Geography, demographics and consumer economics all influence growth in this broad sector. In personal care there is a strong trading-up focus for incremental innovation as increased consumer demand for convenience in emerging markets has, for instance, grown the shower gel market at the expense of the bar of soap. At the other extreme, areas like oral care have had a period of more radical innovation. Strip breath fresheners, electric toothbrushes, whitening toothpaste and tooth gels have transformed this previously slow-moving market into a leading innovation area. Across the whole sector, there are several key drivers having a tangible impact on how and where companies focus their innovation activities. Customer loyalty to some products is relatively low, so brand-switching is a significant issue. To combat this, companies are all increasing their focus on successfully engaging consumers and gaining a better understanding of their attitudes. Fragrance has emerged as a key issue, propelling growth in the air care market, but also in areas such as surface cleaners, detergents and laundry products. Several organisations have increased the depth of their partnerships with fragrance experts to put them ahead of the pack in this area. That said, convenience is still the largest innovation driver here - especially given continued consumer willingness to pay premium prices for products that promise quicker and easier use. This is impacting new product development, spurring the creation of new ‘system’ products, such as wipes, and leading to the desire for improved integration of applicator and packaging design into the innovation process. Most recently the growth of task specific solutions has been superseded by products offering all-in-one benefits that help to simplify cleaning decisions. Looking forward, “conscientious consumerism” is on the rise. European consumers in particular are increasingly shopping with their conscience, with rapid growth in sales of organic, local, humane, Fair-Trade, and eco-friendly goods. Following the food and drink sector, personal care and household items are now responding to the commercial potential. In addition, nano-technology is influencing significant changes. Products in development cover a wide area including nano-particulate controlled release systems, porous nanoparticles for encapsulation applications and nanofibres in cosmetics. Developments are expected in hair care, body odour elimination and packaging as well as new variations of household cleaners, antibacterial agents and cleaning materials. |