Liquid Soap Market

Market Overview

The global liquid soap market size was valued at USD 22,444 million in 2021, anticipated to project to USD 46,729 million in 2030 at a CAGR of 9.6% during the forecast period.

Liquid soaps come in liquid form and can be used for various purposes, including washing dishes and utensils, cleaning body parts like the hands, beard, and face, and scrubbing dirty surfaces. Consumers can easily transport liquid soaps and use them in their homes and while commuting, thanks to the availability of soaps in various sizes. Consumers find them appealing because they can purchase them in various fragrances, including lemon, orange, lavender, mint, rose, peach, jasmine, lily, and lotus.

Population awareness and consciousness regarding safety and hygiene is the primary factor driving liquid soap market expansion. In addition, ever since the outbreak of the covid pandemic, hand washing has become of the utmost importance. The WHO has mandated it as a fundamental measure to prevent the spread of disease. Consequently, the popularity of sanitization products such as hand washes, essentially liquid soaps, has increased, driving the growth of the market for liquid soap.

Rapid investment by the private sector and government in lowering the risk of infections and providing a safer environment is one of the key market trends that will increase the demand for liquid soap. One of the growth factors is the increasing use of liquid soap in hotels and restaurants, as private liquid soap manufacturing companies collaborate with hotel chains to offer their hotel brands.

Market Dynamics

Market Driving Factors

Growing Demand for Organic Liquid Soaps and Other Flavored Variants

As a result of the presence of numerous harmful chemicals in conventional liquid soaps, the majority of people across the globe have transitioned their choice toward natural or organic liquid soaps. The natural healing and anti-fungal properties of natural medicated liquid washes and botanical-based liquid soaps have recently attracted much attention. These products do not contain any parabens. In light of such considerations, there has been a significant increase in the demand for natural and organic products. Because of this, the market for liquid soap is expanding at a rapid rate.

Additionally, customers are trying new flavor combinations. Several manufacturers are introducing new consumer goods categories in response to the wide range of preferences and inclinations. The demand for liquid soaps with unconventional flavors, such as botanical and natural flavors, is higher than that for liquid soaps with traditional flavors. There has been an upsurge in the population who want flavored liquids like lavender, aloe vera, coconut, and vanilla, in addition to flavored liquid hand washes like rose and lemon. These products can be found in stores or online. Compared to medicated liquid soaps, the market for non-medicated liquid soaps has been growing over the year due to the availability of different flavors and the decreased use of harmful chemicals.

Market Restraining Factors

The Production Involves More Energy Consumption and High Cost

Regarding the environment, people prefer soap bars because they are more portable than liquid soaps, which are available in large plastic bottles with pumps. Liquid soap production requires five times more energy, raw materials, and components than bar soap production and twenty times more energy for packaging. All of these factors restrain the market for liquid soap.

Global Liquid Soap Market Opportunities

Powder to Liquid Gel Refill Pack

Existing liquid soaps are packaged in large plastic bottles with pumps, which require five times as much energy, raw materials, and components as a bar of soap and approximately twenty times as much energy for packaging. The liquid gel has many disadvantages, including a high price and an excessive number of raw materials used. In addition, there are several opportunities for improved packaging and cost-effective products that will increase demand in the market for liquid soap. It has been observed that the concept of transforming a product from powder to liquid gel has several packaging benefits and makes the product more portable. This concept, favored by consumers, has been introduced by companies such as Godrej.

Regional Analysis

The regional segmentation of the global liquid soap market includes North America, Europe, Asia-Pacific, and LAMEA.

Is North America and Europe Likely to Dominate the Global Liquid Soap Market?

The region of North America will project a CAGR of 9.5% during the forecast period and hold the largest share. The rise in consumer awareness toward health & sanitary conditions due to the outbreak of the coronavirus pandemic has fueled the safety trends in homes, offices, and other public places. This is one of the key trends in this region that is driving the growth of the liquid soap market. In this market, one of the most significant opportunities for liquid soap manufacturers is to develop new product types that reduce skin-related concerns and improve their hygiene-related functionality.

Europe will hold the second-largest market share of USD 14,369 million at a CAGR of 9%. It is the second-largest revenue contributor in the liquid soap market due to the rise in disposable income in the region, which has led to an increase in the demand for liquid soap to maintain cleanliness and hygiene. A key trend that has led to a rise in demand for liquid soap is an increase in private and public investments to reduce the risk of infections and provide a safer environment. Increased usage of these soaps in hotels, restaurants and other public establishments to maintain cleanliness also contributes to liquid soap market expansion.

