The global home care ingredients market was valued at USD 25.50 billion in 2022 and is expected to reach USD 36.36 billion by 2028, growing at a CAGR of 6.09%. The rising living standards, growing disposable incomes, rapid urbanization, and substantial investments by the government in urban real estate are contributing to the market's rapid growth. Over the past years, cleaning products have become part and parcel of consumers' lifestyles and routines. With consumer awareness increasing steadily, manufacturers focus on elevating the quality of cleaning products with the best possible environmental conditions. Currently, consumers are not just concerned about maintaining hygiene or cleanliness at a personal level, but they are also keen on reducing the chances of infections in their surroundings. Therefore, several ingredients are included in cleaning products to meet hygiene requirements at home and in commercial places. Home care ingredients are raw materials for home cleaning products such as detergents, floor cleaners, dishwashers, and toiletries. These ingredients have applications in home and industrial & institutional cleaners. Household cleaning products are used in homes to clean utensils, toilets, surfaces, and fabric.
The industrial & institutional (I&I) cleaning industry uses cleaning products in restaurants, hospitals, schools, office buildings, nursing facilities, and transportation– cars, planes, trains, marine, and metal treatment markets. Further, cleaning products are vital in laundry detergents, removing soil from fabrics and suspending soil in the wash water. In dishwashers, surfactants are used to wet the surfaces to remove the dirt easily. The current market demand indicates that surfactant consumption in the home care ingredients market will continue to grow owing to the increasing sale of laundry detergents and dishwashers due to rising incomes in developing countries. Moreover, at the macro level, favorable government policies aid FDIs in India, and the Japanese government announced the rolling out of incentives to companies shifting their base from China to India during the COVID-19 lockdown.
Rules and regulations in Europe and North America are projected to promote biosurfactants and create opportunities for home care ingredients market vendors. The North American home care ingredients market will likely be driven by increasing disposable income and growing consumer awareness during the forecast period. Commercial end-users, such as offices, hotels, and hospitals, expect a high adoption rate. Moreover, since most of the population in North America lives in urban areas and holds sound educational qualifications, the awareness of proper hygiene & cleanliness is also high in the region. Also, The high prevalence of HAIs in the United Station has boosted the sale of surface and floor-cleaning products in the hospital sector.
MARKET TRENDS & DRIVERS
Growing Demand for Organic & Sustainable Ingredients
Natural and organic ingredients use in the home care ingredients market has significantly increased in recent years. Traditional values and goodness associated with products and the absence of harmful chemicals drive customers toward natural ingredients. Consumers across the globe are becoming increasingly aware of the quality and origins of ingredients available in the market. They have started seeking home cleaning products derived from natural ingredients such as plants, flowers, and fruits. Consumers currently seek fundamental solutions from brands that are safe for them and the environment. Chemicals in traditional home cleaning products can have a negative impact both on the natural world and on consumer skin. Hence, consumers have shifted their focus over the last few decades toward healthy and sustainable lifestyles. Sustainability has become a significant concern for the consumer and industry and is an evolving trend in the home care ingredients market.
Rising Health & Hygiene Awareness among Consumers
Good hygiene and health consciousness are increasing among consumers globally. Moreover, good hygiene is an essential barrier to many infectious diseases, including fecal-oral diseases, promoting better health and well-being. Moreover, there is a gradual shift among consumers toward healthier eating habits and hygiene maintenance. Modern and younger generations are more aware of the importance of caring for health and the environment. Thus, there is a growing demand for homecare products that are effective against germs and infections among the health-conscious population, which, in turn, drives the home care ingredients market growth.
Regulations regarding Labelling & Packaging
Whether carbonated or non-carbonated, packaging fabric cleaners and hard surface cleaners represent a sophisticated and intricate aspect of the fabric cleaners and hard surface cleaner ingredients industry. While the conventional returnable glass bottle was once widely used, modern alternatives such as plastic containers and cartons have emerged. The ongoing trend in this field aims to enhance traditional packaging solutions, expand their presence in the market, prolong the shelf-life of products, enhance consumer convenience, and ultimately create cost-effective packaging options. Packaging and labeling regulations for homecare ingredients products vary significantly among countries and could be subject to frequent changes or updates. Some of the common regulatory aspects that companies need to comply with include labeling requirements: Regulations often dictate the information that must be present on the product label, such as product name, ingredients list, nutritional information, allergen warnings, net content, country of origin, shelf life, and contact information of the manufacturer or distributor.
INSIGHTS BY INGREDIENTS
The global home care ingredients market by ingredient has been segregated into surfactants, preservatives, polymers, enzymes, fragrances, Chelating agents, Probiotics, and others. Surfactants held the most substantial share of the ingredients segment in the global market in 2022. Surfactants usually bring down the surface tension in the gas and liquid, solid and liquid, or two liquid and liquid interfaces. Surfactants are the most widely used ingredient in cleaning products, such as laundry detergents, dishwasher detergents, carpet cleaners, and fabric softeners. It enables the cleaning solution to quickly wet surfaces such as clothes, utensils, and countertops so that dirt or other foreign particles can be easily loosened and removed.
