GVR Report cover Latin America Detergent Market Size, Share & Trends Report

Latin America Detergent Market Size, Share & Trends Analysis Report By Product (Laundry, Household & Kitchen), By Application (Residential, Commercial, Industrial), By Country, and Segment Forecasts, 2018 - 2025

  • Report ID: GVR-2-68038-540-3
  • Number of Pages: 30
  • Format: Electronic (PDF)

Report Overview

The Latin America detergent market size to be valued at USD 28.08 billion by 2025 and is expected to grow at a compound annual growth rate (CAGR) of 5.9% during the forecast period. Increasing demand for liquid detergents coupled with surging uptake of environment-friendly detergents is expected to propel the market over the forecast period. Rising awareness regarding importance of household hygiene is estimated to help boost the demand for household & kitchen cleaners in developing economies of the region. Due to lack of proper sanitation, prevalence of various diseases such as cholera, typhoid, and hepatitis is on a rise. In order to avoid these, the demand for household cleaners has increased significantly over the past few years.

Latin America Detergent Market size, by application

Detergent polymer, soda ash, sodium meta silicate, and phosphate are some of the key raw materials used to produce detergents. However, due to increasing demand for biodegradable counterparts, manufacturers are opting for phosphate-free raw materials that include plant and vegetable based ingredients.

Since liquid products are cheaper to manufacture, manufacturers are increasing their production for higher profit margins. However, steady penetration rate of powdered products is due to its prominence in developing economies, since in these economies consumers look for economical products. Liquid products are often perceived as premium products compared to powdered form.

The market in Latin America has a huge potential for private label brands. Consumers now see private label brands as a substitute to national and multinational brands and this is anticipated to impact the market in the region. Both private label and national brands are sold online on e-commerce websites and on company websites as well. 

E-commerce facilitates comparison of prices and customer reviews regarding various types of products available in the market. In addition, growing demand for petroleum-based detergents that are replacing synthetic types is likely to stoke the growth of the market over the forecast period.

The market is governed by the presence of various government bodies that regulate packaging, labeling, storage, and use of the products. These bodes include International Association for Soaps, Detergents and Maintenance Products (AISE), Federal Hazardous Substance Act (FHSA), Consumer Product Safety Act (CPSC), Poison Prevention Packaging Act (PPPA), and Environmental Protection Agency (EPA) among various others. Manufacturers have to meet regulations laid down by these bodies in order to conduct business in the region.

Latin America Detergent Market Trends

The growing adoption of washing machines in the region, combined with the rising use of powder detergents in rural areas of emerging economies, is driving the market. The increased prevalence of liquid detergents owing to their pre-dissolved feature is expected to propel industry expansion. Additionally, various eco-friendly initiatives promoted by regional governments are expected to increase the demand for biodegradable detergents in Latin America.

Furthermore, the COVID-19 pandemic has impacted the industry positively as people are becoming more concerned regarding their surroundings’ cleanliness, which is expected to boost the demand for household and surface cleaning detergents. Market players are investing in the development of innovative products to meet customer demands.

Moreover, the increasing awareness about proper sanitation in commercial places is projected to positively impact the industry and add new opportunities for the market players. However, the increased manufacturing prices can act as a restraint for the market.

Product Insights

On the basis of product, the laundry detergent segment dominated the market in 2017, accounting for over 45.0% of the overall revenue. Increasing penetration of washing machines owing to convenience offered by them for doing laundry is projected to help propel the market. Use of laundry detergents for washing clothes impart resiliency to fabrics, softness, and shows good dispersibility in water. In addition, rising awareness among consumers regarding cleanliness and hygiene is poised to fuel the demand for laundry detergents in the region.

Among laundry detergents, the powder segment held the largest share of over 35.0% in the market in terms of revenue in 2017. The segment is expected to maintain its position until 2025. Rural population accounts for a large share of consumers of the product. Shift in preference of rural consumers from cakes and bars to powders is estimated to be one of the key factors contributing to the growth of the segment.

