The pandemic put a renewed emphasis on cleanliness. But when lifestyles returned to normal, so too did consumer cleaning habits. As a result, sales of hard surface cleaners and disinfectants fell sharply in 2022. Fabric care products were not immune to consumer apathy. According to IRI, while laundry detergent dollar sales rose in food, drug and mass, the gains could be attributed to price increases caused by soaring inflation rates and tight supply. Overall, unit sales declined, according to IRI (see the related charts within this feature to learn more). Sales are down, but experts say other factors are at play besides cleaning fatigue.

Dean General, SVP-commercial development/sales and GM retailer brands, Henkel Consumer Brands North America, cited an American Cleaning Institute (ACI) consumer study that found 85% of Americans planned to keep up with their new cleaning routines after the pandemic.

Kao executives agreed that unit sales have declined in the past year; but not necessarily due to laundry lethargy. Rather, it could be attributed to several factors, including  a wardrobe change.

“In addition, as people returned to offices, their clothes changed. Gone are the comfortable clothes, and back is work clothes and dry cleaning,” said a spokesperson.

Jonathan Propper, CEO of Dropps, noted cleaning is essential for every individual and household—there is no cleaning fatigue issue.

“At Dropps, our unit sales remain strong. For the industry at large however, there has been saturation of new brands entering the market and consumers have more choice than ever before,” he observed. “Not to mention, record-breaking inflation has caused consumers to be much more economical in their purchases, including household essentials like laundry. Now, consumers are cognizant of how much product they use and are conscious to make their essentials last longer.”

MyKirei by Kao noted a consumer recession is when the core habits of traditional consumption have shifted, forcing shoppers to behave as though a recession is already here. A spokesperson for the company said, “They consume less, shift their spending to value retailers and brands, and buy more products on promotion. Laundry detergent remains a necessity for consumers, so rather than a decline in sales, we are likely to see a shift to consumers buying on promotion, shopping for value brands, or buying larger formats, which generally have a lower cost per use.”

For example, a Q3 survey found 67% of Americans felt the US was already in a recession and plan to reduce future spending. As a result, private label sales picked up momentum through the first nine months of 2022, growing faster than total CPG, according to MyKirei. The company notes that national brands generally benefit from a high level of trust with consumers. However, for brands to weather the recessionary storm, they should strive to differentiate their brand to co-exist with private label products and to justify the price gap. National brands can also apply strategic price increases by size, knowing that consumers shift to larger formats during periods of high inflation.

The team at Procter & Gamble contend the need for clean clothes does not change in uncertain times—in fact, getting clothes clean in one wash becomes even more important. The sizes of laundry loads are larger than ever before.

According to P&G data, consumers wash an average of 45 pounds of laundry each week, a rate that has remained steady during the past five years. What’s gradually changed is that they are waiting longer between loads to more efficiently get the job done—making each load bigger. Laundry detergent has to work harder than ever before to meet this need.

That’s why bringing superior performance and value to consumers remains a top priority in P&G fabric care, according to the company spokesman who said P&G is focused on creating irresistibly superior products that delight consumers with cleaning performance and freshness in every wash and at every price point where P&G competes. For example, when consumers choose Tide or Gain, they can trust they’ll get a superior clean the first time, even when they wash in cold water which can help them save money on their energy bill vs. washing in hot water and that means less energy wasted and less impact on the environment.

The laundry care marketplace will expand in the next year due to R&D developments. General of Henkel told Happi that the company is constantly looking for ways to innovate products to deliver better performance using the best ingredients to tackle tough stains and ensure cleanliness.

“We know how quickly consumers’ needs can shift, so it’s important our beloved brands like Persil and All evolve to anticipate and meet those needs,” he added.

Lately, Henkel found consumers want simplified, compact and convenient products. They also seek ways to extend their buying power with fewer trips to retail stores and smaller baskets when they do shop.

