On the Cusp... The Global Aerosol Landscape This paper was originally presented at aerosolsydney2014 in Sydney, Australia. Use of aerosol products by consumers grew by a compound annual growth rate of 2% globally between 2008 and 2013. This is steady, albeit unspectacular, growth, but this 2% figure obscures far more interesting and favorable regional trends, such as the double digit growth that is occurring in Latin America and the more than 6% compound annual growth occurring in the Asia Pacific region. Why Are Latin America & Asia Pacific Growing So Fast? Urbanization is one major influence on development in these regions. Consumers in Latin America and Asia Pacific are increasingly gathering into cities, where lifestyles are significantly different than in rural areas. Consumers earn higher incomes on average in cities and there is a wider range of products available. More important than just population increases are increases in the number of households. Globally speaking, although the population grew by 6% between 2008 and 2013, the number of households grew by closer to 10%. Aerosol cans are frequently used in home care products (insecticides and air fresheners are obvious examples), which are bought on a household consumer basis, not an individual one. As the size of the average household declines—and the number of households increases—the target market for aerosol cans rises with it. These trends are occurring particularly in the BRIC economies of Brazil, Russia, India and China, where average disposable incomes have surged over the last five years. Average disposable incomes have grown by an average of 13% each 18 Spray January 2015 year in India and China, by 12% in Russia and 10% in Brazil. This is important for aerosol can sales, because as disposable incomes rise, consumers tend to progress into the modern world. They want modern solutions to everyday problems, leaving traditional methods behind. Metal aerosol cans often provide an affordable entry point into these modern day solutions. The 2% compound annual growth rate for aerosol cans also obscures the vast range of applications that consumers use aerosol cans for, which vary considerably across the globe. Asia Pacific and Latin America might both be the two fastest growing regions for aerosol cans— responsible for more than two-thirds of the growth in aerosol cans consumption over the last five years—but the end-uses that are driving this growth are wildly different. In the Asia Pacific region, 43% of aerosol can consumption is insecticides, while in Latin America, it is deodorants—at 47%—that make up the largest portion of aerosol can consumption. Deodorants: The Dominant Driver It is because these two regional markets are so rapidly growing that the vast majority of aerosol can growth over the last five years has resulted from essential applications: deodorants and insecticides. In fact, 56% of the growth in aerosol can usage has come from deodorants alone, much of which has come from Latin America. Yet it is India that has been the fastest growing market for deodorantrelated aerosol can consumption over the last five years. The most interesting thing about the Indian deodorant market is that households, even middle class households, can generally only afford one can of deodorant Daniel Grimsey Senior Research Analyst Euromonitor International As disposable incomes of Brazilian men rise, they aspire to look and smell better.
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