LIST OF CONTENTS AND TABLES Home Care in Kenya - Industry Overview... 1 Executive Summary... 1 Growing Middle-class Will Be the Driver of Future Growth... 1 Rebounding Kenyan Economy... 1 Soaring Cost of Living Due To Economic Factors... 1 the 2012 Election Will Shape the Economy in the Coming Years... 1 Increased Company Activity Expected... 2 Market Indicators... 2 Table 1 Households 2005-2010... 2 Market Data... 2 Table 2 Sales of Home Care by Category: Value 2005-2010... 2 Table 3 Sales of Home Care by Category: % Value Growth 2005-2010... 2 Table 4 Home Care Company Shares 2006-2010... 3 Table 5 Home Care Brand Shares 2007-2010... 3 Table 6 Sales of Home Care by Distribution Format: % Analysis 2005-2010... 4 Table 7 Sales of Home Care by Category and Distribution Format: % Analysis 2010... 5 Table 8 Forecast Sales of Home Care by Category: Value 2010-2015... 6 Table 9 Forecast Sales of Home Care by Category: % Value Growth 2010-2015... 6 Definitions... 6 Summary 1 Research Sources... 7 Home Care in Kenya - Company Profiles... 8 Haco Industries Kenya Ltd in Home Care (kenya)... 8 Strategic Direction... 8 Key Facts... 8 Summary 2 Haco Tiger Brands: Key Facts... 8 Company Background... 8 Production... 8 Competitive Positioning... 9 Summary 3 Haco Industries Kenya Ltd: Competitive Position 2010... 9 Interconsumer Products Kenya Ltd in Home Care (kenya)... 9 Strategic Direction... 9 Key Facts... 10 Summary 4 Interconsumer Products Kenya Ltd: Key Facts... 10 Company Background... 10 Production... 10 Competitive Positioning... 11 Summary 5 Interconsumer Products Kenya Ltd: Competitive Position 2010... 11 Air Care in Kenya - Category analysis... 12 Headlines... 12 Trends... 12 Competitive Landscape... 12
Prospects... 13 Category Data... 13 Table 10 Sales of Air Care by Category: Value 2005-2010... 13 Table 11 Sales of Air Care by Category: % Value Growth 2005-2010... 14 Table 12 Air Care Company Shares 2006-2010... 14 Table 13 Air Care Brand Shares 2007-2010... 14 Table 14 Forecast Sales of Air Care by Category: Value 2010-2015... 15 Table 15 Forecast Sales of Air Care by Category: % Value Growth 2010-2015... 15 Bleach in Kenya - Category analysis... 16 Headlines... 16 Trends... 16 Competitive Landscape... 16 Prospects... 17 Category Data... 17 Table 16 Sales of Bleach: Value 2005-2010... 17 Table 17 Sales of Bleach: % Value Growth 2005-2010... 17 Table 18 Bleach Company Shares 2006-2010... 17 Table 19 Bleach Brand Shares 2007-2010... 18 Table 20 Forecast Sales of Bleach: Value 2010-2015... 18 Table 21 Forecast Sales of Bleach: % Value Growth 2010-2015... 18 Dishwashing in Kenya - Category analysis... 19 Headlines... 19 Trends... 19 Competitive Landscape... 19 Prospects... 20 Category Indicators... 20 Table 22 Household Penetration of Dishwashers 2005-2010... 20 Category Data... 20 Table 23 Sales of Dishwashing by Category: Value 2005-2010... 20 Table 24 Sales of Dishwashing by Category: % Value Growth 2005-2010... 21 Table 25 Dishwashing Company Shares 2006-2010... 21 Table 26 Dishwashing Brand Shares 2007-2010... 21 Table 27 Forecast Sales of Dishwashing by Category: Value 2010-2015... 22 Table 28 Forecast Sales of Dishwashing by Category: % Value Growth 2010-2015... 22 Insecticides in Kenya - Category analysis... 23 Headlines... 23 Trends... 23 Competitive Landscape... 23 Prospects... 24 Category Data... 24 Table 29 Sales of Insecticides by Category: Value 2005-2010... 24 Table 30 Sales of Insecticides by Category: % Value Growth 2005-2010... 25 Table 31 Insecticides Company Shares 2006-2010... 25 Table 32 Insecticides Brand Shares 2007-2010... 25 Table 33 Forecast Sales of Insecticides by Category: Value 2010-2015... 25 Table 34 Forecast Sales of Insecticides by Category: % Value Growth 2010-2015... 26
Laundry Care in Kenya - Category analysis... 27 Headlines... 27 Trends... 27 Competitive Landscape... 28 Prospects... 28 Category Indicators... 29 Table 35 Household Penetration of Washing Machines 2005-2010... 29 Category Data... 29 Table 36 Sales of Laundry Care by Category: Value 2005-2010... 29 Table 37 Sales of Laundry Care by Category: % Value Growth 2005-2010... 29 Table 38 Sales of Laundry Detergents by Category: Value 2005-2010... 30 Table 39 Sales of Laundry Detergents by Category: % Value Growth 2005-2010... 30 Table 40 Laundry Care Company Shares 2006-2010... 30 Table 41 Laundry Care Brand Shares 2007-2010... 31 Table 42 Laundry Detergents Company Shares 2006-2010... 31 Table 43 Laundry Detergents Brand Shares 2007-2010... 32 Table 44 Forecast Sales of Laundry Care by Category: Value 2010-2015... 32 Table 45 Forecast Sales of Laundry Care by Category: % Value Growth 2010-2015... 32 Polishes in Kenya - Category analysis... 34 Headlines... 34 Trends... 34 Competitive Landscape... 34 Prospects... 35 Category Data... 35 Table 46 Sales of Polishes by Category: Value 2005-2010... 35 Table 47 Sales of Polishes by Category: % Value Growth 2005-2010... 35 Table 48 Polishes Company Shares 2006-2010... 35 Table 49 Polishes Brand Shares 2007-2010... 36 Table 50 Forecast Sales of Polishes by Category: Value 2010-2015... 36 Table 51 Forecast Sales of Polishes by Category: % Value Growth 2010-2015... 36 Surface Care in Kenya - Category analysis... 38 Headlines... 38 Trends... 38 Competitive Landscape... 38 Prospects... 38 Category Data... 39 Table 52 Sales of Surface Care by Category: Value 2005-2010... 39 Table 53 Sales of Surface Care by Category: % Value Growth 2005-2010... 39 Table 54 Surface Care Company Shares 2006-2010... 40 Table 55 Surface Care Brand Shares 2007-2010... 40 Table 56 Forecast Sales of Surface Care by Category: Value 2010-2015... 41 Table 57 Forecast Sales of Surface Care by Category: % Value Growth 2010-2015... 41 Toilet Care in Kenya - Category analysis... 42 Headlines... 42 Trends... 42
