Home Care Ingredients Market Size, Share & Trends Analysis Report By Ingredients (Surfactant, Polymer, Enzyme, Fragrance, Others), By Distribution Channel (Online, Offline), By End-User (Laundry Care, Dish Wash, Hard Surface Cleaner, Others) and By Region(North America, Europe, APAC, Middle East and Africa, LATAM) Forecasts, 2023-2031

Market Overview

The global home care ingredients market size was valued at USD 25.69 billion in 2022. It is estimated to reach USD 42.49 billion by 2031, growing at a CAGR of 5.75% during the forecast period (2023–2031). The home care ingredients industry has experienced significant influence from digitalization, as evidenced by the increased adoption of internet connectivity.

Home care products are utilized to clean and make residences more hygienic. They include laundry detergents, disinfectants, dishwashing products, air treatment products, bleaches, stain removers, and floor, glass, surface, and lavatory cleaners that assist in controlling allergens such as dust and mold. Moreover, chlorinated home care products depend on the disinfectant properties of chlorine-based cleansers to prevent seasonal flu outbreaks and foodborne illnesses.

Surfactants, enzymes, fragrances, pH adjusters, solvents, and dyes, among others, are the different ingredients used in manufacturing home care products. Household cleaning products are primarily used in homes for utensils, surface, and floor cleaning. On the other hand, in industries, cleaning products are used in educational institutions, production facilities, hotels, hospitals, and theaters, among others.

Market Dynamics

Global Home Care Ingredients Market Drivers

Rising Health and Hygiene Awareness Among Consumers

Good hygiene and health consciousness are increasing among consumers globally. The modern generation is becoming more interested in living a healthy lifestyle. Moreover, good hygiene is an important barrier to many infectious diseases, including fecal-oral diseases, promoting better health and well-being.

In addition, there is a gradual shift among consumers toward healthier eating practices and the maintenance of hygiene. Today's youth increasingly recognizes the need to protect human health and the natural environment. Therefore, there is a growing demand for home care products that are highly effective against germs and infections amongst the health-conscious population worldwide, which is driving the sales of home care ingredients.

Increasing Penetration of Digitalization

Digitalization has played an enormous role in the home care ingredients market, with the growth in penetration of the internet. It has allowed brands to connect with their consumers and identify their needs. In addition, increasing social media and e-commerce penetration facilitates the exchange of information and products. E-commerce distribution channels offer sellers lucrative opportunities to increase their customer base and profitability by selling on different portals, including their websites.

Market players in the home care ingredients market use online portals to sell products and teach customers about the different ingredients used in cleaning products. Therefore, they can create additional value for their customers by solving real-time queries. For instance, BASF, a leading chemical manufacturing firm and a prominent cleaning ingredient vendor, has an app called "BASF Pocket Guide" for customers in the home care industry. The app is also integrated into "Rediso," a digital platform where the consumer can ask any query related to home care products. Such factors boost the market growth.

Global Home Care Ingredients Market Restraint

Toxicity Caused by Surfactants

Surfactants are one of the major components of household detergents because of their excellent cleaning, wetting, and emulsifying characteristics. Large amounts of wastewater mixed with surfactants are released into the environment, damaging aquatic life, polluting the water, and endangering human health. Surfactants can easily penetrate aquatic creatures' gills, blood, kidneys, pancreas, gallbladder, and liver when the quantity of surfactants in the water is too high.

Additionally, long-term surfactant usage can cause skin irritation and lead to some degree of damage in humans. When surfactants enter the human body, they damage enzyme activity and thus disrupt the body's normal physiological function. Thus, such adverse effects of surfactants are expected to hamper the market growth.

Global Home Care Ingredients Market Opportunities

High Consumption Base in Asia-Pacific

Asia-Pacific is the most dynamic region globally due to nations like China, India, Japan, Thailand, Indonesia, Myanmar, Australia, and South Korea. Asia-Pacific's consumption base for cleaning products is expanding due to the region's tremendous population, rising purchasing power due to rising disposable income, and growing middle-class population. These factors contribute to a growing consumer preference for premium and specialized home cleaning products.

