Covering Quarter 3, 2016 Turning Healthy-Living into a Healthy … Q3 2016.pdf · 2017-06-06 · At...

are 26 sub-categories in home that have grownin the first 10 months of 2016 and 19 of themare related to consumers living a healthy life.

While healthy living is not a new idea ortrend, it is important to recognize that it isabout new ideas. Every year there is a new best-selling book about health. Health is a movingand undefined target, making it difficult to anti-cipate and capitalize on this opportunity. Con-sumers are seeking solutions, often coming upwith their own (the number one diet every yearsince 2000 has been “My Own” diet, accordingto NPD’s Dieting Monitor), and marketers areconstantly doing the same.

We need to really appreciate the size of theopportunity we are faced with. The largest, andgrowing, parts of the population hitting a newlifestage are all interested and willing to act onhealth, which has not always been the case.More than 65 percent of the adults age 55 andover have some sort of medical issue and, similarto their predecessors, this is when we truly startto make healthy decisions.

On the other end of the age spectrum, theyounger generation has always defined the interestand tone of America from “Break the GlassCeiling” of the 1970s to “Greed is Good” of the‘90s, and now, for the first time, they are focusedon health, natural and organic. New moms,another important and growing segment, takewhat their newborns eat very seriously. But,beyond introducing fruits and vegetables at anearly age, moms are on a constant quest to makehealthy food appealing to their child as theybecome more independent. With Boomers,Millennials and new moms on the bandwagon, thesheer math of people interested in the idea of liv-ing a healthier life is bigger than it has ever been.

Over the 18 years I’ve spent examining howpeople eat and drink, the constant in every studyand among every generation is the simple con-cept that to be healthy we need fruit, vegetablesand exercise. In the 1980s we added to the

equation, calling for the elimination of things likefat and cholesterol from food. In the 1990s andearly 2000s it was about adding things to food,like whole grains and fiber. Today, the new pieceof the healthy equation is a focus on eating lessprocessed foods, eating more natural, organic,non-GMO options, and consuming more protein.

A day in the life…We already are seeing some successes in home

products taking advantage of the latest healthyliving movement, at every meal.

At breakfast, citrus juicers are leveraging con-sumers’ desires for more natural products allow-ing them to replace store-bought juice withhomemade fruit juice, leading to a 35 percentincrease in dollar sales in the first 10 months of2016, according to NPD’s Retail TrackingService. Electric kettles and tea makers, with dou-ble-digit increase during this period, tap into theconsumer desire for healthier beverages. Handblenders and toaster ovens, also on the rise, are

About Housewares MarketWatchHousewares MarketWatch reports

point-of-sale (POS), consumer survey,and Checkout TrackingSM consumerreceipt-based data from NPD databases.The quarterly data covers various productcategories within the divisions of SmallAppliances, Non-electric Housewares,and Home Textiles. The informationcontained on the following pages isoffered as a snapshot of a category’sperformance, including perspectivecrossing each of the mentionedinformation sources.

Each issue of Housewares MarketWatchwill feature several categories from theSmall Appliances, Housewares, and Kitchenand Dining Textiles divisions. Complete dataon a category can be purchased by visitingNPD’s website at www.npd.com.See the Data and Methodology section

on page 9 for anexplanation of howthe data is compiled.

We have entered a new year, and withthat come resolutions – many ofwhich are health-oriented, but that

doesn’t mean healthy mindsets only exist inJanuary. In fact, March, June and July rankedhigher than January in terms of top months fordieting. Similarly, there are many misconceptionsabout healthy-living and the opportunities itpresents to the home-products industry. We needto get inspired by these opportunities, and iden-tify new ways to help consumers live a healthierlife, which in turn will help our industry grow.

First, the facts The first thing to realize is that the concept

of “health” already impacts our industry. There

continued on page 8

Covering Quarter 3, 2016

Turning Healthy-Living into a Healthy BusinessBy Joe Derochowski, The NPD Group, Inc.

MW Q3 2016 w feature.qxp_Marketwatch 6/5/17 4:27 PM

TABLETOP: Dinnerware, Beverageware, Flatware

Source: The NPD Group 2

Market SizeQuarter Three • 2016Dollar Volume in Thousands

Source: Consumer Tracking Service Source: Consumer Tracking Service

INSIGHTS:FEATURES: Dollar sales of stainless steel portable beverageware nearly tripled in Q3’16,representing nearly half of total category sales.

Source: Retail Tracking Service

PURCHASE BEHAVIOR: Over 60 percent of dinnerware sold in Q3’16 were planned purchases, a 3-percentage point increase from last year.

