Table of Contents
Home Care in Ukraine - Industry Overview
Home care experiences recovery in 2011
Economy brands are popular with consumers
Distribution channels remain unchanged during the review period
Home care to see marginal value growth over the forecast period
KEY TRENDS AND DEVELOPMENTS
Home care increases in value terms in 2011, although the growth is biased in the view of potential threat of new wave of economic recession
Economy and value-for-money segments from domestic companies take advantage
Distribution channels remain unchanged during the review period
Multinational companies continue to dominate Ukrainian home care
Demographic situation continues to worsen in Ukraine
Table 1 Households 2006-2011
Table 2 Sales of Home Care by Category: Value 2006-2011
Table 3 Sales of Home Care by Category: % Value Growth 2006-2011
Table 4 Home Care Company Shares 2007-2011
Table 5 Home Care Brand Shares 2008-2011
Table 6 Penetration of Private Label by Category 2006-2011
Table 7 Sales of Home Care by Distribution Format: % Analysis 2006-2011
Table 8 Sales of Home Care by Category and Distribution Format: % Analysis 2011
Table 9 Forecast Sales of Home Care by Category: Value 2011-2016
Table 10 Forecast Sales of Home Care by Category: % Value Growth 2011-2016
Summary 1 Research Sources
Home Care in Ukraine - Company Profiles
Karapuz TOV in Home Care (Ukraine)
Summary 4 Karapuz TOV: Competitive Position 2011
Milam ZPH TOV in Home Care (Ukraine)
Summary 7 Milam ZPH TOV: Competitive Position 2011
Slobozhansky Mylovar TOV in Home Care (Ukraine)
Summary 10 Slobozhansky Mylovar TOV: Competitive Position 2011
SV Firma TOV in Home Care (Ukraine)
Summary 12 SV Firma TOV: Competitive Position 2011
Ukrayinski Promyslovi Resursy TOV in Home Care (Ukraine)
Summary 14 UkrayinskiPromysloviResursy TOV: Competitive Position 2011
Air Care in Ukraine - Category Analysis
Air care appeared to recover from the hard impact of the economic crisis over the review period. Under these circumstances most of the households in Ukraine employ air care mainly for sanitary protection in bathrooms and care much less about refreshing the scene in a room (except in rich households). The vast majority of households remain highly price-sensitive, so the best affordability appears to be the main purchasing decision factor.
SC Johnson retained it leadership of Ukrainian air care with 37% value share. It is represented by Glade and Oust, which are well-known and highly recognised among consumers. Second ranked Ukrainski Aerozoli showed good value growth of 25%, and gained one percentage point to hold 7% value share with its brands Klik and Breezy. Reckitt Benckiser Plc with Air Wick (4% value share) was ranked third.
Electric air fresheners and gel airfresheners are set to demonstrate the most constant value growth over the forecast period, with CAGRs of 31% and 12%. Their expansion will be at the cost of the more common and popular spray/aerosol air fresheners. With the expected welfare improvements in the country, consumers will switch traditional ‘harmful’ spray/aerosol air fresheners with the more environment and human health-friendly alternatives. Plug in electric air fresheners are convenient to use and have a long-lasting effect, which provides an advantage in comparison with other air care products, even battery operated electric air fresheners.
Table 11 Sales of Air Care by Category: Value 2006-2011
Table 12 Sales of Air Care by Category: % Value Growth 2006-2011
Table 13 Battery Operated vs Plug-in Electric Air Fresheners: % Value Breakdown 2008-2011
Table 14 Air Care Fragrances Rankings by Value 2006-2011
Table 15 Air Care Company Shares 2007-2011
Table 16 Air Care Brand Shares 2008-2011
Table 17 Forecast Sales of Air Care by Category: Value 2011-2016
Table 18 Forecast Sales of Air Care by Category: % Value Growth 2011-2016
Bleach in Ukraine - Category Analysis
Bleach continued to lose its popularity in Ukraine in 2011, being increasingly perceived as damaging to fabric and old-fashioned. There are many more modern substitutes attracting consumers such as task-specific products, which, among others, have antibacterial properties, as well as multi-purpose cleaners that are popular in Ukraine. Bleach used for laundry is being superseded by spot and stain removers, perceived as safer for fabric and more effective. An important role is played by advertisements undertaken by multinationals, such as Reckitt Benckiser Plc which promotes its brand Vanish.
