Personal care packaging delivers convenience and luxury: on the business side, industry consolidation is realigning some top players

Food & Drug Packaging, July, 2005 by Kate Bertrand

Industry consolidation is gradually refining how personal care packagers de business and with whom. And at the same time, consumer demand for convenience and premium products is reshaping personal care package design.

These shifts are occurring within a healthy market, one in which the special needs of men, seniors, children and even pets are driving product development. Datamonitor predicts the overall European and U.S. personal care market will grow from $86 billion in 2004 to $102 billion in 2009.

Mergers and acquisitions have continued to reshape the personal care landscape in the past year. The most significant transaction was The Procter & Gamble Co.'s acquisition of The Gillette Co.

After the acquisition, P&G will have 200-plus brands and sales of more than $60 billion. In addition, the company will enjoy even greater negotiating clout with retailers such as Wal-Mart and also with packaging vendors.

The combined company "will get a huge hold on the male grooming market, which was something P&G was lacking until now," says Ravi Sankar, senior research analyst with Frost & Sullivan.

Focus on luxury

At the retail level, the ubiquitous demand for convenience and the parallel demand for upscale products are changing the look and feel of personal care packaging.

Premium packaging, historically the standard for fine fragrances and department-store cosmetics, is finding new applications among mass-market personal care products. That is particularly true for specialty products that straddle the line between health and beauty care.

For example, to convey the cosmetic qualifies and premium positioning of Crest Whitestrips, P&G made the pioneering choice of an injection-molded case. The package is hinged, like a make-up compact. A mirror on the inside of the case makes the package purse-friendly. In addition, the top of the case provides a billboard for branding.

Consumers also are seeking personal care products and packages that make their lives easier. "Consumers are intrigued with any package that provides a unique form of convenience," says Diane Haidle, director of packaging at Dial.

Because liquid and foaming formulations provide a convenient alternative in many cases--liquid hand soap vs. conventional bar soap, for instance-dispensing fitments are playing an increasingly important role. Foaming products continue to proliferate in categories such as hand and body cleanser and hair care. Nonaerosol, instant foam pump dispensers enable consumers to dispense a foaming product in a ready-to-use state.

Dial Corp. recently expanded its Dial Complete line of foaming hand washes with two products that integrate lotion: Fresh Pear and Cool Plum.

"Foam offers some desirable properties," says Mary Busch, senior brand manager at Dial. "It's fast absorbing as a leave-on and provides instant lather as a wash-off. And the creamy texture is perceived as milder and more caring."

The quality of mildness, combined with foam's fun factor, is creating a lively market for kids' products. Recently launched foaming products for children include:

* Colgate-Palmolive's foaming Softsoap hand soap in a package featuring Nickelodeon's SpongeBob SquarePants character.

* P&G's Pampers Kandoo foaming hand soap.

* Johnson's Buddies, a line of kids' hair and body products from Johnson & Johnson Consumer Products Co.

A different kind of pump provides dispensing convenience for P&G's CoverGirl TruBlend Foundation. The winner of a 2004 AmeriStar award from the Institute of Packaging Professionals, the CoverGirl TruBlend package uses an airless pump that delivers the thick, creamy product using a piston driven up from the bottom of the container. Each pump delivers one "dose" of the product, and the pump eliminates product waste.

The ergonomically designed, oval package is not only easy to use, it's also attractive.

That combination is what all personal care packagers need to strive for in today's ultra-competitive market. "In personal care, there is so much clutter and choice. The package is a means to stand out on-shelf, and brands can offer greater value through packaging innovation," Dial's Bush says.