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The detergent market size is forecast to increase by USD 33.9 billion at a CAGR of 5.95% between 2023 and 2028. The dynamic market expansion is influenced by various key factors. Primarily, the burgeoning hospitality sector's growth significantly contributes to the market's upward trend.
Additionally, the increasing penetration of washing machines in households and commercial establishments is a significant driving force. Furthermore, the escalating consumer consciousness towards maintaining optimal hygiene standards has led to an increased demand for effective detergent products such as liquid detergents. These factors collectively fuel the market's growth, ensuring its continued expansion in the global economy.
It also includes an in-depth analysis of market trends and analysis, market growth analysis and challenges. Furthermore, the detergent market growth insights report includes historic market data from 2018 - 2022.
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The market caters to industrial commerce and end-users alike, offering solutions ranging from ultra-concentrated pump detergents to single-dose detergents. With increasing concern for environmental impact, consumers seek alternatives to inorganic waste and harmful ingredients, favoring enzyme-based detergents known for their efficacy and credibility. The market spans various sectors including laundry detergents, personal hygiene, and household cleaning products, addressing clean surroundings and personal care needs. Organic laundry detergents and cloth softeners appeal to consumer preference for cleanliness and self-hygiene, driving chemical ingredient research and innovations in laundry detergent formulations, including laundry detergent sheets.
Performance factors like cleaning performance and stain removal shape consumer loyalty towards laundry detergent brands, influencing choices in machine use laundry detergents for both commercial and household use, including in hospitals where hygiene is paramount. Our researchers analyzed the market research and growth data with 2023 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.
Key Detergent Market Driver
Growth in the hospitality sector is the key factor driving the growth of the global detergent market. The tourism sector is witnessing rapid growth and recovery post-pandemic. In 2021, the global spending on international tourism was USD 1.038 trillion, which was an increase of 21.7% from the previous year, 2020. In addition, the number of international travel departures across the world was 475 million January-July 2022 compared with 175 million in the same time in 2021. This spur on travelling is expected to give rise to the need for more hotels. Laundry service is a major service provided by a hotel to its customers. The hotel laundry system can be divided into two types: on-premises and off-premises.
On-premises laundry systems are situated inside the hotel premises, while off-premises laundry systems are established outside the hotel and given on a contract basis. Xeros Technology Group is one example of an off-premises laundry system. Thus, high requirement for hotels drives the demand for laundry services, increasing the demand for washing machines, thereby boosting the demand for detergents. Hence, the market in focus will grow during the forecast period.
Significant Detergent Market Trends
Emerging new packaging designs is the primary trend shaping global detergent market growth. Another emerging trend in the global laundry detergent market is changes in packaging design. Detergent manufacturers are moving from rigid packaging formats such as bottles, cans, and jars to more flexible packaging designs. For example, HEX Performance uses flexible stand-up pouches with taps to dispense deodorant and laundry detergent. Detergent manufacturers are also moving toward sustainable packaging, developing packaging from recycled plastic, and making it 100% recyclable.
Henkel, one of the major detergent manufacturers, is focusing on sustainable packaging. The company is targeting that by 2025, 100% of its packaging will be recyclable, reusable, or compostable. The company is collaborating with the Ellen MacArthur Foundation by participating in the New Plastics Economy. This is an initiative led by the Ellen MacArthur Foundation that aims to bring stakeholders together to rethink and redesign the future of plastics. Henkel is also partnering with the Plastic Bank, a social enterprise aiming to stop ocean plastic, and the collected plastic is used for recycling. Such factors will increase detergent market growth during the forecast period.
Major Detergent Market Challenge
High price wars are a major challenge impeding the growth of the global market. The global laundry detergent market is witnessing price competition among suppliers. Also, the market is highly concentrated, making competitive pricing essential. Several unorganized players are also active in the market, offering products at lower prices than organized players. This creates significant pricing challenges for global players. The detergent market is highly price elastic, and small changes in price can lead to large changes in product demand. Especially among low-, middle- and high-income customers, many consider price to be the most important factor when purchasing products, resulting in high brand-switching promotions.
These issues arise from high price competition that forces vendors to lower their prices and profit margins. This benefits consumers as they get the same product at a lower price. The price of liquid detergents is higher than other substitute products, such as powder and bar detergents owing to the former's high manufacturing cost. The high cost of raw materials, such as chemical/organic ingredients and natural fragrances, and packaging costs are major factors for the high product price of liquid detergents. The presence of liquid detergents offered by local brands increases market competition for global players as they cannot price the products at a lower cost. Such factors will hinder market growth during the forecast period.
