Hong Kong Liquid Hand Soap Market Size, Share & Trends Analysis Report By Form (Gel, Foam), By Type (Conventional, Organic), By End-use (Commercial, Household), By Distribution Channel, And Segment Forecasts, 2023 - 2030

Report Overview

The Hong Kong liquid hand soap market size was valued at USD 34.9 million in 2022 and is expected to expand at a compound annual growth rate (CAGR) of 7.0% from 2023 to 2030. The rising awareness about hand hygiene in controlling bacterial and viral infection is one of the key factors driving the market growth. Further, an increase in the number of infectious diseases, such as COVID-19, diarrhea, stomach infection, flu, and others has raised the importance of hand wash practices. The growing urgency of frequent handwashing behavior has set the tone for the market in Hong Kong. During the outbreak of the pandemic, the Hong Kong government directed commercial institutions in the city to strictly adhere to the COVID-19 protocols by installing hand-washing facilities and providing sanitizers. Moreover, TV campaigns were telecasted to promote hand hygiene among individuals.

All these factors contributed to the growth and demand for liquid hand soaps.Furthermore, the pandemic has led manufacturers to leverage the online platform to showcase their product portfolios and influence consumers to purchase the product online. Moreover, discounts offered on online purchases, free home delivery, and fast delivery also prompt consumers toward online distribution channels.

The research by Shirley Man Man Sit and her team on the fear of COVID-19 and its associations with perceived personal and family benefits and harms in Hong Kong, published in the Translational Behavioral Medicine in March 2021, found that fear of COVID-19 has improved awareness, prevention practices and practices of hand hygiene among the Hong Kong citizens. As of 2022, the pandemic is not completely over, and there is a rise in cases due to the emergence of COVID-19 variants. Therefore, increased awareness regarding hand hygiene among individuals and an increase in the installation of washing facilities in the washroom of the commercial sector are expected to drive sales in Hong Kong during the forecast period.

With rising consumer preference for biodegradable liquid hand washes that naturally decompose over time, major companies in the industry are focusing on developing sustainable hygiene products with a focus on natural, biodegradable, and non-toxic ingredients, with reusable and recyclable packaging materials. Based on a survey published by CleanLink in August 2022, over 30% of the consumers in Hong Kong have awareness of various negative environmental impacts due to non-biodegradable products, which increased from 24% in 2020. This rise in awareness is anticipated to increase the adoption of green liquid hand washes in Hong Kong.

Based on an article published by Morning Post in October 2022, the use of liquid hand soaps is more prevalent among women than in men, whereas bar soaps have a higher adoption from men. The study revealed that the major factor leading to an increased product adoption of liquid hand soap among women is that bar soaps are comparatively harsher and could remove all the moisture from the skin. Liquid soaps, on the other hand, often contain moisturizers.

The presence of too many chemicals in liquid hand soaps compared to bar soaps is expected to restrict the market’s growth during the forecast period. In addition, according to the study by Koehler, A. and C. Wildbolz, researchers at the Institute of Environmental Engineering stated that manufacturing liquid soaps require five times more energy for raw material production and nearly 20 times more energy for packaging production in comparison to bar soaps. The cost of manufacturing liquid soaps is higher than bar soaps, which in turn increases the overall pricing of the liquid hand soaps. All these factors are expected to contribute significantly to restricting the growth of the market in Hong Kong during the forecast period.

Form Insights

Gel form accounted for the largest revenue share of 80.5% in 2022. It is the most common soap that is used in both residential as well as commercial spaces. Gel soaps may have additional properties, such as moisturizing, antibacterial, natural, and chemical-free properties. Furthermore, the texture of gel helps in the thorough cleaning of hands, making it more effective, which contributes to its high usage. In addition, a variety of gel soaps are available, ranging from regular to luxury liquid hand soap, which further drives the segment’s growth.

The foam segment is anticipated to grow at a CAGR of 8.4% over the forecast period. The growth is characterized by the increasing popularity of these products as they provide more lather, making it easier to wash hands. Foam liquid hand soap reduces the amount of water used while washing hands, which has also increased consumer demand. According to an article published by OPHARDT Hygiene in March 2019, foam liquid hand soap reduced water use by 16% per wash.

Type Insights

Conventional accounted for a revenue share of 88.8% in 2022. The segment’s growth is characterized by its lower price in comparison to organic soaps.The product is available in various fragrances and colors, resulting in higher usage than conventional soap bars. Consumers choose liquid soaps as they prevent the spread of germs without any mess, which is more common with the use of regular bars.