Competitive Landscape... 42 Prospects... 43 Category Data... 43 Table 58 Sales of Toilet Care by Category: Value 2005-2010... 43 Table 59 Sales of Toilet Care by Category: % Value Growth 2005-2010... 43 Table 60 Toilet Care Company Shares 2006-2010... 44 Table 61 Toilet Care Brand Shares 2007-2010... 44 Table 62 Forecast Sales of Toilet Care by Category: Value 2010-2015... 44 Table 63 Forecast Sales of Toilet Care by Category: % Value Growth 2010-2015... 44
HOME CARE IN KENYA - INDUSTRY OVERVIEW EXECUTIVE SUMMARY Growing Middle-class Will Be the Driver of Future Growth As the country s economy slowly recovered from recession and political turmoil, the middleclass regained some strength, and is set to be the engine of growth and indicator of economic prosperity in the coming years. Coming from a time when there was huge income disparity the gap between the rich and the poor in Kenya has traditionally been amongst the highest in the world the rise of the middle-classes is likely to bode well for the economy. This is a country where more than 50% of the population lives below the UN threshold of poverty (less than USD1 a day, and more than 75% lives on less than USD2 a day. At the same time it has some of the wealthiest men and women on the continent Nairobi is rumoured to be the city which has the third largest population of Mercedes Benz cars in the world. The growth of the middleclasses will definitely boost business and the overall economy in the near future. Rebounding Kenyan Economy The Kenyan economy is on the rebound from the major shocks in 2008 and 2009. The effects of the post-election violence were far-reaching, with tourism, the country s leading source of foreign exchange, taking a direct hit due to adverse travel advice. This situation changed in 2010, and it is predicted that 2011 will be the best year yet for tourism in Kenya. Also, with the global economy largely on the rebound, and the country by and large shielded from the European debt crisis in most ways, except for tourism (the UK is Kenya s leading source of tourists 16% in 2010); the economy is in better shape than it was 2-3 years ago. Soaring Cost of Living Due To Economic Factors The cost of living is rising, driven by the weakening shilling. The shilling has, since Q12011, lost over 20% of its value against the world majors. This loss affected the country, which is a net importer and depends largely on foreign currency. The currency shock impacted the price of fuel locally, which was at a record KES117 per litre in September, the highest it has ever been, and this has a far-reaching impact on the cost of production, transport, manufacturing and everyday life. Recent drought conditions also led to an increase in the cost of electricity, since over 85% of the country s electricity is hydro-produced; in some cases prices rose to three times the normal cost. This made the cost of living very expensive in Kenya, and many products (especially food) saw prices increase, in some cases by margins as high as 30%. the 2012 Election Will Shape the Economy in the Coming Years 2012 is an election year, and is particularly significant because it is the first under the new constitution, promulgated in August 2010. The new constitution has completely changed the political landscape, with new positions created and the governance structure shaken up considerably. Also, the current president, Mwai Kibaki, is constitutionally required to step down, having served two terms. The transition of power in the new dispensation is unprecedented, and it is yet to be seen how it will play out. Memories of 2008 are still fresh in people s minds, and the world will be watching keenly to see how 2012-2013 unfolds.
Increased Company Activity Expected There has been some significant activity in the home care market, with a few notable mergers. In particular, manufacturing giant Haco Industries Kenya was bought out by Tiger Brands of South Africa to create the mammoth company Haco Tiger Brands. This is likely to be a significant player in the market, with several international brands in its stable. It is yet to be seen how this will play out. Also, there have been forays by new products in the market, such as Bolt Insecticide, Ariel laundry detergent and a new variant of Sunlight, launched in 2011. All this activity points to growing investor confidence in the home care market, and increased scope for growth. MARKET INDICATORS Table 1 Households 2005-2010 2005 2006 2007 2008 2009 2010 Households ('000) Average number of occupants per household (number) Euromonitor International from official statistics MARKET DATA Table 2 Sales of Home Care by Category: Value 2005-2010 KES mn Air Care Bleach Dishwashing Insecticides Laundry Care Polishes Surface Care Toilet Care Home Care 2005 2006 2007 2008 2009 2010 Table 3 Sales of Home Care by Category: % Value Growth 2005-2010 % current value growth Air Care Bleach Dishwashing Insecticides Laundry Care 2009/10 2005-10 CAGR 2005/10 TOTAL
