Finding Your Place in a Growing Market IRi sees opportunities in aerosol packaging 22 Spray April 2015 By Larry Levin Executive VP, Mid-Market Information Resources, Inc. (IRi) Any great marketer knows that packaging is one of the key ingredients of a successful product. It’s at the point of consideration, when a consumer is staring at two similar products in the store and trying to make a decision between them, that packaging can make or break a sale. Aerosols are one packaging option that, despite a tough economic climate—and less than favorable press in past years—have slowly but surely been increasing in popularity. Used for more than 50 years now, advances in aerosol design offer several product benefits, such as a pre-measured flow, an airtight on/off valve so that the product stays fresh and tamper resistance. Manufacturers and retailers eager for a slice of the aerosol pie will find opportunities are abundant within the $3.3 billion aerosol industry. Finding a place within different channels, such as dollar and convenience stores, or leveraging products already being manufactured that could benefit from aerosol packaging, are two of the first potential steps to success. The market Ease of use and cleanliness are just two reasons why aerosol product sales and the number of aerosol units have increased. Aerosol sales have increased by more than 1% during the past year in the U.S. to $3.3 billion, representing a quarter of all consumer packaged goods (CPG) category sales. While consumers have moved away from certain types of aerosols, such as spray deodorants, processed cheese and furniture polish, aerosol sales are continuing to grow in five categories: hair spray, insect repellent, household cleaners, whipped cream and suntan products. The most growth can be seen in food products, with an increase of almost 3% year-on-year. Manufacturers have taken advantage of this opportunity by significantly ramping up their use of aerosols as a delivery agent, driving nearly a quarter of total aerosol sales. For example, whipped cream grew more than 7% last year, in part by using innovation to capture the market with new flavors. Whipped cream manufacturers’ choice to innovate aerosol packaging is responsible, in part, for whipped creams’ $362 million in sales in the U.S. last year. The search for value The increase in aerosol products and sales has been happening at the same time shoppers’ mindsets have been changing. During the last six years, most of us have become more value-conscious, regardless of household income level. Almost one-third of highincome consumers are focused on value, according to IRi research. With this seemingly unending search for value, consumers are shifting shopping channels more than ever. In some cases, they’re moving away from grocery stores to more affordable channels such as club stores, dollar stores, Walmart and mass merchandisers. This paper was presented at the Consumer Specialty Products Association (CSPA) Annual Meeting.
Spray April 2015
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