air care in india

AIR CARE IN INDIA

Euromonitor International

July 2013

A I R C A R E I N I N D I A P a s s p o r t I

E u r o m o n i t o r I n t e r n a t i o n a l

LIST OF CONTENTS AND TABLES

Headlines ..................................................................................................................................... 1 Trends .......................................................................................................................................... 1 Competitive Landscape ................................................................................................................ 2 Prospects ..................................................................................................................................... 3 Category Data .............................................................................................................................. 4

Table 1 Sales of Air Care by Category: Value 2007-2012 ......................................... 4 Table 2 Sales of Air Care by Category: % Value Growth 2007-2012 ........................ 4 Table 3 Air Care Fragrances Rankings by Value 2007-2012 .................................... 4 Table 4 Air Care Company Shares 2008-2012 ......................................................... 5 Table 5 Air Care Brand Shares 2009-2012 ............................................................... 5 Table 6 Forecast Sales of Air Care by Category: Value 2012-2017 .......................... 6 Table 7 Forecast Sales of Air Care by Category: % Value Growth 2012-2017 ......... 6

A I R C A R E I N I N D I A P a s s p o r t 1


AIR CARE IN INDIA

HEADLINES Air care grows by 17% in current value terms to reach Rs1.7 billion in 2012

Consumers continue to switch from traditional offerings to sophisticated aerosols/sprays

Average unit prices grow further due to increase in uptake of modern formats such as

aerosols and car air fresheners

Dabur India Ltd maintains lead with value share of 38% in 2012

Air care is predicted to grow by a constant value CAGR of 9% to reach Rs2.5 billion by 2017

TRENDS Positioned and promoted as a lifestyle product, air care emerged as a promising category

over the review period. Urban consumers continued to switch from traditional offerings such

as incense sticks known as agarbattis locally, to the more sophisticated spray/aerosol format

for their homes in 2012. Additionally, to leverage on the growing shift and potential growth of

modern air fresheners, leading players such as Godrej Consumer Products Ltd introduced air

fresheners under the brand AER.

Air care grew by 17% in current value terms to touch Rs1.7 billion in 2012, which was

marginally faster than the review period growth, mainly due to the growing number of

consumers who were willing to experiment with the modern formats such as aerosols to keep

their homes odour free. Air care began to be associated as a lifestyle product and attracted

the consumers to buy different variants including spray/aerosol air fresheners such as Air

Wick.

Being the smallest in sales, car air fresheners continued to be record the fastest current value

growth of 28% in 2012. The demand for car air fresheners continued to be fuelled by the

growing desire of consumers to maintain freshness in their cars by using appealing

fragrances. Additionally, car air fresheners benefited from the growing disposable incomes

that usually result in increased spend on lifestyle products.

Average unit prices continued to increase due to the growing uptake of modern formats such

as spray/aerosol and car air fresheners. Furthermore, the launch of aerosols in different

fragrance variants which are marginally more expensive drove the unit prices even further in

2012.

Other air care which includes solid air fresheners such as Odonil Air Freshener and incense

sticks, locally known as dhoops and agarbattis, recorded slowed growth, although it continued

to be the second largest in terms of value sales in 2012. Other air care including agarbattis

continued to enjoy huge popularity mainly due to use in religious rituals including Pujas and

everyday prayers in rural and urban areas as well. However, consumers started to shift from

such traditional air fresheners to modern formats such as spray/aerosols to freshen up homes

and remove offensive odours. The switch from other air care mainly by urban consumers

largely contributed to a slowdown in growth of older forms such as dhoops.

Air care products continued to be available in sprays, solid formats, and electric air fresheners

in 2012. Of all, spray/aerosol started to gain strength mainly due to the ease of use and

effective action associated with it. Spray/aerosol brands such as Odonil, Air Wick, Ambi Pur,

and Premium continued to witness a rise in sales due to growing acceptance and uptake.



Further, manufacturers such as Reckitt Benckiser started to launch aerosols in different

fragrance variants to suit consumers preferences.

