The market of non-comestible consumer goods (excluding cosmetics) witnessed an increase of 6.1% in terms of volume and 7% in terms of value last year, according to a survey conducted by the MEMRB market research company. These are moderate growth rates compared with the general rate of the cosmetics market, which tends to register two-digit growth rates per year.
The market of homecare products benefited from cutthroat competition among multinationals, which translated into greater innovation, higher product standards and affordable prices for consumers with varying incomes.
The registered growth rates, although fairly modest for the booming Romanian economy, are way above those registered on more developed markets and in Western Europe, where producers generally witness a growth rate of 1-2% per annum. This is explained by the fact that the non-comestible products (detergents, bleaches and fabric softeners, dishwashing detergents, insecticides, furniture and floor care products) are the first to draw significant shares of a consumers' budget.
Players in this industry, which is dominated by multinationals, which account for 90% of the market, are now focusing on refining consumer preferences.
There were segments that witnessed double-digit growth rates of up to 50%, but in most cases, however, they were derived from niche products.
"The market will rise as the economy expands, which will lead to an increase in the number of homes, with more sophisticated space and materials than 20 years ago. At the same time, there will be increased market fragmentation as consumers become more sophisticated and begin using new product categories (...)," says Jose Medran, the general manager of Procter & Gamble Romania, the biggest player on the market.
According to a market survey conducted by the Euromonitor International market research company
