Enjoy complimentary customisation on priority with our Enterprise License!
The detergent market size is estimated to grow at a CAGR of 5.85% between 2022 and 2027. The market size is forecast to increase by USD 31.55 billion. The growth of the market depends on several factors, including the growth in the hospitality sector, the increased penetration of washing machines, and the rising consumer awareness regarding hygiene.
This detergent market report extensively covers market segmentation by type (powder and liquid), end-user (household, commercial, and industrial), and geography (North America, APAC, Europe, 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.
To learn more about this report, View Report Sample
The growth in the hospitality sector is notably driving the market growth, although factors such as high price wars 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.
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 the 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 the market growth during the forecast period.
Major Detergent Market Challenge
High price wars are a major challenge impeding the growth of the global detergent 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 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 Detergent 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.
Church and Dwight Co. Inc.: The company offers detergent under brand names such as oxi clean, xtra, and arm hammer.
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 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.
Get a glance at the market contribution of various segments View the PDF Sample
The powder segment was valued at USD 40.80 billion in 2017 and continued to grow until 2021. 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.
For more insights on the market share of various regions Download PDF Sample now!
North America is estimated to contribute 33% 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. 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.
COVID-19 affected the tourism sector for a long while during the pandemic in 2020, due to which the hotel industry faced major challenges regarding tourist accommodation. However, the household sector did not have much impact on the market as people preferred to stay at home. As a result, online purchase sales increased in the detergent market. Once the lockdown restrictions were removed, the detergent market saw major growth in the offline channels as well. The sales of detergents were restored in the commercial sector, which is likely to continue during the forecast period.
The detergent market 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 detergent 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 market research report has extensively covered external factors influencing the parent market growth during the forecast period.
Detergent Market Scope |
|
Report Coverage |
Details |
Page number |
166 |
Base year |
2022 |
Historic period |
2017-2021 |
Forecast period |
2023-2027 |
Growth momentum & CAGR |
Accelerate at a CAGR of 5.85% |
Market growth 2023-2027 |
USD 31.55 billion |
Market structure |
Fragmented |
YoY growth 2022-2023(%) |
5.46 |
Regional analysis |
North America, APAC, Europe, South America, and Middle East and Africa |
Performing market contribution |
North America at 33% |
Key countries |
US, China, Japan, UK, and Germany |
Competitive landscape |
Leading Vendors, Market Positioning of Vendors, Competitive Strategies, and Industry Risks |
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 S.A., The Procter and Gamble Co., and Unilever PLC |
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, Market condition analysis for 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. |
We can help! Our analysts can customize this market research report to meet your requirements.
Get lifetime access to our
Technavio Insights
Cookie Policy
The Site uses cookies to record users' preferences in relation to the functionality of accessibility. We, our Affiliates, and our Vendors may store and access cookies on a device, and process personal data including unique identifiers sent by a device, to personalise content, tailor, and report on advertising and to analyse our traffic. By clicking “I’m fine with this”, you are allowing the use of these cookies. Please refer to the help guide of your browser for further information on cookies, including how to disable them. Review our Privacy & Cookie Notice.