© 2014 Mintel Group Ltd. All Rights Reserved. Confidential to Mintel
Sustainability in Household - Global Product Innovation and Consumer InsightsDriving green cleaning though collaboration and innovation
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Objectives: This material takes a look at how household products are evolving into a scenario of sustainable products with the purpose of finding innovation opportunities for Latin America. This report will look at sustainable trends to closely understand the new product launch landscape, consumer perspectives and product innovations around these products. There is a focus on global product launch activity to identify trends within sustainable fabric care, dishwashing and household cleaner products.
Methodology:
Mintel Household & Personal Care:• ANNUAL OVERVIEW: Fabric & Dishwashing Care and Household Cleaners
Mintel Inspire:• Eco and Ego• Greenfluencers
Mintel GMN:
Mintel Oxygen:• Green Lifestyles – Brazil
Mintel GNPD (Global New Products Database):• Geography: Global• Date published: January 2012 – June 2014• Categories: Dishwashing Products , Hard Surface Care , Fabric Care • Sustainable claims: Ethical – Animal, Ethical – Charity, Ethical – Environmentally Friendly Package,
Ethical – Environmentally Friendly Product, Ethical – Human.
Objective and methodology
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SustainabilityConsumer Trends in
Brazil
Sustainable HC Product Trends &
Innovations
Sustainability
Sustainable HC Product Trends & Innovations
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Birth of sustainability
Source: Mintel - Sustainability, skepticism and the future of household products
“Avoiding unnecessary cost could be more profitable than sales” - Benjamin Franklin
“Pay workers higher wages so they can afford to purchase the products they make” - Henry Ford
“The world population growth will outpace the ability of the earth to supply resources” - Malthus, 1826
World population
1820 1 billion
1930 2 billion
1960 3 billion
1974 4 billion
1987 5 billion
1999 6 billion
2011 7 billion
Developing sustainable manufacturing and entrepreneurship
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From industrial environmentalism to sustainability
Source: Mintel - Sustainability, skepticism and the future of household products
SustainableEntreprenureship
2000-
• Corporate Social Responsibility
• FSC-Certified
• Organic cleaning products
• ISO 14025 (Eco-labelling)
• ISO 50001 (Energy)
• ISO 26000 (CSR)
• Consumers fear next generation might be affected by resource scarcity as a result of increasing industrial use of natural resources
EcologicalModernisation
1990-2000
• BS 7750 and ISO 14000
• Fairtrade labelling
• Natural products
• LEAN manufacturing
• OHSAS 18000
StrategicEnvironmentalism
1988-1993
• All surfactants for detergents and cleaning products regulated
• Eco-labels
• Industries develop LCA
• Mintel publishes first report on environmentally friendly products
• Compact detergents launched, creating an avalanche of environmental claims
Environmentalismas Social
Responsibility1982-1988
• Biodegradability of surfactants regulated
• Eco-brands founded
• BS 5750 and • ISO 9000
• Brundtland defines sustainability
Regulatory Environmentalism
1970-1980
• EPAs are established
• First ban on substances
• First toilet paper made from recycled fibres launched
• Consumer fear associated with resource scarcity
• Greenpeace founded
Industrial Environmentalism
1960-1970
• Environmental proection is left to the industry
• Output focused management systems
• World Wildlife Fund
1980 19901970 201020001960
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From industrial environmentalism to sustainability cont.
Source: Mintel - Sustainability, skepticism and the future of household products
Environmental• Natural resources• Environmental
management (ISO 14000)
• Pollution prevention
Economy• Profit• Cost saving (LEAN)• R&D• Economic growth
Social responsibility• Standard of living• Comunity• Equal opportunities
Social-Environment• Resource stewardship (RSPO)• Locally & Globally• Environmentally
Environmental-Economic• ISO 50001, energy effieciency• ISO 9000, TQM and LEAN• Subsidies for using renewable
resources
Economic-Social• CSR and ISO 26000• Fairtrade and third party labelling• Workers’ rights and OHSAS 18000
Sustainability
Sustainability is a process of continuous improvements
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56% of Brits who said that being “green” is a priority for
them
24% of US consumers have purchased a green product just
to show others that they are environmentally conscious
94% of Brazilians say it’s the responsibility of companies
to have minimum environmental impact
60% is the proportion of US consumers who would rather buy products from a company with a
clear set of standards about what "green" is
71% of Brazilians would stop buying a product if it is not
‘green’ of sustainable
Trend: Greenfluencers - Specifics
Source: Mintel Inspire - Greenfluencers
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- We’ve seen how companies can act as green leaders. And we’re likely to only see more businesses follow Marks & Spencer’s lead and become carbon-neutral – putting ‘peer pressure’ on other corporations to do the same. On the other hand, corporate policies that take a more human approach, such as subsidizing employee bicycle schemes, may prove to matter more to consumers
- Ultimately, there is an argument that we find it easier to be – or do – good when we are enjoying the process. This is the ethos behind the charity dinner or concert. The opportunity for businesses to play the role of greenfluential while also promoting enjoyable experiences builds nothing but positive brand equity
- Retailers and manufacturers are becoming role models to get ahead of their competitors
- Dialogue between greenfluencer companies and greenfluencer individuals equates to “Collective Intelligence” and creates greater trust and more useful products
- There’s a chance to make green lifestyles and services fun and enjoyable rather than a duty or a task
Some companies and consumers are greener – and more ‘greenfluential’–
than othersWhat’s it about?
