COVID-19 to Render Hand Soap Market Inelastic in Near Term, Projects Fact.MR
Published : 13 Apr 2020 Industry: Consumer Goods
With Europe and North America leading the hand soap market, the market is currently pegged at more than US$ 23 Bn. Projected growth rate is anticipated to be 7.2% over the forecast period (2020 to 2030). Hand soaps have soared on popularity and have continued to penetrate industrial, medical & clinical and other niche applications. The success of hand soap market lies in targeted marketing and branding of their products through various media channels.
Demand for hand soap is set to soar with the ongoing COVID-19 pandemic and panic buying as precautionary measures are being implemented worldwide. Accelerated demand has significantly increased the supply demand gap. In this quarter, i.e., 1st quarter of 2020, hand soap market has become inelastic, which portrays a clear picture of independence of price with growth in demand due to release of WHO directives of hand hygiene owing to the COVID-19 pandemic.
Key Takeaways of Global Hand Soap Market
- Global hand soap market is anticipated to create a value opportunity of around US$ 25 Bn during the forecast period, adding 2X more value as compared to 2020
- Consumer preference for retail stores over E-commerce sales channel, for the purchase of hand soaps is set to drive retail store sales at a Y-o-Y of 7.2% over the forecast period
- Household applications are set to grow at a rate of 7.4% in the forecast period through 2030 and are set to gain ~160 BPS over the assessment period
- Europe holds the leading share in the hand soap market and accounts for 7,000 million litres of hand soap demand
- MEA and South Asia & Oceania market are growing at a moderate pace, owing to lesser product awareness and low household spending
- Global Hand Soap market is consolidated in nature with only 15-25 manufacturers of liquid hand soap across regions
“Hand soap is gradually topping consumers’ wish list owing to targeted branding. This is despite lower budget constraints, thus increasing the rate of returning consumers”says a Fact.MR analyst.
Strong Foothold of Hand Soap Titans has put New Entrants at Bay
Hand Soap market stakeholders have generated greater profit margins in the historical period of 2015-2019. According to a Fact.MR consumer survey, consumers have set their expectations and choices limited to only select companies. This has become a barrier for new entrants in the market. Market stakeholders such as Johnson & Johnson, Reckitt Benckiser, Unilever, Henkel, ITC, Procter & Gamble, Amway etc., have a strong foothold across various regions in the hand soap market.
More Valuable Insights on Hand Soap Market:
Fact.MR, in its new offering, presents an unbiased analysis of the global Hand Soap market, presenting historical demand data (2015-2019) and forecast statistics for the period of 2020-2030. The study divulges essential insights on the Hand Soap market on the basis of pack size (100ml to 200ml, 200ml to 500ml, 500ml to 1L and 1L to 5L), application (household, industrial, medical & clinical and others) and sales channel (retail stores (big-box retailers, pharmacies, mom & pop stores and hypermarkets) across six major regions.
About the Retail and Consumer Goods Division at Fact.MR
Being a consortium of large number of sub-industries, not many market research companies are being able to fulfil the requirements of consumer product clients. Though, retail and consumer goods analysts at Fact.MR have been tracking the broader sub-industries to keep themselves abreast of the recent happenings in the market. With unmatched analytical diligence, the team at Fact.MR helps organizations design product differentiation strategies and helps add exclusive product(s) to their existing portfolio. For more retail domain insights, visit here.