“Our retail partners are always very conscientious on the management of distribution, shelving, and pricing of the assortment offered to consumers,” General explained. “Our Henkel commercial team works seamlessly in collaborating with our retail partners to deliver the best Henkel assortment possible to meet all of their household cleaning needs.”

More consumers want more sustainable cleaning solutions, too. Citing a recent KPMG study, General noted that 76% of consumers made purchasing decisions based on a company’s environmental efforts.

“At Henkel we’re focused on purposeful growth and sustainability is central to that vision. We want to actively drive the transformation to a sustainable economy and society, help protect and regenerate nature, contribute to strong communities and strengthen the trust of our stakeholders. The evolution of All is part of delivering on that strategy,” he said.

According to General, consumers want to know that brands like All and the products they use at home support them in living more sustainably and that they aren’t sacrificing quality or performance along the way.

“We received a very positive response to our new All bio-based formula,” he said. “In addition to bringing new innovations like this to market, it’s also part of our job to reinforce the benefits of these types of products and formula changes. Packaging plays an important role in that.”

Last year, Dropps introduced Ultra Concentrated Liquid Laundry Detergent. Available in three varieties, the liquid detergent can be pumped directly into the laundry drum, allowing customers to use as much (or as little) detergent as they need to clean their clothes. By being six times more concentrated than traditional, non-concentrated liquid laundry detergents, consumers can use less and save money.

“Sales have been quite promising, but this was expected as we’ve noticed demand for this innovation. Laundry pods remain at the core of our business, and with the introduction of Ultra Concentrated, we can continue to be a leader in efficacious and sustainable cleaning,” said Propper, who agreed that efficacy remains a top priority for consumers. “They want the product’s ability to properly clean to justify the product price.

“Over the years, fabric integrity has increasingly become another top priority for our customers. As the world becomes knowledgeable of fast fashion’s impact on the environment, we’ve noticed that customers are beginning to be more strategic in their consumption of apparel, and will spend a little more on quality garments that are ethically made.”

As a result, consumers are paying more attention to how they care for their clothing. They are also conscious of the ingredients in their laundry detergents and put more effort into maximizing the lifespan of their garments. This also has an economic impact for the consumer as well.

“Longer-lasting clothes mean less closet turnover and less purchasing of new items,” noted Propper.

Last year, MyKirei by Kao launched Easy-Spray Laundry Detergent on MyKirei.com and Amazon.com. The laundry spray is smaller than typical detergents, which makes it more lightweight and easier to handle. Further, it requires no measuring and leaves no mess, said the company.

Formulated with a proprietary surfactant, dubbed BIOS-IOS, it won’t leave behind residue and rinses cleanly and completely, even in cold water. The surfactant promotes responsible sourcing of palm oil and reduces waste. Obtained from the palm kernel using a breakthrough process, BIO-IOS does not compete with food production, which uses oil from the fruit, according to Kao.

Laundry may seem like it’s just about getting rid of stains, but that’s just one of the many tough jobs consumers expect from their laundry products, according to P&G.

“Consumers tell us there are multiple jobs to be done including helping eliminate odor, providing a fresh scent, deep cleaning and doing something good for the environment,” said a company spokesperson.

P&G Fabric Care is focused on delivering performance in the laundry room, no matter what the job to be done. Downy Rinse and Refresh is a laundry odor remover that helps rinse away residue trapped within fabric fibers. For consumers looking for long-lasting scent that’s not overpowering, Downy offers Downy Light Scent Booster Beads which are made with no heavy perfumes and no dyes or phosphates.

Meanwhile, new Tide Hygienic Clean Heavy Duty 10x Power Pods are designed to clean fabrics down to the microscopic level, removing visible and invisible dirt for a deep, hygienic clean, according to the company. P&G also says the new formula is designed to give consumers a superior clean in every wash, even in cold water, which means less energy and less impact on the environment. P&G said washing in cold water instead of hot saves on average 90% of the energy used.

