Organic Liquid Soaps Market Size, Share & Trends Analysis Report By Application (Household, Commercial), By Distribution Channel (Supermarkets & Hypermarkets, Online), By Region, And Segment Forecasts, 2020 - 2027

Report Overview

The global organic liquid soaps market size was valued at USD 64.0 million in 2019 and is expected to grow at a compound annual growth rate (CAGR) of 7.9% from 2020 to 2027. Increasing consumer awareness regarding personal hygiene, paired with growing concerns about the harmful effects of chemical-based ingredients, is bolstering the demand for organic liquid soaps worldwide. The higher cost of organic liquid soaps as compared to that of other liquid soaps and soap bars is expected to hamper the demand for the product over the forecast period. However, manufactures are likely to launch new product variants at affordable prices in the foreseeable future to offset the issues associated with higher price points. The COVID-19 pandemic has unprecedented market opportunities for all industry participants as there has been an increase in consumer spending on personal care and hygiene products.

Increasing demand for hand hygiene has resulted in bulk buying across all hand hygiene product categories, including organic liquid soaps. However, lockdowns across countries worldwide have disrupted supply chains, thereby leading to a disparity between supply and demand. In the near future, tier-1 stakeholders are expected to increase their scale of operation to cater to the rising product demand. India is expected to emerge as one of the most lucrative markets for organic liquid soaps over the forecast period. Given the rich heritage of Ayurveda in the country, manufacturers are likely to introduce new products with natural fragrance and organic ingredients. The concept of ‘back to nature’ is expected to create a healthy demand for organic liquid soaps among Indian consumers in the near future.

Various studies suggest that consumers increasingly prefer personal hygiene products that promote convenience on the packaging front. In this respect, the organic liquid soaps market is being driven by increasing consumer demand for products packaged in convenient formats, such as spouted pouches. Furthermore, manufacturers are expected to focus on employing sustainable packaging materials, given the rising concerns regarding the employment of plastic-based packaging materials.

Application Insights

The household segment led the market and accounted for 61.8% share of the global revenue in 2019. At a macro level, rising disposable income among the middle-class population, most notably in Asian countries, is strengthening the segment growth. In the coming years, this segment is likely to be driven by high product consumption across households in urban and semi-urban regions worldwide.

Government-initiated campaigns, such as the Total Sanitation Campaign and the Swachh Bharat Mission, are expected to boost the product demand in households. The commercial segment is anticipated to witness moderate yet strong growth over the forecast period. The novel COVID-19 crisis is expected to catalyze the growth of the commercial segment in the near future.  

Distribution Channel Insights

The supermarkets and hypermarkets segment led the market and accounted for a 45.8% share of the global revenue in 2019. Consumers prefer to purchase personal care products, including organic liquid soaps, from supermarkets and hypermarkets. This channel offers a broad range of products (brands) to choose while allowing the physical verification of the product.

The online segment is likely to expand at the fastest CAGR over the forecast period principally owing to the mushrooming growth of e-commerce players within the industry space. Provision of considerable discounts, paired with the convenience of free shipping and quick product delivery options, is fueling the product demand through online channels.

Regional Insights

North America emerged as the largest regional market for organic liquid soap in 2019 and accounted for 31.5% share of the overall revenue. Led by countries such as the U.S. and Canada, companies operating within North America benefit from the rising demand for personal care products made using sustainably sourced ingredients/raw materials. North America also houses a sizable number of privately-held market participants.

Asia Pacific is expected to expand at the fastest CAGR over the forecast period. Manufacturers operating within the Asia Pacific capitalize on the abundant supply of raw materials and the availability of cheap labor. China and India continue to remain the most prominent markets within the Asia Pacific. These countries have had a long association with organic personal care and hygiene products. A sizable number of large players in these countries, most notably India, are aggressively expanding their line of organic soaps (including liquid formats). However, the export manufacturing front is principally led by small- and medium-sized manufacturers in India.

Key Companies & Market Share Insights

The market is moderately fragmented and has been characterized by intense competition, with both domestic and international players sharing the market space. Product development is among the major strategic initiatives adopted by prominent players to stay competitive. The rising popularity of organic ingredients within the personal care space is likely to encourage prospective manufacturers, notably small- and medium-sized companies, to establish a business. However, the dominance of well-established and internationally reputed companies is expected to maintain the threat of new entrants at a moderate level throughout the forecast timeframe. Some of the prominent players in the organic liquid soaps market include:

• Oregon Soap Company

• Vanguard Soap, LLC

• Botanie Natural Soap, Inc.

• Tropical Products

• SFIC

• Penns Hill Organic Soap Company

• Lunaroma Inc.

• Soap Solutions

• Country Rose Soap Company Ltd.

• Mountain Rose Herbs 

Organic Liquid Soaps Market Report Scope 

Segments Covered in the Report

This report forecasts revenue growth at the global, regional, and country levels and provides an analysis of the latest industry trends and opportunities in each of the sub-segments from 2016 to 2027. For the purpose of this study, Grand View Research has segmented the global organic liquid soaps market report on the basis of application, distribution channel, and region:

• Application Outlook (Revenue, USD Thousand, 2016 - 2027)

  • Household

  • Commercial

• Distribution Channel Outlook (Revenue, USD Thousand, 2016 - 2027)

  • Supermarkets & Hypermarkets

  • Convenience Stores

  • Online

  • Others

• Regional Outlook (Revenue, USD Thousand, 2016 - 2027)

  • North America

    • The U.S.

  • Europe

    • The U.K.

    • Germany

  • Asia Pacific

    • China

    • India

  • Central & South America

    • Brazil

  • Middle East & Africa

    • UAE