Market Information
The number of items which require batteries continues to expand, and ownership of those products among consumers is also increasing rapidly. Of particular relevance to the battery industry is the growth in ownership of high-powered devices which drain batteries rapidly, such a digital cameras and digital video cameras.
Changes in the age structure of the UK population can effect demand for batteries, since certain age groups are notably more likely than others to use, and to be heavy users of batteries.
Sales of batteries are heavily seasonal, with the major peak in sales occurring in the fourth quarter of the year due to the significant number of products which are bought as presents at Christmas which require batteries.
UK Battery Sales (approx)
| Year | Million Batteries | £m |
|---|---|---|
| 1999 | 585 | 608 |
| 2000 | 574 | 518 |
| 2001 | 619 | 625 |
| 2002 | 682 | 665 |
| 2003 | 701 | 715 |
| 2004 | 722 | 752 |
Market Share by brand ( UK)
| Duracell | 44% |
|---|---|
| Energizer | 25% |
| Panasonic | 5% |
| Rayovac | 5% |
| Uniross | 4% |
| Own-label | 10% |
| Others | 7% |
The short- and long-term prognosis for the UK market for household batteries is good. With increasing ownership of a widening range of battery-powered devices has been the driver behind recent market growth and will continue to be for the foreseeable future.
The principal challenge for manufacturers will be how to capitalise on this increased demand for more batteries, more costly batteries and more different kinds of batteries, while at the same time that the retail prices remain competitive.
Demographic trends in terms of their likely influence on the battery market are varied.
During the next four years, new product development will continue to be focused on batteries for digital products such as CD players, cameras, video cameras, MP3 players, all of which are high-drain devices.
AA batteries shall continue to be the dominant force in the market but products not in the five key areas (AA, AAA, C, D & 9v) will take a growing share due to the increased popularity of devices that consume them.
The two main branded players in the market – Duracell and Energizer followed by Panasonic and own label.
Commercial due diligence final report – 24 October 2005
“The market evolves as new technologies come on stream – so first it was zinc, then alkaline and now rechargeables and lithium. We have a lithium battery that lasts three times longer than a normal battery.” (Energizer)
The primary segment typically splits battery formats into alkaline/manganese and zinc carbon formats. In addition to the above, lithium cells and NI-MH (rechargeable) are also emerging for digital devices and tr aditional cameras. Secondary cells (also called rechargeables) are either made of nickel cadmium (Ni-Cd) or nickel metal hydride (Ni-MH) - Ni-MH batteries offer the benefit of allowing the user to top up the charge without waiting for the battery to run down completely. These improved rechargeables also tend to hold around 40% more power than Ni-Cd cells. The main growth areas in volume terms have been alkaline/manganese and rechargeables:
- Alkaline/manganese batteries are seen as superior to zinc in powering the new generation of high-drain devices.
- The growth in the rechargeable sector has come in response to the improved performance and durability of Ni-MH batteries, which have encouraged more people to make the switch to rechargeables.
- Button cell demand has come from a variety of factors, such as increased use in car remote locking systems, the growth of digital hearing aids, increased use of PDAs and other small products using button cells.
- Similarly, sales of other batteries have been boosted by growth in value sales of premium-priced lithium batteries, which have various uses in PDAs, calculators and cameras, meeting the needs of high drainage and long term reliability.