Source: Consumer Tracking Service

PURCHASE INFLUENCE: Nearly half of the dinnerware purchased in Q3’16 was on promotion, almost the same as Q3’ 15.


PRICE SEGMENTATION: During Q3’16, one-fifth of casual flatware sets sold were priced between $25-$49.99, a 2-percentage point increase from last year.


PURCHASE MOTIVATORS: When it comes to selecting beverageware, consumers said appearance, price and good value were the top motivators in Q3’16.


ONLINE SALES: 15 percent of beverageware sales in Q3’16 were online purchases, 3 percentage points higher than last year.


Demographic Analysis6 months ending • September 2016

Unit Volume Share

FLATWARE • INCOMEPercentage purchased by head of household income

$ 462,301

TOTAL TABLETOP

17%19%

14%15%

7%8%

15%

6%

Under$15,000

$15,000 –29,999

$30,000 –44,999

$45,000 –59,999

$60,000 –74,999

$75,000 –99,999

$100,000 -$149,999

$150,000 +


Source: The NPD Group3

COOKING/KITCHEN: Cookware, Bakeware, Cutlery

CUTLERY • AGEPercentage purchased by head of household age



INSIGHTS:FEATURES: In Q3’16, dollar sales of aluminum cookware increased 13 percent compared to a year ago, representing half of total cookware sales.


PURCHASE MOTIVATORS: When it comes to selecting bakeware, consumers said that price, good value and easy to clean were most important to them in Q3’16.


ONLINE SALES: 17 percent of cutlery dollar sales in Q3’16 were from online purchases, a 2-percentage point decline from Q3’15.


PRICE SEGMENTATION: In Q3’16, dollar sales of entertaining gadgets were up 3 percentcompared to Q3’15, with ice cube trays and coasters contributing most to the growth.


GIFTING: Nearly one-fifth of cookware was purchased as a gift in Q3’2016, 8 percentage points higher than last year.


IMPULSE: More than half of cutlery purchases in Q3’16 were planned.Source: Consumer Tracking Service


Unit Volume Share

$748,232

TOTAL COOKING/KITCHEN

13%

18 – 24 years

25 – 34 years

35 – 44 years

45 – 54 years

55 – 64 years

65 years +

14%15%15%17%

27%


Small Appliances: KITCHEN ELECTRICS




INSIGHTS:

FEATURES: Convection toaster ovens, representing 56 percent of total category sales,

increased 2 percent in Q3’16 compared to Q’15. Source: Retail Tracking Service

PURCHASE MOTIVATORS: When it comes to choosing a mixer, consumers

said that price, good value and brand were their top motivators in Q3’16.Source: Consumer Tracking Service

ONLINE SALES: Approximately 40 percent of juice extractor dollar sales came

from online purchases in Q3’16, up 2 percentage points from last year.Source: Consumer Tracking Service

PURCHASE INFLUENCE: During Q3’16, half of the toaster ovens purchased were on sale.Source: Consumer Tracking Service

IMPULSE: Nearly 2/3 of juice extractors sold in Q3’16 were planned purchases,

a 6-percentage point increase from last year.Source: Consumer Tracking Service


Unit Volume Share

BLENDING & PROCESSING • INCOMEPercentage purchased by head of household income

COOK

ING &

SPECIALTY ELECTRICS

$562,915

FOOD

PRE

P/BE

VERA

GE

$698,986

TOTAL K

ITCHE

NELECTRICS

$1,261,901

Under$15,000

$15,000 –29,999

$30,000 –44,999

$45,000 –59,999

$60,000 –74,999

$75,000 –99,999

$100,000 -$149,999

$150,000 +

8%

16%

12%

14%

7%

14%

20%

9%



Small Appliances: PERSONAL CARE

CURLING IRONS/STYLERS • INCOMEPercentage purchased by head of household income



INSIGHTS:

FEATURES: Dollar sales of men’s beard/mustache/nose trimmers grew 20 percent in Q3’16,

compared to last year, and now account for 30 percent of total sales.Source: Retail Tracking Service

PURCHASE MOTIVATORS: When it comes to selecting a specific curling iron/styling appliance,

consumer said price, brand and good value were top motivators in Q3’16.Source: Consumer Tracking Service

ONLINE SALES: 16 percent of shower head sales in Q3’16 came from online purchases,

a 3-percentage point increase from last year.Source: Consumer Tracking Service

IMPULSE: Nearly 60 percent of massaging appliances sold in Q3’16 were first time purchases.Source: Consumer Tracking Service

