Where Consumers Shop for Home Care

Delivery

This report comes in PPT.

Key findings

Modest growth in home care products amid inflation and consumer caution

In 2023, global sales of home care products saw modest growth, mainly due to price increases from inflation. Despite challenges, sales remained significantly above pre-pandemic levels. Consumers have shown resilience, but uncertainty and the cost-of-living crisis are expected to make them cautious about spending. Downtrading and moderate growth are anticipated in the early forecast period, with the home care industry poised for positive but tempered growth.

Value-orientated channels are thriving as offline stores adapt to changing consumer habits

Offline stores are diversifying to cater to different consumer shopping habits. Price hikes have driven many towards affordable brands and value-orientated channels. Discounters saw significant growth, especially in Europe and Australasia. Small local grocers performed well in developing markets due to their presence and smaller pack sizes. Warehouse clubs benefited from demand for affordable bulk packs and innovation.

Private label benefits from inflation, while brands respond through innovation

High and sustained inflation has altered consumer habits, leading to strong performance from private label, which is expected to continue excelling as it proves competitive in quality. Brands are responding to consumer downtrading by diversifying their portfolios across different price tiers and focusing on innovation to maintain and establish product superiority in both existing and new categories.

Direct-to-consumer brands are expanding into offline retail

Multiple D2C brands gained scale opportunities during the pandemic, the e-commerce boom and the disruption of traditional supply. Following years of growth, some of these pure players are now breaking into retail and entering a new stage of profitable growth as they displace conventional rivals on the shelves.