Application Insights

In 2017, the residential application segment was the leading revenue contributor, commanding approximately 60.0% of the Latin America detergent market. Proliferation of washing machines in the region is anticipated to bolster the demand for detergents in the residential sector. Growing sales volume of washing machines and other detergent products, especially in countries such as Mexico, Argentina, and Colombia, can directly be linked to rising disposable income. Rapid urbanization in these countries is further augmenting the sales of washing machines.

Latin America Detergent Market share, by application

Increasing concerns regarding infectious diseases are compelling consumers to adopt healthier lifestyle practices. Changing trends in developed and developing economies regarding increasing use of homecare and hygiene products is likely to fuel the demand for detergent. In addition, rising commercial use of household cleaners such as surface deodorizers and fabric softeners/conditioners is projected to trigger the demand for the products in residential applications.

Country Insights

Latin America is poised to witness significant growth over the forecast period. Since the region is still in developing phases, majority of the population is economically backward. They tend to use cheap products that contain cheap ingredients. However, due to the environmental impact caused by cheap ingredients, the demand for products with higher performance and environmental-friendly characteristics is gradually increasing. This is expected to positively impact the industry in the region.

Colombia accounted for a significant share in the Latin America market in 2017. Increasing share of private label brands in the country is one of the primary growth stimulants for the market. The market in the country is estimated to post noteworthy CAGR during the forecast period.

Key Companies & Market Share Insights

The market in Latin America is characterized by the presence of global players along with various small and medium players catering to the local demand. Companies such as Unilever and Henkel are at the forefront of the market, thus making entry of other players difficult. However, the market share for private labels in the region is significantly rising, since they are a cheaper alternative. This is prompting manufacturers to launch innovative products to attract customer attention.

Recent Development

In January 2022, Dawn launched a new liquid detergent called the ‘Dawn EZ-Squeeze’. The unique design of this product is expected to provide customers with a mess-free experience by preventing any leaks.

Some of the key manufacturers present in the Latin America market:

  • Productos Químicos Panamericanos SA (PQP)

  • Procter & Gamble

  • California Cleaning Supply LLC

  • Detergentes Y Jabones Sasil S.A.

  • Biocloro S.R.L.

Latin America Detergent Market Report Scope

Report Attribute

Details

Revenue forecast in 2025

USD 28.08 billion

Growth rate

CAGR of 5.9% from 2018 to 2025

Base year for estimation

2017

Historical data

2014 - 2016

Forecast period

2018 - 2025

Quantitative units

Revenue in USD million/billion and CAGR from 2018 to 2025

Report coverage

Revenue forecast, company ranking, competitive landscape, growth factors, and trends

Segments covered

Product, application, region

Country scope

Colombia; Haiti; Dominican Republic.

Key companies profiled

Productos Químicos Panamericanos SA (PQP); Procter & Gamble; California Cleaning Supply LLC; Detergentes Y Jabones Sasil S.A.; and Biocloro S.R.L.

Customization scope

Free report customization (equivalent to up to 8 analysts working days) with purchase. Addition or alteration to country, regional & segment scope.

Pricing and purchase options

Avail customized purchase options to meet your exact research needs. Explore purchase options

 

Latin America Detergent Market Segmentation

This report forecasts revenue growth at regional and country levels and provides an analysis of the industry trends in each of the sub-segments from 2014 to 2025. For the purpose of this study, Grand View Research has segmented the Latin America detergent market report on the basis of product, application, and country:

Latin America Detergent Market Segmentation

  • Product Outlook (Revenue, USD Million, 2014 - 2025)

    • Laundry Detergent

      • Powder

      • Liquid

      • Fabric Softener

      • Tablets

      • Others

    • Household & Kitchen Detergent

      • All-purpose Cleaners

      • Powder

      • Liquid

      • Others

    • Others

  • Application Outlook (Revenue, USD Million, 2014 - 2025)

    • Residential

    • Commercial

    • Industrial

  • Country Outlook (Revenue, USD Million, 2014 - 2025)

    • Colombia

    • Haiti

    • Dominican Republic

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