April 2015 Spray 23 In fact, we have seen a continued growth in penetration among households with annual incomes in excess of $100,000 as they search for value and feel that it’s “chic to drive a Mercedes to a dollar store.” The greatest shifts can be seen in the dollar channel, with the average number of aerosol units sold increasing by 39% during the past five years, while the total of U.S. retailers saw 12% aerosol sales growth during the same time frame. The availability of more products has helped drive sales to rise at rates three times faster than the aerosol segment as a whole. The power of aerosol categories becomes more obvious when they are in a consumer’s basket. More than 98% of consumers make an average of 13 trips to the store each year, spending $85 on aerosol product categories in total during those trips. When aerosol categories are purchased, basket value is nearly twice as high at $74.60, versus $38.23 when its categories are not purchased. This is more pronounced when looking at food categories with an aerosol category presence, where basket value is $88.20 versus $40.30. Nonfood categories also see a major difference, with an aerosol presence valued at $71.07 versus $39.06. While most of these purchases are likely to occur in traditional stock-up trips, the power of adding one more purchase can create a powerful sales “hat-trick” with retailers, manufacturers and the categories all winning by driving that extra visit! This is something manufacturers should pay attention to when working with retailers to manage promotions and drive trips as well as innovation teams as they strive to offer consumers more efficient alternatives in their busy lives. Recommendations for growth In addition to leveraging the growth of value channels such as dollar stores, which grew 2% in 2014, manufacturers should consider the aerosol category overall. While the category is flat, food products have shown significant growth in their adoption of aerosol packaging. For example, consumers can now find every type of cooking spray in aerosol form as well as bottled, giving them the variety they desire while making purchases. Food manufacturers should consider if they already have products that could be innovated to work in aerosol form. If a manufacturer already has aerosols, re-engineering the can to include a pre-measured metered spray or a cleaning product could be one useful way to extend the idea of value to consumers. If not, searching for opportunities to get into the aerosol growth curve could lead to sales. Non-food manufacturers should think about whether similar aerosol innovation opportunities exist for categories such as air care and sun care, where recent product development has found success in other forms. The 3% year-on-year growth of food aerosols, despite the flatness of the food category, could be a viable point of entry for food brands considering new forms of their product. The impact of adding a store trip or two for consumers wanting to purchase aerosol food categories could be huge for both manufacturers and retailers. Aerosol is a market with abundant opportunity for manufacturers and retailers to be involved. Creating products that offer ease of use and innovation are some of the first steps to being placed in shopper’s baskets. SPRAY
Spray April 2015
To see the actual publication please follow the link above