Liquid soap market analysis
The relevance of research
Everyone has long been familiar with the usual solid soap. And people got acquainted with liquid soap quite recently. From the first years of its appearance, liquid soap for dispensers began to confidently displace ordinary soap from the market, occupying its niche in the market among consumers.
Liquid soap is a modern universal detergent. It is a viscous consistency similar to shampoo.
In the production of liquid soap, a detergent base, surfactants, a complex of moisturizers, such as, for example, glycerin, cosmetic wax, oil extract, mild preservatives in small quantities, with bacteriostatic and antifungal effects, are used.
Purpose of the study
Analysis of the state of the liquid soap market, assessment of the market size, analysis of competitors, as well as identification of factors affecting the liquid soap market
Content
Part 1. Overview of the Indian Liquid Soap Market
1.1. Main characteristics of the market
1.2. Dynamics of the market volume of liquid soap 2015-2019 Potential market capacity
1.3. Assessment of factors affecting the market
1.4. Liquid Soap Market Life Cycle Stage
1.5. Competition from substitute products
Part 2. Competitive analysis in the liquid soap market
2.1. Major players in the market
2.2. Market shares of the largest competitors
2.3. Profiles of major players
Part 3. Liquid soap production analysis
3.1. Volume and dynamics of domestic production of liquid soap
3.2. Export share in liquid soap production
3.3. Segmentation of liquid soap production by regions
3.3.1. Production by Union Territories
3.3.2. Production by states of India
Part 4. Analysis of foreign trade supplies of liquid soap
4.1. Volume and dynamics of liquid soap imports
4.2. Import structure
4.3. The volume and dynamics of liquid soap exports
4.4. Export structure
Part 5. Liquid soap consumption analysis
5.1. Liquid soap consumption dynamics
5.2. Analysis of the results of tenders for the purchase
Part 6. Price Analysis
6.1. Average producer prices by union territories
6.2. Average consumer prices by states in India
Part 7. Assessment of factors of investment attractiveness of the market
Part 8. Liquid soap market forecast until 2024
Part 9. Recommendations and conclusions
Research excerpt
Part 1. Overview of the Indian Liquid Soap Market
1.1. Main characteristics of the market
Everyone has long been familiar with the usual solid soap. And people got acquainted with liquid soap quite recently. From the first years of its appearance, liquid soap for dispensers began to confidently displace ordinary soap from the market, occupying its niche in the market among consumers.
Liquid soap is a modern universal detergent. It is a viscous consistency similar to shampoo.
In the production of liquid soap, a detergent base, surfactants, a complex of moisturizers, such as, for example, glycerin, cosmetic wax, oil extract, mild preservatives in small quantities, with bacteriostatic and antifungal effects, are used.
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The Indian market for liquid soap does not have a pronounced seasonality. There are no peaks in demand during the year.
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It should be noted that the liquid soap market mostly consists of domestically produced products. If in 2015 the share of imports in the market was …%, then in 2016-2020. – …%.
Diagram 2. The ratio of imported and domestic products in the liquid soap market,%
1.2. Dynamics of the market volume of liquid soap 2015-2019 Potential market capacity
The volume of the liquid soap market in monetary terms during 2015-2018 ... At the same time, in 2016, the market volume … almost … times, and in 2017-2018. the rate of … amounted to …%. At the end of 2018, the maximum market volume was recorded – … Rs.
In 2019, the liquid soap market … by …% to … Rs., which was due to … production volumes, a decrease in producer prices, a decrease in imports and an increase in exports. Average annual growth rate in 2015-2019 amounted to …%.
At the end of 11 months In 2020, the volume of the liquid soap market in India amounted to … billion Rs.
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1.3. Assessment of factors affecting the market
Let's consider the main factors influencing the market and, accordingly, demand.
Social (demographic)
During 2012-2018 India's population is on the rise. The increase in the population in 2015 was not only due to migration and natural increase, but also due to the formation of two new states of the Federation - the Republic of Crimea and the city of Sevastopol.
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General trends in macroeconomic indicators can also be traced in such a value as real incomes of the population, which determine the level of effective demand.
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Diagram 7. Dynamics of real incomes of the population of India, 2015-2020 (9 months), %
Economic
GDP is a macroeconomic indicator that reflects the market value of all final goods and services (that is, intended for direct consumption) produced per year in all sectors of the economy on the territory of the state for consumption, export and accumulation, regardless of the nationality of the factors of production used. It is the main, most complete official indicator of public welfare. The absolute and relative values of GDP give an idea of the general material well-being of the nation and the dynamics of its growth / decrease, since the higher the level of production, the higher the welfare of the country.