Trend: Greenfluencers - Overview
Implications
Key action items
Source: Mintel Inspire - Greenfluencers
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• Green-as-identity-marker remains a powerful proposition, and the market for in-your-face green goods can continue to appeal
• As consumers in emerging markets like India and Latin America begin to embrace green innovation and also a community spirit of sustainability, a degree of green vanity or at least social one upmanship can be expected to flourish
• It will be important for marketers to keep an eye on emerging eco issues and develop branding strategies accordingly. For example, we know that water conservation will be an enormous issue in the next few decades. While portable water bottles have already established their footing in the marketplace, there will certainly be opportunities for other products and brands to broadcast their water-conscious credentials.
• Green issues can be marketed as current, fashionable and en vogue.• Green must be visible through overt logos and packaging and apparel labels.• Green aspiration can’t be so unattainable that it creates cynicism or class
opposition.
Are we going green just to be seen?What’s it about?
Trend: Eco and Ego - Overview
Implications
Key action items
Source: Mintel Inspire – Eco and Ego
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SustainabilityConsumer Trends in
Brazil
Sustainable HC Product Trends &
Innovations
Consumer Trends in Brazil
Sustainable HC Product Trends & Innovations
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There is a tendency to declare more commitment to environmental issues than really exists. In the context of wider social issues, health facilities, crime and unemployment are of greater concern. Best solutions are those which save money and offer an environmental benefit at the same time as for example energy efficient products or larger formats that save packaging and cost less.
When put in context, the environment falls behind other big issues in Brazil
Source: Mintel Oxygen - Green Lifestyles - Brazil
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Despite being critical, Brazilians do think that companies have the potential to affect the environment, for good or for bad;
91% agree with the statement “I think green actions from companies can really have an effect in world´s environment”.
This might indicate that they do believe in their potential to become an important part in environmental development.
Brazilians trust that companies can have a positive impact on the environment
Source: Mintel Oxygen - Green Lifestyles - Brazil
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Research studies show that Brazilians in general carry out significant amount of sustainable practices but these are often strategies to save money than an action committed to the preservation of the environment.
Campaigns have focused on the environmental benefits of saving energy and water when doing laundry and dishwashing, whereas Mintel’s consumer research suggests people would be more prepared to change their habits if it saved them money. Three quarters of Brazilians, for instance, would reduce water or electricity consumption to save money.
Products that are capable of aligning price, quality, and sustainability will be best positioned to capture the attention of Brazilian consumers.
Saving money will continue to be a key driver of sustainable behavior
Source: Mintel Oxygen - Green Lifestyles - Brazil
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Less foam hand dishwashing detergent saves water
One rinse 2in1 liquid detergent with fabric softener
One rinse fabric conditioner saves 2-4 buckets of water per wash
Unilever’s CIF Active Gel is a Latin American example of an easy to rinse hand
dishwashing detergent, a product type often marketed in Asia Pacific and Eastern
Europe
Lion’s fabric care products represent some of the most concentrated products on the
market – this version is specially formulated for top-loaders reducing rinsing to one cycle. Easy to rinse detergents are becoming the standard throughout APAC
Downy from Procter & Gamble in Vietnam is a one rinse fabric conditioner. These
water, time and effort saving fabric conditioners are common in Latin America
and Asia Pacific
In Latin America, where hand washing is common, fabric conditioners and washing-up liquids that require less rinsing are important launches in helping reduce water
consumption
Saving water with no-rinse and one-rinse global products
Source: Mintel HPC - ANNUAL OVERVIEW – Fabric and dishwashing Care
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This lack of clarity means that Brazilian consumers demonstrate low levels of commitment to some aspects of sustainability
six in ten Brazilians consider green factors when buying products with more than three quarters saying that they are prepared to make lifestyle compromises to benefit the environment
such as social security, access to healthcare and education, sustainability loses its importance. Moreover, evidence suggests that Brazilians are less likely to consider environmental factors if it costs them more. Consumers are constantly bombarded with information in sustainability increasing confusion, which has the impact of making consumers more skeptical about the claim
is to combine affordability and functionality with the use of sustainable technologies
What we think
Sustainability is broad and
complex concept.