Sustainability Matters

General of Henkel noted performance and quality are key drivers when it comes to product demand, but consumers are also assessing whether companies are contributing to the greater good. He cited a PWC study that found that 83% of consumers think companies should be actively shaping ESG best practices. Henkel’s Sustainability Ambition Framework includes long-term ambitions in the three dimensions:

• Regenerative Planet and supporting a circular and net zero carbon future;
• Thriving Communities and supporting equity, education and wellbeing, and
• Being a Trusted Partner while driving systems change with integrity.

“This is part of delivering on our purpose—pioneers at heart for the good of generations,” General said. “We want to enrich and improve the lives of people every day—and shape a better future.”

Henkel expects its suppliers to be working toward the same or similar goals. General noted that suppliers play a large role in Henkel’s ability to meet its own sustainability targets so the company is working toward increasing transparency across its supply chain work toward better solutions.

“For example, we require our suppliers in the raw materials and packaging sectors to be transparent about the emissions levels of their product portfolios and ask them to contribute to reducing carbon emissions along their own supply chains,” explained General. “This approach is a key part to reaching our science-based target for Scope 3 greenhouse gas emissions and addresses about 50% of our indirect emissions in the raw materials areas.”

Supply Chain Woes

Raw material shortages impacted every industry up and down the supply chain. Marketers have varying views on whether or not supply chain restrictions are easing. Dropps’ supply chain is open and easing in comparison to a year ago.

“We’re fortunate that our supplies have not seen a price increase this year, so we are still able to provide quality and value to our customers,” said Propper.

He recalled that during the early stages of the pandemic, consumer behavior and high demand caused inventory to dwindle dramatically. Many households during that time had a “hoarding” mentality, thanks to headlines and noticeably emptier shelves in retail. With the increased demand, it became difficult for many manufacturers to maintain inventory levels throughout the supply chain.

“As panic and consumer fear of shortages have subsided, and life has resumed outside of the home, the demand for cleaning products and household essentials has stabilized,” Propper explained.

Greenology Products CEO Adam McCarthy said resin increases ebbed and by Q4 started to decline slightly.

“Raw material prices for many natural ingredients and surfactants remain historically high, although select material is starting to pull back, but fractionally,” he added.

At Henkel, General noted that economic headwinds (and the environmental instability of weather patterns) makes it difficult for anyone to plan for what’s ahead. Still, Henkel has taken dramatic steps to improve its North American supply chain footprint, raw material availability and collaboration with its customers in an effort to best serve consumers when they need products most. Henkel is pursuing an agenda of purposeful growth and has developed a clear strategic framework that includes building a successful portfolio, clear competitive edge in the areas of innovation, sustainability and digitalization, as well as future-ready operating models based on a strong company culture.

“In the course of 2022, Henkel continued to work consistently on the implementation of its growth agenda and made significant progress in all areas globally,” General explained. “With the announcement to merge Laundry & Home Care and Beauty Care into a new business unit, Consumer Brands, Henkel is taking its purposeful growth agenda to the next level.”

Preservation Problems

Keeping clothes clean is the primary objective of every laundry detergent. But what keeps detergents clean from contamination? In December, The Laundress recalled eight million cleaning products due to bacteria contamination. The recalled items were manufactured between January 2021 and September 2022, and include laundry detergents, fabric conditioner and cleaning products. According to the Consumer Product Safety Commission, the affected products may contain one of several different types of bacteria, many of which are environmental organisms found widely in soil and water. CPSC warned that people with weakened immune systems, underlying lung conditions, or those who use external medical devices and are exposed to the bacteria, risk serious infection.

Just a few months earlier, in October, Clorox recalled millions of bottles of household cleaners for the very same reason. The Clorox recall affected products made between January 2021 and September 2022. The company said it produced about 37 million recalled products in that period. Last month, CPSC recalled Art of Green laundry detergents as they may contain bacteria, including Pseudomonas aeruginosa. Most recently, the CPSC recalled Art of Green laundry detergents due to baterial contamination.

Bacteria contamination is relatively rare in the household cleaning category. Still, according to industry expert David Steinberg, companies should never release finished products without doing a plate count for bacteria, yeast and mold.

