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

Report Overview

The global soap and detergent market size to be valued at USD 207.56 billion by 2025 and is expected to grow at a compound annual growth rate (CAGR) of 8.83% during the forecast period. The rising disposable income, development of the textile industry, and escalating penetration of washing machines in developing economies are 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 products in the developed as well as developing regions. 

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 developing economies such as China and India, which have high potential in terms of revenue. In addition, the escalating penetration of washing machines in developing countries is projected to drive market growth. A 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 machines.

Product innovation and new product launch is other 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 developing economies is expected to be the key catalyst for 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 demand for the product over the forecast period.

Soap and Detergent Market Trends

The ongoing product innovation in the detergent and soap industry is a major element supporting the market growth. Consumers with sensitive skin prefer anti-allergy soap and detergents with natural ingredients. The need for efficient and anti-allergic cleaning chemicals is rapidly increasing thus fueling the global market growth. Some of the big players are concentrating on introducing innovative products to meet their consumers' wants.

The detergent and soap companies are one of the most regulated domain with several  regulations aimed at preventing the discharge of chemical compounds into the environment  throughout the production process in addition to product control. Such criteria include a limit to the amount of material that is discharged into the environment.

However, traditional skin rubs are now being overtaken in the personal hygiene market by products like body wash and shower gel items. These products are the alternative products for soaps, also the fore mentioned factors are restraining the market growth.

Detergents and soaps are dynamic consumer commodities that are widely used by a large population. The growing influence of the modern lifestyle has boosted soaps from luxury to necessity. The increasing adoption of washing machines across emerging economies remains vital to supplement market growth. The majority of sales for washing machine sales occurs in urban areas resulting in the continuous use of liquid and powder detergents for washing clothes.

The COVID-19 pandemic had a favorable impact on the global probiotic detergent and soap market due to the growing need for longer-term benefits of disinfection and cleaning surfaces and products. Furthermore, the pandemic influenced customers to use cleansers that are greener, safer, and more efficient, which has increased the demand for probiotic detergents and soap.

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 the Asia Pacific region, and rising disposable income have 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 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, the Indian rural market is price conscious due to which vendors are opting strategy to launch various sized packages to grace the purchasing appetite of the Indian consumers.

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

The household soaps segment is expected to grow at the 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 the rising influence of modern living has renowned soaps from extravagance to a necessary product. The vendors of the soap 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 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 washing machines is directly linked to the potential demand for detergents, fabric enhancers, fabric softeners, and stain removers.

The Asia Pacific region is projected to grow at the 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 soaps and detergents. The steady penetration of washing machines in these countries has further increased the revenue potential for the vendors in the market.

Moreover, the 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 the Asia Pacific region. The low-cost manufacturing in the Asia Pacific region attracted major investment and made it an attractive manufacturing base for the textile and apparel products. The steadily growing textile market of the region is expected to provide a stable demand for soaps and detergent products over the forecast period.

Key Companies & Market Share Insights

Some of the key players catering to 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 a high revenue share. Strategic collaborations, mergers, and acquisitions help 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.

Global players such as Unilever and Procter & Gamble are facing high competition from local vendors, especially in 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 regional players such as Nirma and Patanjali.

Recent Development

In January 2021, Unilever announced the launching of a laundry detergent container made of paper. The technology was created in conjunction with the Pulpex consortium, which includes Unilever, Diageo, Pilot Lite, and other industry players. The bottles are produced from recycled paper and are supposed to be recycled as in the papers waste stream.

Soap and Detergent Market Scope

Global Soap and Detergent Market Segmentation

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

    • The U.S.

    • Canada

  • Europe

    • Germany

    • UK

    • France

    • Italy

    • Spain

  • Asia Pacific

    • Japan

    • China

    • India

  • RoW