Laundry Detergent Market Report

Laundry Detergent Market Analysis By Product (Powder, Liquid, Fabric Softeners, Detergent Tablets), By Application (Household, Industrial or Institutional), By Region, And Segment Forecasts, 2018 - 2025

  • Published Date: Nov, 2017
  • Base Year for Estimate: 2016
  • Report ID: GVR-2-68038-034-7
  • Format: Electronic (PDF)
  • Historical Data: 2014 - 2015
  • Number of Pages: 110

Industry Insights

The global laundry detergent market size was valued at USD 133.3 billion in 2016. The rising penetration of washing machines in the developing economies is likely to be key driver for demand over the forecast period. Furthermore, technological advancements are also likely to fuel the growth.

The demand for the product in the U.S. is dominated by growing popularity of liquid products. The U.S. has witnessed tremendous growth in the use of liquid commodity over powder merchandise. However, issues regarding the safety of children ingesting these products acted as a restraint to market growth in 2016. Global vendors such as Procter & Gamble have developed new packaging type to make the company’s packaging child resistant. The company also claims to add sour flavor in the packaging of the product.

U.S. laundry detergent market

The competition in the industry is highly concentrated in nature as majority of market share is dominated by Proctor & Gamble. The industry analysis suggests that Procter & Gamble was the top leader in the U.S. industry capturing nearly half of the market share in 2016. The greater penetration of the company’s brands such as Tide and Gain has made it the undisputed leader in this category.

The mature U.S. laundry detergent market is highly concentrated in nature with global vendors such as Procter & Gamble and Church & Dwight Co., Inc. accounting for over 67% of the total market share in 2016. The trend to innovate product in terms of formula and packaging is the key factor driving sales. The strategy adopted by Procter & Gamble to develop environmentally-friendly products such as Tide purclean became a major factor in driving the company’s growth in the country.

The rising prominence of e-commerce is expected to be the key factor driving product growth, especially among the working-class due to easy accessibility and convenience. The e-commerce platform is largely dominated by companies such as Amazon, Target, and Walgreen. It is expected e-commerce is emerging as the fastest-rising distribution channel.

The vendors in developed markets such as the U.S. are adopting product bundling strategy to increase shares in the market by offering bulk discount on various products such as fabric softeners, liquid, and powder. In addition, vendors are also continuously adopting innovative marketing strategies to attract regional consumers.

Product Insights

Powder segment in the industry is expected to dominate the market over the forecast period. The product is expected to witness strong growth in developing economies such as China, India, Brazil, and others. Powder detergent is witnessing steady penetration in developing economies as consumers in the region prefer economical products. Also, a large section of the population is based in rural areas and prefer powder-based products over other products.

Liquid products are likely to grow at a higher rate in comparison to powder products owing to the large-scale adoption of the former in North America and European detergent market. The use of liquid detergent in comparison to powder provides convenience and comfort to the consumer. In addition, liquid detergents are cheaper to manufacture and the margin is greater. The segment is estimated to register growth in its share from 25.7% in 2016 to 26.0% by 2025.

Fabric softeners are projected to penetrate the market at a steady rate. As per trends, fabric softeners have witnessed a decline in the last few years. Procter & Gamble is devising new methods of marketing to increase its sales in the fabric softeners segment. The demand for fabric softeners is expected to be driven by the increasing popularity of fragrant and natural laundry care product. Furthermore, the segment can capitalize on the lucrative opening in the underpenetrated or unpenetrated industry in developing economies. The segment share is projected to grow from 18.8% in 2016 to 19.3% by 2025.

Detergent tablets segment is likely to observe slow growth over the forecast period. The segment share is expected to decrease to 12.1% by 2025. The rising prominence of liquid products in developed economies and greater penetration of powder products are likely to act as restraints to the segment growth over the forecast period.

Application Insights

Household segment is expected to dominate the industry over the forecast period. The rising penetration of washing machines in developing economies is expected to drive growth over the predicted period. A number of vendors are attempting to expand their footprint by establishing manufacturing facilities in developing economies having huge potential in terms of revenue. This trend is further substantiated by the growing penetration of washing machines in developing countries. For instance, the number of washing machines in Chinese household grew by nearly 7% from 2010 to 2015. Similarly, fully automatic washing machines were largely preferred by consumers in India over semi-automatic washing machines. The demand for washing machines is generally higher in urban areas in comparison to rural areas.