Asia-Pacific will advance with the highest CAGR. Asia-Pacific is one of the world's fastest-growing regions. The market is expanding at a rapid rate due to the rise in consumer disposable income and improvement in living standards. Asia-Pacific is among the major geographic areas in the liquid soap market due to the region's growing hygiene consciousness. In addition, a rise in cleanliness consciousness is anticipated to contribute to a rise in sales revenue fueled by a growing population. People in the Asia-Pacific region prefer organic liquid soaps with antibacterial properties, calming fragrances, and natural ingredients. This is one of the primary factors driving the expansion of the organic market segment in the Asia-Pacific region.

Segmental Analysis

The global liquid soap market is bifurcated based on type, product type, application, distribution channel, and region.

On the Basis of Type

The segmentation based on type includes organic and conventional liquid soaps.

Conventional type liquid soap will likely hold the majority market share, advancing a CAGR of 9.4% during the forecast period. Conventional products hold the largest market share in the liquid soap industry due to their affordability and wide availability of fragrance soaps. Consumers are becoming more conscious of the significance of cleanliness and sanitation. In light of these factors, manufacturers focus on incorporating fragrances such as vanilla, melon, peach, apricot, and others into their liquid soaps. Increased choice for homemade and handcrafted soaps and the low-cost manufacturing of these products entice many companies to enter the market for conventional liquid soaps. Consequently, driving the market for conventional liquid soap.

Organic liquid soap will grow with the highest CAGR during the forecast period. Organic liquid soap is made without chemicals from organic oil and natural ingredients. These liquid soaps are of higher quality than conventional liquid soaps. Increase in disposable income, rise in preference for organic products, awareness among consumers about the harmful effects of conventional products, increase in start-ups involved in organic product manufacturing and surge in celebrities' involvement in promoting organic liquid soaps as compared to conventional liquid soaps. Increment in the adoption of products in significant specialty retail sectors as well as commercial platforms are the elements that foster the growth of the organic products market.

On the Basis of Product Type

Based on product type, the liquid soap market is divided into hand wash, face wash, surface cleaner, and other product types (beard wash, body wash, dish wash, and others).

The face wash is expected to hold the largest market share at a CAGR of 9.4% during the forecast period. Most customers favor innovative face washes with moisturizing and rehydrating properties that can help treat dry skin. Maintaining a healthy skin tone is a primary factor influencing the expansion of this market segment. Face washes reduce facial skin issues caused by pollution and UV radiation, such as acne and skin discoloration. Most customers prefer natural face wash products to protect their skin from chemical-induced allergies. This market segment is growing due to a preference for skin beauty products that promote healthy skin, a rise in consumer affordability, and other similar factors.

Hand wash will have the second-largest share growing with the highest CAGR. To meet customer demands, most manufacturers concentrate on introducing antimicrobial hand washes. In addition, customers' awareness of personal hygiene is growing, and as a result, they prefer products with antimicrobial properties that allow them to clean their hands effectively. This rise in consumer preference is anticipated to stimulate liquid soap market expansion.

On the Basis of Application

The segmentation based on application includes commercial (restaurants, hotels, institutes, quick service restaurants, and others) and residential segments.

The residential segment is anticipated to project the highest CAGR of 9.6% and hold the largest share during the forecast period. Customers' usage of liquid soaps increases as their awareness of the numerous advantages of a healthy and hygienic lifestyle increases. Bath wash, beard wash, and other forms of liquid soaps are available on the market. Also, liquid soaps are favored because they are more convenient to carry and store than soap bars, which become soggy or require a different container for storage. Therefore, the segment of liquid soap is anticipated to grow in the residential market.

On the Basis of Distribution Channels

Based on distribution channels, the segments include Hypermarket/Supermarket, Convenience Store, Specialty Store, and Online Sales channel.

Hypermarket/supermarket is most likely to hold the largest market share growing at a CAGR of 9.5% during the forecast period. Hypermarkets and supermarkets stock all essential items in one location, allowing customers to purchase everything from a single location and compare prices before deciding on a purchase based on price. Customers can compare prices and purchase the liquid soap that best fits their budget because various kinds of liquid soap are displayed on the same rack in the hypermarket/supermarket. This factor contributes to the expansion of the hypermarket/supermarket segment within the liquid soap market.

Convenience stores are expected to hold the second-largest share. A convenience store sells a variety of prepared and ready-to-eat foods, bottled and fountain beverages, household staples, and other necessities. The accessibility of convenience stores to residential areas makes it convenient for consumers to visit and purchase any essentials, such as liquid soap. In addition, it sells various types of liquid soaps to meet the needs of its customers.

Recent Developments

• In 2022, Lion Corporation announced establishing a joint venture with Kallol Limited in Bangladesh.
• In 2022, GOJO Industries Inc., the makers of Purell products, announced the launch of the Purell CS4 All-Weather Dispensing System.
• In 2022, Kao Chemicals launched a newly developed mosquito repellent product in Thailand, Bioré GUARD Mos Block Serum.
• In 2022, GOJO Industries Inc., the makers of Purell products, announced the launch of Purellâ Healthcare Surface Disinfecting Wipes.