Trend Watch

September 2019

Cleaningthe House

∙ Perfume your world ∙

Key players of the household cleaningmarket progress rapidly and consistently.

●Transparency is becoming the new normal. Claims like “free from” follow to inform the

consumer about the product upfront.●

Consumers’ awareness of saving the environment and using eco- friendly products continue to prevail carrying

out claims of using sustainable packaging or clean ingredients.

••

TABLE OF CONTENTS

2

TRENDS

Natural Positioning

Probiotic Innovations

Sustainable Living

New Experiences

1

MARKET OVERVIEW

Category Overview

Key Brands

Facts & Figures

3

FRAGRANCE

Olfactive Trends

Sozio Fragrance Analysis

Fragrance Collection

MARKETOVERVIEW

• C a t e g o r y O v e r v i e w

• K e y B r a n d s

• F a c t s & F i g u r e s

- 1 -

Market FactorsTotal US Retail Sales Forecast of Cleaning Products, by segment, at current prices, 2013-22

MARKET OVERVIEW - category overview

- 2 -

• Retail sales were estimated to reach $4.45 billion in total retail sales of 2018, an increase of 1.8% from 2017.

• The Household Cleaners category will experience faster, yet steady growth, increasing sales by 6% from 2018-2022 to reach sales of $1.4 million.

Source: Mintel Market Sizes, 2019

2,671new product launches in

2018

4

4.1

4.2

4.3

4.4

4.5

4.6

4.7

4.8

2013 2014 2015 2016 2017 2018 2019 2020 2021 2022

Forecast Estimate

US

D (b

illio

ns)

Year

- 3 -

MARKET OVERVIEW - key brands

The Clorox Co.35%

Reckitt Benckiser Group PLC27%

S.C. Johnson & Son21%

The Procter & Gamble Company

6%

Colgate-Palmolive Company

6%

Weiman Products LLC3%

Church & Dwight Co., Inc.2%

Market Leader Breakdown of Cleaning Products market% by segment (value in USD), US, 2017

MARKET OVERVIEW - facts & figures

Source: Mintel, Market sizes 2019

- 4 -

$24.6 millionin sales for top market player

The Clorox Co.

T O P B R A N D S

Lysol

Clorox

Great Value

Scrubbing Bubbles

Signature Home

Method

Windex

Mrs. Meyers

Top Companies for Cleaning Product Launches % by segment, North America, 2018

MARKET OVERVIEW - facts & figures

Source: Mintel, GNPD 2019

- 5 -

Reckitt Benckiser

25%

Clorox27%

SC Johnson & Son22%

Wal-Mart5%

Unilever6%

Kroger5%

Caldrea3%

AB Acquisition2%

Lavo3%

CC Holdings2%

36 new products

39 new products32 new products

Source: Mintel, GNPD 2019

Top Format Categories for Cleaning Product Launches # of products by segment, North America, 2016-2018

•ALL-PURPOSE/ MULTI-PURPOSE SURFACE CARE launches in 2018 remain the leading cleaning product format due to consumers need for convenience.

•Product launches in BLEACH/DISINFECTANT is a bacteria killing, multi purpose cleaning product that has increased launches every year- opportunities arise to extend product line.

•GLASS CARE & TOILET (BOWL) CARE are specific products for specific cleaning needs that have increased in the past three years.

MARKET OVERVIEW - facts & figures

- 6 -

All-Purpose/ Multi-Purpose Surface

Care40%

Bleach/ Disinfectant11%

Bath, Shower & Tile Care

8%

Glass Care8%

Toilet (Bowl) Care15%

Floor Care4%

Drain Care6%

Furniture Care4%

Household Appliance Care4%

All-Purpose/ Multi- PurposeSurface Care

Bleach/ Disinfectant

Bath, Shower & Tile Care

Glass Care

Toilet (Bowl) Care

Floor Care

Drain Care

Furniture Care

Household Appliance Care 0 50 100 150

2016

2017

2018

Units

Yea

r

Source: Mintel, GNPD 2019

Top Claim Categories for Cleaning Product Launches % by segment, North America, 2018

•ETHICAL & ENVIRONMENTAL take the lead in cleaning product claims. These products are either claimed to be eco-friendly products, environmentally friendly packaging, or recycling. Consumers who want change and want to live eco-friendly lifestyles desire to use natural ingredients or compostable/recyclable packaging etc.

