Air Treatment - US

Air Treatment - US

Constantly subject to seasonality, the household air treatment market has grown in recent years. Manufacturers strive for consumers’ attention with non-central, residential heating, air conditioning, humidification, dehumidification and air purification appliances. Price competition has driven the market, but so far, commoditization has been staved off as consumer’s are willing to pay a premium for energy-saving and health-related features

This report will help readers make strategic decisions in the ever-changing household air quality market. By targeting receptive demographics, tailoring new products to take advantage of the current “green” trend and tapping into consumer usage habits, manufacturers can best create and sell their air quality products. Topics explored include:

• How room units can compete with central systems
  
  
• “Greening” the image of air quality appliances
  
  
• The role of energy consciousness in product purchasing
  
  
• Attitudes towards air purification in regards to health
  
  
• Potential growth in sales by targeting 18-34s
  
  
• The impact of race/ethnicity on spending patterns

This report builds on the analysis presented in Mintel's Air Treatment—US, June 2005. This report focuses on single room air conditioner units, non-central heaters, humidifiers and air cleaners/purifiers. Household central air and heating products are not included. Air freshening products, such as plug-ins, scented oil warmers, and aerosol air fresheners, are also not included. Sales figures and consumer usage/purchase plans for dehumidifiers are presented, but are not the primary focus of this report.  
 

SCOPE AND THEMES

What you need to know

Definition

Research methodology

Forecast methodology

Abbreviations and terms

Abbreviations

Terms

EXECUTIVE SUMMARY

More consumer education necessary

Inertia and confusion

Home ownership positive, central air negative

Energy costs should propel air conditioning units, but design issues afflict product desire

Slow growth led by air conditioning segment

Only three of five segments expected to show growth

Suppliers not leveraging weight across segments

Online respondents show substantially higher penetration

Potential growth for air purifiers and portable a/c

Intent to purchase and spend

Future trends

Bullet point summary by segment

Air conditioners

Space heaters

Air purifiers

AIR POLLUTION AND ALLERGIES

Outdoor pollution

Indoor pollution

Awareness of health risks exceeds ownership

Figure 1: Knowledge about air pollution, August 2007

Allergies

Figure 2: Attitudes toward air purifiers, August 2007

HOME OWNERSHIP AND CENTRAL AIR TREATMENT

Home ownership

Figure 3: Air treatment appliance ownership, by owners vs. renters, January-October 2006

Home ownership expansion and decline

Figure 4: Percentage of U.S. households owning homes, 2003-07

Central air more common in homes

Figure 5: Central air conditioning households, 2000 and 2005

ATTITUDES TOWARD AIR TREATMENT APPLIANCES

Confusion over the effectiveness of air cleaners

Figure 6: Attitudes toward air purifiers, August 2007

Figure 7: Attitudes toward air purifiers, by age, August 2007

Attitudes toward room air conditioners

Figure 8: Attitudes toward air conditioning units, August 2007

Space heaters as fire hazards

Figure 9: Space heater safety, August 2007

The humidifier as part of children’s health

Figure 10: Humidifiers and pediatric health, August 2007

MARKET SIZE AND SEGMENTATION

MARKET SIZE

Figure 11: Total U.S. sales of air treatment appliances, at current and constant prices, 2002-07

MARKET SEGMENTATION

Figure 12: Sales of air treatment appliances, segmented by appliance type, 2005 and 2007

Room air conditioners

Figure 13: Sales of room air conditioners, at current and constant prices, 2002-07

