households with an income of $25k-$49k and a third of
those with an income of less than $25k also own a
dishwasher, indicating that opportunities do exist for
detergents at all price levels.
High-income consumers tend to be the most frequent dishwasher users, with
around a quarter of those with a household income of $100k+ using their machine
once or more a day – which has helped premium brands gain traction.
Household size is a key factor in
frequency of dishwasher usage –
the larger the household, the
more frequent the usage. But,
interestingly, a cost-cutting habit
acquired during the recession
has driven an increase in dirty
dishware – which has boosted
sales volumes.
37%
OF HOUSEHOLDS WITH 5 OR MORE
PEOPLE USE THEIR DISHWASHER
AT LEAST ONCE A DAY
Over the last five years there has been a steady increase in people preparing and
eating meals at home – a trend that looks set to continue as the economy creeps
into recovery.
% FOOD EXPENDITURE ON EATING AT HOME vs EATING OUT
56%
44%
EATING AT HOME
EATING OUT
2007
2011
60%
40%
EATING AT HOME
= MORE DIRTY DISHWARE
DISHWASHING MARKET VALUE GROWTH
Over the last five years, sales across all categories of homecare products have
declined – with one exception.
1016
YEARS OF DISHWASHING
CATEGORY VALUE GROWTH
Last five years
%
11%
Next five years
As every other category has shown a reduction in value growth, dishwashing
products have bucked the trend significantly, tabling a five-year growth in value of
16.5%. The steady annual growth of 3 to 4% is forecast to continue through to
2017 – giving value growth over the next five years totaling 11%.
Despite the recession, dishwashing product consumers are not swayed in their
purchasing decisions by discount deals.
Laundry detergent consumers are twice as likely to take advantage of discount
deals to ‘stock-up’ and more likely to compare price and buy whatever is on
special offer or opt for the cheapest available.
Liquid
market
value
Powder
market
value
-2%
-8%
+8% +5%
Tablet
market
value
Additive
market
value
However, our research indicates that in
the wake of compulsory reductions in
phosphates, dishwasher product
consumers are increasingly trading-up
to premium all-in-one tablets in order
to maintain cleaning quality and
because they’re more convenient than
using powder plus additives – the
market for which is growing in value
at 2% year-on-year.
Regulations that reduced permitted
levels of phosphates in detergents
have compelled manufacturers to
reformulate their ADW products.
Concerns about product safety and complaints about the efficacy of some products
accelerated the consumer shift away from powders towards either the use of
tablets in conjunction with dishwashing additives, or to those more expensive
unit-dose tablet brands already containing additives within their formulation (to
combat the ‘cloudiness’ associated with reduced phosphate levels).
TABLETS
56%
Coupled with the increasing
demand for more compact,
easier-to-use detergents,
the switch to tablets looks
set to continue with
significant market growth
forecast through to 2017.
FORECAST RETAIL VALUE
GROWTH THROUGH 2017
CONCLUSION
Whilst opportunities for volume growth appear limited, there are opportunities to
grow the value of the market.
Product performance benefits are essential to dishwasher product consumers. In the
wake of the phosphate legislation, consumers have been compelled to use additives
or switch to higher-priced, multi-benefit tablets.
Whilst tablets continue to consolidate a premium position where consumers are happy
to pay more for extra benefits, it’s anticipated that price-conscious consumers will
stick with powders or liquids and compensate for the deficit in efficacy with additives.
Indeed, the 2% year-on-year growth in additive sales value, suggests that those
manufacturers able to add extra cleaning properties to ‘regular’ tablets would spark
greater competition in the premium tablet market and accelerate the consumer shift
towards tablets.
Finally, fragrance will have an increasing influence on consumer choices. Fragrances
offer a new point of differentiation and a way to rekindle interest in a mature
product category.
TOGETHER, WE CAN
INSPIRE CLEANER IDEAS.
The findings from this study will be used
to inform our future solutions for the
North American dish market and beyond,
because the Fabric & Household Care team
at DuPont Industrial Biosciences is committed
to developing market-driven products that
meet real world needs.
Sources: Euromonitor International: ‘Dishwashing in the US’ May 2013 / Euromonitor International: 'Home care in the US' May 2013 / Mintel Group:
'Dishwashing Products – US’ May 2013.
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