Euromonitor - Deodorant Industry

10/11/2015
EuromonitorInternationalAnalysis
DeodorantsinIndia
CategoryBriefing|23Jul2015
HEADLINES
Deodorantsseescurrentvaluegrowthof23%in2014,toreachINR24.0billion
Deodorantpumpsincreasesby70%incurrentvaluetermsin2014,drivinggrowthindeodorants
Theaveragepriceofdeodorantspraysincreasesby1%anddeodorantpumpsby7%in2014,whichisattributedto
thepremiumisationofmassdeodorants
ViniCosmeticsreplacesHindustanUnileverastheleaderindeodorantsin2014,witha17%valueshare
DeodorantsisexpectedtoincreasebyavalueCAGRof14%atconstant2014pricesintheforecastperiod,toreach
INR45.2billionin2019
TRENDS
Deodorantpumpsdisplayedremarkablecurrentvaluegrowthin2014,andthusdrovegrowthindeodorants,which
otherwiseincreasedatasteadypace.Asthecategoryisdrivenbyimpulsebuyingbehaviourandhaslowbrand
loyalty,manufacturersarelaunchingvariantsbasedonfragrancestoremainstrong.
Althoughdeodorantssawoneofthefastestgrowthratesinbeautyandpersonalcarein2014,growthwasslower
thanthe28%currentvaluegrowthin2013,becausetheseproductsarerelativelynewinIndiaandthecategoryis
movingtowardsastablegrowthrate.
Thecurrentvaluegrowthofdeodorantswas23%in2014.Thiswasmainlyduetorisingdisposableincomes
amongstconsumersintheagegroup2030,whooptfordeodorantsovertalcumpowdertotacklebodyodour.
Growthdriverssuchasfasterruralpenetrationandusersbuyingmultiplebrandsorvariantsfordifferentoccasions
alsodrovegrowthinthiscategory.
Deodorantpumpssawthefastestgrowthof70%incurrentvaluetermsin2014.Thiscanbeattributedtotheclaim
ofpumpstodelivermoresprayspercanandalonglastingfragrancecomparedwithaerosolbasedsprays.This
functionalaspect,aswellasvalueformoney,actedasagooddifferentiationfactorinthecrowdedand
cluttereddeodorantscategory.
AntiperspirantshadnegligiblesalesinIndiain2014,mainlybecauseofdistinctusageofdeodorantsinIndia,i.e.
sprayingoverclothing.Also,antiperspirantshaveanegativeimpressionamongstconsumersofblockingthesweat
glands,andarealsobelievedtoleadtoskinrelatedissues.Themajorlaunchesinthiscategorydidnotperformwell
duetothesefactors.
Deodorantshasoneofthehighestnumbersofvariantsinbeautyandpersonalcare.Fragrancebasedvariantsare
popularbecauseconsumerspreferdeodorantasacheaperalternativetofragrance,andapplyitovertheirclothing
ratherthanforitsintendeduse,whichisasabodyspray.
TheuseofdeodorantsinIndialargelyvariesfromitsintendedusage.Mostconsumersspraydeodorantsovertheir
clothingasafragranceasopposedtoitsintendedusage,whichisasabodyspray.Somebrandshaveidentifiedthis
peculiarcharacteristic,andhavelaunchedfragrancesinsimilarpackingtothatofadeodorantcan.Productlaunches
in2014includedLayerrShotbyAdjavisVenturesandITCsEngagecolognespray.
COMPETITIVELANDSCAPE
ViniCosmeticshelda17%valueshareindeodorantsandovertookHindustanUnilevertogaintheleadingposition
in2014.TheFoggdeodorantpumpbyViniCosmeticsclaimstodeliver8001,000sprayspercan,alongwithlong
lastingfragrance.ViniCosmeticspromotedFoggacrossvariousmediabyquantifyingthenumberofsprayseach
bottlecanprovidetoaconsumer,whereasotherplayerscontinuedtofocusonadvertisingwhichprimarilywasbased
onattractingtheoppositegender.
