Disinfectant Wipes Demand Surges As Covid-19 Spreads

Household wipes and disinfectant wipes are hard to get by these days. As the number of cases of the novel coronavirus began to climb quickly in the U.S. in March, worried consumers began pantry-loading supplies like household cleaners and disinfectants, including wipes. For months, shelves have been emptied of these products, and when they are restocked, they’re gone within the hour.

Based on reports and analysis from manufacturers, the ACI estimates that consumers will begin to see a more regular supply of products like disinfectant wipes in mid-summer. Major manufacturers of disinfectants and disinfectant wipes weren’t quite prepared for such high demand this time of year.

On The Clorox Company’s earnings call last month, chairman and CEO Benno Dorer reported that the company had all-time record shipments of Clorox disinfecting wipes, cleanup disinfecting spray, disinfecting bathroom cleaner and Scentiva products. Demand for some disinfectant products spiked more than 500%. Dorer told analysts that the company has been able to increase production of disinfecting products by 40%. It’s now focusing on fewer SKUs; production of its line of Clorox compostable cleaning wipes is on hold for now in order to prioritize disinfecting wipes. Clorox has also activated third-party suppliers to help it cope with the surge in demand. In terms of availability, Dorer told Yahoo! Finance last month that there will be substantial improvements in supply this summer. 

Reckitt Benckiser’s (RB) Lysol brand, Clorox’s main competitor, is also reporting strong category growth driven by conditions created by Covid-19. In the first quarter of 2020, North America Like-for Like (LFL) revenue was up 20% in the quarter, with Lysol especially strong, up over 50%, due to Covid-19 demand. The exceptional demand resulted in some customers and consumers facing shortages for some of its products. In response RB has ramped up production, streamlined its SKUs and is working with customers and suppliers to overcome significant barriers, while incurring additional costs. 

Ramping Up
To alleviate shortages caused by consumer stockpiling, wipes manufacturers have been working as quickly and safely as possible to crank up capacity. The increased demand for disinfectant wipes and hand sanitizing products has required California-based wipes manufacturer Diamond Wipes International to shift its production efforts to these products and launch new disinfecting wipes products. Prior to the pandemic, the household wipes category represented a small portion of Diamond Wipes’ sales. With the onset of covid-19, however, demand for household surface disinfecting wipes increased significantly and in July the manufacturer is launching new household disinfecting wipes through its Handyclean Wipes by Diamond Wipes brand. The wipes kill 99.9% of bacteria and viruses and sanitize household surfaces in 15 seconds and will be available in 35 and 75 count canisters. In addition to canisters, pouches and individual packets, the company’s jumbo rolls of disinfecting wipes are in high demand by gyms, health facilities and warehouse/distribution centers. Outside suppliers of film, substrates and outer packaging are experiencing the same upsurge in demand.

Wipes manufacturer KleenTest Products is also observing unprecedented demand for disinfectant wipes. The company has responded by adding additional shifts and expediting new equipment installations.

Rockline Industries, a manufacturer of private label household disinfecting wipes in the U.S., has been in constant communication with its customers about how they could deliver more disinfectant products to them during the outbreak. Rockline has made several moves that increased capacity. First it collaborated with its retail partners by focusing on product assortments that increased through-put. Additionally, the company adjusted work schedules, line loading and supply chains to focus on disinfectant production. Lastly, while small in comparison to the canister wipes, Rockline created new versions in flexible film to maximize all converting assets. 

Changing Habits
Although more consumers today see the value and convenience of household wipes, the pricier cleaning format is still considered a luxury item to many as compared to other cleaning formats. But will the current economic pain being felt by much of the population impact the household cleaning and wipes markets like it did during another recent economic downturn, the Great Recession? Market researcher Mintel has identified a key difference between the two. On the other hand, covid-19 is having a unequivocally different effect on different product categories.

Wipes are already the fastest-growing surface cleaning format. Due to the pandemic, Mintel analysts predict there will be an additional wave of fast-tracking because wipes represent the quickest route to sanitizing a surface after human contact.