PROMOTION INFLUENCE: More than one-third of oral care appliances sold in

Q3’16 were on promotion.Source: Consumer Tracking Service


Unit Volume Share

HAIR CAR

E/GR

OOMI

NG

$593,697

ORAL

CAR

E, HO

MEHE

ALTH

, & OTH

ERPERS

ONAL

CAR

E

$905,492

TOTAL M

ARKE

T

$1,499,189

Under$15,000

$15,000 –29,999

$30,000 –44,999

$45,000 –59,999

$60,000 –74,999

$75,000 –99,999

$100,000 -$149,999

$150,000 +

11%

15%

11%12%

8%

13%

19%

12%


Small Appliances: FLOOR CARE



Source: Consumer Tracking Service Source: Consumer Tracking Servicesm

INSIGHTS:

FEATURES: Dollar sales of upright vacuums with a micro filtration system more than doubled in Q3’16, compared to the same time a year ago.


PURCHASE MOTIVATORS: When it comes to selecting a deep carpet cleaner, consumers said brand, price and features were the top motivators in Q3’16.


ONLINE SALES: Approximately 40% of robotic vacuum dollar sales in Q3’16 came from online purchases.


FEATURES: Dollar sales of cordless hand/stick vacuum increased 30 percent during Q3’16, now representing two-thirds of total category sales.


PROMOTION INFLUENCE: Six in 10 stick vacuums were purchased on sale during Q3’16 an 8-percentage point increase from Q3’15.



Unit Volume Share

FULL SIZE VACUUMS • AGEPercentage purchased by age of panel member

$1,042,194

TOTAL MARKET

18 – 24 years

25 – 34 years

35 – 44 years

45 – 54 years

55 – 64 years

65 years +

13%

21%

14%

21%

16%14%



Home: KITCHEN & DINING TEXTILES

KITCHEN & DINING • AGEPercentage purchased by age of panel member


Source: Checkout Trackingsm Source: Checkout Trackingsm

INSIGHTS:FEATURES: A third of kitchen and table linen buyers seek products that are anti-microbial.

Source: Home Textiles Lifestyles, Attitudes and Behaviors Consumer Study – Aug. 2016

PURCHASE MOTIVATORS: When it comes to selecting kitchen linens, consumers reported thatappearance, price and material/texture were most important to them in Q3’16.


ONLINE SALES: Online dollar sales of tablecloths grew 95 percent during Q3’16, compared to last year.

Source: Checkout Trackingsm

PROMOTION INFLUENCE: Nearly 40 percent of table linens sold in Q3’16 were purchased on sale, a 4-percentage point decline compared to last year.


SPECIAL OCCASION: 37 percent of people buying table linens are motivated to buy during the holidays or for another special occasion.

Source: Home Textiles Lifestyles, Attitudes and Behaviors Consumer Study – Aug. 2016

COLOR: Half of the dollars spent on table linens in Q3’16 were on products with pattern or print, almost twice the share compared to year ago.



Unit Volume Share

$294,554

TOTAL MARKET

45+ years55%

35 – 44 years21%

25 – 34 years15%

13 – 24 years9%



providing consumers with easier ways to preparetheir breakfast protein. How can we continue tosolve consumer frustrations in preparing healthybreakfast options? Everything from adding veg-etables to omelets and making eggs edible on-the-go, to cutting fruit and making smoothiescan be improved or simplified.

When we think of lunch, we need to thinksandwiches, salads, soup and leftovers. Handblenders are helping with soup, but we stillhave a lot of room for innovation here. It iscritical to remind ourselves that consumerswant very little time spent on preparation,cooking and cleanup at this meal occasion.Instead, they want to be able to use this timeto eat good food, sometimes while socializing.The need for convenience and speed, but not atthe expense of good taste, creates a window fornew products to address these competing, butessential, components.

Our dinner plate has undergone the mostdramatic changes. In the 1970s and ‘80s the

dinner plate was comprised primarily of a maindish protein paired with some side dishes. Sincethen, we have been slowly evolving to moreone-dish and one-pot meals that combine theprotein and vegetables – enter the slow cookerand similar products. The desire for more pro-tein in our diets has driven sales of products thathelp cook protein – pressure cooker dollar salesmore than doubled, fryers increased more than50 percent, meat grinder and multi-cooker dol-lar sales both grew 41 percent between Januaryand October 2016. Dinner is the most involvedand complex meal of the day, so the opportuni-ties to enhance the experience, from preparationto serving and entertaining, are abundant.

