Aerosol Insights David Luttenberger, CPP Global Packaging Director Mintel Group Ltd. © 2015 Mintel Group Ltd. All Rights Reserved. Confidential to Mintel. Who Is Mintel? The insights behind your next big idea 2 Consumers Markets Innovation Trends We ask 30,000 people for their opinions each month. We track consumer spending in 3,000 markets across 34 countries. We cover 33,000 new product launches from 62 countries each month. We track more than 70 consumer lifestyle trends and thousands of observations on a daily basis. New Aerosol Package Introductions Outpacing General CPG Packaging Global New Product* Introductions, By Launch Driver, Jan. 2010 - Sept. 2015 50.00% New Product 40.00% New Variety/Range Extension 30.00% New Packaging 20.00% Relaunch 10.00% New Formulation 0.00% 2010 2011 2012 2013 2014 2015 Global Aerosol Product Introductions, By Launch Driver, Jan. 2010 - Sept. 2015 60.00% New Product 50.00% Packaging Analyst POV The growth of packaging as a launch driver signals a recognition of the growth of the role “functional” packaging can bring to brand; to help create nextlevel engagements with shoppers and consumers. New Variety/Range Extension 40.00% New Packaging 30.00% Relaunch* 20.00% New Formulation 10.00% 0.00% 2010 3 2011 2012 2013 2014 2015 Source: Mintel GNPD *Food, Drink, BPC, HH, Household, Pet care *Relaunch base was 17 products Latin America Leads Introduction Growth By Region Aerosol Product Introductions Growth By Region 60.00% Europe 50.00% Asia Pacific 40.00% Latin America 30.00% North America 20.00% Middle East & Africa 10.00% 0.00% 2010 4 2011 2012 2013 2014 2015 Source: Mintel GNPD *MEA’s growth from a statistically small base Packaging Analyst POV In emerging or “under-served” markets, brands are using functional packaging attributes as brand messaging platforms. Skin Care A Global Growth Leader Aerosol Product Introductions By Top 10 End-use Categories 40.00% 35.00% Deodorants 30.00% Hair Products Air Care 25.00% Skincare Shaving & Depilatories 20.00% Fragrances Hard Surface Care 15.00% Pest Control Healthcare 10.00% Colour Cosmetics 5.00% 0.00% 2010 5 2011 Source: Mintel GNPD 2012 2013 2014 2015 Packaging Analyst POV While deodorants dominate by product type for aerosols, skin care product growth between Jan. 2010 – Dec. 2014 reached 170% and has outpaced that growth through Sept. 2015. North America Top 10 Companies Introducing Aerosol Products Procter & Gamble 61 50 49 SC Johnson 272 Unilever 73 Limited Brands 85 L'Oréal 213 157 Reckitt Benckiser Energizer Holdings Bayer 192 194 Henkel Walgreen Top Categories • Hair care • Air care • Skin care Top 3 On-pack Claims • Botanical/Herbal 33% • Eco-friendly Product 32% • Time/Speed 27% 6 Source: Mintel GNPD Latin America Top 10 Companies Introducing Aerosol Products Unilever SC Johnson Beiersdorf 72 Procter & Gamble 66 78 470 79 Coty Reckitt Benckiser 125 Colgate-Palmolive 145 216 180 181 Botica Comercial Farmacêutica L'Oréal Avon Top Categories • Deodorant • Air care • Hair care Top 3 On-pack Claims • Eco-friendly Product 66% • Long-lasting 41% • Male-oriented 35% 7 Source: Mintel GNPD Europe Top 10 Companies Introducing Aerosol Products 152 238 Unilever 176 Procter & Gamble 1,030 L'Oréal 303 Henkel 387 Beiersdorf 783 542 Coty SC Johnson Reckitt Benckiser 659 721 DM Drogerie Markt Oriflame Top Categories • Deodorant • Hair care • Air care Top 3 On-pack Claims • Long-lasting • Dermatologically tested • Male 8 Source: Mintel GNPD 38% 27% 23% APAC Top Companies Introducing Aerosol Products 79 Unilever 77 SC Johnson 81 478 121 Procter & Gamble Coty Beiersdorf 152 Reckitt Benckiser L'Oréal 207 174 180 Mandom 195 Top Categories • Deodorant • Air care • Skin care Top 3 On-pack Claims • Eco-friendly Product 32% • Long-lasting 32% • Male-oriented 29% 9 Raymond Group Source: Mintel GNPD S.T. Corporation Middle East/Africa Top 10 Companies Introducing Aerosol Products Unilever SC Johnson 33 32 Beiersdorf 39 166 Reckitt Benckiser 53 Procter & Gamble Coty 57 85 L'Oréal Revlon 65 76 80 Lenthéric Dis-Chem Top Categories • Deodorant • Air care • Fragrance Top 3 On-pack Claims • Eco-friendly Product • Long-lasting • Male-oriented 10 Source: Mintel GNPS 43% 34% 31% Masculine Is the New Millennial 46% of gender targeted launches in 2013 were aimed at men. Beauty and personal care products are among those men are increasing seeking out in a bid to look better, feel better about themselves, and gain confidence. On-pack Male-oriented Messaging/Graphics • 21st most popular globally • 36th most popular in the US 6th most popular in India 11 Be Clear. Be Quick. Be Honest. Don’t Stereotype. Looking forward, brands that can appeal to men’s desire for simplicity, while still offering functional, gender-relevant benefits, should stand to gain traction, no matter the package format. Paula’s Choice What It Does • Gives a close, smooth shave • Protects skin from razor burn • Rich cream rinses easily 12 Old Spice Fresh Lime What It Does Shifting Gears 13 Creating Emotional, Practical, Rational Connections With Consumers “Our package works for us because ___________.” 14 Creating Emotional, Practical, Rational Connections With Consumers “Our package makes consumers’ lives ___________.” 15 Can’t Get No [Spraying] Satisfaction Ease of Spraying/Pumping 80.00% 70.00% 60.00% Importance 50.00% Satisfaction 40.00% 30.00% 20.00% 10.00% 0.00% Beauty Care 16 Personal care Source: WestRock/MWV 2015 Packaging Matters Fragrance Household The Transition from Disruption To Solutions The Packaging Satisfaction Index helps identify the gap between how consumers view packaging’s “Importance” and “Performance” 80 70 Importance 60 Performance/ satisfaction 50 40 30 20 10 0 17 Source: MWV Packaging Matters. Feb. 2013 Note: 3,000 US consumers. Based on 17 attributes asked of all categories Aerosol White Space • Opportunities • Challenges • Questions 18 Source: Mintel BPC Packaging Inspirations PET Challenging Aluminum? Aerosol Product Introductions, Globally, By Pack Material 70.00% 60.00% 50.00% 40.00% 2010 2011 30.00% 20.00% 2012 2013 2014 10.00% 0.00% In June 2015, Nordica was the first to use “SprayPET” from APPE 19 Source: Mintel GNPD 2015 Function Vs. Form Colgate Ecuador 20 Source: Mintel GNPD Method Home Form, Function and Engagement Unilever’s “compressed” product and can technology 21 Source: Mintel GNPD Airless Challengers • Airless dispensing • Plastic container • Bag-in-bottle construction • Claims 100% evacuation 22 Source: APP http://www.lumson.com/en/airless-system/tag-system Airless Challengers: Bridging The Gap Between Triggers and Aerosols • Represents a hybrid between triggers sprayers and aerosol • Bag-in-bottle construction • Non-pressurized • Propellant-free/airless • Prolonged mist-like spray • Re-usable container • 99% product evacuation 23 Source: AFA Dispensing Group Same Thing Only…Creepier? PHD Skincares’ “Never Miss A Spot” wand for spray lotions 24 Source: Mintel GNPD Temis’ directional sore through spray applicator Spray Solutions The MiiSTS line of OTC ultra slim health/hygiene products is a pioneer in ultra-slim packaging. It features flat valve technology embedded in an injection moulded, ultrasonically welded two-piece container. This pack could be a technology transfer candidate into the food, drinks, pet care or household products category. 25 Source: Miists.com Key Takeaways and Points of View 16 14 12 10 8 6 4 2 0 Importance Satisfaction Identify and work to fill the gap between packaging importance and satisfaction. 26 Key Takeaways and Points of View It’s OK not to look like every other package in the category. It’s not OK not to look like any other package in the category. 27 Key Takeaways and Points of View Think about how packaging can become the value-driver and brand-messaging platform. 28 Key Takeaways and Points of View Our package makes consumers’ lives ___________. 29 Thank you. Let’s stay in touch. David Luttenberger, CPP Global Packaging Director Tel: 856-292-8292 Email: dluttenberger@mintel.com Twitter: @packaginggeek © 2015 Mintel Group Ltd. All Rights Reserved. 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