The strongest player in bleach is domestic company Milam ZPH TOV, which held 42% share of retail value sales in 2011. The remaining shares are spread between multinational and local brands. Indeed, apart from the strong Ace brand from Procter & Gamble (ranked second), consumers tend to choose products based on the lowest price. In this respect, the origin of a brand is not a significant factor for the purchasing decision any more. Procter & Gamble’s strength is based on its early investment in advertising and the premium image of Ace, promoted as the only bleach brand that cares for clothes.
Bleach is expected to record a constant value CAGR of -7% and a retail volume CAGR of -1% over the forecast period. Consumers will replace this type of home care product with multi-purpose or task-specific surface cleaners, and with colour safe laundry bleach. However, disposable incomes are not expected to demonstrate significant growth over the forecast period. As a result, there will remain a large group of price-sensitive consumers who will choose bleach as a cheaper cleaning option.
Table 19 Sales of Bleach: Value 2006-2011
Table 20 Sales of Bleach: % Value Growth 2006-2011
Table 21 Bleach Company Shares 2007-2011
Table 22 Bleach Brand Shares 2008-2011
Table 23 Forecast Sales of Bleach: Value 2011-2016
Table 24 Forecast Sales of Bleach: % Value Growth 2011-2016
Dishwashing in Ukraine - Category Analysis
With the economic performance improving at the end of the review period, although with the threat of anew wave of economic downturn looming, manufacturers mainly focused on launching new improved versions of existing brands. These included hand dishwashing with new scents, concentrated products or products with balsam, glycerine or minerals for the extra protection of hands and nails. As the result of the growing penetration of automatic dishwashers, even with growth of penetration slowing down, demand for automatic dishwashing products, especially automatic dishwashing tablets, witnessed dynamic growth.
Procter & Gamble Ukraine TOV held the leading position in dishwashing with 40% value share in 2011. The company is represented by the top two hand dishwashing brands in Fairy and Gala. Both brands are supported with different promotional activities. Ranked second was Amway Ukraine TOV, with 15% value share in 2011. The company offers the brand Dish Drops, which is famous due to advertisementsstating that it is friendly to consumers’ health and the environment. The third ranked Henkel Ukraine TOV with its brands Pur, Pril and Somat (in different formats for dishwashers) held 11% value share.
Although dishwashing in Ukraine is becoming more mature, it will continue its volume and value growth trend over the forecast period. With predicted marginal constant value growth, performance will be weaker than the CAGR for the review period. Volume growth is expected to increase despite the fact that hand dishwashing is moving towards saturation although there is still some room left for growth over the forecast period. Ukrainian consumers will place importance not just on price but also on the value of the products they buy as their quality standards will continue to rise, mainly being formed by television advertising and similar marketing activities. Consumers will be keen to try new product formats and scents, which will also drive innovation in the category. Products from more neighbouring countries are also expected to arrive.
Table 25 Household Possession of Dishwashers 2006-2011
Table 26 Sales of Dishwashing by Category: Value 2006-2011
Table 27 Sales of Dishwashing by Category: % Value Growth 2006-2011
Table 28 Dishwashing Company Shares 2007-2011
Table 29 Dishwashing Brand Shares 2008-2011
Table 30 Forecast Sales of Dishwashing by Category: Value 2011-2016
Table 31 Forecast Sales of Dishwashing by Category: % Value Growth 2011-2016
Home Insecticides in Ukraine - Category Analysis
A wider variety of home insecticides became available in 2011. The key trend in 2011, as in previous years, was the continuing shift from spray/aerosol insecticides to alternative formats. With global warming, and hot summers in more recent years, the reproduction time of insects has expanded. This in turn is contributing positively to the growth of home insecticides. With the camping season in Ukraine also extended, the time of using home insecticides is prolonged in order of consumers to be not affected by insects (usually insects are going to reduce their presence in August but if weather is still hot, they can be noticed till the end of September or even till middle of October.
Home insecticides in Ukraine is led by multinationals. In 2011, BioguardOOO led sales with 28% value share due to its Mosquitall brands. SC Johnson ranked second with 24% value share, due to the strong position of its Raid brand.
Home insecticides is predicted to marginally grow in constant value terms over the forecast period. Any innovation in the category, supported by seasonal advertising, would stimulate demand, but as the spending power of consumers has been declining and is only slowly recovering, demand is likely to be stable instead of dynamic. However, if the trend for warmer summers continues, sales of home insecticides will be positively affected.
