Innovation is a necessity for home care growth
Home care innovations have slowed in 2023 — the number of new products launched decreased 8.8% compared to last year in the U.S. and 2% in Western Europe. Decline were even larger in sub-categories like laundry care and cleaning products.
However, products that did launch during this time performed well overall. In the U.S. and Western Europe, home care innovations increased in both dollar and unit sales.
Innovations in Western Europe were particularly impressive, marking a 36.4% growth in dollar sales while still showing a 13.3% increase in the number of units sold.
When we look at prices, in Western Europe, we see a slight decline in the average price of the home care category, while in the U.S., the average price remains flat compared to the year prior.
However, when it comes to innovations, there was an increase in price per unit in both the U.S. and Western Europe: 4.1% and 35.9%, respectively.
This is not to say that certain sub-categories in home care are not showing a steeper increase or even decrease in pricing. In the U.S., laundry care marked a 9.3% decline in innovation pricing, but cleaning products rose in price by 16.4%. Nevertheless, laundry care still experienced positive dollar sales like the broader category.
In sum, when prices go down, unit sales are strong enough to incur dollar sales growth. However, even when prices increase, unit sales are still positive. Whichever way the pendulum swings, brands are profiting from new, innovative items.
This phenomenon is partially due to consumer attitudes towards home care products; price increases in this category don’t faze the majority. 59% maintain that rising prices would not impact their home essentials spending. Buyers are sticking to their guns, purchasing their desired home care products regardless of the cost.
Furthermore, as much as 84% of consumers worldwide plan to spend the same or more on home care essentials. Clearly, consumers are willing to spend extra cash if it ensures a well-performing, high-quality product.
This willingness to spend is diving growth of the home care category as a whole. In Western Europe, we saw a 5.6% increase, and in the U.S., 3.5% growth.
As long as promises are delivered on, and the product performs as advertised, home care innovations are well positioned for success in 2023.
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