•FREE FROM claims are gaining traction, becoming an opportunity to position new products that do not use hazardous materials and consumers are looking for safer products with ingredient transparency i.e “toxins free.”

MARKET OVERVIEW - facts & figures

- 7 -

Ethical/ environmental37%

Convenience20%

Functional15%

Natural9%

Positioning11%

Free from4%

Suitable for3%

Product tested1%

Ethical/ environmental

Convenience

Functional

Natural

Positioning

Free from

Suitable for

Product tested

TRENDS

• N a t u r a l P o s i t i o n i n g

• P r o b i o t i c I n n o v a t i o n s

• S u s t a i n a b l e L i v i n g

• N e w E x p e r i e n c e s

- 8 -

TRENDS - natural positioning

- 9 -

➢ Natural cleaning formulas are becoming more effective, more affordable and more available.

➢ Total transparency creates a need for companies to show social responsibility when developing new products that are sustainable and safe.

➢ “Natural” and “Clean” certainly overlap; clean doesn’t have to mean natural. Clean is better aligned with consumer lifestyle goals around health and wellness. It’s already common to talk about clean living, clean eating and clean beauty.

Natural & Organic

26%Of US consumers would

pay more for natural household products

40%Of adults think

natural ingredients are as effective as

conventional products

62%Of adults use natural household products

because they are safer around the house &

better for the environment

In the USA…

Source: Mintel THE NATURAL HOUSEHOLD CONSUMER, US- JUNE 2019

Simpler Ingredients On The Rise

Source: Mintel Report, 2019

Lavender EucalyptusCitrus & White Flowers

ART OF GREEN

Orange BlossomPet Stain & Odor RemoverGREENSHIELD ORGANIC

Lemon & Mint All Purpose Cleaner

EVERSPRING

TRENDS - probiotic innovations

- 10 -

➢ The probiotic cleaners on the market today are positioned in part around natural formulas and a growing recognition that bacterial overkill harms the human microbiome.

➢ They’re promoted as time-saving convenience products due to their preventative methods of controlling germs - probiotics consume the microbes that feed dust, germ and odor-causing bacteria on surfaces and fabric.

➢ Forward-looking brands will find ways to use the cultivation of good germs to compliment germ killing.

Probiotic Cleaning Product

GeraniumProbiotic APC

COUNTER CULTURE

Foaming Toilet TreatmentNatural enzymes & micro-organisms

ORGANICO

Kitchen CleanerProbiotic Enriched

PROBAC

In the USA…

Cleaning Culture

16%Of surface cleaner users are interested in using

probiotic cleaners

26%of US adults who use

surface cleaners agree that disinfectants can destroy good bacteria

Source: Mintel Report, 2019

Source: Mintel THE NATURAL HOUSEHOLD CONSUMER, US- JUNE 2019

Culture origin

➢ Probiotic cultures in products were trending in food and beauty are now entering the world of cleaning product formulations.

Educating consumers is key

➢ Consumers still need further education about using probiotics in everyday life.

➢ Counter Culture cleaning products company is using Instagram and other social media channels to reach out to followers and to educate them about the benefits. Its beneficial to the digestive system, mental health, the heart, the immune system, and for weight loss etc.

Extra benefits

➢ Probiotic products are known to be hypoallergenic and can reduce the risk allergies, such as eczema in infants; further research is needed.

➢ The best thing about these cleaners is that they are natural and chemical-free products are perfect for consumers with sensitive skin looking for hypoallergenic solutions.

TRENDS - probiotic innovations

- 11 -

In the USA…

Baby Got Bac(teria)

Source: Healthline THE BEST WAY TO BENEFIT FROM PROBIOTICS, US- August 2016

@countercultureclean social media marketing on Instagram

TRENDS - sustainable living

- 12 -

➢ The big focus is on reducing plastic consumption, both by optimizing packaging and by recovering/recycling more materials.

Examples:

▪ Concentrated refills

▪ Cotton wipes

▪ Reusable bottles

▪ Compostable packaging material

Eco-Friendly Cleaning Products

Hardwood Floor CleanerJust Add Water System

JAWS

Bathroom CleanerRefillable cleaner tablets

BLUELAND

More Shower To YouRefillable cleaners

TRUMAN’S

69%of US consumers are

proud to support socially responsible brands and

51% say it's worth paying more for products from

such companies

44%Of adults think brands should use sustainable

packaging

30%Of adults think

concentrated products are more sustainable

than conventional ones

In the USA…

Source: Mintel CLEANING THE HOUSE, US- MAY 2019

For the Environment & Us

Source: Mintel Report, 2019

Full Circle Come Clean Natural Cleaning Mini Set

TRENDS - sustainable living

- 13 -

➢ Clean without toxic chemicals for a baby and pet-friendly home with the FULL CIRCLE COME CLEAN Natural Cleaning Mini Set.