Polishes Surface Care Toilet Care Home Care Table 4 Home Care Company Shares 2006-2010 % retail value rsp Company 2006 2007 2008 2009 2010 Total 100.0 100.0 100.0 100.0 100.0 Table 5 Home Care Brand Shares 2007-2010 % retail value rsp Brand Company 2007 2008 2009 2010
Total 100.0 100.0 100.0 100.0 Table 6 Sales of Home Care by Distribution Format: % Analysis 2005-2010 % retail value rsp Store-Based Retailing - Grocery Retailers - - Supermarkets/ Hypermarkets - - Discounters - - Small Grocery Retailers - - - Convenience Stores - - - Forecourt Retailers - - - Independent Small Grocers - - Other Grocery Retailers - Non-Grocery Retailers - - Mixed Retailers - - - Department Stores - - - Variety Stores - - - Mass Merchandisers - - - Warehouse Clubs - - Health and Beauty Retailers - - Other Non-Grocery Retailers Non-Store Retailing - Vending - Homeshopping 2005 2006 2007 2008 2009 2010
- Internet Retailing - Direct Selling Total 100.0 100.0 100.0 100.0 100.0 100.0 Table 7 Sales of Home Care by Category and Distr bution Format: % Analysis 2010 % retail value rsp AC B DW IN LC PO Store-Based Retailing Grocery Retailers Supermarkets/Hypermarkets Discounters Small Grocery Retailers Convenience Stores Forecourt Retailers Independent Small Grocers Other Grocery Retailers Non-Grocery Retailers Mixed Retailers Department Stores Variety Stores Mass Merchandisers Warehouse Clubs Health and Beauty Retailers Other Non-Grocery Retailers Non-Store Retailing Vending Homeshopping Internet Retailing Direct Selling Total 100.0 100.0 100.0 100.0 100.0 100.0 SC TC Store-Based Retailing Grocery Retailers Supermarkets/Hypermarkets Discounters Small Grocery Retailers Convenience Stores Forecourt Retailers Independent Small Grocers Other Grocery Retailers Non-Grocery Retailers Mixed Retailers Department Stores Variety Stores Mass Merchandisers Warehouse Clubs Health and Beauty Retailers Other Non-Grocery Retailers Non-Store Retailing
Vending Homeshopping Internet Retailing Direct Selling Total 100.0 100.0 Key: AC = air care; B = bleach; DW = dishwashing; IN = insecticides; LC = laundry care; PO = polishes; SC = surface care; TC = toilet care Table 8 Forecast Sales of Home Care by Category: Value 2010-2015 KES mn Air Care Bleach Dishwashing Insecticides Laundry Care Polishes Surface Care Toilet Care Home Care 2010 2011 2012 2013 2014 2015 Euromonitor International from trade associations, trade press, company research, trade interviews, trade sources Table 9 Forecast Sales of Home Care by Category: % Value Growth 2010-2015 % constant value growth Air Care Bleach Dishwashing Insecticides Laundry Care Polishes Surface Care Toilet Care Home Care 2010-15 CAGR 2010/15 TOTAL Euromonitor International from trade associations, trade press, company research, trade interviews, trade sources DEFINITIONS This report analyses the market for home care in Kenya. For the purposes of the study the market has been defined as follows: Laundry care Dishwashing products Surface care Bleach Toilet care products
AIR CARE IN KENYA - CATEGORY ANALYSIS HEADLINES Air care registers 20% current value growth in 2010 Increased penetration of car air fresheners and gel air fresheners sets new ground for competition Car air fresheners registers the highest value growth in 2010 up 29% Unit prices are driven upwards by higher inflation and the costs of marketing and production Oasis Kenya leads air care with a 15% value share in 2010 Air care is expected to post a constant value CAGR of 7% in the forecast five years TRENDS Car ownership in Kenya increased tremendously in the last five years, and 2010 was no exception. With this growth came greater demand for car air fresheners, which are cheap and readily available. This contributed to the 20% current value growth in air care in 2010. Also contributing to growth was the growth in demand for housing, especially amongst middle- and high-income demographic groups. With this, demand for standard spray/aerosol air fresheners for the home increased. The impact of drought and adverse economic growth led to a rise in operating costs. This, coupled with the recent rocketing fuel price, and with it the rising cost of electricity, led to inflationary pressure in the economy. This resulted in increased prices across the board, as the cost of living continued to rise, eroding purchasing power amongst consumers. The most common and readily available product format is spray/aerosol air fresheners, which are best- known and accepted by consumers. More novel formats, such as candle, liquid and electric air fresheners are less known, and are practically non-existent in the country. The most popular fragrance is lemon. Producers also give consumers a fragrance chart indicating the various fragrance ranges, ranging from woody to fruity, accompanied by colours to guide consumers in their choice of fragrance. These charts appear on the side of cans to guide consumers. COMPETITIVE LANDSCAPE Oasis Kenya continued to lead air care in 2010 thanks to an efficient distr bution network and its status as the first player to enter air care in Kenya. Its flagship brand Café Tropical has a loyal consumer base, and is trusted for its good quality. It is a mid-market brand which fits with most middle-income consumers budgets. It recently launched a new marketing campaign featuring celebrity endorsements from locals such as Sarah Hassan, a local actress and celebrity.