Industrial or institutional segment is expected to grow at a steady rate over the forecast period. The segment is likely to account for nearly 42.2% by 2025. Industrial detergents are used as cleaning agents in various industries including textiles, paper, rubber, engineering, dry cleaning, hospitals, railways, hospitality, housekeeping, and others. The steady growth of hospitality sector is likely to be the key catalyst for segment growth over the forecast period. The number of international tourist grew by 4.4% to reach 1.18 billion in 2015. Nearly 50 million or more tourists visited international destinations compared to 2014. The robust growth of tourism industry has generated demand for constructions of new hotels. The growth in the construction of hotel rooms is anticipated to provide greater opportunities for the segment’s growth as more demand is expected to be generated due to more washing of linens.

Regional Insights

APAC is likely to dominate the global market over the forecast period. The region is expected to grow from 34.9% in 2016 to 35.9% by 2025 and register growth owing to increased competition due to rising popularity of regional brands. The rising competition among global and regional players is affecting the dynamics of laundry detergent industry. For instance, key players such as Unilever and Procter & Gamble are losing their market shares in India due to the presence of strong regional players such as Rohit Surfactants Pvt. Ltd. and Nirma Limited. Detergent brands such as Rin, Surf, and Wheel owned by Unilever observed declining sales in 2016 owing to the growing prominence of regional brands in rural India.

Global laundry detergent market

As per 2014 rankings, China and India were the top two countries in terms of population. While the population in China was around 1.4 billion, of which 56% resided in urban areas, the population in India was about 33%, of which 1.3 billion reside in urban areas. All these factors together are expected to boost product demand over the forecast period. The increasing urban population coupled with rising disposable income is expected to be key driver for growth in the regional industry. Factors such as rising disposable income, easy financing, and increasing influence of modern living have distinguished washing machine from luxury to a utility item.

Competitive Insights

Global vendors such as Procter & Gamble and Unilever are focusing on developing sustainable products. For instance, open innovation program launched by Unilever encourages various organizations to develop sustainable products. Due to the rising demand for biodegradable detergents, manufacturers are opting for phosphate free raw materials such as plant and vegetable-based ingredients. One of the products is manufactured by method products, pbc, a personal care company located in the U.S. The company has developed a product, which is phosphate free and biodegradable. It uses naturally-derived amylase, which is a cleaning enzyme to avoid harm to the environment.

The other prominent vendors of the industry include Lion Corporation, Kao Corporation, and Method products, pbc. The industry is likely to be consolidated in the predicted timeline due to the mergers of major players. For instance, the acquisition of Sun Products by German consumer goods company, Henkel AG & Co. KGaA in 2016.

Report Scope

Attribute

Details

Base year for estimation

2016

Actual estimates/Historical data

2014 - 2015

Forecast period

2017 - 2025

Market representation

Revenue in USD Million & CAGR from 2017 to 2025

Regional scope

North America, Europe, Asia Pacific, CSA & Middle East & Africa

Country scope

U.S., Canada, UK, Germany, Russia, Japan, China, India, Saudi Arabia, and Brazil

Report coverage

Revenue forecast, competitive landscape, growth factors and trends

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Segments covered in the report

This report forecasts revenue growth and provides an analysis on the latest trends in each of the sub-segments from 2014 to 2025. For the purpose of this report, Grand View Research has segmented the global laundry detergent market on the basis product, application, and region:

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

    • Powder Detergents

    • Liquid Detergents

    • Fabric Softeners

    • Detergent Tablets

    • Others

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

    • Household

    • Industrial or Institutional

  • Regional Outlook (Revenue, USD Million; 2014 - 2025)

    • North America

      • U.S

      • Canada

    • Europe

      • Germany

      • Russia

      • UK

    • Asia Pacific

      • China

      • Japan

      • India

    • CSA

      • Brazil

    • Middle East and Africa

      • Saudi Arabia

Key questions answered by the report
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