The Power of Portable...Beverageware By Joe Derochowski, The NPD Group, Inc. Covering Quarter 4, 215 Everywhere I look, I see portable beverages. Whether at the gym, in the office, on the street or on retail shelves, portable beverageware seems to be everywhere, all of the time. This category taps into so many consumer desires that it s not surprising it has become a big business. According to NPD s Retail Tracking Service, sales of portable beverageware grew 29 percent in 215 to $723 million. To put those dollars into perspective, sales About Housewares MarketWatch Housewares MarketWatch reports both point-of-sale (POS) and consumer data from NPD databases. The quarterly data covers various product categories within the divisions of Small Appliances and Non-electric Housewares. The information contained on the following pages is offered as a snapshot of a category s performance, both from the retailer (POS) and consumer perspectives. The POS data covers the retail channels of mass/national chains, department stores, specialty stores and drug stores (personal care and home environment only). Each issue of Housewares MarketWatch will feature several categories from the Small Appliances and Housewares divisions. Complete data on a category can be purchased by visiting NPD s website at www.npd.com.see the Data and Methodology section on page 9 for an explanation of how the data is compiled. of traditional beverageware for the home grew just 1 percent to $586 million in 215. U.S. consumers are now spending 23 percent more annually on portable beverageware than on the traditional glasses, mugs, barware and stemware that they use in their homes. The appeal of portable beverageware casts a wide net and checks a lot of boxes that relate to today s hot button issues. Our desire to be healthy means we want to drink more water; water bottles are the largest portable beverageware segment, and sales increased 46 percent in 215. We want to be able to hydrate and enjoy our hot and cold beverages while on-the-go during our busy everyday lifestyles; travel mug dollar sales grew 31 percent last year. We are also increasingly aware of our impact on the environment, and reusable water bottles and travel mugs help us manage that while also making a statement about what s important to us. Express Your Personality Women, men and even children are embracing the functionality of portable beverageware, but there is a fun element at play too. Blue is the top selling color, but design and licensed items are among the fastest growing. In this world of social media and sharing, a little color or design can help us express our personality to the world around us. Portable beverageware is a relatively new category within the housewares industry that has surpassed its older cousin and still has potential for additional growth. Portable beverageware commands price points comparable to quality glassware, and while it is reusable, it is also easily replaceable. Some may even say somewhat disposable. We tend to buy sets of matching stemware, barware and juice glasses for our homes, so we are less likely to cast them aside for something new. But our water bottle also helps create an image similar to the clothes we wear. So, when continued on page 8
TABLETOP: Dinnerware, Beverageware, Flatware 1,, 9, 8, TOTAL TABLETOP 2 BEVERAGEWARE AGE Percentage purchased by head of household age 7, 6, 5, $798,296 17% 18% 23% 4, 3, 2, 9% 13% 1, 18 24 25 34 35 44 45 54 55 64 65 + PRICE SEGMENTATION: During Q4 15, unit sales of casual flatware sets priced between $15-$24.99 grew by 17 percent compared to 214. PURCHASE BEHAVIOR: Nearly 6 percent of beverageware sold in Q4 15 was a planned purchase, up more than 7 points versus Q4 14. PROMOTION INFLUENCE: More than half of the dinnerware purchased in Q4 15 was on promotion, 22 percent higher than last year. CHANNEL PERFORMANCE: During Q4 15, nearly one-fifth of flatware sales were from department stores, 4 points higher than Q4 14. PURCHASE MOTIVATORS: When it comes to selecting beverageware, consumers said appearance, good value and price were the top motivators in Q4 15. ONLINE SALES: More than one-third of dinnerware sales were from online purchases in Q4 15. Source: The NPD Group 2
