08.07.08
| Less than 3% of The Body Shop's products are sold in separate packaging. |
Things are good in the personal hygiene market, but as convenience and ease of use continue to drive the packaging, will demand for liquids and foamers send bar soap swirling down the drain?
By Paula Farquharson
European Correspondent
What’s driving the demand for consumer packaging in personal hygiene products? Changes in lifestyle, consumer habits and demographics—in particular, an aging US population—as well as other issues such as environmental concerns and travel trends, are key factors. Increased global wealth is also fueling demand, especially in developing countries, and according to packaging giant Rexam, “convenience is still a strong driver for packaging development.”
Over the last five years, the global personal hygiene sector has been growing steadily, especially in the Asian and developing countries with some categories, such as deodorant, booming (+59.4% with sales of $14.5 billion in 2007). According to Euromonitor International, the US market has also fared well with retail sales between 2002 and 2007 showing steady growth, except for bar soaps (-16.1%), which lost out in popularity to liquid soap (+41.8%). Over this same five-year period, deodorant sales in the US increased 21.5% (to $2.4 billion in retail sales in 2007), while shampoo increased by 19.2% and the expanding oral hygiene sector grew by 4.9% to a total value in 2007 of US$5.9 billion.
Forecasted Sales
Predictions, says the data research company, reveal a continuing trend of growth globally until 2012 with category development leading to double digit percentage growth. Even global retail sales of bar soap are predicted to increase by 5.3% by 2012, while in the US, this category is expected to continue to decrease by 5.5% and other categories such as deodorants and oral hygiene are predicted to slow to minimal growth while shampoo is likely to decline by 1.2%. The only category expected to have healthy growth in the US is liquid soap with a forecasted increase of 15.8% in retail sales to $842.1 million by 2012.
| Rexam's EZi foamer can be turned upside down. |
Packaging developments are driving the boom in liquid soaps and generating packaging changes in other categories. According to Casper Kleiman, worldwide personal care product manager, Rexam, the company’s foam soap dispensers have a number of advantages for various market segments and consumers. “One emerging trend we have identified,” says Kleiman, “is the need for ‘senior friendly packaging,’ due to the rapid rise of this segment of the population; foamers are easy to open, close and use. Because foam soap is more voluminous than liquid, the size of the package is bigger, making it easier to see the label and grip the product for deteriorating eyes and arthritis-ridden hands. Also, foam does not drip or spill when dispensing—an important benefit to those with aging, shaky hands. Foam dispensers are also the ideal package for denture care brands as the texture of foam is easy for seniors to spread, and has good visual appeal as well as evenly dispersing active ingredients without the need to mix.”
Other clients also see the benefits of foamers. Kleiman says, “Airlines are also becoming aware that foamers are preferable as they require less water to be carried on planes since passengers can rub clean their hands with foam and then rinse with water versus bars and liquid soaps, which need more water. There is also no spill, resulting in cleaner cabin toilets.” Another category to benefit from Rexam’s newest foamer, the EZi, is hair care; designed upside down for convenience while washing hair in the shower, users just squeeze the bubble-like package to effortlessly release the shampoo. Rexam’s toothpaste foamer, OFresh for kids, also makes for a popular foaming product.
TricorBraun, a leading supplier of packaging, is also continually developing innovative packages for use in these product categories. David Snyder, the TricorBraun engineering designer behind the new shape for its twist tottles launched last year, explains, “It is the new twist that makes it easier to use than its predecessors. The slim-line container has a slender profile making it easy to squeeze to dispense and to hold onto in wet environments, such as the shower.”
| TricorBraun designed the shapes and made the molds for L'Anza salon hair care products. |
Brand Positioning
Packaging, of course, fulfils a primary marketing function at busy retail shelf level—to differentiate and enhance the appeal of the brand and encourage purchase. Procter & Gamble’s external relations spokesman for deodorant and personal cleaning, Jay Gooch, says, “Our package for the Old Spice deodorant Red Zone range conveys the high-end image we are aiming for with the look and feel of it at shelf level translating into a more premium product than the Old Spice High Endurance line. Red Zone customers are more into grooming and want an enduring feel.”
