U.S. HAND SANITIZER INDUSTRY INSIGHTS
The U.S. hand sanitizer market is expected to grow 2x in terms of revenue during 2019-2026. The hand sanitizer market in the US is projected to reach revenues of over USD 1 billion, growing at a CAGR of approximately 14% during the forecast period. The COVID-19 pandemic has increased the importance of washing hands as a simple and cost-effective solution to reduce disease spread. Did you know that in Q4 2020, the U.S. hand sanitizer market share was valued at over USD 653 million due to the awareness toward personal hygiene and increased cases of virus outbreaks? The region has been witnessing a surge in demand for hand sanitizers owing to the COVID-19 pandemic, and this peak is likely to continue for the next two years and would start to normalize after 2022. The U.S. hand sanitizer market was valued at around 16 million gallons by volume in 2019.
Continuous innovations in product formulations and dispenser designs such as touchless dispensers gain immense traction in the market, creating growth potential for the US hand sanitizer manufacturers. One of the top vendors, GOJO Industries, with its brand Purell, has launched instant hand sanitizers, which provide a quick solution to individuals' hygiene troubles. The WHO has also declared May 5 as the World Hand Hygiene Day. The US-based organization such as the US FDA and US CDC also play an important role in creating awareness of hand hygiene. For instance, the US CDC campaign ‘Clean Hands Count’ encourages and empowers patients to ask healthcare service providers whether they washed their hands. Such factors are imperative to the growth and profitability of hand sanitizer companies operating in the US region.
- The awareness of preventing coronavirus resulted in 78% of Americans washing their hands 6+ times throughout the day in 2020.
- The alcohol-based segment is expected to post incremental revenues of around USD 598 million by 2026.
- The U.S. hand sanitizer market size is projected to reach revenues of around USD 790 million by Q2 2021.
- Southern US is expected to witness an incremental revenue of over USD 21 million for the hand wipes segment.
- The drug stores segment in the hand sanitizer market in the US is expected to grow at a CAGR of around 13% during 2019-2026.
- By the end of 2021, GOJO Industries will increase the production of Purell hand sanitizer by 5x and Purell surface spray by 9x.
U.S. HAND SANITIZER INDUSTRY GROWTH FACTORS
- High concentration of major players such as 3M, GOJO Industries, P&G, Reckitt Benckiser, Unilever, and Vi-Jon in the US region.
- The influence of digital consumerism and penetration of m-commerce to impact the sale of hand sanitizers.
- The introduction and sale of organic sprays with grain alcohol, organic glycerin, aloe vera gel, and essential oils such as lavender.
- Existing consumer product vendors/traditional hand wash and soap manufacturers are entering the market through product development and product line extensions.
- Gel-based hand sanitizers are the largest selling product type in the market. However, liquid and foam-based are catching up with the demand.
U.S. HAND SANITIZER MARKET SEGMENTATION
This research report includes a detailed segmentation by
- Product Type
- Functional Ingredient
- Distribution Channels
INSIGHTS BY PRODUCT
The gel-based segment is expected to witness an absolute growth of 164% and 157% in terms of revenue and volume, respectively, between 2019 and 2026
The gel-based segment in the US market is projected to grow at a CAGR of around 15% during the forecast period. Vendors providing gel-based sanitizers for the healthcare sector should focus on building the brand image and ensuring that their products deliver the promised result. The healthcare segment is a crucial segment to cater to, thus requiring vendors to be very cautious in selling up their products. Another advantage for vendors catering to the healthcare segment is that a lot of end-customers. Such as patients/relatives of patients who visit the hospital, nursing homes, or the physician’s office often come across such products in the office/clinic/hospital and make an automatic selection of their next hand sanitizer product.
The US hand sanitizer spray market is expected to witness an incremental volume of approximately 2 million gallons between 2020 and 2026. Spray-based are a niche product segment preferred by selective customers across the region. These products are often considered to be a good fit in cost-conscious budgets and are mostly found to be used in workout areas, gyms, and other health wellness centers, along with certain commercial applications.
