Rising prices for washing powders

Created by DALL·E 3

The Competition Commission has carried out a ‘mapping’ and analysis of detergent prices.

As it turned out, branded products (powder granules and liquid) that were not included in the consumer basketduring the period under review showed the greatest growth weighted price of the measuring cup. In particular, for the period under review (February 2022-February 2023), the average price per “dose” increased by 16%.

After launch of consumer basket Private label goods included in it showed a slight drop in price, while the price of goods leaving the consumer basket increased. At the same time ttablets for washing machines are not included in the household basket, they are more expensive than other washing powders, their price tends to increase and strong fluctuations.

The objectives of “mapping” washing powders were:

1. To identify the impact of the consumer basket (HB) mechanism on the prices of branded and private label products.
2. To determine whether (and how much) consumer buying habits have changed, comparing branded and private label products.

As part of the mapping, the Directorate General for Competition sent questionnaires to 11 retailers (supermarkets). The period for which the data was obtained is 01/02/2022-01/02/2023. None other distribution channels were not considered.

During the period reviewed by the committee, liquid detergents accounted for 61% of sales, powder detergents accounted for 24% of the market, and tablet detergents accounted for 15% of purchases. Regarding the breakdown of sales between Private Label and Branded products, it is noted that of the total sales, 92% is from branded products and 8% from the rest.

By sales share:
As for supermarkets, no company had a market share of more than 40%. Overall, it can be noted that the sales shares (in value terms) of all 11 supermarkets did not change significantly over the period under review and did not appear to be affected by the introduction of the shopping basket. However, on the supplier side, sales fluctuations have been identified, mainly among large suppliers of branded products.

Regarding price dynamics:
Regarding prices (weighted average price of a measure before VAT), it is noted that for private label detergents, prices (average price of a measuring cup, “dose”) fluctuated at a lower level compared to branded detergents and showed slight upward trend for the period under review February 2022-February 2023

In general, the Family Basket had a stabilizing effect on prices only for products that joined it. Branded products (powder-liquids) not included in the “basket” showed the greatest increase in the weighted price of the measure. In particular, during the period under review, the average price of a measuring cup for branded powder and liquid detergents not included in the SK increased by 16%. After launching “SK” private label products included in the cart saw slight price declines.

Regarding shopping habits:
In the period from February 2022 to February 2023, no changes were identified in the structure of sales (by volume) of detergents, in terms of sales of branded products and products under their own brands.

At the beginning and end of the period under review, the ratio of private labels was 16%, branded products 84%. Since the launch of SK There was no consumer switching from branded products to private label products.

The percentage of sales of products included in the basket did not increase, but remained below 8.5% throughout the period under review, with products outside the basket accounting for more than 90% of sales. That is there has been no change in preferences since the beginning of the consumer basket between branded and private label products.

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