Economic growth encourages consumers to buy more and trade up
Home care saw good growth for the review period as a whole, as economic growth resulted in rising disposable income levels for all income groups. Low-income consumers were thus able to afford a widening range of home care, while mid-income consumers traded up to value-added products in many areas. Electric air fresheners thus gained share in air care and electric insecticides saw a strong performance in insecticides. Value-added niches also performed strongly in laundry care, with fine fabric detergents and spot and stain removers for example seeing a strong review period performance.
Strong focus on antibacterial products in 2010
There was a strong focus on antibacterial products across home care in 2010. This was partly due to fears over a swine flu epidemic in 2009 but also reflected consumers’ response to increasingly large and overcrowded cities. Consumers became more focused on stamping out germs and bacteria, with these trends benefiting brands with a strong antibacterial positioning, such as Reckitt Benckiser’s Dettol and Henkel’s Dac. The range of antibacterial products on offer continued to expand at the end of the review period. Henkel for example launched antibacterial hand dishwashing for its Dac and Pril brands in 2010, while Reckitt Benckiser extended Dettol Neutra Air into concentrated spray/aerosol air fresheners in 2009.
Price: US$2400
Multinationals dominate with strong investment in innovation and marketing
Home care is dominated by multinationals, with leader Modern Products representing Procter & Gamble in the country. Modern Products was meanwhile followed by Reckitt Benckiser, Henkel Dac, Saudi Johnson and Binzagr Lever, with these players together accounting for around three-quarters of overall value sales. These players benefit from offering a number of strong and well-established brands, such as Modern Products’ Tide, Fairy, Ariel and Bonux. These players also benefit from having the strongest budgets for new product development and marketing and also from stepping up their use of price promotions at the end of the review period. Multinationals also benefit from Saudi consumers’ attitudes, with most consumers regarding global brands as offering inherently higher quality in comparison to domestic brands.
Supermarkets/hypermarkets continue to extend dominance
Supermarkets/hypermarkets continued to extend its dominance in sales of home care in 2010 over the previous year. This channel benefited from ongoing outlet volume expansion and also from the increasing use of price promotions, which attracted many price-sensitive consumers. Consumers are also attracted by the comfortable shopping environment offered by these outlets and by the convenience of the wide range of products on offer. Within home care, they are also attracted by the fact that supermarkets/hypermarkets offer the widest range of global brands and their products.
Stronger constant value growth ahead as consumers trade up
The forecast period is expected to see volume growth stabilise or slow in many product areas, due to a higher sales base for many products following strong review period growth. Despite this, home care is expected to see a considerably stronger constant value performance during the forecast period than that seen during the review period. This will be due to consumers trading up in search of greater hygiene and convenience, with many opting for leading global brands and value-added products.
Home care saw good growth for the review period as a whole, as economic growth resulted in rising disposable income levels for all income groups. Low-income consumers were thus able to afford a widening range of home care, while mid-income consumers traded up to value-added products in many areas. Electric air fresheners thus gained share in air care and electric insecticides saw a strong performance in insecticides. Value-added niches also performed strongly in laundry care, with fine fabric detergents and spot and stain removers for example seeing a strong review period performance.
Strong focus on antibacterial products in 2010
There was a strong focus on antibacterial products across home care in 2010. This was partly due to fears over a swine flu epidemic in 2009 but also reflected consumers’ response to increasingly large and overcrowded cities. Consumers became more focused on stamping out germs and bacteria, with these trends benefiting brands with a strong antibacterial positioning, such as Reckitt Benckiser’s Dettol and Henkel’s Dac. The range of antibacterial products on offer continued to expand at the end of the review period. Henkel for example launched antibacterial hand dishwashing for its Dac and Pril brands in 2010, while Reckitt Benckiser extended Dettol Neutra Air into concentrated spray/aerosol air fresheners in 2009.
Saudi Arabia Home Care Market
Published: February 2012Price: US$2400
Multinationals dominate with strong investment in innovation and marketing
Home care is dominated by multinationals, with leader Modern Products representing Procter & Gamble in the country. Modern Products was meanwhile followed by Reckitt Benckiser, Henkel Dac, Saudi Johnson and Binzagr Lever, with these players together accounting for around three-quarters of overall value sales. These players benefit from offering a number of strong and well-established brands, such as Modern Products’ Tide, Fairy, Ariel and Bonux. These players also benefit from having the strongest budgets for new product development and marketing and also from stepping up their use of price promotions at the end of the review period. Multinationals also benefit from Saudi consumers’ attitudes, with most consumers regarding global brands as offering inherently higher quality in comparison to domestic brands.
Supermarkets/hypermarkets continue to extend dominance
Supermarkets/hypermarkets continued to extend its dominance in sales of home care in 2010 over the previous year. This channel benefited from ongoing outlet volume expansion and also from the increasing use of price promotions, which attracted many price-sensitive consumers. Consumers are also attracted by the comfortable shopping environment offered by these outlets and by the convenience of the wide range of products on offer. Within home care, they are also attracted by the fact that supermarkets/hypermarkets offer the widest range of global brands and their products.
Stronger constant value growth ahead as consumers trade up
The forecast period is expected to see volume growth stabilise or slow in many product areas, due to a higher sales base for many products following strong review period growth. Despite this, home care is expected to see a considerably stronger constant value performance during the forecast period than that seen during the review period. This will be due to consumers trading up in search of greater hygiene and convenience, with many opting for leading global brands and value-added products.