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FoggdeodorantfromViniCosmeticsreachedasignificantvalueshareof17%indeodorantsin2014.Foggwas
promotedacrossvariousmediachannels,includingtelevision,POSinmodernretailchannels,andclearlycitedthe
morespraypercanfunctionalpositioning.
Axe,theleaderindeodorantsuntil2013,lostsharetootherbrands,includingthecurrentbrandleaderFogg.This
canbeattributedtoFoggsuniquepropositioncomparedwithAxe,despiteusingcelebrityendorsement.
In2014deodorantswasledbydomesticbrandsFoggbyViniCosmeticsandWildStonebyMcNroeChemicalsPvt
Ltdwithsharesof17%and11%respectively.InternationalbrandssuchasAxebyHindustanUnileverandEngageby
ITCwerethirdandfifthindeodorantsinIndia.
Withthegrowingpopularityofdeodorantpumps,themarketsawnewlaunchesinthiscategorybyalmostallthe
majorplayers.HindustanUnilever,ITCandMcNroeChemicalslaunchedpumpvariantstomeetthegrowingdemand
forthisformat.Deodorantpumpsarealsoknownasnogasdeodorants,meaningnonaerosol.
In2014AdjavisVenturelaunchedanewdeodorantpumpunderthebrandnameLayerrShotformenand
Wottagirl!forwomen.ThetelevisioncampaignfeaturedBollywoodactorImranKhanpromotingtheadvertisement.
ThesedeodorantsuseplasticbottlesratherthanthemetalbottlesusuallyusedbyplayersacrossdeodorantsinIndia.
Thischaracteristicisusedtodifferentiateitfromotherbrands,asitwasthefirsttimethatadeodorantwaschosento
bepackagedinacleartransparentbottle.
PremiumdeodorantssuchasFerrariandHugoBossareavailableinselecteddepartmentstores,suchasCentral
andShoppersStop.Therewerenoprivatelabeldeodorantsavailablein2014.
PROSPECTS
Morebrandsandvariantsareexpectedinwomensdeodorants,whichcurrentlycontributes31%ofcurrentvalue
sales.ThiscanbeattributedtogrowingawarenessofhygieneandwellbeingamongstwomenThesenewlaunchesin
womensdeodorantswillincludesecondarybenefitssuchasskinwhiteningorhairgrowthlimiters.
DeodorantsisexpectedtoincreasebyavalueCAGRof14%atconstant2014pricesovertheforecastperiod,to
reachINR45.2billionin2019.
DeodorantpumpsisexpectedtoseethefastestCAGRof23%atconstant2014prices,andwilldrivesales
ofdeodorantsinIndia.Thisismainlybecauseofitsfunctionalcharacteristicofdeliveringmoresprayspercanthan
aerosolbasedsprays.Thisisexpectedtosuitconsumersrequirementsintheprevailinginflationaryenvironment.
Deodorants,asarelativelynewcategoryinIndia,withlowentrybarriersandfairmargins,willattractnewsmaller
players.From2012,newerplayerssuchasViniCosmeticsandITCwereabletogainmajorshareoverashort
period,whichwillinturnencouragecompetition.
Themajorlaunchesin2014wereindeodorantpumps.Majorbrandsofdeodorantsventuredintodeodorantpumps
tobenefitfromthegrowthofthecategory,andthiswasalsoevidentfromtheproductshelfplacementacrossmodern
retailchannels.Duringtheforecastperiodfragrancevariantbasedlaunchesareexpectedinpumpdeodorants.
