Pandemic leads to cost pressures, innovation in cleaning category

The ongoing COVID-19 pandemic is impacting the private label sanitization category in a variety of ways, according to speakers at the Store Brands Industry Forum on Nonfood Innovation. 

John Talbott, director for education and research in retail at Indiana University, and Keith Blackmer, senior category strategy manager of own brands for Sprouts Farmers Market, discussed the changing landscape at the Jan. 19 event.

The event, hosted by former Store Brands executive editor Dan Ochwat, featured speakers from across the private brand space to discuss nonfood innovation in categories such as pet, sanitization, home goods and wellness.

The full forum can be viewed on-demand here.

Like many categories, sanitization products have been hit hard by price increases, supply chain shortages and more during the pandemic.

“As we move forward, item shortages seem to be more case-by-case [compared to the beginning of the pandemic],” said Talbott. “There’s elements of cost that used to be relatively trivial for low-price CPGs that are now a ridiculous part of the overall expense. Can you pass these costs on to consumers? That’s an issue facing not just sanitation but any products consumers would use.” 

“We’re seeing so many different market pressures that are impacting the industry’s business,” added Blackmer. “Everybody is trying to figure out how to survive. It’s anything from raw material shortages, transportation issues and labor shortages happening throughout the industry.”

The pandemic has caused an increased demand for cleaning products, which has given private brands an opportunity to focus on a new set of consumer priorities, particularly personal health.

“One of the biggest changes from the pandemic is the education of the consumer and their focus on well-being,” said Blackmer. “We’re definitely seeing an expansion of products. New products, yes, but also products that have been in the market for a long time but not necessarily a part of the mainstream. This refers back to consumers being more educated in what they’re looking for in their products. ‘Proactive health’ really describes where the consumer is going and what they’re looking for. The focus on health is what’s created these new pandemic categories.”