AIR CARE IN INDIA

Euromonitor International
July 2013

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LIST OF CONTENTS AND TABLES

Headlines ..................................................................................................................................... 1
Trends .......................................................................................................................................... 1
Competitive Landscape ................................................................................................................ 2
Prospects ..................................................................................................................................... 3
Category Data .............................................................................................................................. 4
Table 1 Sales of Air Care by Category: Value 2007-2012 ......................................... 4
Table 2 Sales of Air Care by Category: % Value Growth 2007-2012 ........................ 4
Table 3 Air Care Fragrances Rankings by Value 2007-2012 .................................... 4
Table 4 Air Care Company Shares 2008-2012 ......................................................... 5
Table 5 Air Care Brand Shares 2009-2012 ............................................................... 5
Table 6 Forecast Sales of Air Care by Category: Value 2012-2017 .......................... 6
Table 7 Forecast Sales of Air Care by Category: % Value Growth 2012-2017 ......... 6


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AIR CARE IN INDIA


HEADLINES
Air care grows by 17% in current value terms to reach Rs1.7 billion in 2012
Consumers continue to switch from traditional offerings to sophisticated aerosols/sprays
Average unit prices grow further due to increase in uptake of modern formats such as
aerosols and car air fresheners
Dabur India Ltd maintains lead with value share of 38% in 2012
Air care is predicted to grow by a constant value CAGR of 9% to reach Rs2.5 billion by 2017


TRENDS
Positioned and promoted as a lifestyle product, air care emerged as a promising category
over the review period. Urban consumers continued to switch from traditional offerings such
as incense sticks known as agarbattis locally, to the more sophisticated spray/aerosol format
for their homes in 2012. Additionally, to leverage on the growing shift and potential growth of
modern air fresheners, leading players such as Godrej Consumer Products Ltd introduced air
fresheners under the brand AER.
Air care grew by 17% in current value terms to touch Rs1.7 billion in 2012, which was
marginally faster than the review period growth, mainly due to the growing number of
consumers who were willing to experiment with the modern formats such as aerosols to keep
their homes odour free. Air care began to be associated as a lifestyle product and attracted
the consumers to buy different variants including spray/aerosol air fresheners such as Air
Wick.
Being the smallest in sales, car air fresheners continued to be record the fastest current value
growth of 28% in 2012. The demand for car air fresheners continued to be fuelled by the
growing desire of consumers to maintain freshness in their cars by using appealing
fragrances. Additionally, car air fresheners benefited from the growing disposable incomes
that usually result in increased spend on lifestyle products.
Average unit prices continued to increase due to the growing uptake of modern formats such
as spray/aerosol and car air fresheners. Furthermore, the launch of aerosols in different
fragrance variants which are marginally more expensive drove the unit prices even further in
2012.
Other air care which includes solid air fresheners such as Odonil Air Freshener and incense
sticks, locally known as dhoops and agarbattis, recorded slowed growth, although it continued
to be the second largest in terms of value sales in 2012. Other air care including agarbattis
continued to enjoy huge popularity mainly due to use in religious rituals including Pujas and
everyday prayers in rural and urban areas as well. However, consumers started to shift from
such traditional air fresheners to modern formats such as spray/aerosols to freshen up homes
and remove offensive odours. The switch from other air care mainly by urban consumers
largely contributed to a slowdown in growth of older forms such as dhoops.
Air care products continued to be available in sprays, solid formats, and electric air fresheners
in 2012. Of all, spray/aerosol started to gain strength mainly due to the ease of use and
effective action associated with it. Spray/aerosol brands such as Odonil, Air Wick, Ambi Pur,
and Premium continued to witness a rise in sales due to growing acceptance and uptake.
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Further, manufacturers such as Reckitt Benckiser started to launch aerosols in different
fragrance variants to suit consumers preferences.
Electric air fresheners continued to be very small in 2012. The major bulk of air fresheners
available in the country continued to be plug-in electric air fresheners. Reckitt Benckiser
launched Air Wick to gain the first mover advantage and was very innovative with its product
launches. For instance, Air Wick Freshmatic dispenses its scent at timely intervals to inject
new fragrance to its surroundings. Consumers of today now expect such added functionality
in air care.
Lavender continued to be the most popular fragrance in air care in 2012. However, jasmine
gained more popularity to shift sandalwood to gain the second leading position, followed by
rose and sandalwood. Such natural fragrances continued to gain popularity amongst
consumers.