The detergent market forecasting 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 detergent market industry report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their market growth and forecasting strategies.
Market Customer Landscape
Companies 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.
Church and Dwight Co. Inc.: The company offers detergent under brand names such as oxi clean, xtra, and arm hammer.
The detergent market research analysis report also includes detailed analyses of the competitive landscape of the market and information about 20 market companies, including:
Qualitative and quantitative analysis of companies 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 companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.
The market share growth by the powder segment will be significant during the forecast period. The powder form of the product represents the largest segment of the industry share. The growth of the market for powder detergents is being driven by the rising demand for the product from China, India, and Brazil. The powder detergent market will account for the major share of the global detergent market in 2022. However, liquid detergents are expected to account for the major share during the forecast period, owing to the slow growth of powder detergents.
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The powder segment was valued at USD 42.50 billion in 2018. The powder form of the product represents the largest segment of the industry share. The growth of the market for powder detergents is being driven by the rising demand for the product from China, India, and Brazil. The powder detergent market will account for the major share of the global detergent market in 2022. However, liquid detergents are expected to account for the major share during the forecast period, owing to the slow growth of powder detergents.
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APAC is estimated to contribute 37% 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.
Another region offering significant growth opportunities to vendors is North America. North America is expected to account for the largest share of the global detergent market during the forecast period, driven by growth in countries such as the US. The demand for liquid detergent is slightly more than that for detergent powder due to its ability to dissolve in water easily in the respective region. It is also the preferred form due to its superior stain-removing capabilities.
Procter and Gamble, a major vendor in the detergent market, accounts for the largest share of the North American detergent market, with products such as Tide and Gain. The company accounts for more than half of the market share by volume. Vendors such as Henkel and Church and Dwight also hold significant market shares in the North American detergent market.
The detergent market industry report provides comprehensive data (region wise segment analysis), with forecasts and estimates in "USD Billion" for the period 2024-2028, as well as historical data from 2018 - 2022 for the following segments.
The market experiences capacity expansions driven by a rise in hygiene awareness, spurred by concerns over infectious diseases like norovirus and influenza. Products such as hand sanitizers and personal care products gain traction alongside hygiene awareness programs, promoting sustainable cleaning products and zero-waste laundry detergents and dishwashing detergent. With a focus on developing countries, manufacturers adopt eco-friendly packaging and recyclable containers to comply with environmental regulations and reduce harmful solvents like perchloroethylene.
Furthermore, Advanced formulations, including enzymes for stubborn stains, drive innovation in laundry liquids and bio-based cleaners available in various forms such as liquids/gels, powders, and tablets/bars. Market growth sees research and development activities enhancing surfactant systems and foaming properties using resources like rapeseed oil, catering to diverse needs in the residential and commercial segments and fostering hygiene consciousness worldwide.
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Market Scope |
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Report Coverage |
Details |
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Page number |
175 |
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Base year |
2023 |
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Historic period |
2018 - 2022 |
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Forecast period |
2024-2028 |
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Growth momentum & CAGR |
Accelerate at a CAGR of 5.95% |
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Market growth 2024-2028 |
USD 33.9 billion |
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Market structure |
Fragmented |
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YoY growth 2023-2024(%) |
5.24 |
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Regional analysis |
North America, APAC, Europe, South America, and Middle East and Africa |
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Performing market contribution |
APAC at 37% |
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Key countries |
US, China, UK, Germany, and Japan |
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Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
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Key companies profiled |
Church and Dwight Co. Inc., Clariant International Ltd., Croda International Plc, Diversey Holdings Ltd., Ecolab Inc., Galaxy Surfactants Ltd., Henkel AG and Co. KGaA, Huntsman International LLC, Kao Corp., KERSIA GROUP, Lanxess AG, Lion Corp., McBride Plc, Oxiteno SA, Solvay SA, Stepan Co., Tata Chemicals Ltd., Tetra Laval SA, The Procter and Gamble Co., and Unilever PLC |
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Market dynamics |
Parent market analysis, Market forecast, Detergent market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, Detergent market worth condition analysis for forecast period |
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Customization purview |
If our detergent market report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
We can help! Our analysts can customize this detergent market research report to meet your requirements.
1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Type
7 Market Segmentation by End-user
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Opportunity/Restraints
11 Competitive Landscape
12 Competitive Analysis
13 Appendix
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