Content removed from sample PROSPECTS Air care is set to record a constant value CAGR of 7% in the forecast period. Future demand will be driven by high-income consumers and the trends of convenience and cocooning. Manufacturers will spend more on advertising and ingredient innovations by adding new scents to attract first-time buyers to the category. It i t t t f t ill l i t i t t ti t i t Content removed from sample CATEGORY DATA Table 1 Sales of Air Care by Category: Value 2005-2010 KES mn Candle Air Fresheners Car Air Fresheners Electric Air Fresheners Gel Air Fresheners Liquid Air Fresheners Spray/Aerosol Air Fresheners - Concentrated Spray/ Aerosol Air Fresheners - Standard Spray/ Aerosol Air Fresheners Other Air Care Air Care 2005 2006 2007 2008 2009 2010
Table 2 Sales of Air Care by Category: % Value Growth 2005-2010 % current value growth Candle Air Fresheners Car Air Fresheners Electric Air Fresheners Gel Air Fresheners Liquid Air Fresheners Spray/Aerosol Air Fresheners - Concentrated Spray/Aerosol Air Fresheners - Standard Spray/Aerosol Air Fresheners Other Air Care Air Care 2009/10 2005-10 CAGR 2005/10 TOTAL Table 3 Air Care Company Shares 2006-2010 % retail value rsp Company 2006 2007 2008 2009 2010 Total 100.0 100.0 100.0 100.0 100.0 Table 4 Air Care Brand Shares 2007-2010 % retail value rsp Brand Company 2007 2008 2009 2010 Others 6.3 51.9 50.0 7.9 Total 100.0 100.0 100.0 100.0
Table 5 Forecast Sales of Air Care by Category: Value 2010-2015 KES mn Candle Air Fresheners Car Air Fresheners Electric Air Fresheners Gel Air Fresheners Liquid Air Fresheners Spray/Aerosol Air Fresheners - Concentrated Spray/ Aerosol Air Fresheners - Standard Spray/ Aerosol Air Fresheners Other Air Care Air Care 2010 2011 2012 2013 2014 2015 Euromonitor International from trade associations, trade press, company research, trade interviews, trade sources Table 6 Forecast Sales of Air Care by Category: % Value Growth 2010-2015 % constant value growth Candle Air Fresheners Car Air Fresheners Electric Air Fresheners Gel Air Fresheners Liquid Air Fresheners Spray/Aerosol Air Fresheners - Concentrated Spray/Aerosol Air Fresheners - Standard Spray/Aerosol Air Fresheners Other Air Care Air Care 2010-15 CAGR 2010/15 TOTAL Euromonitor International from trade associations, trade press, company research, trade interviews, trade sources
BLEACH IN KENYA - CATEGORY ANALYSIS HEADLINES In 2010 bleach records 9% current value growth, but stagnant volume growth Perfumed bleach is a continually growing trend amongst consumers Unit prices show 9% growth in 2010, brought about by inflation and economic pressure Haco Industries Kenya accounts for a 33% value share in bleach in 2010 Bleach is expected to see a CAGR of 1% in constant value terms in the forecast period TRENDS Perfumed bleach, introduced in 2008, continued to be a key performer in bleach. Also, coloured bleach used on coloured clothes was an innovation which drove sales, with most producers having a coloured version of their brands. Bleach is mainly used to remove stains from white clothes; however, it is also widely used as a multipurpose surface care product, thanks to its cheaper price and disinfecting properties. Several companies in the category pitch their products in this way, attracting consumers due to the expected savings on household expenditure. The potential hazardous effects of direct exposure to bleach are not well-known or heeded. Warnings on bleach packaging only give guidance about what to do in cases of ingestion or contact with the eyes. Besides this, manufacturers have done nothing to educate consumers on the dangers associated with bleach, and much of the time cleaning with bleach is done with bare hands. COMPETITIVE LANDSCAPE Haco Industries Kenya led bleach in 2010 with a 33% value share. Its two brands, Ace and Jeyes, are mid-priced, and the company has also tapped into the new trend of scented bleach, with alpine and citrus fragrances added to its Jeyes brand. Content removed from sample
PROSPECTS Bleach is expected to record a constant value CAGR of 1% in the forecast period. Economy brands will attract more consumers at the expense of premium brands, since bleach is driven mainly by price, and then convenience. Therefore, products sold in large packaging of 750ml and above should perform better. Content removed from sample CATEGORY DATA Table 1 Sales of Bleach: Value 2005-2010 KES mn Bleach 2005 2006 2007 2008 2009 2010 Table 2 Sales of Bleach: % Value Growth 2005-2010 % current value growth Bleach 2009/10 2005-10 CAGR 2005/10 TOTAL Table 3 Bleach Company Shares 2006-2010 % retail value rsp Company 2006 2007 2008 2009 2010
Total 100.0 100.0 100.0 100.0 100.0 Table 4 Bleach Brand Shares 2007-2010 % retail value rsp Brand Company 2007 2008 2009 2010 Total 100.0 100.0 100.0 100.0 Table 5 Forecast Sales of Bleach: Value 2010-2015 KES mn Bleach 2010 2011 2012 2013 2014 2015 Euromonitor International from trade associations, trade press, company research, trade interviews, trade sources Table 6 Forecast Sales of Bleach: % Value Growth 2010-2015 % constant value growth Bleach 2010-15 CAGR 2010/15 TOTAL Euromonitor International from trade associations, trade press, company research, trade interviews, trade sources