COMPETITIVE LANDSCAPE
Dabur India Ltd continued to dominate air care with value share of 38% in 2012. The
company has a long established leadership in air care under its brand Odonil which has
continued to enjoy huge popularity amongst consumers for years. Furthermore, with the
launch of Odonil Occasions that offered different formats of air care during the late months of
2011, the company tried to gain further penetration of urban and rural homes. However,
Procter & Gambles Ambi Pur offered strong competition to Daburs Odonil aerosols in 2012,
which resulted in the company losing two percentage points in value share.
Procter & Gamble experienced the biggest increase in share, gaining two percentage points
due to its brand Ambi Pur which was promoted across the country in 2012. The brand
witnessed a rapid increase in sales mainly due to its affordability and easy availability in
different formats and variants including aqua, lavender and vanilla for car air fresheners. The
brand was heavily advertised with the tag line Open your car to Ambi-pur freshness. The
company also introduced a new air freshener format for homes.
Air care continued to be equally dominated by domestic and international manufacturers
including Dabur and Reckitt Benckiser in 2012. However, domestic manufacturers including
Dabur India Ltd started to lose share despite new launches such as Odonil Occasions in
2011. International brands such as Air Wick from Reckitt Benckiser and SC Johnson
continued to compete aggressively with the domestic brands in 2012.
In 2012, Godrej Consumer Products Ltd introduced air fresheners under the brand AER and
re-entered air care after its exit in 2009. AER introduced the spray/aerosol format for use in
the home and car dash board diffusers for cars in three fragrance variants including cool,
petal, and fresh. The launch of AER is likely to intensify competition, with the presence of
many international and domestic manufacturers brands including Ambi Pur and SC
Johnsons Glade air care.
Procter & Gamble invested huge amounts of money in promoting its brand Ambi Pur which
helped the company to gain share in 2012. Ambi Pur devised the Who will Drive Me Crazy
campaign aimed at creating the need for air fresheners in cars. Procter & Gamble ran road
campaigns by collaborating with Neha Dhupia (a Bollywood actress) who played the
unexpected guest who would stop any car and ask for a lift. She would choose to stay inside
or come out of the car depending upon the freshness inside. The campaign pushed the idea
of being guest ready with a fresh car which was popular with consumers.
In air care, car air fresheners, and spray/aerosol air fresheners would be considered as
premium and standard mainly due to the price of the product. Other air care including dhoops
and agarbattis continued to be considered as economy brands. In 2012, premium and
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standard brands such as Air Wick offered tough competition to economy brands for urban
consumers including people who drive cars. Urban consumers increasingly replaced dhoops
with car air fresheners in their cars. However, economy brands such as Mangaldeep sticks
continued to be popular amongst rural consumers and for use in pujas mainly.
Private label including Paradise Air Freshener from More Supermarket, Great Value from
Easy Day, and Frshomz by Reliance Retail gained huge popularity amongst consumers
mainly due to the lower price compared to branded air care. Private label continued to offer air
care in the form of cubes and blocks and also offered combination packs that offered different
formats of air fresheners.


