MARKET REPORT: DEODORANTS
Changing consumer habits, marketers’ responses
to these changes and product innovations have
allowed deodorants to maintain positive growth.
BY CARRIE LENNARD
n Brazil’s love affair with fragrances
resulted in market-leading
$2.9 billion deodorant sales.
n Sachet marketing has become a
valuable tool to increase sales in
n The mature Western European
market reports growth, with
increased focus on offering value-added products such as deodorants
with antiaging benefits.
n Nearly recession-proof, natural
deodorants typically retail
at approximately twice the price
of their standard counterparts,
making them an increasingly
important area of growth.
n Consumers are willing to pay a
premium for clear packaging and
luxurious sounding ingredients.
n The cost of manufacturing will likely
continue to rise, and this will pose
a threat to future growth and likely
lead to further consolidation.
44 Market Report: Deodorants
According to Euromonitor International, the deodorants ector was one of the few segments to post growth in 2008 (8% globally; up from
5% in 2007) and outperformed the global
cosmetics and toiletries market, which
saw 5% growth in the same period. (See
Figure 1.) ;is success is evidence of a
shi; in global consumer perception of
deodorants—from a product with relatively
low usage among consumers globally to
one that is fast becoming a necessary part
of daily grooming regimens. Despite strong
growth rates, deodorants still only account
for $17 billion in total sales worldwide,
or just 5% of the overall market. ;is
compares rather unfavorably with the 23%
share held by skin care products, proving
that there is still much work to be done if
deodorants are to reach their full potential.
Latin America’s Love
of Scent Key to Growth
Latin America was the strongest regional
contributor to the growth of deodorants in
2008, with a 17% value increase over 2007,
according to Euromonitor International.
;is growth was driven primarily by a
boom in sales in Argentina (28% value
growth), Venezuela (27%) and Brazil (18%).
Brazil was the largest single market for
deodorant sales, with sales of $2.9 billion in
2008, accounting for 17% of sales globally.
;e country’s dominance in retail sales
of deodorants stems partly from its love
a;air with fragrances, which accounts
for nearly one-;;h of its total cosmetics and toiletries sales. Deodorants are o;en used as a more a;ordable substitute for fragrances by lower-income consumers. ;e strong cultural emphasis placed on the importance of smelling good, combined with the increasing purchasing power of lower socioeconomic groups, contributed to the 18% rise in value sales in 2008 Gradual consumer trade-up from less expensive pump formats, as favored by domestic deodorant leader Natura, to more expensive sprays has also been a key factor in Latin America, leading to 59% growth in the sprays category in 2008. Leading companies such as Unilever, with its Rexona brand, are focusing on spray deodorants, with strong marketing activity and new product development. ;e main reasons behind this emphasis on sprays are that consumers who try the spray format rarely revert to less expensive deodorants uch as pumps, and more importantly, pro;t margins are higher for sprays than for pump deodorants.
Sachets Boost Sales
in Low-income regions
As many of the world’s consumers have
considerably lower incomes than those
in developed Western regions, sachet
marketing has become a valuable tool for
deodorant manufacturers to increase sales in
low-income regions. In India, for example,
Unilever has successfully marketed small
Rexona deodorant sticks for a fraction of the
cost of products sold in Western markets.