CHICAGO -- At the same time consumers are driving more, they are also spending less at the pump. In spite of the 4% increase in gasoline usage, consumer spending at the pump is down $39 billion so far this year. This situation leads to some long overdue market opportunities for the automotive aftermarket, according to The NPD Group Inc.'s Retail Tracking Service.
As consumers put more miles on the odometer, this leads to more frequent maintenance intervals and, in turn, an increase in demand for all the things that a vehicle consumes or requires as part of its ordinary usage, including oil changes and minor replacement parts.
Motor oil tells a good story, with the total category up 7% in dollars and 4% in units (quarts)--it's a different storyline than what we've grown used to in recent years, NPD said. Previously, motor oil was growing in dollars while unit volumes were in decline as consumers shifted towards more premium-priced products. The speed at which these products are moving off the shelves indicates just how high the demand is for this automotive product.
What are consumers going to do with the extra $39 billion they've now found in their wallets? Growth is starting to happen in many categories within the automotive products space that have struggled since the recession, when consumers looked at automotive spending more prudently. While they would prioritize the necessary things to keep their cars functioning efficiently and effectively, the added bonuses—having the cleanest, shiniest and most accessorized car—were put on the back burner. Now, as consumers find some relief in their wallets, dollar and unit sales across such "bonus" categories are growing, including air fresheners (up 18% in dollars and units), appearance accessories (up 16% dollars, up 15% units) and appearance chemicals (up 16% dollars, up 13% units).
The NPD Group, Chicago, provides information and advisory services to the automotive, beauty, consumer electronics, entertainment, fashion, food and foodservice, home, luxury, mobile, office supplies, sports, technology, toy and video game sectors.
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