Children's Personal Care - US - March 2012

SCOPE AND THEMES
What you need to know
Definition
Data sources
Sales data
Consumer survey data
Advertising creative
Abbreviations and terms
Abbreviations
Terms
EXECUTIVE SUMMARY
The market
Population younger than 12 expected to grow
Encourage parents to see value of kids’ brands
Keep prices low
Suncare surges in the market
The consumer
Create lines for teens and tweens
Younger parents influenced by kids’ desires and worried about safety
Parents show high levels of interest in natural ingredients and products for sensitive skin
INSIGHTS AND OPPORTUNITIES
Key points
Create new line for tweens
Stress how products contribute to health and safety
Kids-only products
Create more midmarket products for kids
INSPIRE INSIGHTS
Trend: Rise of the Screenager
Trend: Factory Fear
MARKET SIZE AND FORECAST
Key points
Discretionary spending still slow
Private labels encourage national brands to keep prices low
Value-priced products do well
Sales and forecast of market
Figure 1: Total U.S. retail sales and forecast of market, at current prices, 2006-16
Figure 2: Total U.S. retail sales and forecast of market, at inflation-adjusted prices, 2006-16
Fan chart forecast
Figure 3: Total sales and fan chart forecast of market, at current prices, 2006-16
Walmart sales
MARKET DRIVERS
Key points
Population younger than 12 grew from 2006-11 and will continue
Figure 4: Population, by age, 2006-16
Population of Hispanic children outpaces all other groups
Figure 5: U.S. Hispanic and non-Hispanic population of children, 2006-16
Consumer sentiment remains relatively low
Figure 6: University of Michigan’s index of consumer sentiment, January 2007-March 2012
Median household income continues to drop
Figure 7: Median household income in inflation-adjusted dollars, 2000-10
Women more likely to have children later in life
Figure 8: Fertility rate and number of births, 1997-2007
COMPETITIVE CONTEXT
Key points
Use of adult products diminishes purchase of CPC products
Private labels increase in popularity
SEGMENT PERFORMANCE
Key points
Encourage consumers to see benefits of kid-specific products
Suncare sales see increase
Sales of children’s personal care products, by segment
Figure 9: Total U.S. retail sales of children's personal care products, by segment, 2006-11
SEGMENT PERFORMANCE—ORAL HYGIENE
Key points
Oral care market sees declines
Sales and forecast of children’s oral hygiene products
Figure 10: Total sales and forecast of children’s oral hygiene products, at current prices, 2006-16
SEGMENT PERFORMANCE—SUNCARE
Key points
Sales of suncare products buck downward CPC trend
Sales and forecast of suncare CPC products
Figure 11: Total sales and forecast of suncare, at current prices, 2006-16
SEGMENT PERFORMANCE—HAIRCARE
Key points
Sales of children’s haircare products continue to decline
Sales and forecast of children’s haircare products
Figure 12: Total sales and forecast of children’s haircare products, at current prices, 2006-16
SEGMENT PERFORMANCE—BATH AND BODY CARE
Key points
When it comes to bathing, Suave remains the go-to choice
Natural ingredients may be important for manufacturers
Sales and forecast of body and bath care CPC products
Figure 13: Total sales and forecast of body and bath care, at current prices, 2006-16
RETAIL LOCATIONS FOR PURCHASES
Key points
Mass merchandisers most popular place to buy CPC products
Figure 14: Retail locations for purchases, by gender, November 2011
Drug stores popular with respondents aged 45+
Figure 15: Retail locations for purchases, by age, November 2011
Those earning less shop at dollar stores, those earning more club stores
Figure 16: Retail locations for purchases, by household income, November 2011
RETAIL CHANNELS
Most CPC products purchased from mass merchandisers
Sales of household children’s personal care products, by channel
Figure 17: Total sales of children’s personal care products, by channel
Figure 18: Total sales of children’s personal care products, by channel, 2009 and 2011
RETAIL CHANNELS—OTHER FDMX CHANNELS
Key point
Sales at “other stores” such as mass merchandisers pick up slightly in 2011
Other store sales of children’s personal care products
Figure 19: Total other store sales of children’s personal care products, at current prices, 2006-11
RETAIL CHANNELS—DRUG STORES
Key point
Drug stores sales increase 5.7% in 2011
Drug store sales of children’s personal care products
Figure 20: Drug store sales of children’s personal care products, at current prices, 2006-11
RETAIL CHANNELS—SUPERMARKET
Key point
Supermarket sales of children’s personal care products continue to decline
Supermarket sales of children’s personal care products
Figure 21: Supermarket sales of children’s personal care products, at current prices, 2006-11
LEADING COMPANIES
Key points
Unilever’s Suave haircare and body wash push it into CPC lead
Oral care market down
Energizer Holdings sees gains with suncare products
Manufacturer sales in CPC market
Figure 22: Manufacturer sales of children’s personal care, 2010 and 2011