DISHWASHING IN KENYA - CATEGORY ANALYSIS HEADLINES Dishwashing products sees volume growth of 1% and current value growth of 11% in 2010 Hand dishwashing remains the only significant category within dishwashing products in 2010 A lack of competition and product development prevents other dishwashing categories from growing Unit prices of dishwashing products increase by 9% in 2010 Haco Industries Kenya leads dishwashing products with a 24% value share in 2010 Dishwashing products is expected to record a constant value CAGR of 4% in the forecast period TRENDS Penetration of dishwashing products has been low amongst Kenyans, who prefer to use bar soap, and in some cases laundry detergents, for dishwashing. Traditionally defined dishwashing products are largely viewed as luxuries. This explains the relatively low volume growth of 1% in 2010. Unit prices increased by 9% in 2010, largely due to economic and inflationary pressures, brought about by drought conditions, and rises in the cost of production, electricity and water in the country in 2010. Hand dishwashing is the only significant category in dishwashing products, whilst other categories, such as automatic dishwashing, are negligible, and are only available in uppermarket suburbs. Dishwashers are still a novelty in Kenya, and most people prefer to wash dishes by hand, or to employ someone to wash their dishes. Dishwasher penetration remained low in 2010, although it has reached 11% in urban areas compared to 4% in rural areas, mainly due to the high purchasing price and the availability of cheap labour to do housework, including dishwashing; hence eliminating the need for an expensive, water-guzzling dishwasher. COMPETITIVE LANDSCAPE For another year running, Haco Industries Kenya led dishwashing products in 2010 with its Sparkle and Dazzle brands, with a 24% value share. The use of innovative packaging sizes, giving consumers a greater variety of products from which to choose, is one reason for this position, along with its nationwide distribution and marketing network. Content removed from sample
Content removed from sample PROSPECTS Dishwashing products is expected to record a constant value CAGR of 4% in the forecast five year period. It is expected that players will innovate with diverse products, and will attempt to introduce products in the hitherto underdeveloped categories such as automatic dishwashing products. Content removed from sample CATEGORY INDICATORS Table 1 Household Penetration of Dishwashers 2005-2010 2005 2006 2007 2008 2009 2010 Urban (Urban % penetration of dishwasher) Rural (Rural % penetration of dishwasher) Total (Total % penetration of dishwasher) Euromonitor International from official statistics, trade associations, trade interviews CATEGORY DATA Table 2 Sales of Dishwashing by Category: Value 2005-2010 KES mn Automatic Dishwashing 2005 2006 2007 2008 2009 2010
- Automatic Dishwashing Liquids - Automatic Dishwashing Powders - Automatic Dishwashing Tablets Dishwashing Additives Hand Dishwashing Dishwashing Table 3 Sales of Dishwashing by Category: % Value Growth 2005-2010 % current value growth Automatic Dishwashing - Automatic Dishwashing Liquids - Automatic Dishwashing Powders - Automatic Dishwashing Tablets Dishwashing Additives Hand Dishwashing Dishwashing 2009/10 2005-10 CAGR 2005/10 TOTAL Table 4 Dishwashing Company Shares 2006-2010 % retail value rsp Company 2006 2007 2008 2009 2010 Total 100.0 100.0 100.0 100.0 100.0 Table 5 Dishwashing Brand Shares 2007-2010 % retail value rsp Brand Company 2007 2008 2009 2010
Total 100.0 100.0 100.0 100.0 Table 6 Forecast Sales of Dishwashing by Category: Value 2010-2015 KES mn Automatic Dishwashing - Automatic Dishwashing Liquids - Automatic Dishwashing Powders - Automatic Dishwashing Tablets Dishwashing Additives Hand Dishwashing Dishwashing 2010 2011 2012 2013 2014 2015 Euromonitor International from trade associations, trade press, company research, trade interviews, trade sources Table 7 Forecast Sales of Dishwashing by Category: % Value Growth 2010-2015 % constant value growth Automatic Dishwashing - Automatic Dishwashing Liquids - Automatic Dishwashing Powders - Automatic Dishwashing Tablets Dishwashing Additives Hand Dishwashing Dishwashing 2010-15 CAGR 2010/15 TOTAL Euromonitor International from trade associations, trade press, company research, trade interviews, trade sources
INSECTICIDES IN KENYA - CATEGORY ANALYSIS HEADLINES Insecticides records 11% current value growth in 2010 Spray/aerosol insecticides faces continued competition from insecticide-treated mosquito nets Other home insecticides becomes a high growth area in 2010 Unit prices rise in 2010 due to high production and energy costs Reckitt Benckiser East Africa leads insecticides in 2010 with a 48% value share Insecticides is expected to see a constant value CAGR of 4% in the forecast period TRENDS Malaria is the biggest killer of children in Kenya. As a result, the government initiated a project to expand access to treated mosquito nets countrywide, which reduced the demand for insecticides. In urban areas there is growing use of electric insecticides, with Doom being the most prominent product. The most common insects in Kenya are red ants, anopheles mosquitoes, flies and cockroaches. Generally speaking, most Kenyans use sprays on crawling insects such as cockroaches and ants, and coils and electric insecticides on flying insects. The most common traditional methods of fighting and repelling insects which are still used in Kenya include pouring oil on stagnant waters, pouring ash on insect-infested areas and burning a tyre, which produces a smell which repels insects, particularly red ants. In the rainy season, red ants, particularly in periurban and rural areas, become a major nuisance. This is when people resort to traditional methods of dealing with them, since insecticides are hardly effective. Cockroaches are a major menace, and many products are marketed as being effective against these insects in particular. However, for the most part, domestic insecticides only deal with cockroaches in plain view, and rarely are they able to effectively rid the house of cockroaches. For this, more affluent consumers are able to afford extermination services, which require the inhabitants to evacuate the house for some time. For others, there are various herbal and other methods, which involve putting chemicals in certain parts of the house to get rid of the cockroaches. These methods, albeit unconventional, are by and large successful. COMPETITIVE LANDSCAPE Reckitt Benckiser East Africa led insecticides with its Mortein Doom brand with a 48% value share in 2010. The company also saw the biggest increase in value share in the same year. The company advertised its new Mortein Doom electric insecticide, which claims to work over a period of 60 days.
