Soap and Detergent Market Size, Share & Trends Report

Soap and Detergent Market Size, Share & Trends Analysis Report By Product (Household Detergents, Industrial Soaps & Detergents, Household Soaps), Competitive Landscape, And Segment Forecasts, 2018 - 2025

  • Published Date: Jan, 2018
  • Base Year for Estimate: 2016
  • Report ID: GVR-2-68038-299-0
  • Format: Electronic (PDF)
  • Historical Data: 2014 - 2016
  • Number of Pages: 72

Industry Insights

The global soap and detergent market size was estimated at USD 97.26 billion in 2016. The rising disposable income, developing textile industry, and escalating penetration of washing machines in the developing economies is expected to boost the market growth over the forecast period. The increasing healthcare awareness coupled with rising disposable income has categorized soaps and detergents as an essential consumable product in the developed as well as developing regions. 

U.S. soap and detergent market

Soaps and detergents are vital necessities as consumer goods and are used by the large population base. The vendors are expanding their business by building manufacturing facilities in the developing economies such as China and India, which have high potential in terms of revenue. In addition, the escalating penetration of washing machines in the developing countries is projected to drive the market growth. The large chunk of demand for washing machines is from the urban cities, however, the demand for this machine is rising in rural areas as well. Thus, there is sustainable consumption of powder and liquid detergents required for washing machine.

Product innovation and new product launch is another major factor expected to drive the market growth. For instance, in 2015, Unilever launched its Molto Perfume Essence fabric softeners in Indonesia followed by aggressive marketing until 2016. Moreover, the steady penetration of powder detergents in the rural and urban areas of the developing economies is expected to be the key catalyst for the market growth.

The market is witnessing globalization in the sector, as more and more global vendors are branching out in the market to increase their market share. With rising globalization, vendors of the market are facing new challenges to sustain their growth and compliant as per the laws and regulations directed by various government agencies. The potential opportunities in the developing economies are expected to provide ample of demand for the product over the forecast period.

Product Insights

In 2016, the household detergents segment is estimated to dominate the soap and detergent market. The high usage rate, a large population in Asia Pacific region, and rising disposable income has led to its large market share. The household soaps segment is expected to grow at a lucrative rate during the forecast period. The strategic initiatives of product innovation were taken by the leading vendors such as The Procter & Gamble, Unilever, Henkel, and others. These companies are constantly evolving their product portfolio as per the demand generated in the rural and urban areas.

The growing penetration of powder and liquid detergents in the rural and urban areas of the developing economies including India, China, and Brazil is projected to be the key catalyst for the segment’s growth. For instance, Indian rural market is extremely price conscious due to which vendors are opting strategy to launch various sized packages to grace the purchasing appetite of the Indian consumers.

Global soap and detergent market

The industrial soaps & detergents are extensively used by the commercial laundries, hotels, restaurants, and healthcare providers. This segment is projected to grow at lucrative rate owing to government regulations and initiatives for hygiene and cleanliness. The hotels, restaurants, and healthcare providers need to comply with GMP and hygiene guidelines, which is eventually boosts the demand for soaps and detergents.

The household soaps segment is expected to grow at fastest CAGR during the study period owing to rising population and escalating disposable income in developing regions. The increasing disposable income together with easy financing and rising influence of modern living has renowned soaps from extravagance to a necessary product. The vendors of the soaps industries capitalize on this trend by launching cost-effective products in developing regions.

Regional Insights

North America dominated the soap and detergent market with the largest revenue share due to the developed economy and large textile manufacturing industry in the U.S. and Canada. Major vendors are implementing growth through acquisition strategy to increase their market presence. For instance, in September 2016, Henkel acquired Sun Products Corporation to expand its detergents product portfolio including laundry detergent, fabric softeners, stain removers, and dish detergents to expand its business in North America.

The Europe market is projected to grow at a significant rate over the forecast period, owing to the growing sales volume of washing machines in this region. The growing sales volume of the washing machines is directly linked to the potential demand for the detergents, fabric enhancers, fabric softener, and stain removers.

The Asia Pacific region is projected to grow at a highest rate from 2017 to 2025. The rising population of the region coupled with rapid urbanization in countries such as India, China, Indonesia, and Malaysia is expected to be the key driver for the rising demand for the soaps and detergents. The steady penetration of the washing machines in these countries have further increased the revenue potential for the vendors of the market.

Moreover, Asia Pacific region is the biggest apparel and textile manufacturer globally. The rising development in the textile and apparel industry in the region is projected to boost the growth. The production bases of the textile industry shifted from the U.S. and the European Union to Asia Pacific region. The low-cost manufacturing in the Asia Pacific region attracted major investment and made it attractive manufacturing base for the textile and apparel products. The steady growing textile market of the region is expected to provide a stable demand for the soaps and detergent products over the forecast period.

Soap and Detergent Market Share Insights

Some of the key players catering the growth of the market are Ecolab Inc.; Unilever; Church & Dwight Co.; Procter & Gamble; Henkel AG & Co. KGaA; Colgate-Palmolive Company; Lion Corp.; Reckitt Benckiser Group PLC; The Clorox Company; and Amway. The market is witnessing globalization in the sector, as more and more global vendors are branching out in the market to increase their market share.

Large multinational companies dominate the industry. In the consumer segment, companies spend millions on marketing to protect brand name products such as Cascade, Tide, and Ivory. Scale advantages in almost every aspect of operations present major challenges for smaller manufacturers.

Leading players are involved in mergers & acquisitions, strategic collaborations, and innovative product development to gain high revenue share. Strategic collaborations, mergers, and acquisitions help the manufacturers to expand their existing product portfolio and geographical reach. For instance, in May 2017, Procter & Gamble announced the launch of Dreft purtouch, a baby detergent that is 65.0% plant-based and hypoallergenic.

The global players such as Unilever and Procter & Gamble are facing high competition from the local vendors, especially in the developing economies. The rising competition among the global and regional players is affecting the growth. For instance, the global giants are facing tough competition from the regional players such as Nirma and Patanjali.

Report Scope

Attribute

Details

Base year for estimation

2016

Actual estimates/Historic data

2014 - 2016

Forecast period

2017 - 2025

Market representation

Revenue in USD Billion & CAGR from 2017 to 2025

Regional scope

North America, Europe, Asia Pacific, & RoW

Country scope

U.S., Canada, UK, Germany, France, Italy, Spain, Japan, India, China

Report coverage

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

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Segments covered in the report

This report forecasts revenue growth at global, regional, & country levels and provides an analysis on 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 global soap and detergent market on the basis of product and region:

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

    • Household detergents

    • Industrial soaps & detergents

    • Household soaps

    • Others

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

    • North America

      • U.S.

      • Canada

    • Europe

      • Germany

      • UK

      • France

      • Italy

      • Spain

    • Asia Pacific

      • Japan

      • China

      • India

    • RoW

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