Table of Contents
Home Care in Saudi Arabia - Industry Overview
EXECUTIVE SUMMARY
Economic growth encourages consumers to buy more and trade up
Strong focus on antibacterial products in 2010
Multinationals dominate with strong investment in innovation and marketing
Supermarkets/hypermarkets continue to extend dominance
Stronger constant value growth ahead as consumers trade up
KEY TRENDS AND DEVELOPMENTS
High inflation encourages focus on price
Crowded homes boost interest in antibacterial and high power products
Busier lifestyles boost demand for convenience
Supermarkets/hypermarkets extend dominance by offering choice and value
MARKET INDICATORS
Table 1 Households 2005-2010
MARKET DATA
Table 2 Sales of Home Care by Category: Value 2005-2010
Table 3 Sales of Home Care by Category: % Value Growth 2005-2010
Table 4 Home Care Company Shares 2006-2010
Table 5 Home Care Brand Shares 2007-2010
Table 6 Penetration of Private Label by Category 2005-2010
Table 7 Sales of Home Care by Distribution Format: % Analysis 2005-2010
Table 8 Sales of Home Care by Category and Distribution Format: % Analysis 2010
Table 9 Forecast Sales of Home Care by Category: Value 2010-2015
Table 10 Forecast Sales of Home Care by Category: % Value Growth 2010-2015
DEFINITIONS
Summary 1 Research Sources
Home Care in Saudi Arabia - Company Profiles
Abu Dawood Industrial Co in Home Care (Saudi Arabia)
STRATEGIC DIRECTION
KEY FACTS
COMPANY BACKGROUND
PRODUCTION
COMPETITIVE POSITIONING
Summary 4 Abu Dawood Industrial Co: Competitive Position 2010
National Detergent Co in Home Care (Saudi Arabia)
STRATEGIC DIRECTION
KEY FACTS
COMPANY BACKGROUND
PRODUCTION
COMPETITIVE POSITIONING
Summary 7 National Detergent Co: Competitive Position 2010
National Fertilizer Co Ltd in Home Care (Saudi Arabia)
STRATEGIC DIRECTION
KEY FACTS
COMPANY BACKGROUND
PRODUCTION
COMPETITIVE POSITIONING
Summary 10 National Fertilizer Co Ltd: Competitive Position 2010
Saudi Industrial Detergents Co (Sidco) in Home Care (Saudi Arabia)
STRATEGIC DIRECTION
KEY FACTS
COMPANY BACKGROUND
PRODUCTION
COMPETITIVE POSITIONING
Summary 13 Saudi Industrial Detergents Co (Sidco): Competitive Position 2010
Wafir Factory For Industrial Detergents in Home Care (Saudi Arabia)
STRATEGIC DIRECTION
KEY FACTS
COMPANY BACKGROUND
PRODUCTION
COMPETITIVE POSITIONING
Summary 16 Wafir Factory For Industrial Detergents: Competitive Position 2010
Air Care in Saudi Arabia - Category Analysis
HEADLINES
TRENDS
Air care continued to benefit from strong advertising support in 2010, with this boosting consumers’ awareness of the brands on offer and also creating a perceived need for air care in many households. Advertising was particularly strong for leading brand Saudi Johnson’s Glade, for Reckitt Benckiser in support of new launch Air Wick Water Splash and for Ambi-Pur, which was acquired by Procter & Gamble in 2010. Reckitt Benckiser’s Dettol Neutra Air, extended into concentrated spray/aerosol air fresheners in 2009, also drove growth in 2010 thanks to strong advertising for Dettol across its range and a growing interest in antibacterial home care.
COMPETITIVE LANDSCAPE
Saudi Johnson was the clear leader in air care in 2010 and accounted for a strong 48% value share in 2010. The company benefits from offering strong global brand Glade, which alone accounted for 46% share in the year. Glade offers an extremely wide range of air care, for example offering four different brand extensions in electric air fresheners, and has a reputation for offering long-lasting and high quality fragrances.
PROSPECTS
There is likely to be a growing focus on value-added air care during the forecast period. Air care with an antibacterial positioning is for example set to see strong new product development during the forecast period following the success of Reckitt Benckiser’s Dettol Neutra Air. Automatic motion-sensor products such as Glade Sense & Spray are meanwhile likely to see a strong performance in electric air fresheners, driving growth in this area. Meanwhile, wall-mounted concentrated air fresheners claiming to offer long-lasting air freshening at a click such as Glade One Touch and Air Wick Click are likely to drive growth in concentrated spray/aerosol air fresheners.
CATEGORY DATA
Table 11 Sales of Air Care by Category: Value 2005-2010
Table 12 Sales of Air Care by Category: % Value Growth 2005-2010
Table 13 Battery Operated vs Plug-in Electric Air Fresheners: % Value Breakdown 2008-2010
Table 14 Air Care Fragrances Rankings by Value 2007-2010
Table 15 Air Care Company Shares 2006-2010
Table 16 Air Care Brand Shares 2007-2010
Table 17 Forecast Sales of Air Care by Category: Value 2010-2015
Table 18 Forecast Sales of Air Care by Category: % Value Growth 2010-2015
Bleach in Saudi Arabia - Category Analysis
HEADLINES
TRENDS
Bleach saw its strongest volume performance of the review period in 2010, with a rise of 4%. Growth was boosted by a number of factors. Firstly, the swine flu epidemic of 2009 resulted in many consumers becoming more concerned about germs and bacteria, with this trend also being encouraged by ongoing urbanisation and larger and more populous cities. This resulted in consumers increasingly using bleach to disinfect surfaces.
COMPETITIVE LANDSCAPE
Abu Dawood was the dominant leader in bleach in 2010 with 90% value share and also saw the strongest growth in share over the previous year at a percentage point. This company represents Clorox’s bleach in the country and thus benefits from Clorox’s strong reputation, with many consumers regarding Clorox as more powerful and effective than its competitors. The company further gained share in 2010 over the previous year thanks to its increasing use of price promotions as it sought to fend off competition.
PROSPECTS
Bleach is expected to see even stronger growth during the forecast period than that seen during the review period, with a CAGR of 5% and 3% respectively. Consumers are expected to use bleach more frequently when cleaning their homes, with many regarding this product as an essential weapon in the fight against germs and bacteria. This trend will be encouraged by ongoing urbanisation, larger and dirtier cities and busier lifestyles, with consumers viewing bleach as a way of ensuring cleanliness while minimising the time spent on cleaning.