Table 32 Sales of Home Insecticides by Category: Value 2006-2011
Table 33 Sales of Home Insecticides by Category: % Value Growth 2006-2011
Table 34 Spray/Aerosol Insecticides by Type: % Value Breakdown 2008-2011
Table 35 Home Insecticides Company Shares 2007-2011
Table 36 Home Insecticides Brand Shares 2008-2011
Table 37 Forecast Sales of Home Insecticides by Category: Value 2011-2016
Table 38 Forecast Sales of Home Insecticides by Category: % Value Growth 2011-2016
Laundry Care in Ukraine - Category Analysis
The current economic uncertainties together with the overall welfare deterioration in Ukraine (by the end of 2011) were the key factors affecting the category in 2011 in addition to the further decline of home care overall. Among the key events in 2011 it is worth paying attention to the draft of a law on the regulation of chemicals and detergents use and composition by the National Ecology Department, which is evidence of an emerging culture of care for the environment and role of official institutions for it. The draft of law was prepared in accordance with EU regulations and provides much stricter production criteria than ex-ante. It means that chemicals used in production are required to be environmentally-friendly and biodegradable. All product packages may include list of ingredients including the types of allergens and their quantities.
Laundry care remained fragmented in 2011, with many companies holding less than 10% value share. Procter & Gamble Ukraine TOV and Henkel Ukraine TOV ranked first and second with respective value shares of 51% and 22%. Procter & Gamble’s share was achieved mainly through its brands Ariel, Tide and Gala and its share in fabric softeners through Lenor. However, the leading player lost four percentage points in value share.
In constant value terms, laundry care is expected to achieve a CAGR of 2%. The rising penetration of washing machines will drive value growth and will inevitably benefit some laundry care segments more than others. This performance will owe much to the further decline of concentrated powder detergents. Importantly, standard powder detergents recorded a strong retail value increase over the review period. Moreover, the good performance of spot and stain removers is expected to continue into the forecast period with a constant value CAGR of 5%, which will be due in part to the recovering economy, along with the convenience trend resulting in consumer demand for new products. As disposable incomes are expected to grow slowly, consumers are also expected to select more expensive products, particularly within automatic detergents, as the number of washing machines is expected to grow in urban cities as well as in the provinces. However, the growth is expected to be muted because of the slow recovery of the spending power of consumers and the fairly high prices of the premium brands offered by multinational players.
Table 39 Household Possession of Washing Machines 2006-2011
Table 40 Sales of Laundry Care by Category: Value 2006-2011
Table 41 Sales of Laundry Care by Category: % Value Growth 2006-2011
Table 42 Sales of Laundry Aids by Category: Value 2006-2011
Table 43 Sales of Laundry Aids by Category: % Value Growth 2006-2011
Table 44 Sales of Laundry Detergents by Category: Value 2006-2011
Table 45 Sales of Laundry Detergents by Category: % Value Growth 2006-2011
Table 46 Sales of Standard versus Concentrated Fabric Softeners: % Analysis 2006-2011
Table 47 Laundry Care Company Shares 2007-2011
Table 48 Laundry Care Brand Shares 2008-2011
Table 49 Laundry Aids Company Shares 2007-2011
Table 50 Laundry Aids Brand Shares 2008-2011
Table 51 Laundry Detergents Company Shares 2007-2011
Table 52 Laundry Detergents Brand Shares 2008-2011
Table 53 Forecast Sales of Laundry Care by Category: Value 2011-2016
Table 54 Forecast Sales of Laundry Care by Category: % Value Growth 2011-2016
Polishes in Ukraine - Category Analysis
Polishes in Ukraine are the subject of consistent and stable demand. The vast majority of Ukrainian consumers remain interested only in shoe polish and furniture polish, both of which are very frequently used. The strong desire among Ukrainian consumers to maintain the appearance and quality of their shoes is one of the key factors boosting demand for shoe polish in Ukraine. The value of residential property in Ukraine is rising, boosting demand for better quality products which Ukrainian homeowners can use to preserve the quality of the materials used in their houses.
Polishes were led by the main shoe polish manufacturers in 2011. Turkish-originated company CigirKimya AS held the leading position with 24% value share in 2011. This company led the category due to its successful sales of the reasonably-priced shoe polish brand Silver. Its portfolio includes a wide variety of different shoe polish products.
Polishes are expected to witness a constant value CAGR of -3% in value terms over the forecast period. It will be significantly worse than the growth witnessed during the review period. Volume sales will rise by a CAGR of 1%. This performance will reflect consumers’ perception of polishes as non-essential and the unit price will drop encouraging more people to purchase this product. Indeed, purchases of polishes are often skipped due to limited household income or limited to family pack purchases. Thus, it is likely that only improved living standards in Ukraine will help to boost the category’s performance overall. Another reason for polishes declining over the forecast period is the threat of the new phase of the economic downturn.
