Global Soap Market Size, Share, Opportunities, COVID 19 Impact, And Trends By Type (Organic, Conventional), By Form (Bars, Liquid), By Application (Residential, Commercial, Hospitals, Airports, Hotels, Others), By Distribution Channel (Online, Offline), And By Geography - Forecasts From 2022 To 2027

The global soap market is estimated to grow at a CAGR of 6.97% to reach a market size of US$24.330 billion in 2027 from US$16.221 billion in 2020.

The major factors that drive the global soap market include the growing global concerns regarding cleanliness and personal hygiene along with the rising global population. The rising concerns regarding personal hygiene are leading to increased adoption of soaps and personal care products, especially in underdeveloped economies, as cleanliness and hygiene are being given more priority towards a healthy lifestyle. The market in the developed economies is being driven by the penetration of premium products as better economic conditions coupled with high purchasing power are leading to an increased demand for premium personal care products, thus driving the market growth during the next five years.

In addition, the rising expenditure on personal care products in various countries due to numerous factors such as growing disposable income, growing health concerns, and expansion of distribution channels is also expected to bolster the global soap market’s growth during the next five years. For instance, according to the U.S. Bureau of Labour Statistics, the average expenditure on personal care products by U.S. consumers increased to US$768 in 2018 from US$707 in 2016. Similarly, a growing trend is anticipated for the coming years, which is one of the prime factors expected to propel growth opportunities for the market throughout the forecast period and beyond. All these factors are expected to collectively propel the global soap market significantly in the short run.

Furthermore, the integration of key market players into new business segments for the expansion of the product portfolio and to cater to the growing market requirements also shows the potential for the market to strengthen during the forecast period and beyond. For instance, in 2016, Godrej Consumer Products Limited, India’s leading consumer goods company, announced the launch of its new soap made from 100% natural ingredients to tap the market for organic soaps in the country. Similarly, the company also launched new soaps and hair colours in 2017, across India and Indonesia, to strengthen the market share in the personal care segments across these high-demand countries.

Conventional Soaps are anticipated to hold a noteworthy share

Based on type, the global soap market has been classified into organic soaps and conventional soaps. The market for conventional soaps is anticipated to hold a noteworthy share of the market owing to the higher proportion of the population using conventional soaps coupled with the lower costs associated with these soaps. In addition, the availability of a wide variety of soaps in different flavours and fragrances also bolsters the significant share of this segment. Also, the growing penetration of handcrafted and homemade soaps is driving the demand for these soaps as a premium product and adding to the demand significantly.

The market for organic soaps is anticipated to surge at a notable rate during the next five years. This growth is majorly attributed to the growth in the adoption of these soaps on account of the rising concerns regarding the effects of chemicals and other ingredients used in conventional soaps.  Furthermore, the rising prevalence of skin diseases is expected to drive demand for organic soaps and supplement the segment's growth over the next five years.

 Over the forecast period, the online distribution channel will expand significantly.

The global soap market has been segmented based on the distribution channel into online and offline. The offline segment is anticipated to hold a major share of the market because a major proportion of people prefer to purchase FMCG goods through various offline channels such as hypermarkets, supermarkets, and retail stores among others. A variety of products are available under a single roof.

The online segment is anticipated to surge at a noteworthy CAGR throughout the forecast period on account of the growing acceptance of online channels. The rising internet penetration, coupled with numerous economic benefits such as bulk discounts and coupon discounts, is also one of the factors bolstering the growth of this segment in the coming years.

The Asia Pacific to show robust growth

Geographically, the global soap market has been segmented into North America, South America, Europe, the Middle East, Africa, and the Asia Pacific. The Asia Pacific region is anticipated to show a noteworthy rate, majorly on account of growing concerns regarding health and personal hygiene coupled with the presence of major growing economies such as India and China. Furthermore, the investments by key market players in these countries for the launch of new products also support the market in the APAC region during the coming five years. The North American region is anticipated to hold a noteworthy share throughout the forecast period owing to the presence of a highly hygienic population in countries such as the United States and Canada. In addition, the presence of key market players in the region also supports the share in the market. Furthermore, the growth in the average consumer expenditure on personal care products further shows the potential for the market to surge during the forecast period and beyond.

Recent Developments

• German brand Sanosan debuted its first baby care soap made with natural ingredients in India in June 2022. Sanosan Infant Care Soap's natural ingredients, like hydrolyzed milk protein and premium organic olive oil, meet the needs of sensitive baby skin. Sanosan has partnered with Glowderma, one of India's top skincare pharmaceutical firms, to import and promote the latter's baby skincare products in India.
• Almond Drops moisturizing soap was introduced in June 2022 by Bajaj Consumer Care Ltd as its newest skincare product. The soap provides superior moisturization for the skin, leaving it smooth, supple, and shining. The soap provides more moisture to the skin.
• VedaOils introduced a line of natural and chemical-free soap-making supplies in May 2022, streamlining the production of soap in the soap industry.
• Johnson & Johnson Pharmaceutical Industry Firm introduced "CottonTouch" head-to-toe bath baby care products in 2020. The company claims that these products are entirely natural and organic. The goal of the new baby product invention is to address consumer sentiment by creating a brand image for the company as a manufacturer of baby care products.
• Procter & Gamble introduced water-free "swatches" of soaps and detergents in April 2020. These products froth when water is added and are anticipated to drastically reduce the amount of water used during production.

COVID-19 Impact on Global Soap Market

Worldwide sales of soap through online distribution channels increased due to COVID-19. This can be attributed to the widespread adoption of strict lockdown laws and the growing demand for social distancing measures. Moreover, during the pandemic, growing consumer awareness of cleanliness and disinfection goods drives the market. Additionally, industry competitors invested in the introduction of hand wash solutions quickly in response to the increased demand for soap and other hand hygiene goods. For instance, in September 2020, Henkel invested US$23 million to enhance the manufacturing of antimicrobial liquid hand soap and hand sanitizer products in the Geneva, New York plant due to the increased demand for liquid hand soaps and other hand hygiene goods during the COVID-19.

Segmentation

• By Type
  • Organic
  • Conventional
• By Form
  • Bars
  • Liquid
• By Application
  • Residential
  • Commercial
  • Hospitals
  • Airports
  • Hotels
  • Others
• By Distribution Channel
  • Online
  • Offline
• By Geography
  • North America
    • USA
    • Canada
    • Mexico
  • South America
    • Brazil
    • Argentina
    • Others
  • Europe
    • Germany
    • France
    • United Kingdom
    • Spain
    • Others
  • Middle East and Africa
    • Saudi Arabia
    • Israel
    • South Africa
    • Others
  • Asia Pacific
    • China
    • Japan
    • South Korea
    • India
    • Indonesia
    • Taiwan
    • Others