Hand Sanitizer Market

Market Overview

The more densely populated a region is, the higher is the risk of an infection spreading, as is evident in the recent coronavirus outbreak. The sheer size of the global population and the widespread availability of different transportation modes have led to the infection spreading to all parts of the world a mere span of months. Contact is one of the primary modes of disease transmission in the case of many viruses, such as the novel coronavirus. As a result, people are more conscious of disinfecting their hands from time to time, which drives the adoption of mobile sanitation solutions, such as hand sanitizers.

There is a general perception among consumers about handwashing with regards to food safety. As per a survey conducted by Safefood in 2017, over 54% of participants believed handwashing to be effective in preventing foodborne illness. Rising awareness and consumer consciousness are expected to drive the growth of the hand sanitizer market during the forecast period.

Market Dynamics

Rising Awareness Regarding Personal Hygiene for Health & Wellbeing

Government Initiatives

Growing awareness with regards to personal care, particularly hand hygiene, is gaining importance as one of the primary measures to prevent nosocomial infections, which drives the hand sanitizer market. International authorities and national governments are also promoting the use of hand wash products to prevent issues related to poor hygiene among consumers. For instance, the Food and Drug Administration (FDA) and the World Health Organization (WHO) publish guidelines and release documents and reports on hand hygiene. As per the WHO, around 40% of the total global population has limited or no access to a basic handwash facility.

Influencer Marketing, Online Advertising, & Marketing Campaigns

Influencer marketing and online advertising have been pivotal in increasing brand awareness and driving the sales of hand sanitizers. Brands such as Hindustan Unilever and Reckitt Benckiser have been implementing creative ad campaigns. For instance, Hindustan Unilever launched a marketing campaign in India in January 2018, promoting healthy hygiene habits among children. Much recently, in the wake of the COVID-19 pandemic, Dettol (Reckitt Benckiser) launched an ad campaign on the video creation platform TikTok by creating a song that pairs with the hashtag ‘HandWashChallenge.’ The ad received tremendous response and is expected to bolster the sales of hand sanitizers in years to come.

Segmental Analysis

Gel Hand Sanitizers Dominate the Market by Product Type

On the basis of form, the market is segmented into foam, spray, gel, and others. Foam sanitizers are expected to witness a higher growth rate compared to other forms of sanitizers. Foam hand sanitizers are comparatively smaller than gel, spray, and liquid sanitizers, which drives their demand. Gel-based foam, however, is expected to hold the highest share in the hand sanitizer market, as these sanitizers take lesser times to eradicate germs due to their higher alcohol content. Furthermore, attractive packaging and easy availability in retail stores are expected to bolster the growth of the gel-based hand sanitizer segment.

Alcoholic Hand Sanitizers Dominate the Market by Type

Based on type, the market is segmented as alcoholic and non-alcoholic hand sanitizers. Alcoholic hand sanitizers are expected to hold a dominant share in the hand sanitizer market as they contain n-propanol, isopropanol, and ethanol, which are effective in neutralizing certain types of microorganisms. Typically, an alcoholic hand sanitizer contains 60–95% alcohol. Manufacturers have been adding fragrances and emollients that impart a pleasant smell to the sanitizer as well as soothe the skin.

Hypermarkets Dominate the Market by Distribution Channel

On the basis of the distribution channel, the market is segmented into online channel, hypermarkets, pharmaceutical stores, and others. Among these, hypermarkets account for the highest share. The availability of different brands, free product trials, and attractive discounts contribute to the segment’s eminent market position. Brick and mortar stores have been facing stiff competition from online sales and distribution channels. The advent of e-commerce, combined with deep discounting and increasing internet penetration, has driven hypermarkets to try creative alternatives to increase footfall in their stores.

Market Driver: Stringent Regulations Regarding Hand Hygiene & Sanitation

The incidents of contamination in food products, drugs, and healthcare facilities have been increasing. The demand for faster services and intense internal competition among different end-users have led to negligence in hand hygiene and other sanitary habits, which, in turn, has prompted industrial users such as food and beverage manufacturers and healthcare personnel to adopt hand sanitizers at workplaces. Other authorities have also taken a step ahead and released guidelines with respect to hand hygiene. For instance, the Centres for Disease Control and Prevention (CDC) has published detailed guidelines with regards to hand sanitization and hygiene.

Regional Analysis

North America & Europe Dominate the Global Hand Sanitizer Market

Based on geography, the market is divided into North America, Europe, Central, and South America and the Caribbean, Asia-Pacific, the Middle East, and Africa. Europe and North America, in that order, are expected to dominate the global hand sanitizer market. Both these regions have remarkable healthcare facilities and provisions.

Europe, led by the European Union (EU), follows the principle of a universal healthcare system. Economies such as France, Switzerland, and Germany have the highest ratio of healthcare spending compared to the GDP. For instance, the percentage of GDP spent on healthcare facilities in 2016 was around 11.5%, 12.2%, and 11.1%, respectively, in the aforementioned countries. Further, Europe held the highest share in the import of household, hospital, and sanitary supplies in 2017. Its total revenue share was around 53% in the same year.

Hand Sanitizer Market Segmentation

By Type

• Alcoholic
• Non-Alcoholic

By Form

• Foam
• Spray
• Gel
• Others

By Distribution Channel

• Online Channel
• Hypermarkets
• Pharmaceutical Stores
• Others

By End-User

• Hospitals
• Household
• Educational Institutes
• Restaurants
• Others

By Regions

North America

• The U.S.
• Canada
• Mexico

Europe

• Germany 
• France
• Italy
• The U.K.
• The Rest of Europe

Asia-Pacific

• China 
• India
• Japan
• South Korea
• Australia
• The Rest of APAC

Central and South America and the Caribbean 

• Brazil
• Argentina
• Colombia
• The Rest of Central and South America and the Caribbean 

The Middle East

• Saudi Arabia
• The UAE
• Kuwait
• The Rest of the Middle East

Africa

• South Africa
• Nigeria
• The Rest of Africa