PROSPECTS
With improving living standards and increasing demand for aesthetics, air care formats such
as aerosols, car air fresheners and electric air fresheners are likely to experience huge
acceptance in urban areas mainly over the forecast period. Additionally, the forecast period
would also continue to witness a huge shift from traditional air care such as dhoops to
spray/aerosol and electric air fresheners.
Air care is predicted to grow by a constant value CAGR of 9% to reach Rs2.5 billion by 2017.
The growth in air care would be faster than the review period when air care had a very small
value sales base. During the forecast period, air care is likely to gain further penetration in
urban areas with the help of new products such as car air fresheners that are gaining huge
acceptance. Additionally, Tier II households would increasingly switch to aerosols and electric
air fresheners from agarbattis and cube formats of air fresheners.
Rural and Tier II and III consumers might continue to use cheaper alternatives including
dhoops mainly due to the affordability. Additionally, any further increase in the prices of newer
formats of air fresheners including electric air fresheners and aerosols, which are already
considered as expensive are likely to hamper growth over the forecast period. Additionally,
consumers might switch to natural products such as aroma oils, potpourri, and dried flowers,
as they are considered more environment friendly and cheaper compared to other air care.
Car air fresheners is likely to grow by a constant value CAGR of 16% and will continue to
record the fastest growth over the forecast period. With improving lifestyles and greater
emphasis on aesthetics, consumers are likely to spend a huge amount on car air fresheners,
leading this product to continue to be the key contributor to growth of overall air care. Such
strong growth in car air fresheners is also supported by the rapidly growing sales of
automobiles including cars over the forecast period.
Average unit prices are likely to grow further mainly due to the growing uptake of
spray/aerosol and car air fresheners over the forecast period. Additionally, the launch of
premium products including gels and candles would drive the unit prices even further.
New product launches such as AER are likely to experience a huge increase in sales over the
forecast period. Since spray/aerosol, and car air fresheners are newer products, there is
enough room for all companies to grow. Furthermore, the potential growth in air care might
attract international and domestic manufacturers to launch more products and formats such
as candles and gels.
Leading manufacturers are likely to include aromatic oils in spray/aerosol and electric air
fresheners as the main ingredient to increase effectiveness. Other international manufacturers
are also likely to introduce other formats of air care including candles and gels that are
popular for the slow fragrance release across the globe. Procter & Gamble has announced
plans to enter the premium gel air fresheners.

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CATEGORY DATA

Table 1 Sales of Air Care by Category: Value 2007-2012

Rs million
2007 2008 2009 2010 2011 2012

Candle Air Fresheners - - - - - -
Car Air Fresheners 136.4 166.8 209.7 264.0 347.1 443.8
Electric Air Fresheners - - - - - -
Gel Air Fresheners - - - - - -
Liquid Air Fresheners - - - - - -
Spray/Aerosol Air 326.2 365.8 420.7 501.2 594.8 692.2
Fresheners
- Concentrated Spray/ - - - - - -
Aerosol Air Fresheners
- Standard Spray/ 326.2 365.8 420.7 501.2 594.8 692.2
Aerosol Air Fresheners
Other Air Care 355.5 382.4 402.2 429.3 476.6 521.7
Air Care 818.1 915.0 1,032.5 1,194.5 1,418.6 1,657.7
Source: Euromonitor International from official statistics, trade associations, trade press, company research,
store checks, trade interviews, trade sources


Table 2 Sales of Air Care by Category: % Value Growth 2007-2012

% current value growth
2011/12 2007-12 CAGR 2007/12 Total

Candle Air Fresheners - - -
Car Air Fresheners 27.8 26.6 225.4
Electric Air Fresheners - - -
Gel Air Fresheners - - -
Liquid Air Fresheners - - -
Spray/Aerosol Air Fresheners 16.4 16.2 112.2
- Concentrated Spray/Aerosol Air - - -
Fresheners
- Standard Spray/Aerosol Air Fresheners 16.4 16.2 112.2
Other Air Care 9.5 8.0 46.7
Air Care 16.9 15.2 102.6
Source: Euromonitor International from official statistics, trade associations, trade press, company research,
store checks, trade interviews, trade sources


Table 3 Air Care Fragrances Rankings by Value 2007-2012

ranking
2007 2008 2009 2010 2011 2012

Lavender 1.0 1.0 1.0 1.0 1.0 1.0
Jasmine 2.0 2.0 3.0 3.0 3.0 2.0
Rose 4.0 4.0 4.0 5.0 5.0 3.0
Sandalwood 3.0 3.0 2.0 2.0 2.0 4.0
Floral 7.0 7.0 5.0 4.0 4.0 5.0
Aqua/Water 6.0 6.0 6.0 7.0 6.0 6.0
Lemon/Citron 5.0 5.0 7.0 6.0 7.0 7.0
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Source: Euromonitor International from official statistics, trade associations, trade press, company research,
store checks, trade interviews, trade sources