➢ Includes an amazing recipe book with everything you need to know to make your own cleaning solutions.

➢ Built in lemon juicer adds a fresh scent with disinfecting power.

➢ Set includes: 1 spray bottle with juicer, 1 microfiber cleaning cloth and recipe book.

➢ BPA Free, recycled plastic spray bottle.

Supplies for making your own cleaners

Eco-Friendly Lifestyle Choices

➢ A small, independent refill shop in Vancouver, THE SOAP DISPENSARY.

➢ Specializing in premium soaps, household cleaners, personal care products, DIY ingredients, and fine edibles.

➢ They carry quality lifestyle goods that support a zero-waste lifestyle.

➢ The Soap Dispensary strives for balance with sourcing affordable,well made products that do not leave a footprint.

The Soap Dispensary, Vancouver CA

Package Free Stores

Source: Fashionsnoops, US 2019

The importance in strong fragrances in cleaning products is to create a clean atmosphere with new olfactive concepts that are memorable.

To enhance the sense achievement in cleaning

Promotes efficacy & long-lasting effects

Innovation: new textures & formats

Glitter-Infused DisinfectantAPC

OLIMPIA NAVIDAD(Ecuador)

LemonBYOTROL

Wet Floor WipesBRAWN

Fresh Orange & LemonOrganic Fat Dissolver

PLANET PURE

Ocean FreshDisinfecting wipes

Kills antibiotic-resistant bacteriaLYSOL(Peru)

From making cleaning more enjoyable to making it easier, brands are adding non traditional ingredients

to products, changing the experience.

Disinfecting Wipes with Ultra Strength Blue Fiber

CLOROX

Citrus PowerAll Purpose Cleaner

GOO GONE

Reformulated and relaunched products with increased potency and efficacy highly appeal to consumers. Stronger products supported by

long lasting scents mean effortless cleaning experiences.

- 14 -

Basil & Vetiver Natural APC

MARCEL’S GREEN SOAP

Scour DaddySCRUB DADDY

Natural Amethyst AntibacterialToilet Bowl Cleaner

BATH QUEEN(South Korea)

Pacific Breeze & Coconut Scentiva

CLOROX

TRENDS - new experiences

FRAGRANCE

• O l f a c t i v e T r e n d s

• S o z i o F r a g r a n c e A n a l y s i s

• S o z i o C o l l e c t i o n

- 15 -

Source: Mintel, GNPD 2019

Top Fragrance Group for Cleaning Product Launches# of products by segment, North America, 2016-2018

FRAGRANCE - olfactive trends

- 16 -

•CITRUS and FRESH & CLEAN fragrance groups remains leading fragrance families in new product launches. Consumers desire experiential scents giving a refreshing clean ambiance.

•GREEN/ HERBAL/ WOODY fragrance families highlight natural ingredients such as essential oils or other botanicals.

