Close encounters
Written by Sarah Thackray   
With intense price pressure in the toiletry market, annual growth rates for toiletry sales have slowed significantly in recent years.  Toiletries have become the subject of almost continuous price promotion in the grocery multiples, which took 58 per cent of toiletry sales in 2005. Around 19 per cent of sales passed through chemists (including Boots) while 11 per cent went through drugstores[1].

Oral care


Toiletry manufacturers point out that consumer education is paramount to the growth of markets like oral hygiene and strongly believe that pharmacy recommendations play an invaluable role in this. According to AC Nielsen, pharmacy outperforms other trade sectors in breath fresheners, dental floss, denture cleansers, denture fixatives and medicated mouthwashes when looked at as share of business within the total oral care category.

Oral hygiene sales have declined by 4.1 per cent in the overall market, which is worth nearly £301 million. In the pharmacy sector, sales have increased by 4.9 per cent in pharmacy multiples to £7.4 million, although they have fallen by 10.6 per cent to £10.7 million in independents[2].

Sales growth in pharmacy is coming from toothbrushes, medicated mouthwashes and regular mouthwashes, with pharmacists playing an important part in encouraging regime purchase (e.g. mouthwash in addition to toothbrush and toothpaste).

Purchase frequency of toothbrushes is 2.1 per year, well below the four per year recommended by dentists. The toothbrush fixture is still highly complex leading to confusion among consumers, so the pharmacy can maximise on sales by helping customers to find the individual benefits they require.

Trends


Major oral care manufacturers have recently focused strongly on the importance of cleaning the tongue as well as the teeth and the concept of tongue cleaning is one trend that clearly requires consumer education. In a recent survey for the British Dental Health Foundation, 50 per cent of people replied “yuk, never” when asked if they clean their tongue. However, Dr Nigel Carter, the Foundation’s Chief Executive, stresses the importance of brushing the tongue. “The bacteria that collect on there are the principal cause of bad breath – so make the effort, even if you don’t like doing it!” he advises.

The biggest change in toothbrush trends is in the battery sector where the market has been driven by ‘hybrid’ brushes; these have a battery to send out sonic pulses to aid manual brushing of teeth. Battery brushes have grown by nearly 2 per cent in pharmacies and the sector is now worth £1.26 million[3]. The trend in manual toothbrushes is towards higher-value brushes, which have helped maintain overall market growth. Consumers are also trading up to premium toothpastes that offer additional benefits (e.g. whitening or sensitive).

In the total market, sales of regular toothpastes are down by 5.7 per cent as sales transfer to premium products. Whitening toothpastes have been growing at 6 per cent and ‘sensitive’ toothpastes are showing marked growth at 14.8 per cent. Toothpaste tubes make up the lion’s share of the market with 82 per cent while pumps account for 15 per cent[4].

There has been a continuous decline of toothpaste sales in pharmacies as consumers have moved more of their everyday toiletry shopping into the grocery multiples. Value sales of toothpaste are down by 9.5 per cent in chemists over the last year, where the market is now worth £12.4 million[3].

The mouthwash market continues to perform well ahead of other oral care as more consumers buy into this category. The market is split into standard and medicated, with regular mouthwashes showing the strongest performance. The mouthwash sector has grown to £4 million in pharmacies and value sales are up by 4.5 per cent over the last year[3].

Demand for denture fixatives continues to grow. About 23 per cent of the UK population wear a denture but only 14 per cent use a fixative6. Although there is some volume growth, value is being eroded by everyday low pricing and promotions.

Personal hygiene


The total market for personal hygiene products including deodorants, antiperspirants, body sprays, shower and bath products and soaps has grown by 42 per cent to £403 million. In the independent pharmacy sector, this market has grown by 17 per cent and now accounts for over £23 million worth of sales. In multiple pharmacies (not including Boots or Superdrug), it has grown by 14 per cent to £19 million[3].

Recent trends in the deodorant products sector include skincare formulations, ‘no-trace’ residue-free deodorants and ever-increasing efficacy, principally longer-lasting protection. Aerosols account for more than 60 per cent of the sales of deodorants/antiperspirants and continue to be the most popular format, commanding a high degree of loyalty. Roll-ons have a 22 per cent slice of the market and are more popular with women than men. Sticks are the next largest format with some 9 per cent of the segment. Although around 12 per cent of consumers still appear not to be using any form of deodorant, others are increasing their usage.

Sales of body sprays have risen rapidly since 2002 with men’s bodysprays having performed particularly well. Men’s bodysprays continue to outsell men’s deodorants/antiperspirants and seem to be a particularly male solution to the perspiration and body odour problem[1].

Star performers


Sales of deodorants have kept pace with the toiletry market as a whole, but shower products have been star performers with sales up by more than 75 per cent between 2000 and 2005. The shower habit has grown rapidly. Most UK households now have a shower or shower attachment, and this has driven sales of shower products over bath products.

Valued at £256 million in 2005, sales of shower products have been boosted by growing usage, the rising frequency of showering and constant new product development. This sector has seen intense competition on price with buy-one-get-one-free offers across grocery multiples.

Gels, creams and oils together represent 85 per cent of the shower products sector with sales of bodywashes accounting for the remaining 15 per cent of sector value. Sales of bodywashes have risen much more rapidly than gels, creams and oils in recent years. Bodywashes tend to be more skincare-orientated and less functional than shower gels but both types of product cleanse the skin[1].

Bathing beauties


Bath-specific products have been poorer performers and have lost sales value. Sales of bath products across all health and beauty outlets are worth £126.8 million, showing a 6.5 per cent decline5. Value sales in pharmacies are £9.8 million and have declined by 1.3 per cent[3].

However, taking a bath remains popular in the UK and bathing is marketed increasingly as a special occasion for self-pampering, enhanced by creating mood. Recent trends include natural ingredients, male-specific products and indulgence/spa treatments. Bath liquids continue to dominate bath product sales although solid bath products (cubes and salts) have seen a revival with sales almost doubling since 2002.

Sales of bath and shower products rise during the summer months when the weather is hot and at Christmas, driven by gift purchasing. Sales of premium soaps as gift purchases have also held up relatively well. Soap has lost out to more modern shower and bath products but remains highly significant in the UK. Overall, the soap sector has recorded marginal growth, because of the success of liquid soap compared with a decline in sales of bar soap. The popularity of beauty bars has helped to stem the decline of bar soap sales.

Liquid soap now represents 48 per cent of the soap sector by value and sales have risen by 20 per cent since 2002, which is the same rate at which sales of bar soap have dropped. Liquid soap is perceived as being more hygienic and less messy than bar soap and especially suitable for family use[1].

References


1. Mintel Toiletries UK December 2005.
2. IMS Pharmatrend MAT April 2005–March 2006.
3. IRI Chemists, excluding Boots and Superdrug, 52 w/e 17 June 2006.
4. IRI HBA outlets MAT 18 Feb 2006.
5. IRI HBA outlets 52 w/e 17 June 2006.
6. TNS ETCD 2004.