CATEGORY DATA
Table 19 Sales of Bleach: Value 2005-2010
Table 20 Sales of Bleach: % Value Growth 2005-2010
Table 21 Bleach Company Shares 2006-2010
Table 22 Bleach Brand Shares 2007-2010
Table 23 Forecast Sales of Bleach: Value 2010-2015
Table 24 Forecast Sales of Bleach: % Value Growth 2010-2015
Dishwashing in Saudi Arabia - Category Analysis
HEADLINES
TRENDS
There was a growing consumer focus on hygiene towards the end of the review period, with this linked to fears over the swine flu epidemic and also to increasingly overcrowded cities. As a result, there was a growing interest in antibacterial hand dishwashing towards the end of the review period. Concentrated hand dishwashing also benefited, due to being regarded as more powerful. Advertising further encouraged these trends, particularly from Henkel, with this supporting the launch of antibacterial variants for Dac and Pril.
COMPETITIVE LANDSCAPE
Modern Products was the dominant player in dishwashing at the end of the review period, with the company accounting for 65% value share. This is due to the company’s dominance of hand dishwashing, where it offers Procter & Gamble’s Fairy brand. Fairy benefits from its longstanding presence in hand dishwashing and from a strong reputation for long-lasting grease removal. The brand consequently enjoys a high level of customer loyalty in Saudi Arabia.
PROSPECTS
Automatic dishwashing is expected to benefit from a rising urban household penetration for dishwashers during the forecast period. The government is constructing a number of new economic cities across the country, while housing construction is expected to see rapid growth as the government seeks to address a two million housing shortage. As new homes become available, household sizes are expected to become smaller, with a growing number of mid- and high-income consumers living in single- or two-person households. It is these consumers who will be most likely to buy dishwashers during the forecast period, with such purchases also encouraged by busier lifestyles, growing demand for convenience and the widening availability of credit.
CATEGORY INDICATORS
Table 25 Household Penetration of Dishwashers 2005-2010
CATEGORY DATA
Table 26 Sales of Dishwashing by Category: Value 2005-2010
Table 27 Sales of Dishwashing by Category: % Value Growth 2005-2010
Table 28 Dishwashing Company Shares 2006-2010
Table 29 Dishwashing Brand Shares 2007-2010
Table 30 Forecast Sales of Dishwashing by Category: Value 2010-2015
Table 31 Forecast Sales of Dishwashing by Category: % Value Growth 2010-2015
Insecticides in Saudi Arabia - Category Analysis
HEADLINES
TRENDS
Insecticides saw strong new product development towards the end of the review period, with this supporting ongoing growth in 2010. Players focused on offering greater convenience, such as with Saudi Johnson’s Raid Electric Diffuser. This is an innovative product combining a compact diffuser and compressed sand refill, offering constant and fragrance-free protection from mosquitoes for 30 days. Reckitt Benckiser meanwhile offered greater power with Pif Paf Power-Guard, launched in 2010 and claiming to offer more powerful action and longer-lasting effect. Domestic brands also launched more affordable variants, such as Saudi Industrial Detergents (Sidco)’s Exol and Kilto and National Detergent’s Spark, with these enabling low-income consumers to buy insecticides more frequently.
COMPETITIVE LANDSCAPE
Saudi Johnson dominated sales of insecticides in 2010 with 57% value share. Thanks to the company’s strong Raid and Baygon brands, Saudi Johnson leads most product category in insecticides. Raid and Baygon together accounted for 34% value share in electric insecticides, 59% share in spray/aerosol insecticides and 77% share in “other” insecticides. Meanwhile Baygon alone accounted for 33% share in insecticide baits, where the company ranked second in 2010. These brands benefit from wide distribution, strong consumer awareness, effective marketing support and ongoing new product development. In 2009, the company for example launched Raid Electric Diffuser, an innovative odour-free electric insecticide.
PROSPECTS
Economic growth is expected to support strong sales growth for insecticides during the forecast period. As disposable income levels rise for all income groups, low-income consumers will be able to afford to use insecticides more frequently in order to tackle the large urban insect population in the country. Growth in insecticides will also be supported by strong construction in housing and the creation of new economic cities, with a rise in the number of households supporting stronger volume sales for these products.
CATEGORY DATA
Table 32 Sales of Insecticides by Category: Value 2005-2010
Table 33 Sales of Insecticides by Category: % Value Growth 2005-2010
Table 34 Spray Insecticides by Type: % Value Breakdown 2007-2010
Table 35 Insecticides Company Shares 2006-2010
Table 36 Insecticides Brand Shares 2007-2010
Table 37 Forecast Sales of Insecticides by Category: Value 2010-2015
Table 38 Forecast Sales of Insecticides by Category: % Value Growth 2010-2015
Laundry Care in Saudi Arabia - Category Analysis
HEADLINES
TRENDS
Both economy and value-added laundry care saw a strong performance at the end of the review period. Economic concerns resulted in many low-income consumers seeking out the lowest possible prices, which benefited economy brands and those that used frequent price promotions such as Al Watania. Mid- and high-income consumers meanwhile continued to drive growth in value-added niches, supporting over 4% volume growth in product areas such as liquid fabric softeners, fabric fresheners and colour safe laundry bleach in 2010.
COMPETITIVE LANDSCAPE
Modern Products was the clear leader in laundry care throughout the review period and accounted for a strong 48% value share in 2010. This player benefits from offering Procter & Gamble’s strong global brands such as Tide, Ariel and Bonux, which enjoy a high-quality reputation. Crucially, the company however uses local manufacturing facilities, which ensure that costs and thus prices are kept low. These brands notably dominate standard powder detergents and accounted for 61% combined value share in 2010. The company however lost around half a percentage point in value share in 2010 over the previous year, with this linked to increasingly fierce competition within standard powder detergents.