Additionally, Asia-Pacific is the region with the largest population. It includes China and India, the two most populous nations on the planet, and is home to almost 60% of all people. India came in second with 1.37 billion people in 2019, just ahead of China with 1.43 billion. Due to its high population density, the Asia-Pacific market offers a huge opportunity for suppliers of ingredients for home care products. The massive population in Asia-Pacific is one of the main reasons for the enormous demand for laundry detergents, dishwashing liquid, fabric cleaners, hard surface cleaners, and other home care products because these are vital consumer items.

Regional Analysis

Asia-Pacific Dominates the Global Market

Based on region, the global home care ingredients market is bifurcated into North America, Europe, Asia-Pacific, Latin America, and the Middle East and Africa.

Asia-Pacific is the most significant global home care ingredients market shareholder and is anticipated to exhibit a CAGR of 6.04% during the forecast period. China, India, and Japan are the largest revenue generators for home care ingredients in Asia-Pacific, the largest market for home care ingredients. In recent years, the markets in China, India, Japan, and Singapore have emerged as the major avenues for investment and will continue to grow during the forecast period. Strong economic growth, rising disposable income, and growing construction activities have primarily supported the market growth in the region. China is the largest market for home care ingredients in the region.

In addition, India is a developing market as a result of favorable governmental policies and expanding consumer spending power, which allowed customers to buy expensive cleaning goods. It has been a top priority for most international and local investors. Similarly, low-cost labor and lower cost of production make the country a good manufacturing hub for home care ingredients. Moreover, the "Make in India" initiative and the recently introduced campaign "Vocal for Local" are estimated to accelerate the emergence of India as a prominent market for home care ingredients.

North America is estimated to exhibit a CAGR of 5.68% over the forecast period. North America is a prominent contributor of home care ingredients in the global market because of the massive penetration of commercial and residential sectors as well as the high disposable incomes of consumers. Moreover, since a majority of the population in North America lives in urban areas and holds good education, the awareness of proper hygiene and cleanliness is also high in the region. The US has witnessed various public health scares since the 2000s, such as SARS in 2004, H5N1 Avian influenza in 2006, 2009 outbreaks of swine flu, and the outbreak of COVID-19. These have driven the demand for cleaning products in the country.

Furthermore, with several projects under the pipeline for residentials and non-residentials, the demand for greenhouses and government investments in the construction of non-residential projects are expected to spur the demand for home care products, expediting the market for home care ingredients during the forecast period.

Europe's home care ingredients market is witnessing rapid development owing to mass urbanization, expanding middle-class population, increasing number of living spaces, growing demand for household cleaning products in the institutional sector, and growing awareness of hygiene and cleanliness. In addition, the outbreak of COVID-19 and the prevalence of HAI in the country are also creating significant opportunities for home care ingredient vendors. However, the stringent government regulations on harmful chemicals somewhat hinder the market's growth. For instance, the European Commission has banned phosphates in consumer laundry detergents and dishwasher detergents. As a result, manufacturers focus on manufacturing green chemicals to adhere to government regulations and fulfill customers' growing demand for organic ingredients.

Latin America's global home care ingredients market is growing considerably, with Brazil and Mexico being the leading countries generating the highest demand. This is majorly supported by rapid urbanization, growing construction activities, and rising health awareness. In addition, the commercial and residential sectors are expected to have higher sales, especially in hospitals and offices. The market provides tremendous potential and opportunities to home care ingredient manufacturers, owing to the expansion potential in developing economies, including Brazil and Mexico.

The Middle East and Africa accounted for the least share in the global home care ingredients market in 2020, with UAE, South Africa, and Saudi Arabia generating the highest demand in the region. The region experiences positive and negative factors impacting the demand for cleaning products. Even though the Middle Eastern region is a hub for the hospitality sector, the presence of several extremely poor countries in the African region is offsetting the demand for premium quality cleaning products. Factors such as the growing population, the presence of the largest luxury hotels, and the growing number of HAI cases are spurring the demand for cleaning products, boosting the home care ingredients market.