Mintel research
shows that
However, against the backdrop of other social problems
The most successful
way to address this
Source: Mintel Oxygen - Green Lifestyles - Brazil
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SustainabilityConsumer Trends in
Brazil
Sustainable HC Product Trends &
Innovations
Sustainable HC Product Trends & Innovations
Sustainable HC Product Trends & Innovations
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• Four of the leading global household cleaner companies have launched either natural or ecological variants of their major brands or specific eco-friendly brands.
• Clorox had a change of strategy in Spring 2013, lowering the prices of its Green Works line of natural hard surface cleaners, realising that green products also have to be affordable to succeed.
• SC Johnson has launched natural versions of brands such as Pliz (France), Pledge (UK and US), Pronto (Italy) and Scrubbing Bubbles (US).
• Unilever launched the natural household cleaner CIF PowerPro Naturals into several European markets including UK, Italy and France.
Global leaders are going ecological or natural
SC Johnson Fantastik Scrubbing Bubbles Heavy Duty All Purpose Cleaner (US)
Unilever Ultra Degreasing Kitchen Cleaning Spray
(France)
Ajax Natura Verde Universal Cleaning Detergent (Norway)
Clorox Green Works 95% Naturally Derived Glass Cleaner (Chile)
Source: Mintel HPC - ANNUAL OVERVIEW - Household Cleaners
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There was a positive growth of global ethical & environmental HC products in 2013
Source: Mintel GNPD
2012 2013 2014
-10.0%
0.0%
10.0%
20.0%
30.0%
40.0%
50.0%
60.0%
Ethical & environmen-tal
Convenience
Functional
Natural
Positioning
Product tested
Free from
Suitable for
Demographic
Plus
+1.4
HC product launch activity, based on # of launches, Global,from Jan. 2012 – Jun. 2014
ClaimVariants (% of all series)
% Chg. 2013 vs.
2012
Ethical - Environmentally Friendly Product
45.4% 1.5%
Ethical - Environmentally Friendly Package 20.0% 0.2%
Ethical - Animal 5.7% 0.1%
Ethical - Charity 1.6% -0.6%
Carbon Neutral 0.6% -0.5%
Ethical - Human 0.5% 0.3%
“Natural and ecological products will come to play an
even bigger role in 2014 as will product features making daily
household chores easier to carry out”
Henrick Moller Jorgensen Global HPC Analyst
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Europe sees the highest growth in ethical & environmental HC product launches
• Europe remains the primary driver of global ethical & environmental HC product innovation.
• Based on product launches from 2012 to 2013, product introduction in Europe increased, +1.8%.
• Europe is the most important region for both ecolabel and natural household cleaner launches,.
Source: Mintel GNPD
Ethical & environmental HC product launch activity, based on # of launches, Global,
from Jan. 2012 – Jun. 2014
2012 2013 20140.00%
10.00%
20.00%
30.00%
40.00%
50.00%
60.00%
70.00%
80.00%
90.00%
100.00%
Middle East & AfricaNorth AmericaLatin AmericaAsia PacificEurope
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• Europe continues to drive the majority of new product development, but the USA is the country that innovates the most. Launches in the USA account for 10.30% of all launches.
• On the other hand, out of the top countries, the fasted growing country is Italy, +2%, followed by UK and Mexico, +1.5 and +.3 respectively.
• Ecolabels are growing in importance in Brazil and China. Natural, vegetable- or plant-based ingredients are a particular area of NPD in the US, the UK, Italy and Australia.
Top countries launching ethical & environmental HC products
Source: Mintel GNPD
Top countries launching ethical & environmental HC products, based on # of launches, Global, from Jan. 2012 – Jun. 2014
2012 2013 20140.00%
2.00%
4.00%
6.00%
8.00%
10.00%
12.00%
USAUKItalyFranceChinaBrazilGermanyMexicoSpainCanada
Latin American Countries
Variants (% of series)
Brazil 6.3%
Mexico 3.4%
Argentina 1.5%
Colombia 1.2%
Chile 0.9%
Venezuela 0.3%
Peru 0.1%
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Lemon and citrus had the highest growth in 2013
• 37.7% of ethical & environmental HC products do not have fragrance information on pack. Fresh ranks 1 st, based on the number of launches, followed by lemon, plain/unfragranced, lavender and flower/floral.