PROSPECTS
There is expected to be strong growth in many niches across laundry care during the forecast period, as consumers begin to buy a wider range of products. Saudi consumers are often reluctant to try new brands or products in laundry care but strong advertising, price promotions and word-of-mouth recommendations are expected to result in many small niches seeing strong growth from a low sales base. Fabric fresheners is for example set to see 6% volume CAGR during the forecast period, while carpet cleaners and colour safe laundry bleach are expected to see 5% CAGR each.
CATEGORY INDICATORS
Table 39 Household Penetration of Washing Machines 2005-2010
CATEGORY DATA
Table 40 Sales of Laundry Care by Category: Value 2005-2010
Table 41 Sales of Laundry Care by Category: % Value Growth 2005-2010
Table 42 Sales of Laundry Aids by Category: Value 2005-2010
Table 43 Sales of Laundry Aids by Category: % Value Growth 2005-2010
Table 44 Sales of Laundry Detergents by Category: Value 2005-2010
Table 45 Sales of Laundry Detergents by Category: % Value Growth 2005-2010
Table 46 Sales of Standard versus Concentrated Fabric Softeners: % Analysis 2005-2010
Table 47 Laundry Care Company Shares 2006-2010
Table 48 Laundry Care Brand Shares 2007-2010
Table 49 Laundry Aids Company Shares 2006-2010
Table 50 Laundry Aids Brand Shares 2007-2010
Table 51 Laundry Detergents Company Shares 2006-2010
Table 52 Laundry Detergents Brand Shares 2007-2010
Table 53 Forecast Sales of Laundry Care by Category: Value 2010-2015
Table 54 Forecast Sales of Laundry Care by Category: % Value Growth 2010-2015
Polishes in Saudi Arabia - Category Analysis
HEADLINES
TRENDS
In common with many product areas across home care, polishes benefited from a number of trends towards the end of the review period. A growing consumer focus on buying effective cleaning products was driven by larger, busier and dustier cities and also by busier consumer lifestyles, with consumers thus seeking easy-use and high-power products. Polishes also benefited from the grooming trend, with a shift towards more formal footwear for male office workers and a growing focus on maintaining a well-groomed appearance.
COMPETITIVE LANDSCAPE
Zetra and Saudi Johnson are the leading players in polishes, benefiting from their dominance in shoe polish and furniture polish respectively. Zetra represents Sara Lee’s well-regarded Kiwi brand in shoe polish and accounted for 75% value share in this product area in 2010 and 30% share overall. Saudi Johnson is meanwhile SC Johnson’s Saudi subsidiary and thus offers Pledge in furniture polish, with the company accounting for 57% value share in furniture polish in 2010 and 26% share in overall polishes. Both these brands benefit from strong brand loyalty, with many Saudi consumers being reluctant to try out new brands when they have developed trust in a specific brand.
PROSPECTS
Polishes is expected to benefit from consumers’ increasingly aspirational lifestyles during the forecast period. Consumers are expected to spend more on expensive decor and furnishings and also to spend more on looking good, particularly at work. This is expected to result in many office workers opting for more formal footwear and taking better care of their footwear. A stronger focus on decor will meanwhile encourage consumers to use furniture polish more frequently, particularly given rising levels of dust in the country’s cities. These trends are expected to be particularly strong among mid-income groups, who are expected to see rising disposable income levels during the forecast period and who will also become increasingly aspirational in their purchasing habits.
CATEGORY DATA
Table 55 Sales of Polishes by Category: Value 2005-2010
Table 56 Sales of Polishes by Category: % Value Growth 2005-2010
Table 57 Polishes Company Shares 2006-2010
Table 58 Polishes Brand Shares 2007-2010
Table 59 Forecast Sales of Polishes by Category: Value 2010-2015
Table 60 Forecast Sales of Polishes by Category: % Value Growth 2010-2015
Surface Care in Saudi Arabia - Category Analysis
HEADLINES
TRENDS
Growth in surface care was driven by a growing interest in antibacterial products towards the end of the review period. This was partly linked to fears over the swine flu epidemic of 2009, while increasingly crowded cities and urbanisation also resulted in consumers becoming more focused on eradicating germs, bacteria and dirt in their homes. This trend particularly benefited Reckitt Benckiser’s Dettol and Henkel Dac’s Dac, which both offer a wide range of antibacterial surface care.
COMPETITIVE LANDSCAPE
Reckitt Benckiser had a strong lead in surface care in 2010 accounting for 48% value share. This is chiefly due to the widespread popularity of the company’s Dettol range, which has a strong reputation for offering effective antibacterial cleaning. This brand alone accounted for 42% value share in 2010 and saw a strong share gain of almost a percentage point. The brand derives the bulk of its sales from its original format in household antiseptics/disinfectants but offers a wide range of other products. These products range from task-specific surface care such as bathroom cleaners, kitchen cleaners and floor cleaners to all purpose cleaning wipes to multi-purpose cleaners. The brand also offers value-added household antiseptics/disinfectants in the form of Dettol Surface Spray, which features trigger-spray packaging.
PROSPECTS
Saudi Arabia is expected to see ongoing urbanisation during the forecast period, with this resulting in larger, dirtier, dustier and more populous cities. There is also expected to be a shift towards smaller household sizes and a rise in women’s participation in the workforce. Consequently, there will be a rise in the number of households that do not have maids or stay-at-home family members to do housework. These trends will result in strong demand for surface care that offers easier and more effective cleaning and for products that offer an antibacterial effect.