CATEGORYDATA
Table1SalesofDeodorantsbyCategory:Value20092014
INRmillion
2009
2010
2011
2012
2013
2014
DeodorantCreams
DeodorantPumps
1,203.5
2,486.1
4,212.9
DeodorantRollOns
96.1
108.6
132.7
157.1
177.8
198.1
DeodorantSprays
5,576.8
7,821.0
11,153.0
13,840.4
16,806.3
19,612.4
DeodorantSticks
DeodorantWipes
4.1
5.0
6.1
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Deodorants
5,672.9
7,929.6
11,285.7
15,205.1
19,475.3
24,029.5
Source:EuromonitorInternationalfromofficialstatistics,tradeassociations,tradepress,companyresearch,storechecks,trade
interviews,tradesources
Table2SalesofDeodorantsbyCategory:%ValueGrowth20092014
%currentvaluegrowth
2013/14
200914CAGR
2009/14Total
DeodorantCreams
DeodorantPumps
69.5
DeodorantRollOns
11.4
15.6
106.0
DeodorantSprays
16.7
28.6
251.7
DeodorantSticks
DeodorantWipes
23.8
Deodorants
23.4
33.5
323.6
Table3SalesofDeodorantsbyPremiumvsMass:%Value20092014
%retailvaluersp
2009
2010
2011
2012
2013
2014
Premium
1.7
1.8
1.8
1.8
1.8
1.9
Mass
98.3
98.3
98.3
98.2
98.2
98.2
Total
100.0
100.0
100.0
100.0
100.0
100.0
Table4NBOCompanySharesofDeodorants:%Value20102014
%retailvaluersp
2010
2011
2012
2013
2014
ViniCosmeticsPvtLtd
7.9
12.4
16.6
McNroeChemicalsPvtLtd
9.5
10.7
10.8
10.8
10.7
HindustanUnileverLtd
29.6
29.3
21.5
14.4
9.9
HeleneCurtisIndiaLtd,JK
1.7
1.7
2.3
3.8
7.7
ITCLtd
4.5
6.6
MaricoLtd
7.1
6.7
5.3
TTKHealthcareLtd
5.2
5.6
5.1
5.0
5.1
NiveaIndiaPvtLtd
4.8
5.1
5.4
4.9
5.1
NikeIndiaPvtLtd
3.5
3.4
3.6
3.8
3.8
JyothyLaboratoriesLtd
5.7
5.2
4.2
3.4
CavinKarePvtLtd
6.2
5.4
5.1
3.4
2.7
MenezesCosmeticsPvtLtd
2.2
2.0
1.9
1.6
2.0
WiproLtd
1.6
1.6
1.6
1.5
1.4
OriflameIndiaPvtLtd
1.1
0.8
0.6
1.3
1.1
adidasIndiaMarketingPvtLtd
0.6
0.7
0.8
0.8
0.9
AvonBeautyProductsIndiaPvtLtd
1.3
1.3
1.1
0.8
0.7
FerrariGiovanniIndustriaCaseariaSpA
0.3
0.4
0.5
0.5
0.5
GilletteIndiaLtd
0.5
0.4
0.4
0.3
0.3
HindustanLeverNetwork
0.1
0.1
0.1
0.1
0.1
ModicareLtd
0.1
0.1
0.1
0.1
0.1
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ReckittBenckiser(India)Ltd
10.4
9.0
HenkelIndiaLtd
6.3
HindustanLeverLtd
LornameadGroup
LornameadPersonalCarePvtLtd
Others
15.0
16.7
19.0
19.2
16.1
Total
100.0
100.0
100.0
100.0
100.0
Table5LBNBrandSharesofDeodorants:%Value20112014
%retailvaluersp
Company
2011
2012
2013
2014
Fogg
ViniCosmeticsPvtLtd
7.9
12.4
16.6
WildStone
McNroeChemicalsPvtLtd
10.7
10.8
10.8
10.7
ParkAvenue
HeleneCurtisIndiaLtd,JK
1.7
2.3
3.8
7.7
Axe
25.1
17.8
11.4
7.1
Engage
