Chicago, IL, United States (4E) – Among the industries in the United States, the home and personal care market remains a stable source of growth amid uneven economic recovery. In 2010, the Personal Care Council reported that personal care products contributed $189 billion or 1.4 percent to the country’s gross domestic product (GDP), $110 billion in labor income and $51 billion in tax payments.
The report said that despite the recession, the industry did not suffer significant decline and even experienced a slight increase in employment from 2007 to 2009.
Euromonitor predicts moderate positive growth of the industry until 2017 as increasing disposable income allow consumers to buy premium and value-added products. This is consistent with Standard & Poor’s explanation that the health of consumer product companies depends on GDP, consumer spending and sentiment, employment and disposable personal income.
It is important to note that an industry trend being bolstered by home and health care companies is the marketing of therapeutic and indulgent products, especially in the bath and shower segment.
Unique and diverse fragrances are the selling point of many new industry players. Products are now being positioned with concepts of relaxation and de-stressing. Bath products are not only used for cleaning but also to address stress levels.
Many consumers are also looking for products with organic and environment-friendly ingredients. Across all industries, there is high demand for green products. This explains Method’s 98 percent sales growth in beauty and personal care products, as well as its competitor Seventh Generation’s 49 percent increase in value sales, according to Euromonitor.
Furthermore, there is pressure from critics to stop the sale and start the recall of many home products containing harmful chemicals and potential carcinogens.
Companies such as Pacific Shore Holdings Inc. (PSHR), which offer green but affordable products, are expected to see a boost in sales in the coming years. Although catering to the market of environment-conscious and organic-loving consumers, their products are priced to appeal to a larger segment of customers instead of being promoted as premium and niche products.
Pacific Shore aims to provide an alternative green product to a variety of household and personal items, from pest control to energy supplements. In sync with the market’s demand is its Home Spa division which markets natural aromatherapy products.
Nestled in the bath and shower category, HomeSpa is a shower spray developed using 100 percent natural and quality ingredients. It is positioned in the market to cater to consumers looking for spa products to be used at home. Made with therapeutic and essential oils, HomeSpa is supposed to also serve as an aromatherapy product.
HomeSpa comes in four varieties: Eucalyptus Shower Spray, Lavender Shower Spray, Pink Grapefruit Shower Spray, and Tangerine Shower Spray.
HomeSpa’s competitors include Method’s line of organic body wash in summer limited edition fragrances. However, its direct competitors in the aromatherapy home spa segment are specialized brands such as Bath & Body Works, The Body Shop and others whose products may sell at a higher price range and may not be made from organic and environment-friendly ingredients.
With the younger generation of consumers looking for greener and organic alternatives, companies like Pacific Shore are expected to flourish and expand their product line. Established personal care companies may also explore similar strategies in product development as they continue to be threatened by new and innovative companies.