CATEGORY DATA
Table 61 Sales of Surface Care by Category: Value 2005-2010
Table 62 Sales of Surface Care by Category: % Value Growth 2005-2010
Table 63 Sales of Household Care Wipes and Floor Cleaning Systems by Category: Value 2005-2010
Table 64 Sales of Household Care Wipes and Floor Cleaning Systems by Category: % Value Growth 2005-2010
Table 65 Surface Care Company Shares 2006-2010
Table 66 Surface Care Brand Shares 2007-2010
Table 67 Household Care Wipes and Floor Cleaning Systems Company Shares 2006-2010
Table 68 Household Care Wipes and Floor Cleaning Systems Brand Shares 2007-2010
Table 69 Forecast Sales of Surface Care by Category: Value 2010-2015
Table 70 Forecast Sales of Surface Care by Category: % Value Growth 2010-2015
Toilet Care in Saudi Arabia - Category Analysis
HEADLINES
TRENDS
Growth in toilet care products was driven by strong advertising at the end of the review period, particularly from Reckitt Benckiser’s leading brand Harpic. This brand used frequent TV advertising, print and billboard advertising and in-store displays to make consumers more aware of the benefits of its range, which is present in in-cistern devices, rim blocks, rim liquids and toilet liquids. This encouraged a growing number of consumers to buy toilet care products. In addition, there was a growing focus on hygiene towards the end of the review period, with this linked to growing urbanisation and a focus on germs and bacteria. This trend encouraged many to use toilet care products more frequently.
COMPETITIVE LANDSCAPE
Reckitt Benckiser was the clear leader in toilet care products in 2010 with a value share of 41%. The company also saw the strongest growth in value share in the year with a rise of two percentage points. The company’s strong performance was thanks to its Harpic brand, which is synonymous with toilet care products for many consumers. This brand benefits from strong advertising support, including TV advertising, and from frequent price promotions. The brand also benefits from offering high-power variants, with its Harpic Power Plus notably seeing around 19% current value sales growth in toilet liquids in 2010 over the previous year as consumers sought out stronger cleaning options.
PROSPECTS
Toilet care products is expected to benefit from strong advertising support during the forecast period. Following Procter & Gamble’s entry into this area with the acquisition of Ambi-Pur in 2010, leading player Reckitt Benckiser is expected to face stronger competition. Both players are thus likely to invest heavily in TV advertising as they seek to attract consumers. Advertising for these brands is meanwhile likely to encourage more consumers to trade up to Ambi-Pur or Harpic and is also expected to encourage stronger sales of value-added formats such as in-cistern devices.
CATEGORY DATA
Table 71 Sales of Toilet Care by Category: Value 2005-2010
Table 72 Sales of Toilet Care by Category: % Value Growth 2005-2010
Table 73 Toilet Care Company Shares 2006-2010
Table 74 Toilet Care Brand Shares 2007-2010
Table 75 Forecast Sales of Toilet Care by Category: Value 2010-2015
Table 76 Forecast Sales of Toilet Care by Category: % Value Growth 2010-2015
Home Care in Saudi Arabia - Industry Overview
EXECUTIVE SUMMARY
Economic growth encourages consumers to buy more and trade up
Strong focus on antibacterial products in 2010
Multinationals dominate with strong investment in innovation and marketing
Supermarkets/hypermarkets continue to extend dominance
Stronger constant value growth ahead as consumers trade up
KEY TRENDS AND DEVELOPMENTS
High inflation encourages focus on price
Crowded homes boost interest in antibacterial and high power products
Busier lifestyles boost demand for convenience
Supermarkets/hypermarkets extend dominance by offering choice and value
MARKET INDICATORS
Table 1 Households 2005-2010
MARKET DATA
Table 2 Sales of Home Care by Category: Value 2005-2010
Table 3 Sales of Home Care by Category: % Value Growth 2005-2010
Table 4 Home Care Company Shares 2006-2010
Table 5 Home Care Brand Shares 2007-2010
Table 6 Penetration of Private Label by Category 2005-2010
Table 7 Sales of Home Care by Distribution Format: % Analysis 2005-2010
Table 8 Sales of Home Care by Category and Distribution Format: % Analysis 2010
Table 9 Forecast Sales of Home Care by Category: Value 2010-2015
Table 10 Forecast Sales of Home Care by Category: % Value Growth 2010-2015
DEFINITIONS
Summary 1 Research Sources
Home Care in Saudi Arabia - Company Profiles
Abu Dawood Industrial Co in Home Care (Saudi Arabia)
STRATEGIC DIRECTION
KEY FACTS
COMPANY BACKGROUND
PRODUCTION
COMPETITIVE POSITIONING
Summary 4 Abu Dawood Industrial Co: Competitive Position 2010
National Detergent Co in Home Care (Saudi Arabia)
STRATEGIC DIRECTION
KEY FACTS
COMPANY BACKGROUND
PRODUCTION
COMPETITIVE POSITIONING
Summary 7 National Detergent Co: Competitive Position 2010
National Fertilizer Co Ltd in Home Care (Saudi Arabia)
STRATEGIC DIRECTION
KEY FACTS
COMPANY BACKGROUND
PRODUCTION
COMPETITIVE POSITIONING
Summary 10 National Fertilizer Co Ltd: Competitive Position 2010
Saudi Industrial Detergents Co (Sidco) in Home Care (Saudi Arabia)
STRATEGIC DIRECTION
KEY FACTS
COMPANY BACKGROUND
PRODUCTION
COMPETITIVE POSITIONING
Summary 13 Saudi Industrial Detergents Co (Sidco): Competitive Position 2010
Wafir Factory For Industrial Detergents in Home Care (Saudi Arabia)
STRATEGIC DIRECTION
KEY FACTS
COMPANY BACKGROUND
PRODUCTION
COMPETITIVE POSITIONING
Summary 16 Wafir Factory For Industrial Detergents: Competitive Position 2010
Air Care in Saudi Arabia - Category Analysis
HEADLINES
TRENDS
Air care continued to benefit from strong advertising support in 2010, with this boosting consumers’ awareness of the brands on offer and also creating a perceived need for air care in many households. Advertising was particularly strong for leading brand Saudi Johnson’s Glade, for Reckitt Benckiser in support of new launch Air Wick Water Splash and for Ambi-Pur, which was acquired by Procter & Gamble in 2010. Reckitt Benckiser’s Dettol Neutra Air, extended into concentrated spray/aerosol air fresheners in 2009, also drove growth in 2010 thanks to strong advertising for Dettol across its range and a growing interest in antibacterial home care.