Electric air fresheners continued to be very small in 2012. The major bulk of air fresheners

available in the country continued to be plug-in electric air fresheners. Reckitt Benckiser

launched Air Wick to gain the first mover advantage and was very innovative with its product

launches. For instance, Air Wick Freshmatic dispenses its scent at timely intervals to inject

new fragrance to its surroundings. Consumers of today now expect such added functionality

in air care.

Lavender continued to be the most popular fragrance in air care in 2012. However, jasmine

gained more popularity to shift sandalwood to gain the second leading position, followed by

rose and sandalwood. Such natural fragrances continued to gain popularity amongst

consumers.

COMPETITIVE LANDSCAPE Dabur India Ltd continued to dominate air care with value share of 38% in 2012. The

company has a long established leadership in air care under its brand Odonil which has

continued to enjoy huge popularity amongst consumers for years. Furthermore, with the

launch of Odonil Occasions that offered different formats of air care during the late months of

2011, the company tried to gain further penetration of urban and rural homes. However,

Procter & Gambles Ambi Pur offered strong competition to Daburs Odonil aerosols in 2012,

which resulted in the company losing two percentage points in value share.

Procter & Gamble experienced the biggest increase in share, gaining two percentage points

due to its brand Ambi Pur which was promoted across the country in 2012. The brand

witnessed a rapid increase in sales mainly due to its affordability and easy availability in

different formats and variants including aqua, lavender and vanilla for car air fresheners. The

brand was heavily advertised with the tag line Open your car to Ambi-pur freshness. The

company also introduced a new air freshener format for homes.

Air care continued to be equally dominated by domestic and international manufacturers

including Dabur and Reckitt Benckiser in 2012. However, domestic manufacturers including

Dabur India Ltd started to lose share despite new launches such as Odonil Occasions in

2011. International brands such as Air Wick from Reckitt Benckiser and SC Johnson

continued to compete aggressively with the domestic brands in 2012.

In 2012, Godrej Consumer Products Ltd introduced air fresheners under the brand AER and

re-entered air care after its exit in 2009. AER introduced the spray/aerosol format for use in

the home and car dash board diffusers for cars in three fragrance variants including cool,

petal, and fresh. The launch of AER is likely to intensify competition, with the presence of

many international and domestic manufacturers brands including Ambi Pur and SC

Johnsons Glade air care.

Procter & Gamble invested huge amounts of money in promoting its brand Ambi Pur which

helped the company to gain share in 2012. Ambi Pur devised the Who will Drive Me Crazy

campaign aimed at creating the need for air fresheners in cars. Procter & Gamble ran road

campaigns by collaborating with Neha Dhupia (a Bollywood actress) who played the

unexpected guest who would stop any car and ask for a lift. She would choose to stay inside

or come out of the car depending upon the freshness inside. The campaign pushed the idea

of being guest ready with a fresh car which was popular with consumers.

In air care, car air fresheners, and spray/aerosol air fresheners would be considered as

premium and standard mainly due to the price of the product. Other air care including dhoops

and agarbattis continued to be considered as economy brands. In 2012, premium and



standard brands such as Air Wick offered tough competition to economy brands for urban

consumers including people who drive cars. Urban consumers increasingly replaced dhoops

with car air fresheners in their cars. However, economy brands such as Mangaldeep sticks

continued to be popular amongst rural consumers and for use in pujas mainly.

Private label including Paradise Air Freshener from More Supermarket, Great Value from

Easy Day, and Frshomz by Reliance Retail gained huge popularity amongst consumers

mainly due to the lower price compared to branded air care. Private label continued to offer air

care in the form of cubes and blocks and also offered combination packs that offered different

formats of air fresheners.

PROSPECTS With improving living standards and increasing demand for aesthetics, air care formats such

as aerosols, car air fresheners and electric air fresheners are likely to experience huge

acceptance in urban areas mainly over the forecast period. Additionally, the forecast period

would also continue to witness a huge shift from traditional air care such as dhoops to

spray/aerosol and electric air fresheners.