“If it tests greater than 10 CFUs it should never be shipped,” he insisted. Steinberg said bacteria comes from three sources:

• Contaminated raw materials;
• Contaminated water; or
• Contaminated production equipment, such as pipes, tanks or filling equipment.

Why did it happen? Steinberg blamed a failure to follow cGMPs.

“Most producers put preservatives in their products during production to take care of contaminations during production and filling,” he explained. “All industrial end uses can use preservatives approved by the EPA for this end use.”

FYI, PVOH

Last year, Blueland and the Plastic Pollution Coalition called for a ban on polyvinyl alcohol film—the stuff that encapsulates unit dose detergents. The American Cleaning Institute (ACI) disputes the move, noting the chemistry enabled innovative laundry and automatic dishwashing product formats (click here).

The petition may have backing by outlier groups, but ACI CEO Melissa Hockstad noted the Institute’s core strength is sound science.

“We have decades of scientific research that shows the biodegradability of these materials,” said Hockstad.

ACI has reached out to various media outlets to get the right information out about unit dose. EPA has also been notified.

“One of ACI’s strengths is high level engagement with EPA. We have shared our expertise with key leaders,” said Hockstad who also noted that, for the second year in a row, ACI is a Safer Choice Partner of the Year.”

ACI’s Efforts for the Fabric Care Industry Will Be On Display During the Annual Meeting The American Cleaning Institute (ACI) is working at the international, national and state levels on a variety of issues of importance to the home cleaning industry in general, and fabric care companies in particular. In Washington DC, it is working with the US Food and Drug Administration regarding topical antiseptics, and the key role they play in public health. ACI has devoted millions of dollars to promote these ingredients and leading the research on these materials, according to ACI President and CEO Melissa Hockstad. “We want FDA to remove barriers to amend the regulatory approval process,” she said. On the issue of ingredient communication, ACI met with more than 40 Capitol Hill offices to voice support for federal ingredient standards. ACI is amplifying that message via a social media campaign. At the state level, ACI continues to lead 1,4-dioxane research efforts. In New York, levels for 1,4-dioxane have been reduced to 2ppm. At the end of 2023, the limit gets cut to 1ppm. “We don’t want 50 different laws for 50 different states,” observed Hockstad. “Member companies are working hard to meet those New York limits. We’ve increased research on measuring 1,4-dioxane in complex mixtures, and we’ve published literature on testing methodologies. We were surprised to learn that there were no standard methodologies to test for 1,4-dioxane.” State legislators on both coasts have taken up packaging issues like extended producer responsibility and post-consumer recycled content. As a result, Hockstad expects packaging will be a key issue in 2023. Internationally, ACI is aligned with the United Nations Sustainable Development Goals. The Institute’s 2022 sustainability report highlights the essential role of the US cleaning industry and how it is improving transparency as it reduces emissions. ACI members will learn more about the Association’s efforts in 2022 and its plans for 2023 and beyond at the Annual Meeting and Industry Convention, which will be held January 30-February 4 in Orlando. During the global industry update session, attendees will hear from international association executives about the challenges facing their region’s cleaning products supply chain. In another session, executives from BASF, Novozymes and Sasol will discuss emerging technologies aimed at making cleaning feedstocks more sustainable. Later, executives from Clorox, Market Actives and SC Johnson, will detail the industry’s efforts on transparency and communication. Another panel, featuring representatives from Ecolab and Reckitt, will discuss the latest developments on 1,4-dioxane. To register for the 2023 ACI Annual Meeting and Industry Convention, visit www.cleaninginstitute.org. But whether its working in Brussels, Orlando or Washington DC, the association’s mission is clear, according to Hockstad. “Our overall focus continues to be on communication,” she asserted. “ACI has worked with electronic news outlets, print media and organizations to promote the important role its members play in improving public health. “We are the voice of the cleaning products industry,” concluded Hockstad.