COMPETITIVE LANDSCAPE
Saudi Johnson was the clear leader in air care in 2010 and accounted for a strong 48% value share in 2010. The company benefits from offering strong global brand Glade, which alone accounted for 46% share in the year. Glade offers an extremely wide range of air care, for example offering four different brand extensions in electric air fresheners, and has a reputation for offering long-lasting and high quality fragrances.
PROSPECTS
There is likely to be a growing focus on value-added air care during the forecast period. Air care with an antibacterial positioning is for example set to see strong new product development during the forecast period following the success of Reckitt Benckiser’s Dettol Neutra Air. Automatic motion-sensor products such as Glade Sense & Spray are meanwhile likely to see a strong performance in electric air fresheners, driving growth in this area. Meanwhile, wall-mounted concentrated air fresheners claiming to offer long-lasting air freshening at a click such as Glade One Touch and Air Wick Click are likely to drive growth in concentrated spray/aerosol air fresheners.
CATEGORY DATA
Table 11 Sales of Air Care by Category: Value 2005-2010
Table 12 Sales of Air Care by Category: % Value Growth 2005-2010
Table 13 Battery Operated vs Plug-in Electric Air Fresheners: % Value Breakdown 2008-2010
Table 14 Air Care Fragrances Rankings by Value 2007-2010
Table 15 Air Care Company Shares 2006-2010
Table 16 Air Care Brand Shares 2007-2010
Table 17 Forecast Sales of Air Care by Category: Value 2010-2015
Table 18 Forecast Sales of Air Care by Category: % Value Growth 2010-2015
Bleach in Saudi Arabia - Category Analysis
HEADLINES
TRENDS
Bleach saw its strongest volume performance of the review period in 2010, with a rise of 4%. Growth was boosted by a number of factors. Firstly, the swine flu epidemic of 2009 resulted in many consumers becoming more concerned about germs and bacteria, with this trend also being encouraged by ongoing urbanisation and larger and more populous cities. This resulted in consumers increasingly using bleach to disinfect surfaces.
COMPETITIVE LANDSCAPE
Abu Dawood was the dominant leader in bleach in 2010 with 90% value share and also saw the strongest growth in share over the previous year at a percentage point. This company represents Clorox’s bleach in the country and thus benefits from Clorox’s strong reputation, with many consumers regarding Clorox as more powerful and effective than its competitors. The company further gained share in 2010 over the previous year thanks to its increasing use of price promotions as it sought to fend off competition.
PROSPECTS
Bleach is expected to see even stronger growth during the forecast period than that seen during the review period, with a CAGR of 5% and 3% respectively. Consumers are expected to use bleach more frequently when cleaning their homes, with many regarding this product as an essential weapon in the fight against germs and bacteria. This trend will be encouraged by ongoing urbanisation, larger and dirtier cities and busier lifestyles, with consumers viewing bleach as a way of ensuring cleanliness while minimising the time spent on cleaning.
CATEGORY DATA
Table 19 Sales of Bleach: Value 2005-2010
Table 20 Sales of Bleach: % Value Growth 2005-2010
Table 21 Bleach Company Shares 2006-2010
Table 22 Bleach Brand Shares 2007-2010
Table 23 Forecast Sales of Bleach: Value 2010-2015
Table 24 Forecast Sales of Bleach: % Value Growth 2010-2015
Dishwashing in Saudi Arabia - Category Analysis
HEADLINES
TRENDS
There was a growing consumer focus on hygiene towards the end of the review period, with this linked to fears over the swine flu epidemic and also to increasingly overcrowded cities. As a result, there was a growing interest in antibacterial hand dishwashing towards the end of the review period. Concentrated hand dishwashing also benefited, due to being regarded as more powerful. Advertising further encouraged these trends, particularly from Henkel, with this supporting the launch of antibacterial variants for Dac and Pril.
COMPETITIVE LANDSCAPE
Modern Products was the dominant player in dishwashing at the end of the review period, with the company accounting for 65% value share. This is due to the company’s dominance of hand dishwashing, where it offers Procter & Gamble’s Fairy brand. Fairy benefits from its longstanding presence in hand dishwashing and from a strong reputation for long-lasting grease removal. The brand consequently enjoys a high level of customer loyalty in Saudi Arabia.
PROSPECTS
Automatic dishwashing is expected to benefit from a rising urban household penetration for dishwashers during the forecast period. The government is constructing a number of new economic cities across the country, while housing construction is expected to see rapid growth as the government seeks to address a two million housing shortage. As new homes become available, household sizes are expected to become smaller, with a growing number of mid- and high-income consumers living in single- or two-person households. It is these consumers who will be most likely to buy dishwashers during the forecast period, with such purchases also encouraged by busier lifestyles, growing demand for convenience and the widening availability of credit.
CATEGORY INDICATORS
Table 25 Household Penetration of Dishwashers 2005-2010
CATEGORY DATA
Table 26 Sales of Dishwashing by Category: Value 2005-2010
Table 27 Sales of Dishwashing by Category: % Value Growth 2005-2010
Table 28 Dishwashing Company Shares 2006-2010
Table 29 Dishwashing Brand Shares 2007-2010
Table 30 Forecast Sales of Dishwashing by Category: Value 2010-2015
Table 31 Forecast Sales of Dishwashing by Category: % Value Growth 2010-2015
Insecticides in Saudi Arabia - Category Analysis
HEADLINES
TRENDS
Insecticides saw strong new product development towards the end of the review period, with this supporting ongoing growth in 2010. Players focused on offering greater convenience, such as with Saudi Johnson’s Raid Electric Diffuser. This is an innovative product combining a compact diffuser and compressed sand refill, offering constant and fragrance-free protection from mosquitoes for 30 days. Reckitt Benckiser meanwhile offered greater power with Pif Paf Power-Guard, launched in 2010 and claiming to offer more powerful action and longer-lasting effect. Domestic brands also launched more affordable variants, such as Saudi Industrial Detergents (Sidco)’s Exol and Kilto and National Detergent’s Spark, with these enabling low-income consumers to buy insecticides more frequently.