COOKING/KITCHEN: Cookware, Bakeware, Cutlery 1,5, 1,35, 1,2, TOTAL COOKING/KITCHEN $1,349,514 2 BAKEWARE INCOME Percentage purchased by head of household income 1,5, 9, 75, 6, 45, 14% 19% 11% 11% 3, 15, Under $15, $15,- $29,999 $3,- $44,999 $45,- $59,999 $6,- $74,999 $75,- $99,999 $1, - $149,999 $15,+ CHANNEL: 2 percent of cutlery dollar sales were from department stores in Q4 15, 7 points higher than last year. PURCHASE MOTIVATORS: When it comes to selecting cookware, consumers said price, good value and easy to clean were most important to them in Q4 15. ONLINE SALES: One-third of total cutlery sales in Q4 15 were from online purchases, up 4 points compared to Q4 14. FEATURES: In Q4 15, dollar sales of ceramic/glass-ceramic bakeware declined by 2 percent compared to Q4 14. GIFTING: One-third of dollars spent on cutlery in Q4 15 were from gift purchases, however this was a 1 point decline from Q4 14. IMPULSE: 4 percent of bakeware purchases in Q4 15 were unplanned, up 3 points versus one year ago. 3 Source: The NPD Group
Small Appliances: KITCHEN ELECTRICS 2,5, 2,, 1,5, 1,, 5, COOKING & SPECIALTY ELECTRICS $89,786 FOOD PREP/ BEVERAGE $1,536,699 TOTAL KITCHEN ELECTRICS $2,427,485 2 BLENDERS AGE Percentage purchased by age of panel member 23% 16% 16% 16% 16 24 25 34 35 44 45 54 55 64 65 + FEATURES: Dollar sales of programmable slow cookers grew 2 percent in Q4 15 versus last year, accounting for more than 4 of total sales. PURCHASE MOTIVATORS: When it comes to selecting a blender, consumers said price, features and brand were the top motivators in Q4 15. ONLINE SALES: One-third of dollars spent on mixers in Q4 15 were from online purchases. PROMOTION INFLUENCE: In Q4 15, 6 percent of the toaster ovens purchased were on sale. IMPULSE: Q4 15, 3 percent of juice extractor sales were unplanned purchases. Source: The NPD Group 4
Small Appliances: PERSONAL CARE 2,, 1,5, 1,, 5, HAIR CARE/ GROOMING $93,593 ORAL CARE, HOME HEALTH, & OTHER PERSONAL CARE $1,78,948 TOTAL MARKET 5 4 $1,982,541 43% 3 CURLING IRONS/STYLERS INCOME Percentage purchased by household income 36% Less than $45, $45, - $74,999 $75,+ GIFTING: More than one-third of massaging appliances were purchased as a gift for someone else in Q4 15. PURCHASE MOTIVATORS: When it comes to selecting a specific hairdryer, consumers said price, brand and good value were the top motivators in Q4 15. PURCHASE BEHAVIOR: 6 percent of curling iron/styling appliances sold in Q4 15 were not first-time purchases. FEATURES: In Q4 15, rechargeable electric toothbrush sales grew 17 percent versus Q4 14, and represented 6 percent of total category sales. IMPULSE: One-third of oral care appliances sold in Q4 15 were unplanned purchases. ONLINE SALES: During Q4 15, more than one-fourth of dollars spent on massaging appliances were from online purchases, doubling its share of the market from the same time last year. 5 Source: The NPD Group
Small Appliances: FLOOR CARE 1,5, TOTAL MARKET HAND/STICK VACUUMS AGE Percentage purchased by age of panel member 1,25, $1,4,53 2 1,, 75, 5, 12% 14% 19% 25, 16 24 25 34 35 44 45 54 55 64 65 + FEATURES: More than one-third of hand/stick vacuums sold in Q4 15 were corded, 2 points higher than in 214. PURCHASE MOTIVATORS: When it comes to a selecting a stick vacuum, consumers said brand, price and features were the top motivators in Q4 15. ONLINE SALES: One-third of deep carpet cleaners sold in Q4 15 were purchased online, up 2 points compared to Q4 14. PROMOTION INFLUENCE: 6 percent of robotic vacuums sold in Q4 15 were purchased on sale. IMPULSE: During Q4 15, nearly 2 percent of upright vacuum sales were unplanned purchases, up 4 points compared to 214. Source: The NPD Group 6
Home: KITCHEN & DINING TEXTILES 5, TABLE LINENS INCOME Percentage purchased by head of household income TOTAL MARKET 2 4, $416,727 3, 18% 2, 11% 11% 9% 9% 1, Under $15, $15,- $29,999 $3,- $44,999 $45,- $59,999 $6,- $74,999 $75,- $99,999 $1,+ FEATURES: During Q4 15, more than one-third of dollars spent on tablecloths were on pattern or print products, 5 percent higher than last year. PURCHASE MOTIVATORS: When it comes to selecting tablecloths, consumers said appearance, price and material/texture were most important to them in Q4 15. ONLINE SALES: 17 percent of kitchen linen sales were from online purchases, up 7 points compared to last year. DEMOGRAPHICS: Around 2 percent of kitchen linen dollar sales in Q4 15 came from products purchased by men. SPECIAL OCCASION: Just under half of table linens purchased in Q4 15 were on sale, up 4 points compared to 214. 7 Source: The NPD Group
