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New C&M analysis: Denmark Home Care Market
Home Care in Denmark - a new market research report on 2014-04-22 05:43:01
The financial crisis had a clear impact on home care in Denmark, which recorded negative current value growth in 2009. The years 2010 and 2011 brought some recovery, as growth rates in home care again turned positive. Against this background, 2012 was a minor setback as growth in home care again slowed, although it remained positive. The major cause for this setback can be found in the Danish economy which, in response to the crisis, slipped into recession in early 2012. The worsening macroeconomic climate affected consumer confidence and consumer expenditure negatively and reduced Danes´ willingness to pay high prices for home care products.

Danish consumers traditionally have a strong focus on ecology and health. Reacting to this, manufacturers and retailers have launched a significant number of green and/or hypoallergenic brands in most categories within home care. Insofar as manufacturers and retailers are able to convince consumers that it is worthwhile paying extra for such products, these green labels represent the most obvious potential avenues for growth in home care in Denmark. On the other hand, strong ecological awareness has a negative effect on some categories, consisting of products green consumers perceive as "unhealthy" or unnecessary. In 2012 this trend was clearly felt in air care, which posted declining growth, as many consumers turned their backs on air care products, believing that they might cause allergies.

Home care in Denmark is dominated by a limited number of big multinationals. The category leader, Unilever, together with its competitors Colgate-Palmolive, Reckitt-Benckiser (Scandinavia) and Procter & Gamble Danmark, account for the majority of value sales. These manufacturers offer a selection of well-established, mid-priced and premium brands that are marketed with a focus on efficiency and convenience. Challenging the dominance of the multinationals, grocery retailers and private label manufacturers have launched a number of premium green private label products, which compete directly with the traditional brands of the multinationals. In 2012, Unilever Danmark especially felt the effect of this competition, as the company´s retail share shrank.

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