COMPETITIVE LANDSCAPE
Saudi Johnson dominated sales of insecticides in 2010 with 57% value share. Thanks to the company’s strong Raid and Baygon brands, Saudi Johnson leads most product category in insecticides. Raid and Baygon together accounted for 34% value share in electric insecticides, 59% share in spray/aerosol insecticides and 77% share in “other” insecticides. Meanwhile Baygon alone accounted for 33% share in insecticide baits, where the company ranked second in 2010. These brands benefit from wide distribution, strong consumer awareness, effective marketing support and ongoing new product development. In 2009, the company for example launched Raid Electric Diffuser, an innovative odour-free electric insecticide.
PROSPECTS
Economic growth is expected to support strong sales growth for insecticides during the forecast period. As disposable income levels rise for all income groups, low-income consumers will be able to afford to use insecticides more frequently in order to tackle the large urban insect population in the country. Growth in insecticides will also be supported by strong construction in housing and the creation of new economic cities, with a rise in the number of households supporting stronger volume sales for these products.
CATEGORY DATA
Table 32 Sales of Insecticides by Category: Value 2005-2010
Table 33 Sales of Insecticides by Category: % Value Growth 2005-2010
Table 34 Spray Insecticides by Type: % Value Breakdown 2007-2010
Table 35 Insecticides Company Shares 2006-2010
Table 36 Insecticides Brand Shares 2007-2010
Table 37 Forecast Sales of Insecticides by Category: Value 2010-2015
Table 38 Forecast Sales of Insecticides by Category: % Value Growth 2010-2015
Laundry Care in Saudi Arabia - Category Analysis
HEADLINES
TRENDS
Both economy and value-added laundry care saw a strong performance at the end of the review period. Economic concerns resulted in many low-income consumers seeking out the lowest possible prices, which benefited economy brands and those that used frequent price promotions such as Al Watania. Mid- and high-income consumers meanwhile continued to drive growth in value-added niches, supporting over 4% volume growth in product areas such as liquid fabric softeners, fabric fresheners and colour safe laundry bleach in 2010.
COMPETITIVE LANDSCAPE
Modern Products was the clear leader in laundry care throughout the review period and accounted for a strong 48% value share in 2010. This player benefits from offering Procter & Gamble’s strong global brands such as Tide, Ariel and Bonux, which enjoy a high-quality reputation. Crucially, the company however uses local manufacturing facilities, which ensure that costs and thus prices are kept low. These brands notably dominate standard powder detergents and accounted for 61% combined value share in 2010. The company however lost around half a percentage point in value share in 2010 over the previous year, with this linked to increasingly fierce competition within standard powder detergents.
PROSPECTS
There is expected to be strong growth in many niches across laundry care during the forecast period, as consumers begin to buy a wider range of products. Saudi consumers are often reluctant to try new brands or products in laundry care but strong advertising, price promotions and word-of-mouth recommendations are expected to result in many small niches seeing strong growth from a low sales base. Fabric fresheners is for example set to see 6% volume CAGR during the forecast period, while carpet cleaners and colour safe laundry bleach are expected to see 5% CAGR each.
CATEGORY INDICATORS
Table 39 Household Penetration of Washing Machines 2005-2010
CATEGORY DATA
Table 40 Sales of Laundry Care by Category: Value 2005-2010
Table 41 Sales of Laundry Care by Category: % Value Growth 2005-2010
Table 42 Sales of Laundry Aids by Category: Value 2005-2010
Table 43 Sales of Laundry Aids by Category: % Value Growth 2005-2010
Table 44 Sales of Laundry Detergents by Category: Value 2005-2010
Table 45 Sales of Laundry Detergents by Category: % Value Growth 2005-2010
Table 46 Sales of Standard versus Concentrated Fabric Softeners: % Analysis 2005-2010
Table 47 Laundry Care Company Shares 2006-2010
Table 48 Laundry Care Brand Shares 2007-2010
Table 49 Laundry Aids Company Shares 2006-2010
Table 50 Laundry Aids Brand Shares 2007-2010
Table 51 Laundry Detergents Company Shares 2006-2010
Table 52 Laundry Detergents Brand Shares 2007-2010
Table 53 Forecast Sales of Laundry Care by Category: Value 2010-2015
Table 54 Forecast Sales of Laundry Care by Category: % Value Growth 2010-2015
Polishes in Saudi Arabia - Category Analysis
HEADLINES
TRENDS
In common with many product areas across home care, polishes benefited from a number of trends towards the end of the review period. A growing consumer focus on buying effective cleaning products was driven by larger, busier and dustier cities and also by busier consumer lifestyles, with consumers thus seeking easy-use and high-power products. Polishes also benefited from the grooming trend, with a shift towards more formal footwear for male office workers and a growing focus on maintaining a well-groomed appearance.
COMPETITIVE LANDSCAPE
Zetra and Saudi Johnson are the leading players in polishes, benefiting from their dominance in shoe polish and furniture polish respectively. Zetra represents Sara Lee’s well-regarded Kiwi brand in shoe polish and accounted for 75% value share in this product area in 2010 and 30% share overall. Saudi Johnson is meanwhile SC Johnson’s Saudi subsidiary and thus offers Pledge in furniture polish, with the company accounting for 57% value share in furniture polish in 2010 and 26% share in overall polishes. Both these brands benefit from strong brand loyalty, with many Saudi consumers being reluctant to try out new brands when they have developed trust in a specific brand.