The Power of Portable...Beverageware continued from page 1 our water bottle gets scratched up, our travel mug has dings from hitting the ground too many times or we just see a new color, design or feature on the retail shelves, it isn t a big deal to pick up something new for our collection of reusable on-the-go beverage containers. The desire to be healthy or environmentally friendly can prompt the purchase of portable beverageware, but seeing a reusable water bottle or travel mug can also inspire those same desires and behaviors. The power of portable beverageware comes from its ability to address consumer desires but also drive new consumer behavior. This is a thirstquenching equation for both U.S. consumers and the housewares industry. For more information, contact Janine Marshall at 516-625-2356. Source: The NPD Group 8
DATA AND METHODOLOGY NPD has a standard data model that is used for all categories that incorporates both consumer and point-of-sale (POS) databases. These two data sources are highly complementary and are used to support one another. Point-of-Sale (POS) databases are assembled from retailers' records of actual sales by product as collected at the cash register. Consumer databases are developed using online purchase surveys completed by a largescale rotating sample of consumers. These data produce estimates of sales by product for the total marketplace. More importantly, the consumer surveys capture information about each purchase, such as buyer demographics, the product's intended use and other purchase motivators. CONSUMER METHODOLOGY The NPD online consumer panel is comprised of prerecruited individuals who have agreed to participate in NPD online surveys and have completed a comprehensive demographic questionnaire. The use of an established online panel assures good cooperation levels and predictable demographic balance among panelists. Consumer panelists are asked about their recent purchases in a survey administered via the Internet. The responding sample is demographically weighted and projected through a series of steps to represent the U.S. population. Each month, over 2, individuals are selected from the NPD online consumer panel to participate in the appliance study. Each month, over 3, U.S. households are selected for the housewares and home textiles studies. POS METHODOLOGY NPD collects point-of-sale retailer data from selected retailers. These data are the actual sales for the chain on an SKU-by-SKU basis. The data are combined with data from other retailers to produce reports on certain categories by channel, where a sufficient number of retailers are cooperating and where sufficient market demand exists for the database. ABOUT THE NPD GROUP, INC. The NPD Group is the leading provider of reliable and comprehensive consumer and retail information for a wide range of industries. Today, more than 1,8 manufacturers, retailers and service companies rely on NPD to help them drive critical business decisions at the global, national and local market levels. NPD helps our clients to identify new business opportunities and guides product development, marketing, sales, merchandising and other functions. Information is available for the following industry sectors: automotive, beauty, commercial technology, consumer technology, entertainment, fashion, food and beverage, foodservice, home, office supplies, software, sports, toys and wireless. For more information, contact us or visit www.npd.com Deborah A. Teschke, Senior Editor Joe Derochowski, Contributing Editor Janine Marshall-Bolton, Contributing Editor Tom Goodman, Design Published by IHA For more information, contact Debbie Teschke at 847-692-11; or dteschke@housewares.org 64 SHAFER COURT, STE. 65 ROSEMONT, IL 618 USA TEL: 847-292-42 FAX: 847-292-4211 www.housewares.org 9 Source: The NPD Group