Citrus44%

Fresh & Clean31%

Green/ Herbal/ Woody

18%

Floral7%

Citrus

Fresh & Clean

Green/ Herbal/Woody

Floral

0 10 20 30 40 50 60

2016

2017

2018

Units

Yea

r

AROMATIC

FLORAL

FRUITY

CITRUS

- 17 -

FRESH

FRAGRANCE - Sozio fragrance analysis

Mandarin & GingerEVER SPRING

Fresh MintGREENSHIELD

ORGANIC

- 18 -

Lavender EucalyptusART OF GREEN

NaturalContains Essential Oils

Spearmint & ThymeHerbal/Green

Top: Aromatic, Spearmint, Fresh Lemon

Middle: Thyme Blossom, Geranium, Violet Leaves

Base: Earthy Woods

Alternate NameTeatree & Thyme

Lavender & White CedarAromatic/Woody

Top: Italian Mandarin, Crisp Apple, Sweet Lemongrass

Middle: Blue Lavender,Lily of the Valley

Base: Soft Woods, Ambrette, Sugared Tonka, Coconut

Alternate NameLavender Lemongrass

Top: Blue Ginger, Sweet Basil, Citron, Apple

Middle: Clove Leaf,Fennel Blossom

Base: Basil, Galbanum,Ginger, Lemon, Fennel

Basil & Blue GingerAromatic/Oriental

Alternate NameBlue Basil & Fennel

- 19 -

FRAGRANCE - Sozio collection // natural

SZUSM032776 SZUSM032777 SZUSM032778* Spearmint, Eucalyptus, Basil, Thyme * Cedarwood, Eucalyptus, Lemon, Lavender, Mandarin * Basil, Galbanum, Ginger, Lemon, Fennel

*Ess

entia

l oil

call

outs

Green Tea & LimePURACY

- 20 -

Coastal SurfTHE HONEST CO.

Skin SafeLow Allergen & CMR Free

Rose PetalsLOVE, HOME

& PLANET

Sakura PetalsFloral/Oriental

Top: Nectarine,Tea Leaves

Middle: Cherry Blossom,Almond Flower, Pink Peony

Base: Amber Musk,Creamy Woods

Alternate NamePink Cherry Blossom

Pear NectarFruity/Green

Top: Aromatic,Watery Greens

Middle: Wisteria, Rose,Green Jasmine, Violet

Base: Sandalwood,Sheer Musk

Alternate NameAgave & Wisteria

Top: Melon, Orange,Peach, Quince

Middle: Yara Yara,Neroli, Gardenia

Base: Salted Musk,Vanilla Bean, Driftwood

Driftwood WavesFresh/Floral

Alternate NameTiare & Beachwood

- 21 -

FRAGRANCE - Sozio collection // skin safe

SZUSM032779 SZUSM032780 SZUSM032781

- 22 -

Tuscan Lavender & JasmineCLOROX

Hawaiian BlossomSPIC AND SPAN

Beach DaysTHE GOOD HOME CO.

Experiential EscapesCreative | Trendy | Atmospheric

Sea Salt CocoFruity/Floral

Top: Salted Sea Air,Coconut Water

Middle: Dewy Florals

Base: Cedarwood,Creamy Sandalwood

Alternate NameCoconut & Cedar

Lush LagoonGreen/Floral

Top: Rainforest Leaves,Kumquat, Peach

Middle: Water Lily,Yellow Iris, Tiare

Base: Lush Musks, Galbanum, Oakmoss, Bamboo

Alternate NameRainforest Lily

Top: Pamplemousse,Petitgrain, Wild Rosemary

Middle: Plumeria, Orange Flower, Lavender, Jasmine Petals

Base: Island Vanilla, Tonka,Santal, Ambrette, Cloud Musk

Polynesian BreezeSolar/Floral

Alternate NameGrapefruit Plumeria

- 23 -

FRAGRANCE - Sozio collection // experiential escape

SZUS026656 SZUS026661 SZUS026658SZUSM032782 SZUSM032783 SZUSM032784

Collection Code Name Olfactive Family

Natural

SZUSM032776 Spearmint & Thyme Herbal/Green

SZUSM032777 Lavender & White Cedar Aromatic/Woody

SZUSM032778 Basil & Blue Ginger Aromatic/Oriental

Skin Safe

SZUSM032779 Sakura Petals Floral/Oriental

SZUSM032780 Pear Nectar Fruity/Green

SZUSM032781 Driftwood Waves Fresh/Floral

Experiential Escape

SZUSM032782 Sea Salt Coco Fruity/Floral

SZUSM032783 Lush Lagoon Green/Floral

SZUSM032784 Polynesian Breeze Solar/Floral

Fragrance Collection

www.jesozio.com

∙ Perfume your world ∙

Latin & North AmericaSozio Inc

51 Ethel Road West Piscataway, NJ 08854 USAPhone: (+1) 732 572 5600

Fax: (+1) 732 572 0944

AsiaJ&E Sozio Asia Ltd

Unit C6, 15/F, TML TowerNo.3 Hoi Shing Road - Tsuen Wan, N.T.

Hong KongPhone: (852) 2111 0842

Fax: (852) 2111 0942

Europe, Africa and Middle East

Sozio SAS

6, Rue Barbès - CS8005092532 Levallois-Paris cedex - France

Phone: +33 (0) 1 81 93 00 60Fax: + 33 (0) 1 81 93 00 98