Propper pointed out that there’s no doubt that pre-measured, unit-dose detergents save water and are an efficient way to do laundry.

“In the case of Dropps, our pods also help eliminate the plastic-waste long associated with heavy liquid laundry detergent jugs,” he said. “However, we know that not all PVOH is created equal. The polymer class may have the same name, but the actual materials being manufactured and sold can be very different. In addition to being water-soluble, the PVOH film used in pod or pack products across the industry is also biodegradable.”

But Propper added that importantly, if a material is soluble in water, it does not always mean it is biodegradable.

“As the original inventor of the laundry pod, we specifically chose this film as it was soluble, but also because we knew it to be biodegradable,” he told Happi. “In the case of PVOH degradation, at least 55 species of microorganism have been shown to take an active role in this biodegradation process. There is a significant body of peer-reviewed, scientifically-published literature on the subject which dates back 50 years to the 1970s.”

According to Propper, the time taken for the microorganisms to produce the enzymes needed to metabolize PVOH is rapid and biodegradation of the film occurs by 20 to 28 days in water.

Although unit dose is widely used, it isn’t the only way to save water and resources. Greenology Products isn’t abandoning traditional water-based products, but the company’s new WaterWise Concentrate collection of cleaning products reduces reliance on plastic bottles by featuring a “forever” bottle. It eliminates shipping water by delivering multi-pack super concentrated powders with a bottle. The user only needs to add tap water from home and their formula is ready in one minute, said McCarthy.

“WaterWise Concentrate is highly sustainable and simple to use, with no change in performance,” he added.

A Downturn Ahead?

More analysts predict the US, and perhaps the global economy, is headed toward a recession. In economic downturns, consumers often turn to less expensive alternatives to national brands. Indeed, while national brand results have been mixed during the past year, sales of private label detergents have increased, according to IRI. McCarthy said demand has not abated in his company’s two core businesses—cleaning/detergents and personal care.

“As big national brands moved to higher retails, we saw velocity increase for our private label customers as consumers looked to save wherever they could,” he told Happi.

McCarthy has noticed a modest conversion by consumers to competitively-priced, natural private-label SKUs.

“Retail emphasis on proprietary brands was higher in 2022 vs 2021. (There were) more frequent promotions, end caps, coupons and general brand focus on quality,” he explained. “Private label value up-ticked in 2022 as retailers countered the bad market news/perception of rising grocery pricing.”

Still, formulators are confident they have the innovative formulas and a plethora of brands in variety of price points to maintain market share. General said Henkel prides itself on having a laundry and homecare portfolio that covers the spectrum from retailer brands to Henkel national brands that serve the consumer across all value tiers: value for money, mid-tier and premium performance. But, at the same time, private label is an essential part of Henkel’s growth strategy in the US.

“We offer retailers state-of-the art R&D, innovation, branding, shopper and consumer insights, leadership in sustainability, and world-class manufacturing and quality,” he said. “With this unique set up of national and retailer brands in the US, we are able to offer to our customers the best value and choice for the category, while serving the needs of consumers who purchase national brands, retailer brands or both!”
Propper noted that despite threats of a recession, when it comes to household cleaning product choices, it all boils down to reputation, customer satisfaction and loyalty.

“Like any other household essential, consumers are picky when it comes to their laundry brands. Once they find a brand that they love, they tend to stick with it,” he said. “The subscription DTC model makes this more convenient for the consumer as well. In this sense, laundry products become a mainstay in household budgets, even during economic downturns.

Going forward, Dropps continues to focus on its core product and current lineup. Introductions will come in the form of new formulations, with emphasis on scent developments.

Greenology added manufacturing in Texas. As a result, the company is covered in the central US and coast to coast. Greenology also added blue-chip retail customers, but McCarthy declined to provide specifics, citing confidentiality agreements.

In 2023, MyKirei by Kao will expand its offerings to help consumers live a wellness-inspired lifestyle. Company executives said they will be based on Japanese tradition like other MyKirei formulas.