September 2, 2020
Keeping the home clean has become more important than ever, as evidenced by the run on disinfectants in the early weeks of COVID-19 as the pandemic turned many of us into germophobes to varying degrees. But even before that, corporations were earning billions in this space on steady demand that ignores consumer spending trends. In fact, pre-COVID, the global market for household cleansers was still anticipated to reach $40.38 billion by 2025 with a compound annual growth rate of 4.4 percent from 2017-2025, according to Hexa Research, a market research and consulting organization.
So next time you walk down the supermarket’s household cleanser aisle, consider investing in some of the companies behind the brands you trust to keep your home clean and safe.
Church & Dwight Co., Inc. (Tii:CHD)
Unknown to most, this is the company behind the Arm & Hammer brand. Other than the ubiquitous baking soda line, the company manufactures a suite of products in this space, including pool maintenance products and a host of carpet and refrigerator deodorizers. Through its Kaboom and Orange Glo lines, Church & Dwight offers a line of multipurpose cleaners, stain removers, and cleansers for wooden floors and furniture. Net sales for Church & Dwight's second quarter grew 10.6 percent on what the company called "a significant increase in consumer demand for many of its products, primarily in response to the COVID-19 pandemic."
Clorox Company (Tii:CLX)
It’s no surprise that Clorox Co. has a host of cleaning products for every room of the home – from Pine-Sol to bleach-infused tub and tile cleaners to the Clorox Disinfecting Wipes that were hard to find in the early days of COVID-19. As another sign of the times, the company's website allows users to filter the products that kill the COVID-19 virus, which includes its line of disinfecting wipes and mopping cloths. It’s no surprise that Clorox shares went from trading at $68 on March 15 to close out July at just over $100. Further testament to consumer trends toward germ-killing: the company reported a 22% sales increase and a 28% increase in diluted net earnings per share for its fourth quarter, which ended June 30, 2020.
Colgate-Palmolive Co. (Tii:CL)
A leading global consumer products company with a presence in more than 200 countries and territories, Colgate-Palmolive is the company behind Murphy Oil Soap products used to clean wood, the Ajax line of degreasers and disinfectants, as well as Fabuloso, a multi-purpose cleanser. Due in part to its suite of cleaning products, the company reported that sales in North America (which represents 24 percent of Colgate's worldwide sales) increased 12 percent for its second quarter of 2020. Increased demand for its products is also reflected in the company’s stock price as shares have risen 16 percent for the year (as of August 27).
Procter & Gamble Co. (Tii:PG)
The Comet line of scouring powders have been a staple in many American homes since its introduction in 1956. Though the Comet line was sold to Prestige Consumer Healthcare Inc. (Tii:PBH) in 2001, who then sold it to KIK Custom Products in 2018, Proctor & Gamble retained the rights to market the brand in Europe and to the professional market in the United States. However, Procter & Gamble also retains a healthy part of this market with a line of home cleaning products that include Febreze Odor Eliminators, Mr. Clean All-Purpose Home Cleaner, Swiffer Multi-Surface Dusters & Cleaners, and more.
There are many more aisles left in our supermarket. Stay tuned as we continue our shopping and present you with more opportunities to own the brands you love.
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