Washing liquids report stellar growth in household consumption | Mint
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Business News/ Economy / Washing liquids report stellar growth in household consumption
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Washing liquids report stellar growth in household consumption

Greater household affluence over the last 10-15 years saw exceptional growth in household consumption, especially in washing liquids, toilet cleaners, noodles, sauces and ketchups, breakfast cereals, bottled soft drinks, sanitary products, biscuits and cookies, hair wash, utensil cleaners, spices.

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10 best 9 kg Whirlpool washing machines: One of these washers can be your next laundry companion. (Unsplash)

Greater household affluence over the last 10-15 years saw exceptional growth in household consumption with a strong volume plus value growth over the last decade. Among the star performers, washing liquids segment is the fastest growing category among the fast-moving consumer goods.  

The increased ownership of washing machines has led to washing liquids reporting a compound annual growth rate of over 35% (in volumes) between 2014 and 23, according to data released by market researcher Kantar. In the same period, household ownership of washing machines moved up from 8% to 22%. 

Kantar identified various categories of FMCG as “star" categories— that saw exceptional growth in household consumption over the last decade. 

These include washing liquids, toilet cleaners, noodles, sauces and ketchups, insecticides, breakfast cereals, bottled soft drinks, sanitary products, floor cleaners, rubs & balms, biscuits and cookies, hair wash, utensil cleaners, spices. It identified star products as those with volumes growing at least 1.5 times the GDP growth and growing consumption over the last decade. Such products reported strong volume plus value growth over the period, it said. 

It also identified consumer goods categories as “chasers", or products with volume growth at par or under 1.5 times the GDP growth, and growing consumption; “potentials", or those with volume growth under GDP growth, and growing consumption and “stragglers", or those with volume growth under GDP growth, and declining consumption.

Several star categories, it said have benefited on account of greater household affluence over the last 10-15 years apart from improved electrification that led to ownership of appliances. That aside, government initiatives such as Swachh Bharat campaign that led to a surge in demand for toilet cleaners as well as greater pace of innovation by companies have also propelled demand for such products. 

For instance, the percentage of households that have a toilet went up from 75% in 2014 to 86% by 2022. Having a toilet in the home between 2014 and 2022 led to greater demand for toilet cleaners and allied categories such as floor cleaners, Kantar said. In fact, owning a gas stove between 2014 and 2022 led to a jump in demand for convenience foods like noodles, pasta and ready to cook. Between 2014 and 2022, the percentage of households with a gas stove went up from 51% to 86%.

Consumers also bought more noodles, biscuits, breakfast cereals, dish wash liquids as they sought convenience in household chores.

Kantar linked the growth in demand for such products to increased household affluence. For instance, the percentage of households that are categorized as socio economic classes, or SEC A, went up from 10% in 2014 to 28% in 2022. 

“Which means there is an affluence that is building. With the building of this affluence all premium categories are showing growth which means that categories which are reflecting growth in affluence are also turning out to be stars," K. Ramakrishnan, managing director, South Asia, worldpanel division, Kantar, said presenting the report at an industry event last week.

Star products also reported exceptional growth rates in rural markets, it said. The star categories also reported active and better launches—this was especially true for categories such as soft drinks wherein 59% of stock keeping units present today were added in the last 15 years. Meanwhile, 48% of stock keeping units available in toilet cleaners were added in the same period; the number stood at 33% for biscuits.

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ABOUT THE AUTHOR
Suneera Tandon
Suneera Tandon is a New Delhi based reporter covering consumer goods for Mint. Suneera reports on fast moving consumer goods makers, retailers as well as other consumer-facing businesses such as restaurants and malls. She is deeply interested in what consumers across urban and rural India buy, wear and eat. Suneera holds a masters degree in English Literature from the University of Delhi.
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Published: 17 Dec 2023, 03:15 PM IST
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