BRAND SHARE—ORAL HYGIENE
Key points
Despite use of popular characters, Colgate loses market share
Classic characters faring well for Johnson & Johnson
Chattem ACT Anticavity Rinse shows gains
“My Way” product does well
Manufacturer sales of children’s oral hygiene products
Figure 23: FDMx manufacturer sales of children’s oral hygiene products, 2010 and 2011
BRAND SHARE—SUNCARE
Key points
“Pure” products do well in the market
Banana Boat does well with Mist line
Manufacturer sales of children’s suncare products
Figure 24: FDMx manufacturer sales of children’s suncare products, 2010 and 2011
BRAND SHARE—HAIRCARE
Key points
Unilever finds gains with kid-friendly, easy-to-use products
L’Oreal gains with Pixar Cars
Manufacturer sales of children’s haircare products
Figure 25: FDMx manufacturer sales of children’s haircare products, 2010 and 2011
BRAND SHARE—BATH AND BODY CARE
Key points
Unilever holds strong with most popular product
Characters not always effective
Manufacturer sales of bath and body care CPC products
Figure 26: FDMx manufacturer sales of bath and body care, 2010 and 2011
INNOVATIONS AND INNOVATORS
Key points
Fluoride and natural ingredients in new toothpastes
Toothbrushes target tweens
Haircare uses imagery directed at boys
Natural, “free from” products in suncare segment
MARKETING STRATEGIES
Overview of the brand landscape
Brand analysis: Suave Kids
Figure 27: Brand analysis of Suave Kids, 2011
Online initiatives
In-store activities push brand
Brand analysis: Neutrogena
Figure 28: Brand analysis of Neutrogena, 2011
Online initiatives
TV presence
Figure 29: Neutrogena, television ad, 2011
Brand analysis: ACT Anticavity Rinse for Kids
Figure 30: Brand analysis of ACT Anticavity Rinse for Kids, 2011
Online initiatives
TV presence
Figure 31: ACT mouthwash, television ad, 2011
PURCHASES OF CHILDREN’S PERSONAL CARE PRODUCTS
Key points
Relatively high numbers of men say they buy CPC products
Figure 32: Purchases of children's personal care products, by gender, November 2011
Parents of different ages report purchasing different CPC products
Figure 33: Purchases of children's personal care products, by age, November 2011
Respondents earning $75K-99.9K highly likely to buy CPC
Figure 34: Purchases of children's personal care products, by household income, November 2011
Adult brands may want to consider creating lines for tweens and teens
Figure 35: Purchases of children's personal care products, by age of children, November 2011
PRIMARY PURCHASER OF CHILDREN’S PERSONAL CARE PRODUCTS
Key points
Adults weigh in on CPC purchases, kids have some say
Figure 36: Purchases of children's personal care products, by primary purchaser of children's personal care products, November 2011
Parents not likely to let kids choose on their own
Figure 37: Primary purchaser of children's personal care products, by age, November 2011
Households earning $100K+ most likely to have adult choose CPC products
Figure 38: Primary purchaser of children's personal care products, by household income, November 2011
USE AND BRAND PREFERENCES OF KIDS
Key points
Most kids use shampoo, toothpaste, and soap
Girls aged 9-11 highly likely to use personal care products
Figure 39: Personal care products, by gender and age, April 2010-June 2011
Suave popular among kids aged 6-11
Figure 40: Shampoo, by gender and age, April 2010-June 2011
REASONS FOR PURCHASES
Key points
Respondents indicate they buy CPC products because children are enthusiastic about them
Figure 41: Primary reasons for children's personal care purchases, by gender, November 2011
Respondents aged 45+ interested in products that children are enthusiastic about
Figure 42: Primary reasons for children's personal care purchases, by age, November 2011
Respondents earning $100K least likely to buy products because child asks
Figure 43: Primary reasons for children's personal care purchases, by household income, November 2011
PREFERRED INGREDIENT TYPES
Key points
All-natural ingredients important to parents
Figure 44: Preferred ingredient types, by gender, November 2011
Younger parents look for products that are natural and safe
Figure 45: Preferred ingredient types, by age, November 2011
Respondents earning less than $50K interested in natural products
Figure 46: Preferred ingredient types, by household income, November 2011
ATTITUDES TOWARD CHILDREN’S PERSONAL CARE PRODUCTS
Key points
CPC products seen to engage kids in grooming
Figure 47: Attitudes toward children's personal care products, by gender, November 2011
Younger parents concerned about price, likely to look online
Figure 48: Attitudes toward children's personal care products, by age, November 2011
Middle-income respondents concerned about price, likely to be online
Figure 49: Attitudes toward children's personal care products, by household income, November 2011
APPENDIX—OTHER USEFUL CONSUMER TABLES
Figure 50: Attitudes toward children's personal care products, by gender, November 2011
Figure 51: Attitudes toward children's personal care products, by age, November 2011
APPENDIX—TRADE ASSOCIATIONS