Air care is predicted to grow by a constant value CAGR of 9% to reach Rs2.5 billion by 2017.

The growth in air care would be faster than the review period when air care had a very small

value sales base. During the forecast period, air care is likely to gain further penetration in

urban areas with the help of new products such as car air fresheners that are gaining huge

acceptance. Additionally, Tier II households would increasingly switch to aerosols and electric

air fresheners from agarbattis and cube formats of air fresheners.

Rural and Tier II and III consumers might continue to use cheaper alternatives including

dhoops mainly due to the affordability. Additionally, any further increase in the prices of newer

formats of air fresheners including electric air fresheners and aerosols, which are already

considered as expensive are likely to hamper growth over the forecast period. Additionally,

consumers might switch to natural products such as aroma oils, potpourri, and dried flowers,

as they are considered more environment friendly and cheaper compared to other air care.

Car air fresheners is likely to grow by a constant value CAGR of 16% and will continue to

record the fastest growth over the forecast period. With improving lifestyles and greater

emphasis on aesthetics, consumers are likely to spend a huge amount on car air fresheners,

leading this product to continue to be the key contributor to growth of overall air care. Such

strong growth in car air fresheners is also supported by the rapidly growing sales of

automobiles including cars over the forecast period.

Average unit prices are likely to grow further mainly due to the growing uptake of

spray/aerosol and car air fresheners over the forecast period. Additionally, the launch of

premium products including gels and candles would drive the unit prices even further.

New product launches such as AER are likely to experience a huge increase in sales over the

forecast period. Since spray/aerosol, and car air fresheners are newer products, there is

enough room for all companies to grow. Furthermore, the potential growth in air care might

attract international and domestic manufacturers to launch more products and formats such

as candles and gels.

Leading manufacturers are likely to include aromatic oils in spray/aerosol and electric air

fresheners as the main ingredient to increase effectiveness. Other international manufacturers

are also likely to introduce other formats of air care including candles and gels that are

popular for the slow fragrance release across the globe. Procter & Gamble has announced

plans to enter the premium gel air fresheners.



CATEGORY DATA

Table 1 Sales of Air Care by Category: Value 2007-2012

Rs million 2007 2008 2009 2010 2011 2012 Candle Air Fresheners - - - - - - Car Air Fresheners 136.4 166.8 209.7 264.0 347.1 443.8 Electric Air Fresheners - - - - - - Gel Air Fresheners - - - - - - Liquid Air Fresheners - - - - - - Spray/Aerosol Air 326.2 365.8 420.7 501.2 594.8 692.2 Fresheners - Concentrated Spray/ - - - - - - Aerosol Air Fresheners - Standard Spray/ 326.2 365.8 420.7 501.2 594.8 692.2 Aerosol Air Fresheners Other Air Care 355.5 382.4 402.2 429.3 476.6 521.7 Air Care 818.1 915.0 1,032.5 1,194.5 1,418.6 1,657.7

Source: Euromonitor International from official statistics, trade associations, trade press, company research, store checks, trade interviews, trade sources

Table 2 Sales of Air Care by Category: % Value Growth 2007-2012

% current value growth 2011/12 2007-12 CAGR 2007/12 Total Candle Air Fresheners - - - Car Air Fresheners 27.8 26.6 225.4 Electric Air Fresheners - - - Gel Air Fresheners - - - Liquid Air Fresheners - - - Spray/Aerosol Air Fresheners 16.4 16.2 112.2 - Concentrated Spray/Aerosol Air - - - Fresheners - Standard Spray/Aerosol Air Fresheners 16.4 16.2 112.2 Other Air Care 9.5 8.0 46.7 Air Care 16.9 15.2 102.6


Table 3 Air Care Fragrances Rankings by Value 2007-2012

ranking 2007 2008 2009 2010 2011 2012 Lavender 1.0 1.0 1.0 1.0 1.0 1.0 Jasmine 2.0 2.0 3.0 3.0 3.0 2.0 Rose 4.0 4.0 4.0 5.0 5.0 3.0 Sandalwood 3.0 3.0 2.0 2.0 2.0 4.0 Floral 7.0 7.0 5.0 4.0 4.0 5.0 Aqua/Water 6.0 6.0 6.0 7.0 6.0 6.0 Lemon/Citron 5.0 5.0 7.0 6.0 7.0 7.0