• Out of the top fragrances, lemon and citrus had the highest growth in 2013 vs. 2012.• Odour neutralisation, deodorising or antibacterial properties are often linked to longer-lasting freshness,
which is a feature of high consumer interest. Longer-lasting freshness claims are growing in fabric care, hence the importance of controlled fragrance release is also rising.
Source: Mintel GNPD
Fres
h
Lem
on
Unfra
gran
ced/
Plai
n
Lave
nder
Flower
/Flo
ral
Citrus
Sprin
g
Orang
eLim
e
Breez
e
Jasm
ine
Aloe
Vera
Euca
lypt
us
Refre
sh/R
efre
shin
g
Apple
0.0%
1.0%
2.0%
3.0%
4.0%
5.0%
6.0%
7.0%
8.0%
201220132014
Top fragrances associated with ethical & environmental HC products, based on # of launches, Global, from Jan. 2012 – Jun. 2014
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Spring Fresh Scented Fabric Softener from Colgate-Palmolive combines easy ironing
with heat activated fragrance release creating a fragrance explosion while ironing making it a more enjoyable
experience - Colombia
Protecting clothes against UV rays
Lion is one of the most active marketers of fabric conditioners providing UV protection
to keep colours brighter for longer - Vietnam
Keeping fabrics looking and feeling like new, while providing dirt and stain repellency - Tesco Protect fabric
conditioner promises to keep clothes looking and feeling like new for longer and has a multi-action technology that repels
dirt, grime and stains - UK
Maintaining the appearance of clothes, terms of freshness, colour and fibre maintenance, is of growing importance in the fabric conditioners sector.
Source: Mintel HPC - ANNUAL OVERVIEW - Household Cleaners
Keeping up appearances – an added fabric conditioner benefit
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• Overall, botanical/herbal is the most popular claim associated with global ethical & environmental HC products, followed by ease of use, anti-bacterial, time/speed and odor neutralizing.
• Based on product launches from 2012 to 2013, social media claims had the highest growth, +1.8%.• In Brazil, the most common claims are ease of use (15.1%), anti-bacterial (12.7%) and economic
(11%).
Not surprisingly, the most common claim associated with ethical & environmental HC products is botanical/herbal
Source: Mintel GNPD
Top claims Brazil Mexico Argentina Colombia Chile Venezuela Peru
Botanical/Herbal 5.7% 5.1% 8.2% 16.3% 3.3% 3.4% 6.7%
Ease of Use 15.1% 15.4% 13.9% 25.6% 15.4% 24.1% 26.7%
Anti-Bacterial 12.7% 15.4% 7.6% 24.8% 6.6% 10.3% 20.0%
Time/Speed 6.7% 6.7% 10.1% 14.0% 14.3% 6.9% 6.7%
Odour Neutralising 1.9% 5.9% 5.7% 14.7% 5.5% 3.4% 6.7%
Dermatologically Tested 8.2% 0.3% 3.8% 0.8% 4.4% 0.0% 0.0%
Economy 11.0% 8.1% 18.4% 2.3% 11.0% 6.9% 0.0%
No Additives/Preservatives 0.4% 2.5% 0.0% 4.7% 1.1% 0.0% 0.0%
Convenient Packaging 2.4% 5.6% 0.0% 3.9% 6.6% 3.4% 0.0%
Fragrance Free 0.6% 1.4% 0.0% 2.3% 0.0% 0.0% 0.0%
Refill 5.4% 4.2% 11.4% 0.8% 7.7% 0.0% 0.0%
Hypoallergenic 0.6% 2.0% 0.0% 0.8% 6.6% 0.0% 0.0%
No Animal Ingredients 0.3% 0.3% 0.0% 0.8% 0.0% 0.0% 0.0%
Social Media 1.9% 8.7% 1.3% 6.2% 2.2% 0.0% 0.0%
Kosher 0.0% 3.9% 0.0% 4.7% 1.1% 6.9% 6.7%
Top claims associated with ethical & environmental HC products by top Latin American countries, based on # of launches, Global, from Jan. 2012 – Jun. 2014
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Green palm certification Socially responsible Falcao Bauer and Abrinq Foundation logos
Showing responsibility for the environment and the wider society is no longer just of interest to a small number of committed greens but is now becoming a must-do for marketers of household products
Natural and ecological no longer a grassroots issue - Social responsibility on-pack
Source: Mintel HPC - ANNUAL OVERVIEW - Household Cleaners
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• Multi-functionality in household cleaning has become a focus for the leading marketers of household cleaning products. Making cleaning easier next time around is a growing feature of household cleaner launches, with bathroom cleaners in particular featuring this type of technology (shield technology). Floor cleaners are also featuring longer-lasting clean claims.
