Issues in the Market
The soap, bath and shower category straddles two worlds – at once it falls into the arena of must-have consumer goods, which consumers see as integral to their everyday wellbeing, while at the same time it has an opportunity to tap into a consumer desire for escapism and fantasy. Close to half of women who use bath additives, for instance, cite a long bath as their ultimate pampering treat. How many fast-moving consumer goods segments can claim to satisfy such lofty needs with such a low ticket price?
The beauty industry often cites the resilience of the colour cosmetics category in times of crisis – otherwise known as the lipstick index. It is time for the beleaguered bath additives segment to do the same and position their products as a luxury indulgence at prices accessible to most.
Q: How is the economic environment impacting sales of soap, bath and shower products? A: Value sales of SBS products grew in single digits between 2006 and 2011 (with the exception of 2010 when year-on-year growth was more or less flat). The category is buffered somewhat from the inclement economic climate because of the must-have nature of daily cleansing products. At the same time, consumers are clearly under pressure to keep a close eye on household budgets. A third of adults who use shower products are paying more attention to how much they spend on such items because of the economic situation and the same is true for four in ten bath product users and three in ten soap users. Looking ahead, Mintel forecasts the SBS category will grow by 11% between 2011 and
2016, while in real terms (excluding inflation) sales will slip very slightly.
Q: Which segments have most potential for growth? A: There is a clear divide between two promising segments – liquid soaps and shower gels – and two less buoyant ones – bar soaps and bath additives. Mintel expects liquid soap and shower
gel