Content removed from sample PROSPECTS A positive constant value CAGR of 4% is expected in the forecast period. This is largely attributed to the increase in marketing campaigns planned for the year 2011, and consumers higher disposable incomes as the economy recovers. As the economy recovers, incomes and expenditure will rise. The number of middle-class consumers is expected to rise. This group is a key driver of sales and indicator of economic growth, and many products, such as those in this category, will be consumed in greater volumes as the middle-class grows. Content removed from sample CATEGORY DATA Table 1 Sales of Insecticides by Category: Value 2005-2010 KES mn 2005 2006 2007 2008 2009 2010 Electric Insecticides Insecticide Baits Insecticide Coils Spray/Aerosol Insecticides Other Insecticides Insecticides 331.0 365.0 07.9 68.2 520.8 579.2
Table 2 Sales of Insecticides by Category: % Value Growth 2005-2010 % current value growth Electric Insecticides Insecticide Baits Insecticide Coils Spray/Aerosol Insecticides Other Insecticides Insecticides 2009/10 2005-10 CAGR 2005/10 TOTAL Table 3 Insecticides Company Shares 2006-2010 % retail value rsp Company 2006 2007 2008 2009 2010 Total 100.0 100.0 100.0 100.0 100.0 Table 4 Insecticides Brand Shares 2007-2010 % retail value rsp Brand Company 2007 2008 2009 2010 Others 19.8 20.2 19.3 15.9 Total 100.0 100.0 100.0 100.0 Table 5 Forecast Sales of Insecticides by Category: Value 2010-2015
KES mn Electric Insecticides Insecticide Baits Insecticide Coils Spray/Aerosol Insecticides Other Insecticides Insecticides 2010 2011 2012 2013 2014 2015 Euromonitor International from trade associations, trade press, company research, trade interviews, trade sources Table 6 Forecast Sales of Insecticides by Category: % Value Growth 2010-2015 % constant value growth Electric Insecticides Insecticide Baits Insecticide Coils Spray/Aerosol Insecticides Other Insecticides Insecticides 2010-15 CAGR 2010/15 TOTAL Euromonitor International from trade associations, trade press, company research, trade interviews, trade sources
LAUNDRY CARE IN KENYA - CATEGORY ANALYSIS HEADLINES Laundry care registers 7% current value growth in 2010, reaching sales of KES3.3 billion The category sees an increase in competition, driven by companies desire for a higher share of sales Unit prices increase by 1% for bar detergents in 2010 Unilever Kenya leads laundry care with a 42% value share in 2010 Laundry care is expected to see a constant value CAGR of 2% in the forecast period TRENDS The entry of the rebranded Ariel Enzymax detergent from The Procter and Gamble Co in August 2009 shook up the category considerably. The dominant brands, namely Omo, Sunlight and Toss, are bracing themselves for a gruelling competitive battle due to this development. The current value growth in laundry care in 2010 was slower than that in the review period, primarily because the economy was still in recovery mode from a tough year, and the global economy was still in the throes of recession. In addition, rising fuel costs, driven by the crises in Middle Eastern and North African fuel-producing nations, made doing business even harder. As more people join the middle-classes, products which were previously out of reach are becoming affordable, and even considered necessary. Powder detergents and laundry aids were the categories that benefited from this situation, and as a result saw the fastest growth in volume terms in 2010. Washing machine penetration is still low, at 35% in urban areas and only 19% in rural areas in 2010. Although more people are using a washing machine, the majority of people still hand wash clothes in the privacy of their homes or in a communal setting with other neighbours and friends who live in the same area. Whilst more people in urban areas are beginning to use a washing machine to wash clothes, the relative scarcity of water means that even within homes which have a washing machine, up to 75% of the clothes are washed by hand. Also, there is a perception that washing machines cannot do heavy-duty work such as cleaning the collars and cuffs of shirts, which get dirty very easily and need more attention. Most laundry detergents are standard. The concentrated format was only introduced in 2004 in retail outlets but has seen quite strong growth although it remains a niche category. It is used mainly by high income educated households and product availability is limited to modern grocery retailers only. Laundrettes are virtually non-existent in Kenya. Most people prefer to buy their own washing machine or wash their clothes by hand. A common trend is to have clothes washed by a servant, who may or may not be a live-in home help. Often, ladies who specialise in washing
clothes are hired by families specifically to wash clothes, and are brought in once or twice a week to handle the family laundry. Dry cleaning is present in Kenya. However, it does not compete with laundry care, since for most families, the items which are dry cleaned are distinctly different from those which are hand laundered at home. COMPETITIVE LANDSCAPE Unilever Kenya was the leader in laundry care in 2010, as the manufacturer of two of the top three brands, Omo (29% value share and Sunlight (11% value share). Kapa Oil Refineries was second with the Toss brand (20% value share). These three brands controlled more than half of value sales in laundry care between them in 2010. Content removed from sample PROSPECTS Laundry care is expected to make a strong rebound due to the recovering economy. It is expected that positive growth will be seen in the forecast period, with a CAGR of 2% in constant value terms and 1% in volume terms. This, coupled with a strong competitive push from newly relaunched brands such as Ariel Enzymax, as well as the resultant backlash from more established competitors, will bolster sales. Content removed from sample
Content removed from sample CATEGORY INDICATORS Table 1 Household Penetration of Washing Machines 2005-2010 2005 2006 2007 2008 2009 2010 Urban (Urban % penetration of washing machine) Rural (Rural % penetration of washing machine) Total (Total % penetration of washing machine) Euromonitor International from official statistics, trade associations, trade interviews CATEGORY DATA Table 2 Sales of Laundry Care by Category: Value 2005-2010 KES mn Carpet Cleaners Fabric Softeners Laundry Aids Laundry Detergents Laundry Care 2005 2006 2007 2008 2009 2010 Table 3 Sales of Laundry Care by Category: % Value Growth 2005-2010
