FROM AT HOME CAR WASH TO CAR WASH CENTERS, WHAT DO CONSUMERS WANT?
WHO WASHES THEIR CAR AT HOME?
WHO WASHES THEIR CAR AT CAR WASH CENTERS?
Household customers account for the largest share of car wash & detailing industry revenue at approximately 76%. Car Wash & Detailing household customers are broadly defined as consumers that have a driver’s license, own a car, and are older than 16 years of age. Business customers contribute 22% of industry revenue. Revenue from this segment is largely derived from servicing delivery vans and taxi cabs.
“Recent improvements in consumers’ disposable income will help the industry rebound in the coming years, with anticipated revenue growth of 3.3% annually to reach $7.7 billion by 2018.”
Key industry drivers include consumer spending habits and new car sales. Through 2018, motor vehicle registrations are expected to increase 1.3% annually, resulting in increased consumer demand for after-market services such as car washes.
The industry includes full and self -service car wash facilities, as well as truck and bus washes and vehicle detailing services. Interior cleaning and hand wax services are offered by 59.4% of car wash centers, followed by exterior cleaning (56.5%), shampoo floor mats (50.7%) and upholstery cleaning (46.4%) to name just a few.
Sources: Car Wash Industry Profile (First Research), Mintel, EPA & Wash Trends Magazine, Professional Car Wash & Detailing Magazine. Infographics with Infographic Creator.
KEY CAR CARE MARKET TRENDS
The sustainability trend has taken precedence over the last 5 years. 83% of all ingredients found in consumer car care product launches in North America have a green claim; for instance, biodegradable and plant-based. Additionally, environmentally friendly product and botanical/herbal are included in the top 10 marketing claims. Furthermore, the need for environmentally friendly and waterless/no rinse products due to environmental concerns and restrictions are of increasing need and desire.
Today, household products marketed as multipurpose compete with products designed specifically for car care, more prominently in the surface and glass cleaning categories.
29% of household product launches in North America are positioned as all purpose/multi-purpose surface care, driving their extended use as alternatives to clean car surfaces.
This is creating further market opportunity for the HI&I formulator, while increasing the need for differentiation from the manufacturers of products targeted exclusively to vehicle care. The focus is on multipurpose products that are fast acting and provide repellant and protection properties to ensure long-lasting cleaning benefits.
ODOR NEUTRALIZING & CONVENIENCE
Odor neutralizing, ease of use and time/speed are included in the top 10 marketing claims for car care product launches in North America over the last 10 years. In line with today’s consumers lifestyles, products that reduce cleaning time and make next-time-cleaning easier continue to be in high demand.