INSIGHTS BY SURFACTANTS
Surfactants are the most vital ingredients used in home, personal, and beauty care products. The primary function of surfactants is to remove dirt, stains, and pathogens from the surface, thus acting as a cleaning agent, an emulsifier, a wetting agent, and an anti-foaming agent in many practical applications and products, including paints, cosmetics, ink, sanitizer, toothpaste, detergents, and other home care products. Surfactants can be divided by the formation of ions or the charge of the counter ion in the solution. Anionic surfactants dominated the surfactant's segmental share in 2022. Anionic surfactants are the negatively charged ions and the anionic surfactants' core ingredients used in cleansing products. Some examples of anionic surfactants include Sodium Lauroyl Sarcosinate, Sodium Lauryl Ether Sulphate, Sodium Lauroyl Glycinate, Ammonium Laureth Sulfate, Sodium Cocoyl Isethionate, and others. Due to their excellent cleaning and foaming properties, the anionic surfactants market is experiencing stabilized growth, driven by increasing demand from various industries such as detergents, personal care, and textiles.
INSIGHTS BY PRESERVATIVES
Preservatives are added to cleaning products to prevent the growth of microbes, thereby protecting the cleaning product from spoilage or contamination. Methylisothiazolinone held the largest preservatives segmental share of the global home care ingredients market in 2022. Methylisothiazolinone is actively used as an extremely strong synthetic preservative and biocide and is a colorless and clear liquid soluble in water. It enhances the shelf life and safety of products and prevents the growth of yeasts and bacteria. Without preservatives such as methylisothiazolinone, home care products can change color, smell unpleasant, and produce toxins that can harm health and hygiene.
INSIGHTS BY DISTRIBUTION CHANNEL
The offline distribution channel of the global home care ingredients market accounted for the largest share and is expected to grow at a CAGR of over 6% during the forecast period. Offline distribution of home care ingredients is mostly done through wholesalers, distributors, and direct selling, wherein buyers purchase cleaning ingredients in bulk for use in laundry detergents, dishwashing, hard surface cleaners, dryer sheets, room fresheners, and carpet fresheners. Both online and offline distribution channels play significant roles in the home care ingredients market, and manufacturers often adopt a multi-channel distribution strategy to maximize their market reach and cater to diverse consumer preferences. These channels work in collaboration to ensure that home care ingredients are readily available and accessible to consumers, contributing to the growth and popularity of the industry.
INSIGHTS BY END-USER
The global home care ingredients market is broadly segregated into four major segments: laundry care, dish care, hard surface cleaners, and other end-users. Laundry care is the dominating end-user segment in 2022. Laundry care encompasses laundry detergents and laundry additives. The growing demand from the real estate sector, increase in urbanization, and increasing disposable incomes among people in emerging countries are boosting the demand for premium detergents in the residential sector. Although the residential sector dominates the laundry care market, the growth in the commercial sector worldwide has led to a significant increase in the demand for detergents. Another major trend the laundry care industry is witnessing is the increasing demand for sustainable surfactants for fabric care. Today, consumers are taking a huge interest in the ingredients used, the benefits of plant products, and the harmful effects of chemical ingredients. Artificial & chemical formulations in laundry care products have encouraged consumers to shift toward natural alternatives.
Rapid urbanization, growing population, especially in emerging economies, and increased personal and home hygiene awareness after the outbreak of COVID-19 have increased the demand for laundry care, toilet cleaners, and surface cleaners in residential and commercial sectors, thereby aiding the growth of home care ingredients across the world. Regarding value, the global home care ingredients market is primarily concentrated in North America, Europe, and APAC. However, high concentration can be attributed to the rapid growth in home care ingredients ownership in developing economies. In China, the ownership of home care ingredients has grown higher in the last ten years. India, Mexico, and Brazil, along with several Middle Eastern Countries and southeast Asian countries, have shown mainly a similar growth trajectory as China; with the increasing awareness of personal and home hygiene products, the adoption rate has grown in several countries/regions. An increase in urbanization and growth in per capita income are positive signs for the home care ingredients market.
The importance of cleanliness & hygiene in personal and public places has gained humungous attention over the centuries. The global home care ingredients market is currently occupied by numerous players, with many local and global players. The competition has intensified, leading to the introduction of many innovative solutions in the industry. For instance, Solvay, a leading specialty chemical company, introduced an innovative "Repel-O-Tex" range, strategically designed with hydrophobic and hydrophilic components to prevent the penetration of oil stains and grease into the fabrics, especially synthetic fabric, because synthetics naturally attract grease, thereby delivering long-term protection. In addition, this product range also offers anti-graying properties so that white and other colors do not lose vibrancy.
Players in the home care ingredients market compete on several factors, including price, innovation, quality, product type, availability, brand, and variety. However, the price is set to become a significant base for competition among players to gain an edge over other vendors in the market. Further, the market players' growth depends on their condition, GDP growth, and industry development. High capital requirements, rapid technological advances, and changes in customer preferences are the major entry barriers for new players. Therefore, industry vendors must attain sustainability, expand into other geographies, and revive domestic demand. Moreover, vendors can boost profitability by practicing efficient production techniques that minimize product costs and mitigate the associated risks.