PROSPECTS
Polishes is expected to benefit from consumers’ increasingly aspirational lifestyles during the forecast period. Consumers are expected to spend more on expensive decor and furnishings and also to spend more on looking good, particularly at work. This is expected to result in many office workers opting for more formal footwear and taking better care of their footwear. A stronger focus on decor will meanwhile encourage consumers to use furniture polish more frequently, particularly given rising levels of dust in the country’s cities. These trends are expected to be particularly strong among mid-income groups, who are expected to see rising disposable income levels during the forecast period and who will also become increasingly aspirational in their purchasing habits.
CATEGORY DATA
Table 55 Sales of Polishes by Category: Value 2005-2010
Table 56 Sales of Polishes by Category: % Value Growth 2005-2010
Table 57 Polishes Company Shares 2006-2010
Table 58 Polishes Brand Shares 2007-2010
Table 59 Forecast Sales of Polishes by Category: Value 2010-2015
Table 60 Forecast Sales of Polishes by Category: % Value Growth 2010-2015
Surface Care in Saudi Arabia - Category Analysis
HEADLINES
TRENDS
Growth in surface care was driven by a growing interest in antibacterial products towards the end of the review period. This was partly linked to fears over the swine flu epidemic of 2009, while increasingly crowded cities and urbanisation also resulted in consumers becoming more focused on eradicating germs, bacteria and dirt in their homes. This trend particularly benefited Reckitt Benckiser’s Dettol and Henkel Dac’s Dac, which both offer a wide range of antibacterial surface care.
COMPETITIVE LANDSCAPE
Reckitt Benckiser had a strong lead in surface care in 2010 accounting for 48% value share. This is chiefly due to the widespread popularity of the company’s Dettol range, which has a strong reputation for offering effective antibacterial cleaning. This brand alone accounted for 42% value share in 2010 and saw a strong share gain of almost a percentage point. The brand derives the bulk of its sales from its original format in household antiseptics/disinfectants but offers a wide range of other products. These products range from task-specific surface care such as bathroom cleaners, kitchen cleaners and floor cleaners to all purpose cleaning wipes to multi-purpose cleaners. The brand also offers value-added household antiseptics/disinfectants in the form of Dettol Surface Spray, which features trigger-spray packaging.
PROSPECTS
Saudi Arabia is expected to see ongoing urbanisation during the forecast period, with this resulting in larger, dirtier, dustier and more populous cities. There is also expected to be a shift towards smaller household sizes and a rise in women’s participation in the workforce. Consequently, there will be a rise in the number of households that do not have maids or stay-at-home family members to do housework. These trends will result in strong demand for surface care that offers easier and more effective cleaning and for products that offer an antibacterial effect.
CATEGORY DATA
Table 61 Sales of Surface Care by Category: Value 2005-2010
Table 62 Sales of Surface Care by Category: % Value Growth 2005-2010
Table 63 Sales of Household Care Wipes and Floor Cleaning Systems by Category: Value 2005-2010
Table 64 Sales of Household Care Wipes and Floor Cleaning Systems by Category: % Value Growth 2005-2010
Table 65 Surface Care Company Shares 2006-2010
Table 66 Surface Care Brand Shares 2007-2010
Table 67 Household Care Wipes and Floor Cleaning Systems Company Shares 2006-2010
Table 68 Household Care Wipes and Floor Cleaning Systems Brand Shares 2007-2010
Table 69 Forecast Sales of Surface Care by Category: Value 2010-2015
Table 70 Forecast Sales of Surface Care by Category: % Value Growth 2010-2015
Toilet Care in Saudi Arabia - Category Analysis
HEADLINES
TRENDS
Growth in toilet care products was driven by strong advertising at the end of the review period, particularly from Reckitt Benckiser’s leading brand Harpic. This brand used frequent TV advertising, print and billboard advertising and in-store displays to make consumers more aware of the benefits of its range, which is present in in-cistern devices, rim blocks, rim liquids and toilet liquids. This encouraged a growing number of consumers to buy toilet care products. In addition, there was a growing focus on hygiene towards the end of the review period, with this linked to growing urbanisation and a focus on germs and bacteria. This trend encouraged many to use toilet care products more frequently.
COMPETITIVE LANDSCAPE
Reckitt Benckiser was the clear leader in toilet care products in 2010 with a value share of 41%. The company also saw the strongest growth in value share in the year with a rise of two percentage points. The company’s strong performance was thanks to its Harpic brand, which is synonymous with toilet care products for many consumers. This brand benefits from strong advertising support, including TV advertising, and from frequent price promotions. The brand also benefits from offering high-power variants, with its Harpic Power Plus notably seeing around 19% current value sales growth in toilet liquids in 2010 over the previous year as consumers sought out stronger cleaning options.
PROSPECTS
Toilet care products is expected to benefit from strong advertising support during the forecast period. Following Procter & Gamble’s entry into this area with the acquisition of Ambi-Pur in 2010, leading player Reckitt Benckiser is expected to face stronger competition. Both players are thus likely to invest heavily in TV advertising as they seek to attract consumers. Advertising for these brands is meanwhile likely to encourage more consumers to trade up to Ambi-Pur or Harpic and is also expected to encourage stronger sales of value-added formats such as in-cistern devices.
CATEGORY DATA
Table 71 Sales of Toilet Care by Category: Value 2005-2010
Table 72 Sales of Toilet Care by Category: % Value Growth 2005-2010
Table 73 Toilet Care Company Shares 2006-2010
Table 74 Toilet Care Brand Shares 2007-2010
Table 75 Forecast Sales of Toilet Care by Category: Value 2010-2015
Table 76 Forecast Sales of Toilet Care by Category: % Value Growth 2010-2015