Table 4 Air Care Company Shares 2008-2012

% retail value rsp Company 2008 2009 2010 2011 2012 Dabur India Ltd 42.5 40.2 40.9 40.0 38.3 Procter & Gamble Home - - 14.4 18.6 20.9 Products Ltd Helene Curtis India 17.2 15.5 13.4 14.3 14.2 Ltd, J K Reckitt Benckiser 5.4 7.1 8.6 8.4 8.7 (India) Ltd Midas Care 2.2 2.1 2.1 2.0 1.7 Pharmaceuticals Pvt Ltd SC Johnson Products Pvt - - 0.6 0.8 0.8 Ltd Godrej Consumer - - - - 0.8 Products Ltd Godrej Sara Lee Ltd 12.7 13.8 - - - Archies Greetings & 0.4 0.2 - - - Gifts Ltd Balsara Home Products Ltd - - - - - Others 19.6 21.0 20.0 15.8 14.6 Total 100.0 100.0 100.0 100.0 100.0


Table 5 Air Care Brand Shares 2009-2012

% retail value rsp Brand Company 2009 2010 2011 2012 Odonil Dabur India Ltd 40.2 40.9 40.0 38.3 Ambi Pur Procter & Gamble Home - 14.4 18.6 20.9 Products Ltd Premium Helene Curtis India 15.5 13.4 14.3 14.2 Ltd, J K Air Wick Reckitt Benckiser 6.1 8.0 8.2 8.5 (India) Ltd Lovin Midas Care 2.1 2.1 2.0 1.7 Pharmaceuticals Pvt Ltd Glade SC Johnson Products Pvt - 0.6 0.8 0.8 Ltd AER Godrej Consumer - - - 0.8 Products Ltd Haze Reckitt Benckiser 1.0 0.6 0.2 0.2 (India) Ltd Ambi Pur Godrej Sara Lee Ltd 13.8 - - - Fresh & Fragrant Archies Greetings & 0.2 - - - Gifts Ltd Odonil Balsara Home Products Ltd - - - - Others 21.0 20.0 15.8 14.6 Total 100.0 100.0 100.0 100.0




Table 6 Forecast Sales of Air Care by Category: Value 2012-2017

Rs million 2012 2013 2014 2015 2016 2017 Candle Air Fresheners - - - - - - Car Air Fresheners 443.8 529.8 626.0 726.6 828.3 931.9 Electric Air Fresheners - - - - - - Gel Air Fresheners - - - - - - Liquid Air Fresheners - - - - - - Spray/Aerosol Air 692.2 756.2 826.2 895.3 962.3 1,023.5 Fresheners - Concentrated Spray/ - - - - - - Aerosol Air Fresheners - Standard Spray/ 692.2 756.2 826.2 895.3 962.3 1,023.5 Aerosol Air Fresheners Other Air Care 521.7 534.7 546.5 554.6 561.3 566.7 Air Care 1,657.7 1,820.8 1,998.8 2,176.5 2,351.9 2,522.1

Source: Euromonitor International from trade associations, trade press, company research, trade interviews, trade sources

Table 7 Forecast Sales of Air Care by Category: % Value Growth 2012-2017

% constant value growth 2012-17 CAGR 2012/17 TOTAL Candle Air Fresheners - - Car Air Fresheners 16.0 110.0 Electric Air Fresheners - - Gel Air Fresheners - - Liquid Air Fresheners - - Spray/Aerosol Air Fresheners 8.1 47.9 - Concentrated Spray/Aerosol Air Fresheners - - - Standard Spray/Aerosol Air Fresheners 8.1 47.9 Other Air Care 1.7 8.6 Air Care 8.8 52.1

Source: Euromonitor International from trade associations, trade press, company research, trade interviews, trade sources

air care in india

Documents