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The organic laundry detergents market is estimated to grow at a CAGR of 9.9% between 2022 and 2027. The size of the market is forecast to increase by USD 3,986.4 million. The growth of the market depends on several factors, including the increasing generation of industrial waste, rising demand for eco-friendly products, and stringent environmental regulations.
This report extensively covers market segmentation by distribution channel (offline and online), product (powdered detergents, liquid detergents, and pods detergents), and geography (North America, Europe, APAC, South America, and Middle East and Africa). It also includes an in-depth analysis of drivers, trends, and challenges. Furthermore, the report includes historic market data from 2017 to 2021.
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The increasing generation of industrial waste is notably driving the market growth, although factors such as the high cost of organic laundry detergents compared to synthetic laundry detergents may impede the market growth. Our researchers analyzed the data with 2022 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.
The increasing generation of industrial waste is notably driving market growth. The amount of waste produced by various industrial processes has been steadily rising. Without immediate action, the World Bank Group estimates that by 2050, global industrial waste will have increased by 70% from its current level. While the Middle East and North Africa generate the least amount of waste in the world, roughly 6% of all industrial waste produced globally, East Asia and the Pacific generate about 23% of the world's waste. The demand for organic laundry detergents is rising as industrial waste generation rises continuously throughout the world. This is due to the fact that industrial waste has been recognized as a renewable feedstock and a source of raw materials for the production of organic laundry detergents.
Furthermore, eco-friendly substrates like agro-industrial waste, crop residues, and waste from the food and oil processing industries are also used to make organic laundry detergents. Thus, it is anticipated that during the forecast period, production of organic laundry detergents will increase due to the high rate of industrial waste generation.
Emerging new packaging designs is a major trend in the market growth. The packaging of detergents is changing from a rigid format, like bottles, cans, and jars, to one that is more flexible. For example, businesses use flexible, upright pouches with a tap to dispense their anti-odor laundry detergent.
Manufacturers of detergents are also making the transition to environmentally friendly packaging, creating packaging from recycled plastic and making it completely recyclable. One of the major detergent producers, Dropps, is putting an emphasis on environmentally friendly packaging. The company uses cardboard boxes that are recyclable, compostable, and FSC-certified. Large corporations are also utilizing new technology to create paper-based laundry detergent bottles, including Unilever PLC. Hence, such an initiative is estimated to boost the growth of the market during the forecast period.
The high cost of organic laundry detergents compared to synthetic laundry detergents is a major challenge impeding market growth. As they cost more to produce, store and maintain than synthetic laundry detergents, organic detergents are more expensive than their synthetic counterparts. Even though oleochemicals and industrial waste products are used to make organic laundry detergents, the cost, and complexity of extraction further drive up the price of the finished good. Due to the perishable nature of the product, appropriate storage conditions must be met during various stages, including production, processing, distribution, and storage. As a result, producers are constantly searching for strategies to cut costs and gain a competitive edge in the market. This can significantly increase the cost of manufacturing organic laundry detergents.
In addition, to the aforementioned factors, sizable investments are needed to make the product accessible at the industry level. Pure organic laundry detergents cannot be extracted without incurring significant costs owing to the lack of suitable downstream processes. Thus, these factors are expected to impede market growth during the forecast period.
The report includes the adoption lifecycle of the market, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their growth strategies.
Global Organic Laundry Detergents Market Customer Landscape
Vendors are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
AspenClean - The company offers organic dish soap and laundry detergent. The key offerings of the company include organic laundry detergents such as AspenClean Natural Laundry Detergent Unscented.
The report also includes detailed analyses of the competitive landscape of the market and information about 15 market vendors, including:
Qualitative and quantitative analysis of vendors has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize vendors as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize vendors as dominant, leading, strong, tentative, and weak.
The market share growth by the offline segment will be significant during the forecast period. Both powdered and liquid organic laundry detergents are frequently sold through the offline distribution channel, which includes retail establishments like supermarkets, specialty shops, and department stores. These goods come in a variety of brands, sizes, and packaging.