The variety of packaging for deodorants ranges from sprays and pumps to roll-ons, sticks, creams and wipes. However, according to Euromonitor, glass packaging has been experiencing the most growth of all pack types due to the increase in demand for deodorants, especially for premium roll-on brands in Eastern Europe and other personal care products in Europe and China. However, glass still represents a small part (1% of units in 2006) of the total global units for the personal care market, compared to rigid plastic (45%) and flexibles (40%).
| All L'Occitane product ranges reflect simplicity. |
The Body Shop, since its inception, has long advocated ecological awareness for packaging. According to a representative at the company’s United Kingdom PR head office, “We use only the packaging necessary to keep the product fresh and intact, and to include all the necessary legal or consumer information. The first rule of packaging is to use as little as possible. For the vast majority of products, we use simple bottles and jars, with no secondary packaging; less than 3% of our products come in separate cartons—for example, where legislation requires us to include consumer information. In these cases, we will always use recyclable cardboard made from recycled or sustainable forest materials.”
The company’s Aqua Lily soap, launched earlier this year, is a good example. “At the end of 2006, all of our PET bottles contained 30% recycled material and we will at least double this by the end of 2008. Since most of our products are liquid and need to be stored in vastly different climates, we are reviewing options such as cornstarch.”
Across other brands, the small PET bottle market is growing, notably in shampoo, due to the container’s attractiveness and transparency.
TricorBraun, a member of the Sustainable Packaging Coalition, helped Amazonia Nutrients, Inc., launch a new line of hair care products whose natural ingredients are derived from rainforest vegetation and are packaged in containers that are recyclable and protect their distinctive ingredients.
TricorBraun’s Fenton says, “I would say one of the biggest trends for the future will be the quest for sustainable packaging. In pursuit of the ‘triple bottom line’, personal care packagers are looking for packaging that keeps the products’ quality image, yet leaves the smallest environmental footprint while protecting the products from plant to consumer.”
Ethical Packaging
L’Occitane is the natural body and fragrance company founded in Provence (France) in 1976, and which opened retail outlets in the US in the 1990s. Its ranges, including soaps and shampoo, are based on natural ingredients such as lavender. All the product ranges are presented in traditional packaging that reflect the true elegance of simplicity, and all are produced according to strict ethical guidelines. This even includes Braille labeling. “The blind,” according to the company, “represent a category of people for whom access to consumer goods is often very difficult. Using Braille on our products’ labels allows them to make informed choices.”
The company also sells “eco-duo” liquid soap, containing the primary package and a refill.
Travel Light
L’Occitane also caters to travelers in line with the growing nomadic trend. It sells travel sizes of many of its product ranges, including its Shine Enhancing shampoo. It also offers a Hotel Amenities Collection (miniatures) for the hospitality industry.
Oral Care’s Golden Seal
According to Euromonitor, the seal of approval from the American Dental Association (ADA) is a significant factor in the US consumer’s decision to purchase a specific oral hygiene brand. As a result, manufacturers would benefit from convincing the dental professionals that their products have a distinct and proven dental benefit. Euromonitor says brands such as Colgate Total and Listerine have leveraged the ADA seal to claim the top positions in toothpaste and mouthwash, respectively, while Procter & Gamble is relying on the newly launched Crest Pro-Health toothpaste and ADA stamp of approval to boost value share in an otherwise stagnant sub-sector.
Euromonitor also found that products that promise to make proper oral care simpler and more convenient are driving growth. This trend resulted in a 5% value increase in electric toothbrushes, the highest growth rate in 2006 in oral care. Introductions from Oral B in the electric toothbrush category helped the brand’s sales to grow by 12% in 2006. Manual brush manufacturers have met this threat by driving sub-sector growth by mentioning on packaging added benefits, such as gum massaging or tongue cleaning.