Don’t forget the qualitycomponentJust as consumers have a growing interest in

the ingredients in their food, the way the endproduct is prepared is a concern. Ceramic andcast iron cookware are two success stories that

not only deliver good results, but do so whilemaking consumers feel good about the waytheir food is being cooked. Homemade meanswe are more involved in our meals, bringingthe preparation process front-and-center, andthe tools involved in that process are reapingthe rewards – cooling racks, rubber/siliconespatulas, mixing/prep bowls, cooking spoons,kitchen scales, measuring sets, garlic prepara-tion, icing spatulas and mandolins each grewtheir dollar sales by double digits betweenJanuary and October 2016.

The expansive consumer interest in tryingto live healthier, resulting in more homemademeals, makes this an exciting time for the homeproducts industry. It is a time for us to beinnovative and investigative as we work to solveconsumer cooking frustrations and deliver ontheir dietary desires.

For more information, contact JanineMarshall at 516-625-2356.

Turning Healthy-Living into a Healthy Businesscontinued from page 1



DATA AND METHODOLOGYNPD has a standard data model that is used

for all categories that incorporates both con-sumer and point-of-sale (POS) databases.These two data sources are highly complemen-tary and are used to support one another.Point-of-Sale (POS) databases are assembledfrom retailers' records of actual sales by prod-uct as collected at the cash register. Consumerdatabases are developed using online purchasesurveys completed by a large-scale rotatingsample of consumers. These data produce esti-mates of sales by product for the total market-place. More importantly, the consumer surveyscapture information about each purchase, suchas buyer demographics, the product's intendeduse and other purchase motivators.

CONSUMERMETHODOLOGYThe NPD online consumer panel is com-

prised of pre-recruited individuals who haveagreed to participate in NPD online surveysand have completed a comprehensive demo-graphic questionnaire. The use of an estab-lished online panel assures good cooperationlevels and predictable demographic balanceamong panelists. Consumer panelists areasked about their recent purchases in a sur-vey administered via the Internet. Theresponding sample is demographicallyweighted and projected

through a series of steps to represent theU.S. population. Each month, over 200,000individuals are selected from the NPD onlineconsumer panel to participate in the appliancestudy. Each month, over 30,000 U.S. house-holds are selected for the housewares andhome textiles studies.

POS METHODOLOGYNPD collects point-of-sale retailer data

from selected retailers. These data are theactual sales for the chain on an SKU-by-SKU basis. The data are combined with datafrom other retailers to produce reports oncertain categories by channel, where a suffi-cient number of retailers are cooperating andwhere sufficient market demand exists forthe database. The POS data covers the retailchannels of mass/national chains, depart-ment stores, specialty stores and drug stores(personal care and home environment only).

CHECKOUT TRACKINGSM

METHODOLOGYThe Checkout TrackingSM Total Channel

service is based on the total channel purchas-ing behavior of nearly 50,000 panelists in theUnited States who transmit purchase receipts(both brick & mortar and online) using theirsmartphones. Individual items on thereceipts are coded to merchants, product cat-egories, and other variables along with unitspurchased and price paid -- allowing for deepanalysis of total channel purchasing behavior.The Checkout Tracking Total Channel sam-ple is currently balanced and projected eachmonth to represent the purchasing behaviorof individuals in the United States accordingto U.S. Census estimates.

LIFESTYLES, ATTITUDES ANDBEHAVIORS CONSUMER STUDYAn online consumer survey mailed to a

demographically representative sample ofadults ages 18+ in August 2016. Home tex-tiles category information was capturedamong respondents who qualified as buyers(5,017 qualified as past year home textilepurchasers).

ABOUT THE NPD GROUP, INC.The NPD Group is the leading

provider of reliable and comprehensiveconsumer and retail information for awide range of industries. Today, morethan 1,800 manufacturers, retailers andservice companies rely on NPD to helpthem drive critical business decisions atthe global, national and local marketlevels. NPD helps our clients to identifynew business opportunities and guidesproduct development, marketing, sales,merchandising and other functions.Information is available for the follow-ing industry sectors: automotive, beauty,commercial technology, consumer tech-nology, entertainment, fashion, foodand beverage, foodservice, home,office supplies, software, sports, toysand wireless. For more information,contact us or visit www.npd.com

Deborah A. Teschke, Senior EditorJoe Derochowski, Contributing EditorJanine Marshall-Bolton, Contributing EditorTom Goodman/Kim Hall, DesignPublished by IHA

For more information, contact Debbie Teschke at 847-692-0110; [email protected]

6400 SHAFER COURT, STE. 650ROSEMONT, IL 60018 USATEL: 847-292-4200 FAX: 847-292-4211www.housewares.org


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