The constant evolution of laundry care

Introduction

The insights in this article have been reached by looking at a sample of markets and shoppers via shopper behavioral data totaling 50+ million shoppers from dunnhumby’s global retailer partners and manufacturers (Unilever, Procter & Gamble and more) including brands like Comfort, Downy, Fairy, Gain, Lenor and many more. Brand names have been omitted in the analysis.

Laundry manufacturers are forever reinventing the wheel, focusing efforts and budgets on fulfilling new customer trends, from varying concentrations of liquids to antibacterials and evolving packaging.

Yet it’s rare for a new product to launch into a global, historic category and shift consumer behavior – but that’s exactly what scent boosters have done. Prior to their market entry, laundry was already a key category across retail with consistent growth in recent years. In the past year, the United States, Europe, Asia-Pacific (APAC) and Latin America (LATAM) regions have all seen sales growth between 4% and 11% in total laundry. Although inflation is partly responsible, in the USA higher frequency of purchase is driving this growth – and it’s the only region to see an increase in customer penetration (see Chart 1).

Chart 1: Total Laundry Year-on-Year

Enter scent boosters. The product has capitalized on the remarkable evolution of the laundry category, putting the industry in a spin – enjoying notable success despite its relatively simple application: giving an extra boost of fragrance that lasts even after clothes are dried and worn. The rise of scent boosters reflects changing consumer preferences, which have shifted from basic detergent formulations aimed at effectively cleaning clothes to a focus on clean garments that also smell great. But the impact, success and adoption of scent boosters varies among markets. In this article, we explore how scent boosters have performed in the United States, the United Kingdom and Europe, Latin America, and Asia-Pacific – and delve into their future prospects in the ever-evolving landscape of fabric care.

The rise of the scent boosters

The introduction of scent boosters marked a notable shift in the laundry category, accounting for 33% of the fabric softener category and 10% of total laundry in the USA. Creating a new sub-category in such an established category is no mean feat. Often, it would mean cannibalization within the category – but not so with scent boosters, which offer new – and significant – spend. Since their launch, scent boosters have gained traction globally – and there is enormous scope for markets with less uptake to replicate the success seen elsewhere.

Providing an enhanced fragrance experience has become a key selling point for many laundry care brands. In the USA and Europe, scent boosters have achieved similar market penetration to fabric conditioners. Yet it’s a polarized category; liked products do well over time, while disliked products decrease sales and/or get delisted. Scent boosters have augmented the fabric softener pie, adding new spend and accounting for 33% and 20% of category share of spend in the USA and Europe respectively.

The majority of scent booster sales have come from existing scent booster category shoppers spending more or by attracting completely new shoppers (see Chart 2), indicating that most growth is organic with little impact on fabric conditioner sales – which is great news for retailers.

Chart 2: Where Scent Booster Sales Have Come From

For brands, scent boosters are often positioned as premium or luxury products within the laundry category. They have higher price points compared with traditional fabric conditioners, reflecting the added value they offer in terms of scent enhancement and longer-lasting freshness. The product has also become a key differentiator for laundry care brands in a crowded market. Companies compete not only on the effectiveness of their cleaning formulas, but also on the quality and variety of scents offered in their scent booster products.

The success of scent boosters has fueled consumer demand for continued innovation in the laundry category. Manufacturers are continually developing new scent combinations, formulations, and delivery methods to meet evolving consumer preferences and maintain market competitiveness.

Scent boosters have been selling in some geographies since 2012, with sales increasing significantly in all geographies except the USA, where they have reached a plateau.

Chart 3: Category Trends

One issue in the USA is too many stock-keeping units (SKUs), most of which are significantly underperforming. If the USA were to remove some poorly performing SKUs, there would be much potential for growth (see Chart 4 right-side chart) which we predict could grow to 12% sales penetration. Using our substitutability science, we have identified that 75% of poorly performing SKUs in the USA would be swapped out by shoppers for other existing SKUs, thus creating more space in the category without losing sales or shoppers. Chart 4 (right side) shows the penetration projections of current high performing SKUs and low performing SKUs should these changes be implemented.

Chart 4: Shopper Penetration

Europe, while forecasted to continue steady sales growth, should follow suit and streamline its product selections to increase sales. LATAM and APAC, although further behind in their scent booster journey, would also benefit from applying these learnings

Regional market penetration

Loyalty is key. Across all geographies, scent boosters are bought by loyal shoppers. When it comes to brands, all regions show the same trend of a leader with the lion's share, a challenger and all others (see Chart 5). As with laundry as a whole, shoppers are brand loyal and mimic this pattern in scent boosters – if they buy Brand A’s detergent, they will also buy Brand A’s fabric softener and/or scent booster.

Knowing your shopper is also key. Scent boosters over-index with upmarket shoppers in the USA, APAC and LATAM, and the midmarket bracket in the EUROPE. The category is heavily dictated by brand, so CPGs need to focus on what brands and products will appeal to the upmarket and midmarket shoppers – and create detailed promotion plans that will entice price-sensitive shoppers.

Chart 5: Top Brands (Share of Sales)

Chart 6: Brand Loyalty Versus Brand Sales

Chart 7: Loyalty Segment Index Per Region

Of all the regions, EUROPE and the USA have seen the greatest success in terms of consumer purchasing and market penetration.

