HAND SANITIZER INDUSTRY INSIGHTS
The global hand sanitizer market size was valued at USD 1.64 billion in 2019 and is expected to reach USD 11.40 billion by 2021, representing a growth of 595%. The global market has been witnessing a surge since the breakout of the COVID-19 pandemic. This peak is likely to continue for the next two years and would start to normalize after 2022. The pandemic has increased focus on the importance of washing hands as a simple and cost-effective solution to reduce disease spread. The WHO emphasized the need to focus on longer-term uptake to form handwashing habits. Several government bodies are considering designing and adapting handwashing behavior change programs that are effective during COVID-19. This, in turn, is expected to fuel the demand for liquid hand wash during the forecast period. Moreover, the surge in adopting new formulation of hand sanitizers by manufacturers to provide an enhanced experience to consumers drives the market growth. The increasing popularity of organic sanitizers, which are eco-friendly, skin-safe, and sustainable, is also likely to influence market growth. Continuous innovations in formulations and dispenser designs such as touchless dispensers are gaining traction in the market.
- In terms of volume, hand wipes are likely to reach approx. 6 billion units by 2026, growing at a CAGR of over 11% during the period 2019-2026 due to the rise in hygiene concerns and contagious diseases.
- Alcohol-based hand sanitizers are expected to grow at the highest CAGR of approx. 12% during the period 2019-2026.
- Healthcare facilities are likely to observe an incremental growth approx. $2 billion by 2026 on account of the increased application of alcohol-based sanitizers.
- The U.S. hand sanitizer market is expected to grow at a CAGR of approx. 14% and 13% in terms of revenue and volume, respectively, during 2019-2026.
- The APAC region is expected to grow at a promising CAGR of 12% during 2019-2026 due to the growing awareness of hand sanitation among people in several countries.
GLOBAL HAND SANITIZER MARKET SEGMENTATION
This research report includes a detailed segmentation by
- Functional Ingredient
- Distribution Channel
INSIGHTS BY PRODUCTS
Gel and liquid-based hand sanitizers are expected to dominate the market by revenue as well as volume. Formulated with ethyl alcohol, gel-based disinfectants can kill 99% of common germs within seconds. These products deliver the maximum coverage to the skin and spread evenly, thereby providing maximum against germs. In terms of volume, the gel-based hand sanitizer market in North America is expected to witness an incremental growth of over 6 million gallons with absolute growth of over 87% during 2019– 2026.
Construction, manufacturing, painting, and decoration sectors are the major end-users of liquid hand sanitizers. These disinfectants demonstrate better antimicrobial performance than their gel-based, which is driving their demand in several industries. Europe is expected to witness an incremental growth of approx. $151 million with absolute growth of over 112% by revenue during the period 2019–2026. With rising awareness of contagious infections around the factories and construction sites, workers and employers are getting inclined towards maintaining hand hygiene and safety. Vendors across this market need to promote their products following the need for hygiene. Foam-based disinfectants, wipes, and sprays are also expected to observe promising growth during the forecast period.
INSIGHTS BY FUNCTIONAL INGREDIENT
Alcohol-based sanitizers are significant contributors to the global hand sanitizer market. The ability to prevent infections and kill most bacteria, fungi, and viruses is the primary factor driving the demand. North America is expected to generate an incremental growth of over $149 million for isopropyl hand sanitizers during the forecast period. APAC is a major potential market with a rise in COVID-19 cases in China and India. Ethyl alcohol-based sanitizers dominate the global alcohol-based hand sanitizer market share as most OTC hand sanitizers contain ethyl alcohol as the main functional ingredient. The cost outlook for isopropyl alcohol (IPA) raw materials has experienced considerable disruption owing to the rise in demand. In Europe, the price witnessed a high spike due to the high demand for IPA. The European IPA market is increasingly heating up, with producers such as INEOS and SEQENS are prioritizing the supply of IPA-containing hand gels to hospitals and health centers.
