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08 May 2007
Huge growth potential in kitchen towel category
Huge growth potential and a possible reclassification of the 'kitchen towels' category to 'household paper towels' is being forecast by the European Tissue Symposium (ETS) based on the UK mimicking American trends in towel and napkin usage. The findings, revealed at the recent ETS conference in Nice, France predict that kitchen towels category could grow by 270% and napkins (serviettes) by 350% if the UK and the rest of Europe follow American trends. Increased usage of towels in the States has already resulted in a rebranding of the category to household rather than kitchen towels. Key differences between the US and the UK are in the areas of kitchen and household cleaning and drying tasks, personal use for hand drying and also for cleaning mirrors and panes of glass. Towels are also finding wider use in the US for crafts, hobbies and painting. The American trend has been driven by the success of high performance, through-air-dry (TAD) towels and multi-ply products which boast superior absorbency and wet strength. Extensive marketing campaigns have also made a significant contribution to buying trends. Roberto Berardi, ETS Chairman, said on reclassification: "Because a good part of the towels growth potential is outside the kitchen, this could make sense in the future. At present it is important that the product segmentation is based on this insight. Therefore specific towels are being developed not only for microwave use but also for cleaning mirrors or Do-It-Yourself applications". In the US the versatility of TAD towels for a multitude of uses appeals to the consumer and encourages brand loyalty. The signs are that European consumers are also willing to pay more for a high performing product such as the Lotus Maestro towel (Holland) or the Bounty towel (UK) which extend use and re-use beyond those of any other paper towel. The Bounty towel, made by Proctor & Gamble (P&G), was one of the first TAD towels to hit the UK seven years ago and is now seen as radically altering the market with its launch. Since Bounty's introduction the market has grown by 55%, category value has jumped from £191 million to £297 million and Bounty's own value is now topping £58 million, making it the UK's top product in this category. Simultaneously, Georgia Pacific has had considerable success with its Lotus Thirst Pockets brand which has also been extensively marketed and supported. Similarly, growth in napkins will also come from the incorporation of the product into everyday use already customary in the US and parts of Southern Europe. While deep colour napkins such as intense hues of red and green may be popular choices for the barbeque consumer, in most cases napkins for everyday use in the UK are white, being the more economical choice. Growth in the rest of Europe is also being fuelled by new developments. The Italian market saw its biggest increase in over 5 years with high quality print, 3-ply products, TAD and high performance products, and new embossing all featuring. The last decade has seen a 32% increase in the Netherlands' kitchen towel market. Lotus Maestro entered this market in 1995, surprising competitors with the first premium product in this segment. It was also Europe's first use/rinse/re-use high wet strength product, quickly developing good distribution support, contributing to category growth. In fact growth in this category was due solely to Lotus Maestro, demonstrating that the more a product is differentiated, the less it needs large scale promotional support. Today, despite being double the price of regular tissue towel, it is the second most common product in many Dutch households. In Portugal, Renova introduced the Double-Face concept; a new range of 2-ply towels, one interior blank for safe contact with for example food, covered by an exterior coloured ply. This opened up new markets for Renova in Northern Europe, and has seen its market share at home increase by 10% over the last four years.
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