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Global Air Care

By: Briony Davies
Posted: December 5, 2006, from the December 2006 issue of GCI Magazine.

page 4 of 4

In Latin America, the continued expansion of the spray segment has been the trend in recent years—driven mainly through the introduction of concentrated sprays. Since 2002, Reckitt Benckiser, Clorox and SC Johnson all have introduced new concentrated products to the market. Gel fresheners are growing in popularity in the Africa/Middle East region, particularly in South Africa—the region’s largest market. The introduction of SC Johnson’s Glade Secrets Gel has helped invigorate the market. Other introductions of slow-release air fresheners are seen as higher cost variants that are ensuring value, if not volume growth. Due to the availability of novelty formats, existing products such as standard sprays are being commoditized, with large scale discounting ensuring a surge in volume sales.

Outlook

Euromonitor International predicts that, by 2010, the overall market will have grown to $7.2 billion annually. This increase will be driven primarily by two main segments—sprays and electrics, which are set to reach sales of $2 billion and $1.8 billion respectively. Western Europe and North America are nearing volume maturity; therefore, manufacturers need to concentrate on developing value-adding features to their products in order to drive revenue growth. The development of P&G’s ScentStories device demonstrates this. Manufacturers also should focus on developing more powerful concentrated sprays that are better able to destroy odor-causing bacteria instead of simply masking odor. They should also concentrate on continually developing new fragrances to keep more traditional formats—sprays, gels and liquids—appealing to consumers.

As design becomes more important, manufacturers are likely to continue to invest in devices that form an integral part of home interiors. Consumers will be increasingly looking for designer products, and will pay a price premium to secure them. This strategy should enable manufacturers to benefit from value gains in an increasingly volume-stagnant market. In the less developed regions, it is unlikely that large markets will develop for the more advanced electric devices or lifestyle items in the short term. Therefore, manufacturers need to focus on introducing cheaper alternatives, mainly sprays, and improving distribution networks to establish firmer positions in smaller, yet more appealing, markets.