HAND WASH INDUSTRY INSIGHTS
The global hand wash market size valued at USD 13 billion in 2020 and is expected to reach USD 23 billion by 2026, growing at a CAGR of 10% during 2020-2026. The global liquid hand soap market observes growth due to the rise in personal and hand hygiene awareness and the frequent outbreak of viral and infectious diseases in several geographies. The market is witnessing demand from healthcare, hospitality, residential, education, corporates, and government office end-users. The demand for liquid handwash from these segments has grown due to the booming commercial real estate, hospitality, corporate, and education markets and the shift in consumer behavior toward personal hygiene products in developing countries. In 2020, the market witnessed a surge in demand owing to the outbreak of the COVID-19 pandemic. Like the hand sanitizer market, the liquid hand wash market presented a lucrative revenue growth potential. Many vendors entered the market during the pandemic, thereby leading to fragmentation. However, relatively low awareness and significant usage of soap bars in low-income countries are restraining the market growth.
- The landscape of the liquid hand wash market has drastically changed since the outbreak of COVID-19. The market witnessed a phenomenal growth of over 70% between 2019 and 2020.
- The demand for organic products is expected to witness growth due to the shift toward applying natural and organic skincare products.
- In terms of distribution, supermarkets and hypermarkets dominate the liquid hand wash market. The growing shift toward digitalization and increasing penetration of the internet in emerging economies is expected to increase sales from online websites.
GLOBAL LIQUID HAND WASH MARKET SEGMENTATION
This research report includes a detailed segmentation by
- Distribution Channel
INSIGHTS BY FEATURES
The COVID-19 pandemic has acted as a catalyst for the growth of synthetic liquid handwash. Vendors are facing immense pressure to convey the safety, durability, and efficacy of these products. Sodium Lauryl Sulfate (SLS) is one of the most important chemicals used to formulate synthetic products. It is easy to handle, store, and transport and carries high active matter concentration. Owing to the presence of the largest chemical industry, APAC holds a dominant position in SLS production. Hence, vendors in the region are likely to enjoy abundant availability of raw material. Therefore, the growing awareness of hand hygiene and the increased efficacy of chemical-based liquid handwash increase growth opportunities during the forecast period.
Several vendors are shifting toward the manufacturing of organic products to prevent adverse effects of synthetic handwash products, including itching, drying, irritation, and dermatitis. With the increasing middle-class population and the rising awareness among people regarding the health benefits of natural products, the demand for organic liquid handwash is growing. Organic hand wash is observing high application in the residential sector. However, they are witnessing less implementation in healthcare settings, offices, and other commercial settings.
INSIGHTS BY DISTRIBUTION CHANNELS
Supermarkets & hypermarkets have emerged as the most significant distribution channel, accounting for over 30% of sales globally for liquid handwash. Consumers popularly prefer Walmart, Tesco, Costco Wholesale Corporation, and Target Corporation. Department stores and drug stores are other major purchasing locations for buyers. Several buyers prefer to buy medicated products from drug stores. Although the online sector holds a comparatively less proportion in the current market scenario, the continuous shift toward digitalization is expected to change the dynamics. The sale of liquid handwash through online websites is expected to grow at the highest CAGR during the forecast period. The availability of a wide range of sanitizers and hand wash products with special pricing, more options, and better compassion facility, and high discounts are the major factors fueling the sales growth. Moreover, the growing internet penetration and the increasing use of smartphones have influenced consumers and manufacturers to opt for the online sales model.
INSIGHTS BY PACKAGING
Flexible packaging is one of the most dynamic and fastest-growing markets. Flexible packaging anticipates strong growth in the future. There has been a shift to flexible packaging due to several advantages, including convenience in handling and disposability and high-cost efficiency during transportation. Flexible plastic packaging dominates the liquid hand wash market as there are numerous polymer resins that can be used to develop new packaging. Moreover, flexible packaging allows for efficient warehousing; unfilled pouches take up less space than conventional bottle packaging. In terms of volume, the flexible packaging liquid hand wash market is expected to reach over 815 million gallons by 2026, growing at a CAGR of over 9%. The Asia Pacific region is estimated to hold a dominant position in the market, followed by Europe and North America.
Due to the increase in commercial building activities and the rise in residential construction, the demand for rigid packaging is significantly high. It is expected to further witness considerable growth during the forecast period. This is majorly due to the increasing demand for stand-up pouches, the advent of refill packets, and the high cost of rigid liquid wash bottles. The packaging of bottles or refill pouches plays a significant role in driving the demand, and several vendors consider packaging as a major consideration for competition with other vendors.
INSIGHTS BY END-USER
The residential sector accounts for the largest liquid hand wash market share as they are important for household and personal hygiene. The growing demand for a real estate property, shifts in population from urban to rural areas, and rising disposable incomes of people in emerging countries have boosted the demand in the residential sector. Although the residential sector dominates the market both in revenue and consumption, the growing commercial sector across the world has led to a significant increase in the demand for liquid handwash and sanitizers. The hospitality sector is likely to generate the highest demand for liquid handwash in the commercial sector owing to the presence of a large number of rooms occupied with bathrooms in hotels. Moreover, due to the improving economic condition of consumers and the rising shift towards urbanization, travel and tourism activities are growing significantly across the world. Corporate offices and healthcare segments are the other two major revenue generators for the market. A high population working in corporate offices and the high prevalence of HAIs in healthcare settings are likely to boost liquid handwash demand.
INSIGHTS BY GEOGRAPHY
While North America is expected to dominate the liquid hand soap market share in terms of revenue, the APAC region is projected to lead the market by volume. The APAC region is likely to grow at the fastest CAGR of approx. 10% during the forecast period. The demand for liquid handwash and sanitizers in North America is driven by a massive end-user market such as commercial buildings, residential sector, along with the growth of nuclear families. Also, the sale of liquid handwash has witnessed a boost due to the coronavirus pandemic, particularly in the US. The significant penetration of retail stores, supermarkets, and pharmaceutical stores in the region is extending favorable situations to distribute liquid handwash in the region. The US has witnessed various public health outbreaks since the 2000s – SARs in 2004, H5N1 Avian influenza in 2006, and 2009 outbreaks of swine flu, which have driven the demand for liquid handwash in the region.
INSIGHTS BY VENDORS
Unilever, Kimberly-Clark Corporation, GOJO Industries, Procter & Gamble (P&G), Reckitt Benckiser Group plc, Lion Corporation, and Colgate-Palmolive Company are the key leading vendors in the global liquid hand wash market. The competition is intense, with the rapidly changing technological environment adversely affecting vendors as customers expect continual innovations and upgrades. The market concentration in developed countries such as the US and other Western European countries is high. In contrast, the market is in its promising stage in developing economies such as China and India because of the entry of many global brands in these countries and the awareness of end-users toward hand hygiene.
The liquid hand wash market research report includes in-depth coverage of the industry trends, growth analysis with revenue, and forecast insights for the following segments:
- Government Offices
- Education Centers
- Corporate Offices
- Gym & Fitness centers
- Shopping Centers
- Supermarkets and Hypermarkets
- Departmental stores & Discounters
- Drug Stores
- Online/ E-commerce Stores
- Other Retail Stores
- North America
- South Korea
- Australia & New Zealand
- Latin America
- Rest of Latin America
- Middle East & Africa
- Saudi Arabia
- South Africa
- Rest of the Middle East & Africa