Chart 8: Shopper Penetration Trends Per Region

Drivers of success, region by region

The USA is well established as the current leader in scent boosters, but with considerations as to the character of different markets, the other regions are well-positioned to mimic this success – and even to take it further.

USA

Early adoption and strong market penetration driven by detailed marketing strategies and education
A wide variety of products and competitive landscape, leading to extensive marketing efforts to differentiate products
Receptive audience – American consumers are often influenced by advertising and marketing campaigns and embrace new products quickly
Positioned as premium products, targeting consumers with higher disposable incomes and driving greater profitability for manufacturers

Europe

Growing adoption and market expansion
Price sensitivity and emphasizing value proposition – manufacturers may need to adjust their pricing strategies to ensure affordability and accessibility
Offering scent options that align with local preferences
Marketing and education to drive awareness of scent boosters in the EUROPE market and establish them as essential laundry care product – and as an add-on to their basket, rather than a replacement product

APAC

Growing adoption and market expansion
Emphasizing the value proposition of scent boosters, such as long-lasting freshness and enhanced fabric care, will be crucial for increasing adoption among price-conscious consumers
Tailored scent profiles for options that resonate with local consumers
Investment in targeted marketing campaigns to educate consumers on the benefits of scent boosters

LATAM

Steadily growing adoption, albeit slower here compared with other regions. As LATAM’s economies develop and consumer purchasing power increases, there will be greater demand for added-value, convenience products
Carefully considered pricing strategies, including promotions, to make scent boosters available to a broader consumer base and emphasizing their value proposition, which is crucial for successful uptake
Offering scent options that resonate with local preferences
Targeted investment in marketing campaigns to educate on the benefits of scent boosters and establish them as must-have laundry care products

Future Prospects

As we can see, scent boosters have had a significant impact on the laundry category, influencing shopper purchases and changing their shopping habits. The data show that brand loyalty is key – if brands can capture new shoppers by understanding the markets in which they’re entering, then growth will follow.

So, what’s next? There are huge opportunities for growth if markets can do the following:

Learn from experience: The USA has flooded the market with products and, as a consequence, is seeing declines in purchasing. Europe has a smaller product set that’s experiencing strong growth, and it – and other markets – should be careful to avoid following in the footsteps of the USA by keeping a considered number of SKUs.
Understand your shopper: In LATAM, price is a significant barrier to entry. Scent boosters are deemed too expensive for regular consumption. Price-reduction promotions have worked well here – one four-week promotion saw the average price drop by 40%, which led to an increase in purchases of 297%.
Choose the right new products to launch: This is paramount for emerging markets, as the wrong products can have long-term damaging effects on purchases, especially if you are an existing key brand in laundry.
Grow total basket spend: On average across all regions, total retailer basket spend is 18% higher when scent boosters are purchased as compared with total laundry.

Reach the right demographic: Knowing your shopper is key to funneling resources in the right direction and increasing product penetration – and therefore sales. The majority of scent booster sales are incremental to the category and retailer.
Enter new categories: We have seen scent boosters take spend from categories as far-ranging as pet, bin liners, bleach, odor removers, home fragrance, beauty and beyond. This indicates that shoppers are using scent boosters for different functions outside of laundry, showing that they could have a multitude of new uses that have not yet been explored by consumer packaged goods. More research into shopper usage could uncover new product development opportunities. (see Chart 9).
Drive Incremental purchases: Cannibalization from scent boosters is low, meaning shoppers are buying both fabric conditioners and/or scent boosters – but not exclusively one or the other. With brand loyalty so strong in laundry, retailers and brands can leverage this and drive incremental growth by educating shoppers on how detergent, scent boosters and fabric conditioners have separate uses.

Chart 9: Total spend % scent boosters have taken from other categories in Europe

The evolution of the laundry category since the 1970s has been marked by a shift toward a more sensory and personalized experience, with scent boosters playing a pivotal role in this transformation – and they have been adopted to varying degrees of success across the USA, Europe, New Zealand and Latin America. The factors influencing their adoption differ based on market dynamics, consumer behaviors, and cultural preferences. For manufacturers, understanding these nuances is critical for the success of scent boosters in diverse global markets.

Looking ahead, scent boosters are poised for continued growth and innovation in the fabric care industry. Manufacturers are expected to focus on developing new scent combinations, formulations, and delivery methods to meet evolving consumer preferences. Additionally, as sustainability becomes increasingly important, there undoubtedly will be a rise in eco-friendly scent booster options, catering to environmentally conscious consumers. Packaging is an obvious place to start, with recyclable or biodegradable materials an option to reduce plastic waste.

Overall, scent boosters are expected to remain a key driver of innovation and growth in the fabric care industry, offering consumers new ways to enhance the freshness and fragrance of their clothes and brands the opportunity to gain new loyal shoppers.

Scent Boosters are just one example of bringing exciting innovation to a longstanding category. While it’s still a niche category, most of the spend from shoppers is incremental. The laundry category never stops to evolving and manufacturers have been fantastic in pushing the boat out for new innovations like scent boosters and we’re excited to see what comes next!

Author:

Eoin Delaney,

Global Insights Commercialisation Manager