ITCLtd
4.5
6.6
SetWet
MaricoLtd
7.1
6.7
5.3
Eva
TTKHealthcareLtd
5.6
5.1
5.0
5.1
NikeSportPerformance
NikeIndiaPvtLtd
3.4
3.6
3.8
3.8
Spinz
CavinKarePvtLtd
5.4
5.1
3.4
2.7
NiveaDeodorant
NiveaIndiaPvtLtd
2.7
2.7
2.5
2.6
Dove
3.0
2.7
2.5
2.5
NiveaDeodorantforMen
NiveaIndiaPvtLtd
2.2
2.4
2.2
2.2
OldSpice
MenezesCosmeticsPvtLtd
2.0
1.9
1.6
2.0
Fa
3.5
3.2
2.5
2.0
FaMen
2.1
2.0
1.7
1.4
YardleyofLondon
WiproLtd
1.6
1.6
1.5
1.4
adidas
adidasIndiaMarketingPvtLtd
0.7
0.8
0.8
0.9
Ferrari
0.4
0.5
0.5
0.5
OriflameGlacier
OriflameIndiaPvtLtd
0.2
0.2
0.4
0.3
GilletteSeries
GilletteIndiaLtd
0.4
0.4
0.3
0.3
NiveaRollon
NiveaIndiaPvtLtd
0.2
0.3
0.3
0.3
AvonLittleBlackDress
0.3
0.2
0.2
0.2
DenimDeoSpray
0.3
0.3
0.2
0.1
AvonSenses
0.4
0.3
0.1
0.1
AvonStyx
0.3
0.3
0.2
0.1
Oriflame24HActive
OriflameIndiaPvtLtd
0.1
0.1
0.1
0.1
DIY
HindustanLeverNetwork
0.1
0.1
0.1
0.1
AvonFeelin'Fresh
0.2
0.1
0.1
0.1
Essensual
ModicareLtd
0.1
0.1
0.0
0.0
Rexona
0.9
0.6
0.2
0.0
Protection
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SetWet
ReckittBenckiser(India)Ltd
9.0
Others
Others
17.6
19.6
20.3
17.1
Total
Total
100.0
100.0
100.0
100.0
Table6LBNBrandSharesofPremiumDeodorants:%Value20112014
%retailvaluersp
Company
2011
2012
2013
2014
Ferrari
20.4
28.8
29.1
27.1
Others
Others
79.6
71.2
70.9
72.9
Total
Total
100.0
100.0
100.0
100.0
Table7ForecastSalesofDeodorantsbyCategory:Value20142019
INRmillion
2014
2015
2016
2017
2018
2019
DeodorantCreams
DeodorantPumps
4,212.9
5,575.4
7,105.2
8,652.7
10,213.7
11,784.6
DeodorantRollOns
198.1
206.8
217.9
230.3
243.6
257.5
DeodorantSprays
19,612.4
22,216.2
24,476.9
27,324.1
29,828.3
33,110.7
DeodorantSticks
DeodorantWipes
6.1
7.0
7.9
8.8
9.6
10.6
Deodorants
24,029.5
28,005.3
31,807.9
36,215.9
40,295.2
45,163.4
Source:EuromonitorInternationalfromtradeassociations,tradepress,companyresearch,tradeinterviews,tradesources
Table8ForecastSalesofDeodorantsbyCategory:%ValueGrowth20142019
%constantvaluegrowth
2014/2015
201419CAGR
2014/19TOTAL
DeodorantCreams
DeodorantPumps
15.4
22.8
179.7
DeodorantRollOns
5.7
5.4
30.0
DeodorantSprays
11.0
11.0
68.8
DeodorantSticks
DeodorantWipes
9.4
11.5
72.2
Deodorants
12.1
13.5
87.9
Table9ForecastSalesofDeodorantsbyPremiumVsMass:%Value20142019
%retailvaluersp
2014
2015
2016
2017
2018
2019
Premium
1.9
1.9
1.9
1.9
1.9
1.9
Mass
98.2
98.2
98.1
98.1
98.1
98.1
Total
100.0
100.0
100.0
100.0
100.0
100.0
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