Segmental Analysis

The global home care ingredients market is segmented by ingredient, distribution channel, and end-user.

Based on ingredients, the global home care ingredients market is segmented into surfactants, polymers, enzymes, fragrances, and others. 

The surfactants segment is the largest revenue contributor to the market and is projected to exhibit a CAGR of 6.12% over the forecast period. Surfactants are the most vital ingredients used in home, personal, and beauty care products. The main 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. The most used surfactants in cleaning products include alcohol ethoxylates, alkyl benzene sulfonates, and alkyl ether sulfates.

Polymers have been widely employed in household cleaning solutions like detergent, dishwashing liquid, and surface and floor cleaners for the past 25 years. Polymers are large molecules made up of several monomers. Polymers hold a significant global market value of USD 1,846.72 million in the home care ingredients market. Acrylic, polysilicon, and water-soluble are the three types of polymers used in home care ingredients. In addition, the household cleaning industry comprises synthetic and natural polymers. Synthetic polymers are the most widely used, but natural and bio-based polymers are growing in demand due to greater consumer preference for environmentally friendly ingredients.

Based on distribution channels, the global home care ingredients market is bifurcated into online and offline channels. 

The offline channel segment is the highest contributor to the market and is anticipated to exhibit a CAGR of 5.68% over the forecast period. In the home care ingredients market, vendors such as BASF, Dow, Evonik, and Clariant, among others, sell chemicals for cleaning products to FMCG vendors such as HUL, P&G, ITC, and Nestle through offline modes. The offline mode will increase slowly due to the increasing penetration of digitalization in the chemical industry. In addition, 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. In the home care ingredients market, bulk purchasing is comparatively higher than individual buying.

Home care ingredients are sold online through various e-commerce websites and other online websites managed by manufacturers and third parties. These home care ingredients are easily available online and are witnessing a continuous rise in the market owing to increasing online shoppers. In addition, with a high rate of technology adoption and internet availability across geographies, prominent home care ingredients market players are seizing this opportunity to promote and sell their products through the online distribution channel.

Based on end-user, the global home care ingredients market is bifurcated into laundry care, dish wash, hard surface cleaner, and others. 

The laundry care segment dominates the global market and is projected to exhibit a CAGR of 6.0% over the forecast period. Laundry care encompasses laundry detergents and laundry additives. Laundry detergents are those products whose formulation majorly includes surfactants, builders, colorants, fragrances, oxygen bleach, enzymes, and other cleaning ingredients that effectively remove stains, dirt, and soil from fabrics. In addition, laundry detergents are manufactured in liquid and powder form. A major component of powder and liquid laundry detergents is based on surfactants that remove soil from the fabric and clean it.

Dishwash is used in the kitchen to clean utensils. Both natural and synthetic chemicals are used in dishwashing detergent. Synthetic chemicals, including SLSS, chlorine, and ammonia, are derived from petrochemicals. Natural chemicals are derived from plants and are less harmful than traditional products. In addition, dishwash is used both commercially and at a personal level. The level of industry competition is significant as both small and large industry players compete for a greater share of the industry. Economic growth and a huge population are the major factors aiding the growth of dishwashing products.

Recent Developments

• June 2023- Symrise established a center of expertise at its Clichy, France, location, which includes a microbiology laboratory division for customer support, an application laboratory for home care products, and a laboratory for cosmetic applications.
• January 2023- Univar Solutions Inc. inked an agreement to acquire Kale Kimya, a Turkish distributor of specialty chemicals. Kale Kimya provides formulation laboratory capabilities in addition to a portfolio of beauty and personal care products, industrial cleaning products, and home care products, including actives, surfactants, emulsifiers, UV filters, fragrances, polymers, preservatives, conditioners, esters, and emollients.