Table 4 Air Care Company Shares 2008-2012

% retail value rsp
Company 2008 2009 2010 2011 2012

Dabur India Ltd 42.5 40.2 40.9 40.0 38.3
Procter & Gamble Home - - 14.4 18.6 20.9
Products Ltd
Helene Curtis India 17.2 15.5 13.4 14.3 14.2
Ltd, J K
Reckitt Benckiser 5.4 7.1 8.6 8.4 8.7
(India) Ltd
Midas Care 2.2 2.1 2.1 2.0 1.7
Pharmaceuticals Pvt Ltd
SC Johnson Products Pvt - - 0.6 0.8 0.8
Ltd
Godrej Consumer - - - - 0.8
Products Ltd
Godrej Sara Lee Ltd 12.7 13.8 - - -
Archies Greetings & 0.4 0.2 - - -
Gifts Ltd
Balsara Home Products Ltd - - - - -
Others 19.6 21.0 20.0 15.8 14.6
Total 100.0 100.0 100.0 100.0 100.0
Source: Euromonitor International from official statistics, trade associations, trade press, company research,
store checks, trade interviews, trade sources


Table 5 Air Care Brand Shares 2009-2012

% retail value rsp
Brand Company 2009 2010 2011 2012

Odonil Dabur India Ltd 40.2 40.9 40.0 38.3
Ambi Pur Procter & Gamble Home - 14.4 18.6 20.9
Products Ltd
Premium Helene Curtis India 15.5 13.4 14.3 14.2
Ltd, J K
Air Wick Reckitt Benckiser 6.1 8.0 8.2 8.5
(India) Ltd
Lovin Midas Care 2.1 2.1 2.0 1.7
Pharmaceuticals Pvt Ltd
Glade SC Johnson Products Pvt - 0.6 0.8 0.8
Ltd
AER Godrej Consumer - - - 0.8
Products Ltd
Haze Reckitt Benckiser 1.0 0.6 0.2 0.2
(India) Ltd
Ambi Pur Godrej Sara Lee Ltd 13.8 - - -
Fresh & Fragrant Archies Greetings & 0.2 - - -
Gifts Ltd
Odonil Balsara Home Products Ltd - - - -
Others 21.0 20.0 15.8 14.6
Total 100.0 100.0 100.0 100.0
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Source: Euromonitor International from official statistics, trade associations, trade press, company research,
store checks, trade interviews, trade sources


Table 6 Forecast Sales of Air Care by Category: Value 2012-2017

Rs million
2012 2013 2014 2015 2016 2017

Candle Air Fresheners - - - - - -
Car Air Fresheners 443.8 529.8 626.0 726.6 828.3 931.9
Electric Air Fresheners - - - - - -
Gel Air Fresheners - - - - - -
Liquid Air Fresheners - - - - - -
Spray/Aerosol Air 692.2 756.2 826.2 895.3 962.3 1,023.5
Fresheners
- Concentrated Spray/ - - - - - -
Aerosol Air Fresheners
- Standard Spray/ 692.2 756.2 826.2 895.3 962.3 1,023.5
Aerosol Air Fresheners
Other Air Care 521.7 534.7 546.5 554.6 561.3 566.7
Air Care 1,657.7 1,820.8 1,998.8 2,176.5 2,351.9 2,522.1
Source: Euromonitor International from trade associations, trade press, company research, trade interviews,
trade sources


Table 7 Forecast Sales of Air Care by Category: % Value Growth 2012-2017

% constant value growth
2012-17 CAGR 2012/17 TOTAL

Candle Air Fresheners - -
Car Air Fresheners 16.0 110.0
Electric Air Fresheners - -
Gel Air Fresheners - -
Liquid Air Fresheners - -
Spray/Aerosol Air Fresheners 8.1 47.9
- Concentrated Spray/Aerosol Air Fresheners - -
- Standard Spray/Aerosol Air Fresheners 8.1 47.9
Other Air Care 1.7 8.6
Air Care 8.8 52.1
Source: Euromonitor International from trade associations, trade press, company research, trade interviews,
trade sources