Table 55 Sales of Polishes by Category: Value 2006-2011
Table 56 Sales of Polishes by Category: % Value Growth 2006-2011
Table 57 Polishes Company Shares 2007-2011
Table 58 Polishes Brand Shares 2008-2011
Table 59 Forecast Sales of Polishes by Category: Value 2011-2016
Table 60 Forecast Sales of Polishes by Category: % Value Growth 2011-2016
Surface Care in Ukraine - Category Analysis
In Ukraine, surface care continues to face problems in terms of penetration, as consumers are fairly conservative and often use laundry or dishwashing products for surface care; they do not deem it necessary to use dedicated products to clean their floor and furniture. Manufacturers did not find it beneficial to offer their products at lower prices in an effort to boost sales, but rather opted to invest in marketing activities, product innovations and merchandising in a bid to generate long-term positive results. The economy brands and private label brands benefited from a shift in demand towards more affordable products.
Surface care remained more fragmented than many other categories within home care in Ukraine in 2011. The three leading multinational manufacturers — Procter & Gamble, SC Johnson and Unilever — held a combined value share of 56% in 2011. Sales in the category remained characterised by a large group of smaller local and private label players, each offering a limited product selection. While local players were present throughout surface care, multinationals held leads in most segments. The leading companies offered well-recognised branded products and their television advertisements are shown at primetime. The majority of these products can be found in different retailing channels, including supermarkets, hypermarkets and independent small grocers.
Surface care is close to saturation point and there are already a large number of brands and manufacturers present in the category. Competition is expected to strengthen among existing players during the forecast period (it will be especially evident among standard and premium products). Specific value, degree of effectiveness and a greater focus on innovation will be key elements in the rising competition in surface care over the forecast period. Surface care will be subject to further sophistication; demand for specific products is expected to rise. Furthermore, consumer awareness of environmental issues will drive demand for ‘green’ products. The distribution networks for ‘green’ products will widen to include more mainstream chained retailers, while the product ranges of the existing ‘green’ surface care will also widen.
Table 61 Sales of Surface Care by Category: Value 2006-2011
Table 62 Sales of Surface Care by Category: % Value Growth 2006-2011
Table 63 Sales of Household Care Wipes and Floor Cleaning Systems by Category: Value 2006-2011
Table 64 Sales of Household Care Wipes and Floor Cleaning Systems by Category: % Value Growth 2006-2011
Table 65 Surface Care Company Shares 2007-2011
Table 66 Surface Care Brand Shares 2008-2011
Table 67 Household Care Wipes and Floor Cleaning Systems Company Shares 2007-2011
Table 68 Household Care Wipes and Floor Cleaning Systems Brand Shares 2008-2011
Table 69 Forecast Sales of Surface Care by Category: Value 2011-2016
Table 70 Forecast Sales of Surface Care by Category: % Value Growth 2011-2016
Toilet Care in Ukraine - Category Analysis
As consumers became increasingly conscious about household hygiene standards, they continued to buy more and varied types of toilet care. Some products were purchased out of curiosity (in-cistern devices) but others became regular items on the shopping lists of many households (toilet liquids). During the recession toilets were cleaned more with multi-purpose cleaners. While this trend is expected to continue, with rising purchasing power, more task-specific toilet liquids will be purchased. People will also increasingly invest in products that are not considered as essential, such as rim blocks or rim liquids.
Multinational companies continued to dominate toilet care in Ukraine in 2011. Henkel, with its brand Bref led with a value share of 44%. It was followed by SC Johnson with 22%, with Toilet Duck. Leading player brands traditionally have a strong reputation and continue to benefit from strong brand equity – they are both well-known and popular brands within toilet care.
Toilet care is expected to show less dynamics over the forecast period, with a constant value CAGR of -1% and volume growth half of what it was over the review period, while consumer spending power is expected to grow, albeit marginally. Although, some of the most popular types of toilet care the in-cistern devices will expand over the forecast period.
Table 71 Sales of Toilet Care by Category: Value 2006-2011
Table 72 Sales of Toilet Care by Category: % Value Growth 2006-2011
Table 73 Toilet Care Company Shares 2007-2011
Table 74 Toilet Care Brand Shares 2008-2011
Table 75 Forecast Sales of Toilet Care by Category: Value 2011-2016
Table 76 Forecast Sales of Toilet Care by Category: % Value Growth 2011-2016