Detergent Market Size to Grow by $31.5 Billion from 2022 to 2027: Technavio

Procter and Gamble dominates the North American market with popular products like Tide and Gain, holding the largest market share by volume.

The detergent market is estimated to grow at a CAGR of 5.85% between 2022 and 2027. The market size is forecast to increase by $31.5 billion, according to Technavio.
 
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 $3.9 billion. 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.
 
The laundry care market is estimated to grow at a CAGR of 4.28% between 2022 and 2027 and the size of the market is forecast to increase by $23.8 billion. Product innovation and portfolio extension are key factors driving the growth of the market.
 
The detergent market is fragmented, with the presence of several global as well as regional companies. A few prominent companies that offer detergent in the market are 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.; Kerisa 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.; Unilever PLC and others.
 
The market share growth by the powder segment will be significant during the forecast period. The market for powder detergents is experiencing growth due to increased demand from China, India and Brazil. Moreover, detergent powders are popular due to their simplicity and effectiveness in removing dust, dirt, grease and other environmental contaminants. They can be used for both handwashing and machine washing.
 
North America is estimated to contribute 33% to the growth of the market during the forecast period. The US plays a significant role in the regional detergent market. Procter and Gamble dominates the North American market with popular products like Tide and Gain, holding the largest market share by volume, which is more than half of the market. Other companies like Henkel and Church and Dwight also have substantial market shares in the North American detergent market. 

Hospitality Sector is Key Factor Driving Market Growth 


The growth in the hospitality sector is a key factor driving market growth. The number of overseas travelers increased from 175 million in January to July 2021 to 475 million in the same period of 2022, leading to an increase in hotel demand. Laundry services are an important service provided by hotels and are categorized into on-premises and off-premises hotels. Xeros Technology Group is an example of an off-premises laundry system. The increased need for this hotel will also increase the demand for washing machines. 

New Packaging Designs Are a Major Market Trend 

Emerging new packaging designs is a major trend in the market. Changes in package design are occurring in the detergent market. Manufacturers are moving away from rigid containers like bottles and cans to more flexible options. HEX Performance, for example, uses stand-up pouches with taps. Sustainable packaging is also gaining importance. Companies like Henkel are developing packaging made from recycled plastic. Henkel's partnership with Plastic Bank contributes to recycling efforts and contributes to the fight against marine plastic pollution. 

High Price Wars, a Significant Challenge

High price wars are a significant challenge restricting market growth. Suppliers in the market are experiencing price competition, particularly due to high concentration and the presence of unorganized players offering lower-priced products. This creates pricing challenges for global players, as the detergent market is highly price elastic. Even small price changes can significantly impact product demand. Liquid detergents are more expensive than alternatives such as powder and piece detergents due to higher manufacturing costs, such as raw material and packaging costs.

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