INSIGHTS BY END-USERS
In 2019, the healthcare segment accounted for around 60% and 64% share of the U.S. hand sanitizer market in terms of revenue and volume, respectively.
The healthcare end-user segment is expected to witness an absolute growth of around 152% and 138% in revenue and volume, respectively, between 2019 and 2026. The healthcare sector has always been one of the key contributors to the U.S. hand sanitizer market share. The consciousness generated amongst patients or visitors or even the health personnel/worker drives the sale of disinfectants in the market. A lot of vendors have created and promoted their products specialized specifically for usage across the healthcare sector. One of the key players, Gojo Industries (owner of Purell brand), has complete hand hygiene solutions developed for various hospitals in the US.
INSIGHTS BY FUNCTIONAL INGREDIENT
In 2019, the alcohol hand sanitizer segment accounted for over 87% of the US market share.
The ethyl alcoholic market is expected to witness an absolute growth of around 150% and 141% in terms of revenue and volume, respectively, by the end of 2026. Ethyl alcohol dominates the global market as most OTC sanitizers contain ethyl alcohol as their main functional ingredients. According to the US FDA, ethyl alcohol is the most popular among US consumers and are present in most OTC product. Vendors innovating and introducing products in the alcohol-based segment will leverage growth opportunities to widen their customer reach in the US region.
INSIGHTS BY DISTRIBUTION
The sale of hand sanitizers through online websites is expected to grow at a high CAGR of over 16% in the forecast period.
Discounters are a key segment of the retail distribution channel and sell products at prices usually lower than the typical market price. Vendors can utilize this segment to sell their products owing to its larger customer outreach. Discounters, too, are a good option for vendors to capitalize upon by optimizing the pricing strategy and promoting hand sanitizers as a cost-effective option for customers.
Online platforms provide small vendors with opportunities to capitalize on the market while competing parallelly to other major players by promoting their products on the same channel. Major players in the market with their websites and portals tend to differentiate their offerings in terms of product characteristics and other relevant features. Some vendors have established relationships with e-tailers to sell their products at a specified price while maintaining customer relations.
INSIGHTS BY GEOGRAPHY
South U.S. hand sanitizer market is expected to grow with absolute growth of 196%.
The hand sanitizer market in the South is expected to reach over 15 million gallons by volume in 2026. Retail sales in the region witnessed a jump in 2020, but the COVID-19 lockdown reduced the pace of rising retail sales. Retail sales were moderate in the South till March 2020, but in April and May in 2020, the market witnessed negative growth compared to 2019. Central South Carolina has been flourishing with the hospitality facilities and reopening of corporates and institutions. Thus, the market for alcohol-based in the South will grow at a CAGR of around 17% during 2019-2026.
U.S. HAND SANITIZER MARKET COMPETITOR LANDSCAPE
The hand sanitizer market in the US is fragmented in nature due to the presence of local and international players. Vendors are developing new business models and focusing on enhancing the portfolio of their establishments to drive growth. The focus is quickly shifting towards the use of natural ingredients and materials in disinfectants. Did you know GOJO Industries is utilizing its capabilities to support the large-scale rollout of PURELL Hand Sanitizer to vaccination centers? Reckitt Benckiser has established its leadership position in the global hand sanitizer market via its well-trusted brand Dettol. Continuous expansion of the e-commerce portfolio provides Reckitt Benckiser with an opportunity to exploit eHealth programs.
The U.S. hand sanitizer market research report includes in-depth coverage of the industry analysis with revenue and forecast insights for the following segments:
Segmentation by Product Type
- Hand Wipes
Segmentation by End-Users
- Government & Military
Segmentation by Functional Ingredient
- Ethyl Alcohol
- Isopropyl Alcohol
Segmentation by Distribution Channels
- Supermarkets & Hypermarkets
- Departmental Stores & Discounters
- Drug Stores
- Other Retail
Segmentation by Region