% current value growth 2009/10 2005-10 CAGR 2005/10 TOTAL Carpet Cleaners Fabric Softeners Laundry Aids Laundry Detergents Laundry Care 7.1 10.5 6.8 Table 4 Sales of Laundry Detergents by Category: Value 2005-2010 KES mn Automatic Detergents - Powder Detergents - Detergent Tablets - Liquid Detergents Other Detergents - Bar Detergents - Hand Wash Detergents - Fine Fabric Detergents Laundry Detergents 2005 2006 2007 2008 2009 2010 Table 5 Sales of Laundry Detergents by Category: % Value Growth 2005-2010 % current value growth Automatic Detergents - Powder Detergents - Detergent Tablets - Liquid Detergents Other Detergents - Bar Detergents - Hand Wash Detergents - Fine Fabric Detergents Laundry Detergents 2009/10 2005-10 CAGR 2005/10 TOTAL Table 6 Laundry Care Company Shares 2006-2010 % retail value rsp Company 2006 2007 2008 2009 2010
Total 100.0 100.0 100.0 100.0 100.0 Table 7 Laundry Care Brand Shares 2007-2010 % retail value rsp Brand Company 2007 2008 2009 2010 Total 100.0 100.0 100.0 100.0 Table 8 Laundry Detergents Company Shares 2006-2010 % retail value rsp Company 2006 2007 2008 2009 2010
Total 100.0 100.0 100.0 100.0 100.0 Table 9 Laundry Detergents Brand Shares 2007-2010 % retail value rsp Brand Company 2007 2008 2009 2010 Others 6.2 6.2 3.8 2.3 Total 100.0 100.0 100.0 100.0 Table 10 Forecast Sales of Laundry Care by Category: Value 2010-2015 KES mn Carpet Cleaners Fabric Softeners Laundry Aids Laundry Detergents Laundry Care 2010 2011 2012 2013 2014 2015 Euromonitor International from trade associations, trade press, company research, trade interviews, trade sources Table 11 Forecast Sales of Laundry Care by Category: % Value Growth 2010-2015 % constant value growth
2010-15 CAGR 2010/15 TOTAL Carpet Cleaners Fabric Softeners Laundry Aids Laundry Detergents Laundry Care Euromonitor International from trade associations, trade press, company research, trade interviews, trade sources
POLISHES IN KENYA - CATEGORY ANALYSIS HEADLINES Polishes records 11% current value growth in 2010 An increase in counterfeit goods continues to affect volume growth Metal polish sees the highest current value growth of 16% in 2010 Unit prices record 10% growth in 2010, driven by the high cost of production and inflation Sara Lee Household & Body Care South Africa accounts for a 60% value share in 2010 Polishes is expected to increase by a constant value CAGR of 2% in the forecast five years TRENDS Shoe polish is particularly susceptible to counterfeits, since several low quality, low priced products enter the market every year, and people prefer to use these to save money. With the growth of cheap flooring options such as carpets, vinyl flooring and mats, many people no longer need to polish their floors. Furthermore, traditional flooring materials such as wood and marble tend to be extremely expensive, and hence unpopular. Also, with modern tiles being easily to clean, those without carpets often opt to just clean them regularly, without needing to polish them. Where furniture needs polishing, particularly wood or leather, this furniture is being replaced by plain fabric coverings, due to the cost of polishing and maintaining polished surfaces. Most people now prefer fabrics, since they are lower maintenance, particularly with regard to polishing. COMPETITIVE LANDSCAPE Sara Lee Household & Body Care South Africa led polishes in 2010 with its popular Kiwi brand. The brand is marketed with an aggressive campaign covering print, radio and television. The campaign s tagline is When your shoes shine, you shine too, and incorporates celebrity endorsement from the world 800m champion and record holder, David Rudisha, a Kenyan athlete. The campaigns are also targeted towards schoolchildren, and are often run at the beginning of the school term. Content removed from sample
PROSPECTS Polishes is expected to record a constant value CAGR of 2% in the forecast period. The continued influx of counterfeit products will be a major factor affecting this performance. With regard to furniture polish, the continued preference for fabric-covered furniture means that wood and furniture polish are not expected to grow particularly rapidly. Content removed from sample CATEGORY DATA Table 1 Sales of Polishes by Category: Value 2005-2010 KES mn Floor Polish Furniture Polish Metal Polish Shoe Polish Polishes 2005 2006 2007 2008 2009 2010 Table 2 Sales of Polishes by Category: % Value Growth 2005-2010 % current value growth Floor Polish Furniture Polish Metal Polish Shoe Polish Polishes 2009/10 2005-10 CAGR 2005/10 TOTAL Table 3 Polishes Company Shares 2006-2010 % retail value rsp Company 2006 2007 2008 2009 2010
Total 100.0 100.0 100.0 100.0 100.0 Table 4 Polishes Brand Shares 2007-2010 % retail value rsp Brand Company 2007 2008 2009 2010 Total 100.0 100.0 100.0 100.0 Table 5 Forecast Sales of Polishes by Category: Value 2010-2015 KES billion Floor Polish Furniture Polish Metal Polish Shoe Polish Polishes 2010 2011 2012 2013 2014 2015 Euromonitor International from trade associations, trade press, company research, trade interviews, trade sources Table 6 Forecast Sales of Polishes by Category: % Value Growth 2010-2015 % constant value growth Floor Polish Furniture Polish Metal Polish Shoe Polish Polishes 2010-15 CAGR 2010/15 TOTAL Euromonitor International from trade associations, trade press, company research, trade interviews, trade sources
SURFACE CARE IN KENYA - CATEGORY ANALYSIS HEADLINES In 2010 surface care increases by 9% in current value terms to reach KES6 million The threat of communicable diseases drives growth in surface care in 2010 Window/glass cleaners records the fastest current value growth in 2010, increasing by 17% Unit prices rise across the board in 2010, driven by inflationary and economic factors Unilever Kenya leads surface care with a 43% value share in 2010 Surface care is expected to see a CAGR of 2% in constant value terms over the forecast five years TRENDS The constant threat of the spread of communicable diseases has been a constant theme and a driver of growth in the category. The contribution of products in this category towards general hygiene, thus reducing the chances of contracting communicable diseases, was a major driver of growth in 2010. Window/glass cleaners recorded the fastest current value growth in 2010, as it was particularly hit by price rises related to the cost of raw materials. These products also had growing appeal for upper-income households, which see it as a more sophisticated product, and also institutions. Bleach brands such as Jik are common alternative products which can be used for surface care in Kenya. Once again, price is the main reason for this trend, and bleach can be used for more household tasks than surface care products. In fact, consumers are only willing to pay for more sophisticated products if they serve more than one purpose, and thus cut costs. Surface care products in powder format accounted for most sales in 2010, since they are cheaper than liquids and gels. COMPETITIVE LANDSCAPE Unilever Kenya led surface care in 2010 with a 43% value share. This is due to a welldeveloped portfolio of brands, led by Cif, which are preferred by consumers as they are good value for money. The Unilever marketing and distribution behemoth, which covers the entire country, also contributed to this good performance and value share. Content removed from sample PROSPECTS