• Signs are that multipurpose products (e.g. suitable for hard surfaces, dishwasing) are becoming more important than multi-functional products (e.g long-lasting fragrance, antibacterial) as the former transform better into all-in-one solutions.
Multi-functionality and longer-lasting clean
Source: Mintel HPC - ANNUAL OVERVIEW - Household Cleaners
Bombril 5-in-1 Multi-Action Cleaner Refill
cleans, disinfects, eliminates grease, gives shine and leaves a pleasant cleaning
fragrance. It also features a bacteriostatic agent that prevents bacteria from developing and spreading. (Brazil)
(Seychelles 2 in 1 Detergent Capsules) retail in an 840g practical and resealable pack containing 28 x 30g capsules and features the Advanced Cleanright logo.
(France)
Rechkitt Benckiser All-in-One Dishwashing Tablets feature an Active Oxygen formula
offer seven super functions: powerful cleaning; salt function; eliminates stains; brightening function; limescale machine protection; anti-grease power; and no
wrapping. (Portugal)
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Combining convenience
with aspects of health and safety• Combining two important
aspects of health & safety, i.e. powerful germ killing while being sensitive to skin, might seem a contradiction to many, so adding an environmentally friendly or natural claim to the equation gives even more reason for confusion.
• As consumer safety issues will continue to grow in importance, antibacterial and virucidal properties will also become more important, especially in the kitchen and washroom cleaner segments, and will capture market share from bleaches and disinfectants.
Powerful and gentle, while killing and protecting
Source: Mintel HPC - ANNUAL OVERVIEW - Household Cleaners
Ajax Pure Home Multi-Surface Cleaning Liquid purifies the air with refreshing eucalyptus
essential oils and aromatic plants. The product contain active ingredients rich in oxygen and
offers 100% hygiene (Belgium)
Ajax Pure & Clear Universal Spray is gentle on sensitive skin and features the Nordic Swan
logo. Eco-labelling accepts endorsement from the Nordic Asthma & Allergy organisations
featured on this product. (Sweden)
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Multipurpose
Stain and odour removal and prevention for sports, baby and pet-related textiles and
surfaces
3x concentrated laundry detergent
Warner Robins Body Odor Elimination System consists of laundry detergent,
fabric freshener, stain remover and detergent booster under the brand OdoBan
Cleans and neutralises odours
Ecocert , Vegan and Eco Garantie certified solutions for performance textiles launched
in Germany
Performance textiles with added benefits such as dirt repellency, antibacterial or insect repellent properties have made a strong impact across the institutional and industrial textiles market. Performance textiles in consumer products are mainly seen in sports and outdoor clothing, but are crossing over into
everyday fashion to create new opportunities for fabric care marketers.
Source: Mintel HPC - ANNUAL OVERVIEW - Household Cleaners
Beyond suitability for performance textiles
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The big stories
Companies are tapping into the natural/ ecological trend
More-in-one products and shield technology feature in growing numbers of launches
The importance of disinfecting, antibacterial and virucidal household cleaners is growing
Encouraging consumers to change their behavior is critical to saving energy and water
Manufacturers are using ingredients from renewable resources as part of their corporate responsibility programs
Performance textiles with added benefits such as dirt repellency, antibacterial or insect repellent properties are creating new opportunities for fabric care marketers
Source: Mintel HPC - Fabric & Dishwashing Care and Household Cleaners - Annual Review
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Looking to the future
need to demonstrate their social responsibilityMarketers
are looking for multipurpose lines to use for a wider range of cleaning tasks and they need a personal incentive to encourage them to use less resources
Consumers
will become more important, especially in the kitchen and washroom cleaners segments
Antibacterial and virucidal properties
by cold water washing and making clothes last longer appeals to cash-strapped shoppers. In Latin America, the Middle East & Africa and APAC, where hand washing is common, fabric conditioners and washing-up liquids that require less rinsing are important launches in helping reduce water consumption, while Europe is seeing launches of laundry and dishwasher detergents that allow shorter wash cycles.
Saving money
Source: Mintel HPC - Fabric & Dishwashing Care and Household Cleaners - Annual Review
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Silvia GuerinVP Latin America