Dehumidifiers

Figure 14: Sales of dehumidifiers, at current and constant prices, 2002-07

Air cleaners

Figure 15: Sales of air cleaners, at current and constant prices, 2002-07

Portable heaters

Figure 16: Sales of portable heaters, at current and constant prices, 2002-07

Figure 17: The Holmes WhisperQuiet

Figure 18: The Honeywell SureSet

Figure 19: The Honeywell Safety Sentinel Ceramic

Humidifiers

Figure 20: Sales of humidifiers, at current and constant prices, 2002-07

SUPPLY STRUCTURE

Figure 21: Appliance ownership, by brand, August 2007

ADVERTISING AND PROMOTION

From televised pull marketing to online pull marketing

Messaging topics by segment

Air conditioning

Space heaters

Air purifiers

Current advertising and promotions

3M Filtrete

Figure 22: 3M Filtrete

American Standard air conditioning

Figure 23: American Standard A/C

Carrier air conditioning

Figure 24: Carrier A/C

Mitsubishi Electric Mr. Slim

Figure 25: Mitsubishi Mr. Slim

Trane Clean Effects

Figure 26: Trane central multi-system

RETAIL DISTRIBUTION

Major retailers

APPLIANCE OWNERSHIP

Product penetration

Figure 27: Air treatment appliance ownership, 2002-06

Figure 28: Air treatment appliance ownership, by household income, January-October 2006

Figure 29: Air treatment appliance ownership, by age, January-October 2006

Figure 30: Air treatment appliance ownership, by race/ethnicity, January-October 2006

Penetration and multiple product ownership in online sample

Figure 31: Air treatment appliance ownership, August 2007

Central air systems vs. room unit systems

Figure 32: Central air system ownership, August 2007

How central system ownership affects room unit ownership in Mintel’s online survey

INTENT TO PURCHASE

Figure 33: Purchase plans vs. current penetration vs. recent purchase, August 2007 and January-October 2006.35

Figure 34: Purchase plans, by age, August 2007

SPEND

Figure 35: Air treatment appliance spending, August 2007

Spend by race/ethnicity

Figure 36: Portable air conditioner spending, by race/ethnicity, August 2007

Spend by age

Figure 37: Portable air conditioner spending, by age, August 2007

Spend by household income

Figure 38: Portable air conditioner spending, by household income, August 2007

Differences in spend by other demographics

PRODUCT AGE

Figure 39: Appliance age, August 2007

PRODUCT SATISFACTION

Figure 40: Appliance satisfaction, August 2007

FUTURE AND FORECAST

FUTURE TRENDS

Design focus to combat central systems

Figure 41: De’Longhi Pac t100P

Figure 42: Honeywell HHT145 - HEPA Antibacterial UV Air Cleaner

Figure 43: Holmes cool mist humidifier

Increased Internet marketing

Room air conditioners for energy savings

Green labeling dovetails with energy appeal

Combination and multifunction appliances

Increased competition from central air treatment systems

Climate change brings greater weather variation

Fear of mold

MARKET FORECAST

Air treatment appliances

Figure 44: Forecast of total U.S. supplier sales of air treatment appliances, at current and constant prices, 2007- 12

Room air conditioners

Figure 45: Forecast of U.S. supplier sales of room air conditioners, at current and constant prices, 2007-12

Dehumidifiers

Figure 46: Forecast of U.S. supplier sales of dehumidifiers, at current and constant prices, 2007-12

Air cleaners

Figure 47: Forecast of U.S. supplier sales of air cleaners, at current and constant prices, 2007-12

Portable heaters

Figure 48: Forecast of U.S. supplier sales of portable heaters, at current and constant prices, 2007-12

Humidifiers

Figure 49: Forecast of U.S. supplier sales of humidifiers, at current and constant prices, 2007-12

Forecast factors

APPENDIX: PRODUCT OFFERINGS BY COMPANY

Fedders

Air conditioners

Dehumidifiers

Air purifiers

Whirlpool

Air conditioners

Dehumidifiers

Dehumidifiers

Jarden

Heaters

Humidifiers

Air purifiers

LG

Air conditioners

Separate-room HVAC

Dehumidifiers

Electrolux

Air conditioners

Humidifiers

GE

Air conditioners

Dehumidifiers

Kaz

Humidifiers

Heaters

De’Longhi

Oreck

Ionic Pro

APPENDIX: SIZE OF PARTICULATES

Figure 50: Size of air pollution particulates

APPENDIX: THE MYTH OF CENTRAL AIR ENERGY EFFICIENCY

Differences in efficiency between room units and central air are limited

It is definitively cheaper to cool or heat one room with a room unit

It is almost always cheaper to cool or heat two rooms of a house with room units

The same cost saving applies equally to space heaters and room unit air conditioners

Substantial amounts can be saved

APPENDIX: TRADE ASSOCIATIONS