Green/organic is anticipated to grow at a CAGR of 10.3% over the forecast period. The growth of the segment is characterized by an increase in demand for organic and natural products, as these are free of chemicals and preservatives. Some of the commonly used organic ingredients in liquid soaps include turmeric, essential oils, and aloe vera. The healing properties of these are resulting in higher adoption, thus driving segmental growth.Furthermore, evolving consumer attitude toward the use of organic/green liquid hand soaps derived from sustainable oils and ingredients like grapefruit, orange, lavender, and others is projected to boost the demand.

End-use Insights

The household accounted for a revenue share of 62.6% in 2022. Contaminated hands can spread numerous infectious diseases from one person to another such as COVID-19, cold, influenza, and others. To prevent the spread of such diseases, liquid hand soaps are highly used by consumers in households. Moreover, consumers are readily experimenting with various fragrances in liquid hand soaps, which is encouraging manufacturers to offer the same. Various manufacturers are offering products with a wide range of fragrances and numerous essential oils for consumers. For instance, Aesop, a luxury cosmetics brand, offers hand liquid soap containing various essential oils including lavender, rosemary, orange, and others.

The commercial segment is anticipated to grow at a higher CAGR of 8.0% over the forecast period. The use has surged in commercial places due to the outbreak of the COVID-19 pandemic. Commercial places started to provide liquid hand soaps through automatic liquid hand dispensers. Growth in the construction of commercial spaces in Hong Kong has created further opportunities for this market. For instance, according to the Rating and Valuation Department, the floor area vacancy for commercial places in 2017 was 1,014 m2 which reached 1,321 m2 in 2020.

Distribution Channel Insights

Offline accounted for the largest share of 86.1% in 2022.Both conventional and organic liquid hand soaps are easily available through various offline distribution channels, including supermarkets & hypermarkets, convenience stores, and others. A large number of consumers get attracted by these stores as they are located in highly populated areas of the town or city.PARKnSHOP.com Online Store and Wellcome are the two major retailers operating in the market in Hong Kong that sell various products, through brick & mortar stores, as well as online through their websites.

Online channel is anticipated to grow at a higher CAGR of 9.3% over the forecast period. Consumers increasingly access online platforms to purchase daily necessities products, including soaps. Moreover, during the pandemic, consumers' preferences shifted toward e-commerce and online shopping as consumers became comparatively more conscious and wanted to avoid contact with other consumers. Furthermore, various benefits such as doorstep delivery, high discounts, easy payment methods, availability of a diverse range of products on a single platform, and other factors are increasing the usage of online channels, thus driving market growth.

Key Companies & Market Share Insights

The Hong Kong liquid hand soap market is characterized by the presence of a few well-established players such as Blue Moon Group Holdings Limited, Whealthfields Lohmann (Singapore) Pte Ltd, Aesop, Reckitt Benckiser Group PLC (Dettol), and Lion Corporation. Some of the players operating in the market are launching new liquid hand soaps to attract a large base of consumers. For instance, in October 2021, Reckitt Benckiser Group PLC's flagship hygiene brand Dettol’s new product Foaming Handwash aims at making handwashing a fun experience. The product is available in two variants - Aloe Coconut and Strawberry.

Some of the key developments and strategic initiatives carried out by leading manufacturers are listed below:

• Blue Moon Group Holdings Limited was awarded the “Listed Company Awards of Excellence 2022” by the Hong Kong Economic Journal (HKEJ). The Group’s liquid laundry detergent and hand wash ranked first in the China Brand Power Index for more than 10 consecutive years (2012 - 2021)

• Blue Moon Group Holdings Limited ranked first in terms of the market shares of Liquid Laundry Detergent and Liquid Soap

•  Whealthfields Lohmann (Singapore) Pte Ltd distributed Walch Hand Sanitiser Dispensers and Walch Hand Soap at the Singapore Heart Foundation center.

Some prominent players in the Hong Kong liquid hand soap market include:

• Blue Moon Group Holdings Limited

• Whealthfields Lohmann (Singapore) Pte Ltd.

• Aesop

• Reckitt Benckiser Group PLC

• Lion Corporation

Hong Kong Liquid Hand Soap Market Report Scope

Hong Kong Liquid Hand Soap Market Segmentation

This report forecasts revenue growth at the country level and provides an analysis of the latest industry trends and opportunities in each of the sub-segment from 2017 to 2030. For this study, Grand View Research has segmented the Hong Kong liquid hand soap market report based on form, type, end-use, and distribution channel:

• Form Outlook (Revenue, USD Million, 2017 - 2030)

  • Gel

  • Foam

• Type Outlook (Revenue, USD Million, 2017 - 2030)

  • Conventional

  • Organic/Green

• End-use Outlook (Revenue, USD Million, 2017 - 2030)

  • Commercial

    • Shopping Mall Management

    • Hotels

    • Offices

  • Household

• Distribution Channel Outlook (Revenue, USD Million, 2017 - 2030)

  • Offline

  • Online

    • Company Websites

    • Third-party Websites