Tom Branna, Editorial Director04.25.20
Not every market is getting battered by coronavirus. Sales of sanitizers, disinfectants and soaps are soaring, but most industry observers don’t expect the trend to continue once the epidemic subsides.
“Prior to COVID-19 pandemic, consumer lifestyle and sanitary habits regionally were the key drivers for hand soap consumption,” explained Fact.MR Consultant Ram Singh. “Household income also played a major role in driving the hand soap market. Regional clusters such as East Asia, South Asia and Africa have lower consumption of hand soap compared to North America, Europe and Oceania owing to the budget constraints set by the households.”
According to Singh, traditional market drivers will return once the COVID-19 pandemic is vanquished. As a result, the tremendous run up in hygiene product sales will slow. Fact.MR notes that Europe and North America are the leading regions in the global hand soap market, a market that is currently pegged at more than $23 billion, and is expected to grow 7.2% to 2030. Hand soaps have soared on popularity and have continued to penetrate industrial, medical and clinical and other niche applications.
Demand for hand soap is soaring with the ongoing COVID-19 pandemic and panic buying as precautionary measures are being implemented worldwide. Accelerated demand has significantly increased the supply demand gap. In the first quarter of 2020, the hand soap market became inelastic, which portrays a clear picture of independence of price with growth in demand due to release of World Health Organization (WHO) directives of hand hygiene owing to the COVID-19 pandemic.
According to Fact.MR, the global hand soap market is anticipated to create a value opportunity of around $25 billion during the forecast period, adding 2X more value as compared to 2020. Moreover, consumer preference for retail stores over e-commerce sales channel, for the purchase of hand soaps, is set to drive retail store sales at a Y-O-Y of 7.2% over the forecast period. Researchers say household applications are set to grow at a rate of 7.4% in the forecast period through 2030.
Regionally, Europe holds the largest share in the hand soap market and accounts for 7,000 million liters of hand soap demand, according to Fact.MR. MEA and South Asia & Oceania markets are growing at a moderate pace, owing to lesser product awareness and low household spending. Still, there are opportunities in Africa and other underserved regions.
“Personal care companies such as Reckitt Benckiser have already entered the market and is positioned in South Africa. RB recently collaborated with Jumia, an e-commerce chain in North Africa to help consumers access the hygiene products at the lowest price possible,” noted Singh.
As coronavirus spread around the globe, multinationals such as Reckitt Benckiser widened their exposure in the region by donating many hand hygiene products to the African countries in the first quarter of 2020.
“Moreover, due to water scarcity and household income issues, companies are formulating low priced hand soaps that produce good foam using less water,” he said. “These types of hand soaps are set to prevail in North Africa and companies should target the aforementioned factors to enter this regional market barrier-free.”
Still, Singh maintains that North America and Europe remain the most promising regions for hand soap market growth post-coronavirus.
“The demand for hand soaps were slightly increased owing to the panic buying these regions in the COVID-19 time period,” he explained. “Post-COVID-19, integration of hand soap in the market basket of consumers, due to lifestyle changes caused by the pandemic, have provided a lift to the hand soap consumption.”
“Prior to COVID-19 pandemic, consumer lifestyle and sanitary habits regionally were the key drivers for hand soap consumption,” explained Fact.MR Consultant Ram Singh. “Household income also played a major role in driving the hand soap market. Regional clusters such as East Asia, South Asia and Africa have lower consumption of hand soap compared to North America, Europe and Oceania owing to the budget constraints set by the households.”
According to Singh, traditional market drivers will return once the COVID-19 pandemic is vanquished. As a result, the tremendous run up in hygiene product sales will slow. Fact.MR notes that Europe and North America are the leading regions in the global hand soap market, a market that is currently pegged at more than $23 billion, and is expected to grow 7.2% to 2030. Hand soaps have soared on popularity and have continued to penetrate industrial, medical and clinical and other niche applications.
Demand for hand soap is soaring with the ongoing COVID-19 pandemic and panic buying as precautionary measures are being implemented worldwide. Accelerated demand has significantly increased the supply demand gap. In the first quarter of 2020, the hand soap market became inelastic, which portrays a clear picture of independence of price with growth in demand due to release of World Health Organization (WHO) directives of hand hygiene owing to the COVID-19 pandemic.
According to Fact.MR, the global hand soap market is anticipated to create a value opportunity of around $25 billion during the forecast period, adding 2X more value as compared to 2020. Moreover, consumer preference for retail stores over e-commerce sales channel, for the purchase of hand soaps, is set to drive retail store sales at a Y-O-Y of 7.2% over the forecast period. Researchers say household applications are set to grow at a rate of 7.4% in the forecast period through 2030.
Regionally, Europe holds the largest share in the hand soap market and accounts for 7,000 million liters of hand soap demand, according to Fact.MR. MEA and South Asia & Oceania markets are growing at a moderate pace, owing to lesser product awareness and low household spending. Still, there are opportunities in Africa and other underserved regions.
“Personal care companies such as Reckitt Benckiser have already entered the market and is positioned in South Africa. RB recently collaborated with Jumia, an e-commerce chain in North Africa to help consumers access the hygiene products at the lowest price possible,” noted Singh.
As coronavirus spread around the globe, multinationals such as Reckitt Benckiser widened their exposure in the region by donating many hand hygiene products to the African countries in the first quarter of 2020.
“Moreover, due to water scarcity and household income issues, companies are formulating low priced hand soaps that produce good foam using less water,” he said. “These types of hand soaps are set to prevail in North Africa and companies should target the aforementioned factors to enter this regional market barrier-free.”
Still, Singh maintains that North America and Europe remain the most promising regions for hand soap market growth post-coronavirus.
“The demand for hand soaps were slightly increased owing to the panic buying these regions in the COVID-19 time period,” he explained. “Post-COVID-19, integration of hand soap in the market basket of consumers, due to lifestyle changes caused by the pandemic, have provided a lift to the hand soap consumption.”