Sustainability in Household - Global Product Innovation and Consumer Insights - Mintel

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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


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.


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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Brazil


Innovations

Consumer Trends in Brazil


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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


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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


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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


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Brazil


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.


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


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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


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


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.


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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Look at the best sellers and benchmark

performance in HPC

Compare market sizes and shares in

HPC categories

Explore consumer attitudes in your region – Mintel Oxygen Brazil Consumer Reports

Understand the big picture trends that affect the future of

your market

Retrieve samples of key products

Check what’s on shelf, what it’s selling for,

what’s being promoted

We recommend that you…

Contact Mintel Brasil:

0800-095-9094brasil.mintel.com

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© 2014 Mintel Group Ltd. All Rights Reserved. Confidential to Mintel

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Silvia GuerinVP Latin America

Sustainability in Household - Global Product Innovation and Consumer Insights - Mintel

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