The revenue for quats hand sanitizers is likely to reach over $236 million by 2026, growing at a CAGR of over 10%. The market is expected to grow due to the shift from alcoholic sanitizers to lees acholic products due to alcoholic-based products' adverse effects. Europe is expected to generate an incremental growth of $26 million during the forecast period. The rise in hygiene concerns and growing contagious diseases is expected to drive the market for chlorine hand sanitizers. The chlorine sanitizer segment is expected to witness an absolute growth of 138% by revenue by the end of 2026.
INSIGHTS BY END-USER
The growing awareness of hand hygiene is expected to boost the market for alcoholic hand sanitizers in healthcare settings. Thus, the revenue is expected to reach over $2 billion by 2026. With such rising awareness about contagious infections and the importance of maintaining hand hygiene among individuals, hand sanitizer products in the healthcare sector have observed a rise. People have started to adopt the usage of sanitizers in all such places more pervasively. Gel-based sanitizers are the most demanded products from the healthcare setting. Vendors providing gel-based products are increasing their focus as they hold tremendous growth potential. Increased recommendations by infection control professionals boost the sale of gel-based sanitizers.
INSIGHTS BY DISTRIBUTION CHANNELS
Hand sanitizers are primarily sold via supermarkets and hypermarkets, departmental, retail, and drug stores worldwide. They are also available to end-users through e-commerce portals and online direct-to-consumer stores. Supermarkets and hypermarkets provide ample opportunities to vendors for promoting their products across the market due to large customer footfall. The segment is expected to contribute a revenue of over $1 billion by 2026. Retail stores are the preferred choice among customers, especially in the emerging market. Being a part of the hygiene category, hand sanitizers are usually sold across drug stores. Customers tend to buy such products as part of health safety measures. Several retailers are offering these products via online portals, which provide customers a wide variety of products. With the penetration of the internet growing globally, prominent vendors are promoting and selling their products via online modes. The segment is expected to grow at the highest CAGR of 16% during the forecast period.
INSIGHTS BY GEOGRAPHY
The penetration of hand sanitizers remains all-time high in the US and Canada. North America is likely to gain its share due to the impact of the COVID-19 pandemic and is expected to account for a market share of 34% by 2026. The US is the largest market for hand sanitizers and hand hygiene solutions, and the increasing retail expansion has boosted the market revenue for the same. Healthcare is one of the largest contributors to the US economy, accounting for close to a fifth of the overall gross domestic product. Hence, the US offers vast opportunities for sanitizer vendors in terms of consumption and demand. The case has been so since the outbreak of the COVID-19 pandemic. The natural landscape of North America strongly reflects its physical setting. A rich and defined culture has empowered societies by increasing their purchasing power. This positive environment has created immensely favorable dynamics for businesses. Adding to the social landscape, factors such as high consumer spending and the tendency of dynamic purchasing behavior contribute to the overall acceptance of hand sanitizers widespread acceptance.
INSIGHTS BY VENDORS
The global hand sanitizer market is fragmented in nature due to the presence of local and global market players. 3M, GOJO Industries, P&G, Reckitt Benckiser, Unilever, and Vi-Jon are the key vendors in the market. The market concentration in developed countries such as the US and other Western European countries is high. In contrast, the market is in its nascent stage in developing economies such as China and India because of the entry of several global brands in these countries and growing awareness of end-user toward hand sanitation. The adoption rate among end-users worldwide has been impressive. Due to increased demand, the market has witnessed the entry of several new vendors. The competition among these companies has intensified, leading to many innovative and advanced solutions in the market.
The global hand sanitizer market research report includes in-depth coverage of the industry analysis with revenue and forecast insights for the following segments:
- Hand Wipes
- Government & Military
- Supermarkets & Hypermarkets
- Departmental Stores & Discounters
- Drug Stores
- Other Retail Stores
- Online/E-commerce Stores
- Ethyl Alcohol
- Isopropyl Alcohol
- North America
- China & SAR
- South Korea
- Latin America
- Middle East & Africa
- Saudi Arabia
- South Africa