Surface care is expected to perform relatively well in the forecast period, recording a constant value CAGR of 2%. The constant threat of communicable diseases due to poor hygiene is expected to be a major driver of growth. Content removed from sample CATEGORY DATA Table 1 Sales of Surface Care by Category: Value 2005-2010 KES mn Household Care Wipes and Floor Cleaning Systems Bathroom Cleaners Descalers Drain Openers Floor Cleaners Household Antiseptics/ Disinfectants Kitchen Cleaners Multi-Purpose Cleaners Oven Cleaners Scouring Agents Window/Glass Cleaners Surface Care 2005 2006 2007 2008 2009 2010 Table 2 Sales of Surface Care by Category: % Value Growth 2005-2010 % current value growth
2009/10 2005-10 CAGR 2005/10 TOTAL Household Care Wipes and Floor Cleaning Systems Bathroom Cleaners Descalers Drain Openers Floor Cleaners Household Antiseptics/Disinfectants Kitchen Cleaners Multi-Purpose Cleaners Oven Cleaners Scouring Agents Window/Glass Cleaners Surface Care Table 3 Surface Care Company Shares 2006-2010 % retail value rsp Company 2006 2007 2008 2009 2010 Total 100.0 100.0 100.0 100.0 100.0 Table 4 Surface Care Brand Shares 2007-2010 % retail value rsp Brand Company 2007 2008 2009 2010 Total 100.0 100.0 100.0 100.0
Table 5 Forecast Sales of Surface Care by Category: Value 2010-2015 KES mn Household Care Wipes and Floor Cleaning Systems Bathroom Cleaners Descalers Drain Openers Floor Cleaners Household Antiseptics/ Disinfectants Kitchen Cleaners Multi-Purpose Cleaners Oven Cleaners Scouring Agents Window/Glass Cleaners Surface Care 2010 2011 2012 2013 2014 2015 Euromonitor International from trade associations, trade press, company research, trade interviews, trade sources Table 6 Forecast Sales of Surface Care by Category: % Value Growth 2010-2015 % constant value growth Household Care Wipes and Floor Cleaning Systems Bathroom Cleaners Descalers Drain Openers Floor Cleaners Household Antiseptics/Disinfectants Kitchen Cleaners Multi-Purpose Cleaners Oven Cleaners Scouring Agents Window/Glass Cleaners Surface Care 2010-15 CAGR 2010/15 TOTAL Euromonitor International from trade associations, trade press, company research, trade interviews, trade sources
TOILET CARE IN KENYA - CATEGORY ANALYSIS HEADLINES Toilet care products records 8% current value growth and 2% volume growth in 2010 Toilet liquids continues to be the main category in toilet care products in Kenya in 2010 Unit prices increased by 8% in 2010 for toilet liquids, driven by economic and inflationary pressures Reckitt Benckiser East Africa leads toilet care products with a 29% value share in 2010 Toilet care products is expected to rise by 4% CAGR in constant value terms and in volume in the forecast period TRENDS Toilet blocks are becoming more popular, both within the bowl and in the cistern, since they are perceived to be automatic, needing minimal intervention. However, most people still prefer the traditional toilet liquid, as it is cheaper. Users of toilet care products are generally highincome consumers who live on modern estates. The growth rate in 2010 was slower than the average in the review period, primarily because the economy was still in recovery mode from a tough year, and the global economy was still in the throes of recession. In addition, rising fuel costs, driven by the crises in Middle Eastern and North African fuel-producing nations, made doing business even harder. As more and more people join the middle-classes, products which were previously out of reach are becoming affordable and even considered necessary. In-cistern devices particularly benefited from this situation, and as a result was the fastest growth product in value in toilet care, up 11% in 2010. COMPETITIVE LANDSCAPE Reckitt Benckiser East Africa led toilet care products in 2010 with a 29% value share, due to consistent and aggressive marketing campaigns. The company has adopted a celebrity endorsement strategy in its advertising, using popular radio and music personalities prominently in its campaigns. As a result, it saw the biggest increase in share in the category in 2010. Content removed from sample
PROSPECTS Toilet care products is expected to record a volume CAGR of 4% in the forecast period. Manufacturers will try to expand their consumer base through promotional offers and temporary discounts. Yet growth will be limited by low awareness and high prices, which will hinder further expansion to low-income consumers. Content removed from sample CATEGORY DATA Table 1 Sales of Toilet Care by Category: Value 2005-2010 KES mn In-Cistern Devices ITBs - Rim Blocks - Rim Liquids Toilet Care Mousse/Foam Toilet Care Tablets Toilet Cleaning Systems Toilet Liquids Toilet Care 2005 2006 2007 2008 2009 2010 Table 2 Sales of Toilet Care by Category: % Value Growth 2005-2010 % current value growth In-Cistern Devices ITBs - Rim Blocks - Rim Liquids Toilet Care Mousse/Foam Toilet Care Tablets Toilet Cleaning Systems 2009/10 2005-10 CAGR 2005/10 TOTAL
Toilet Liquids Toilet Care Table 3 Toilet Care Company Shares 2006-2010 % retail value rsp Company 2006 2007 2008 2009 2010 Others 66.5 66.3 59.6 50.0 6.8 Total 100.0 100.0 100.0 100.0 100.0 Table 4 Toilet Care Brand Shares 2007-2010 % retail value rsp Brand Company 2007 2008 2009 2010 Total 100.0 100.0 100.0 100.0 Table 5 Forecast Sales of Toilet Care by Category: Value 2010-2015 KES mn In-Cistern Devices ITBs - Rim Blocks - Rim Liquids Toilet Care Mousse/Foam Toilet Care Tablets Toilet Cleaning Systems Toilet Liquids Toilet Care 2010 2011 2012 2013 2014 2015 Euromonitor International from trade associations, trade press, company research, trade interviews, trade sources Table 6 Forecast Sales of Toilet Care by Category: % Value Growth 2010-2015
% constant value growth In-Cistern Devices ITBs - Rim Blocks - Rim Liquids Toilet Care Mousse/Foam Toilet Care Tablets Toilet Cleaning Systems Toilet Liquids Toilet Care 2010-15 CAGR 2010/15 TOTAL Euromonitor International from trade associations, trade press, company research, trade interviews, trade sources