The global laundry detergent market is anticipated to grow at a CAGR of 6.2% between 2018 to 2026. The worldwide laundry detergent market has been directly influenced and driven by the changing macroeconomic trends that have been reshaping the global home-care industry. Shopping habits of consumers has been shaped by the changes in forces such as product availability, cultural tradition, financial considerations and product innovations.
Predictions for global middle class population to grow to 4.9 billion by 2030 increasing from 1.8 billion in 2009, economic prosperity is expected to be a growth engine for laundry detergent consumption. This will be backed with the rising aspirations for services and products that were previously not available or affordable. Rising consumer income levels and greater disposable incomes, consumers will definitely look out for premium products.
Apart from this, the world has been undergoing the largest growth of urbanization in the history. Over half of the global population lives in cities and towns, and by 2030 this will increase to approximately 5 million. With this for several consumers, urbanization means smaller storage spaces that will increase demand for smaller sized packages multi-functional, multi-use and concentrated detergent varieties. The laundry detergent market along with the consumer point of view has tremendously changed over the past decade even from the producer’s side as well and the most important of it is that the active ingredients of detergents have become increasingly concentrated. The dose of a single wash has been reduced further less than 85 grams in the present industry scenario, which shows a tremendous improvement in formulation.
In the present industry scenario, omnichannel can be termed as the new retail therapy as a major portion of the consumer base to aid to or complete their shopping experience. Hence, for the manufacturers, distributors and retailer’s point of view, making availability of laundry detergents on online platforms is s a must needed strategy for every player in the industry and this will help in companies’ individual market penetration.
The global laundry detergent market is segmented based on type of product, application sector and regional markets. Product category has been further segmented into liquid, powder, tablets, fabric softeners and other detergents. Powder detergent segment was the largest product segment in 2017. Powered laundry detergents are most user-friendly as it can be used in every type of self supported laundry washing techniques including washing machine and dryer, launderette, hand wash/cloths line, etc. In every region, washing machine and dryer is the most popular means of laundry type (Europe 87%, Asia Pacific 59%, Africa & Middle east 46%, Latin America 74% and North America 82%) and this is the most powerful factor driving powder detergents markets as it is the only product type that can be used in laundry washing machines.
The application segments of laundry detergent market are further bifurcated into residential and commercial types. In terms of quantity of product consumed every year, demand from residential sector is expected to be the highest during the forecast period.
Laundry detergent market is attributed by product efficiency and stain removal properties for across every geographical market. However, there are several noteworthy regional differences as it comes of other benefits that consumers perceive from these products. Asia Pacific was the leading regional market in percept of volume consumed in the financial year of 2017. Consumers in this region prefer mostly for eco-friendly products and over fourth percent of consumers strictly prefer detergents without any percent of harsh chemicals compared to the global percentage of 38%.
Similarly, in the Latin American region, current consumer trends show that mostly low cost but high quality and effective products are the most preferred. Along with-it fragrance or scent is another highly demanded attribute in detergents. Hence, industry participants must be particular and R&D initiatives are must in order to tap these consumer trends. These types of factors considered in formulating detergent formulation will contribute to higher market penetration in today’s highly competitive environment.
Some of the leading industry participants in the laundry detergent market include Alpha Chemical, General Organics, Inc., Clean Bubbles, Inc., Procter & Gamble, Nirma, Hindustan Unilever Limited, Henkel AG & Company, KGaA, Church & Dwight Co, Inc., Henkel, etc.