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The offline segment was valued at USD 3,359.90 million in 2017 and continued to grow until 2021. Specialty stores, an efficient offline distribution method, carry a wide range of brands, and a sizable selection of goods, and sell comparable goods. The availability of trained personnel who are able to provide accurate information on a variety of products is a significant factor boosting preference for this distribution channel. Furthermore, although they can provide a variety of brands and stock-keeping units (SKUs) at affordable prices, hypermarkets, and supermarkets have fewer options for organic laundry detergents than specialty shops. When buying products from hypermarkets, and supermarkets consumers take into account convenience, adequate SKUs, and a wide range of brands. Increasing urbanization has caused supermarkets to proliferate. As a result, it is anticipated that during the forecast period, sales of organic laundry detergents through supermarkets will soar in developing nations. Department stores also offer convenient one-stop shopping for organic laundry detergents. The availability of a wide range of products drives the growth of the segment. Therefore, all these factors will boost the offline segment of the market during the forecast period.
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North America is estimated to contribute 38% to the growth of the global market during the forecast period. Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period.
The market expansion in this region is primarily due to the US. The market for organic laundry detergents in North America is anticipated to grow as a result of the supportive policies and regulations for the use of natural surfactants from governmental organizations and environmental agencies, such as the US Food and Drug Administration (FDA). In addition, the region's market is expanding due to consumers switching from synthetic and artificial products to natural and organic ones.
The region's consumers prioritize purchasing cutting-edge and incredibly effective laundry care products like liquid detergents and detergent pods. Customers favor liquid and detergent pods over other types of detergent because they are more convenient and perform better. For instance, Procter and Gamble's laundry product brands Tide and Gain offer pods. Since their introduction, Tide PODS and Gain Flings, according to the company, have seen a 90% growth in the US laundry detergent market. Additionally, since these products don't contain any toxic chemicals, using organic and eco-friendly laundry care products is a growing trend among consumers in the US. Organic laundry detergents are in high demand among consumers who are concerned about their health and the environment. Thus, all these factors will fuel the regional market growth during the forecast period.
In 2020, the COVID-19 pandemic had a negative impact on the regional market. However, in 2021, due to the availability of vaccines, the number of COVID-19 cases in the region declined. This led to the reopening of retail stores selling household laundry care products. Moreover, increased awareness about cleanliness and rising environmental concerns are expected to propel the growth of the regional market during the forecast period.
The report forecasts market growth by revenue at global, regional & country levels and provides an analysis of the latest trends and growth opportunities from 2017 to 2027.
Technavio categorizes the global organic laundry detergents market as a part of the global household products market. The global household products market covers non-durable household products, including detergents, soaps, diapers, and other tissue and household paper products. Our research report has extensively covered external factors influencing the parent market growth during the forecast period.
Organic Laundry Detergents Market Scope |
|
Report Coverage |
Details |
Page number |
149 |
Base year |
2022 |
Historic period |
2017-2021 |
Forecast period |
2023-2027 |
Growth momentum & CAGR |
Accelerate at a CAGR of 9.9% |
Market growth 2023-2027 |
USD 3,986.4 million |
Market structure |
Fragmented |
YoY growth 2022-2023(%) |
9.08 |
Regional analysis |
North America, Europe, APAC, South America, and Middle East and Africa |
Performing market contribution |
North America at 38% |
Key countries |
US, China, Japan, Germany, and UK |
Competitive landscape |
Leading Vendors, Market Positioning of Vendors, Competitive Strategies, and Industry Risks |
Key companies profiled |
AspenClean, CC Holdings Inc., Dropps, Earth Friendly Products, Eco Me, EcoRoots, Ecozone Ltd., Eleeo Brands LLC, Greenology Products Inc., MaddieBrit Products LLC, Nellies, People Against Dirty Holdings Ltd., Rockin Green, S.C. Johnson and Son Inc., Sodasan Wasch und Reinigungsmittel GmbH, Sonett GmbH, Tandis Naturals, The Procter and Gamble Co., Unilever PLC, and Werner and Mertz GmbH |
Market dynamics |
Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, and Market condition analysis for the forecast period. |
Customization purview |
If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
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