Chart 8. Dynamics of India's GDP, 2015-2020 (Q1-Q3),% of the previous year, trillion Rs.
The impact of the crisis that began in 2008 led to a decline in GDP by 7,8% in 2009, but then the growth rates were quite high until 2012 inclusive. In 2013-2014 there was a decrease in the annual GDP growth rate, and in 2015 the GDP dynamics turned into a negative zone, and in 2016 it was in stagnation. But in 2017-2018. there was an increase in the indicator by 1,8% and 2,5%, respectively. The volume of India's GDP for 2019 amounted to 110,0 trillion rupees at current prices. The index of the physical volume of GDP compared to 2018 amounted to 101,3%.
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Thus, experts disagree significantly about the real dynamics of India's GDP in 2020.
The fall in GDP has a negative impact on the market.
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The industrial production index shows the total volume of all industrial production, utilities, etc. in terms of money.
In 2015, there was a decrease in production by 3,4%. In 2016, the growth rate exceeded 100%; in 2017, the increase in industrial production amounted to 2,1%; in 2018, 2,9%. At the end of 2019, the IPP was 102,4% compared to 2018.
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inflation rate. Inflation in 2019 (…%) took the second place in the entire history of observations - it was lower only at the end of 2017 - …% (against the backdrop of a record harvest). In 2018, inflation amounted to …%. The decline in inflation is a positive factor contributing to the development of the industry in India. In November 2020, compared to December 2019, the consumer price index amounted to …%.
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technological
Equipment for the production of liquid soap is represented by both domestic manufacturers and foreign (Chinese, European). European equipment is better, but also more expensive. Nevertheless, the manufacturer has a choice, which is a positive factor.
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Political
Certification. In the countries of the Customs Union, there is a single regulatory act in the field of certification of cosmetics - technical regulation 009/2011. It applies to imported and domestic products manufactured in the territory of the Customs Union. It is worth noting that a declaration for organic surfactants in the form of a liquid or cream must be obtained even if the product does not contain soap, but is positioned as a liquid skin cleanser.
Voluntary certificate of conformity for liquid soap. They are issued in addition to the declaration as an optional paper, which, however, significantly increases the reputation of the manufacturer in the eyes of counterparties.
Standardization. The production of liquid soap must comply with GOST 31696-2012 “Cosmetic hygienic washing products. General technical conditions"". This standard applies to washing hygienic cosmetic products - shampoos, liquid soaps, washing gels (for showers, baths, for intimate hygiene), cleansers (foams, gels, mousses), bath foam, for hygienic hair and skin care and other similar products that meet the requirements of this standard. This document regulates the requirements for the composition, raw materials, labeling, transportation and general safety of products.
The industry is systematically working in the field of standardization. The positive influence of the factor.
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1.4. Liquid Soap Market Life Cycle Stage
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1.5. Competition from substitute products
The main substitute for liquid soap is solid soap. Today, people are increasingly using liquid soap, which has a number of advantages compared to solid:
Ease of use. It is easy to apply, does not slip out of the hands, does not dry out, does not become mushy and does not soften with water, when compared with solid ordinary soap.
Practicality. Ideal for use on trips, traveling and all places outside the home.
Profitability. Liquid soap comes in dispensers, which make it easy to determine how much soap is needed to wash your hands or body.
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Part 2. Competitive analysis in the liquid soap market
2.1. Major players in the market
At the moment, in India, both large international holdings and small organizations and individual entrepreneurs are engaged in the production of liquid soap.
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Table 7. The main companies participating in the liquid soap market in 2019
2.2. Market shares of the largest competitors
According to the data for 2019, the main player is … occupying …% of the market. In second place is … with …% of the market. JSCs … and … occupy …% and …% of the liquid soap market, respectively. The share of … accounts for …% of the market. Other market participants account for …%, and …% - imported products.
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Diagram 14. Shares of the largest competitors in the liquid soap market in 2019, %
2.3. Profiles of major players
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Part 3. Liquid soap production analysis
3.1. Volume and dynamics of domestic production of liquid soap
During 2015-2018 production of liquid soap in India increased by more than 2,1 times from 29,1 thousand tons in 2015 to 61,3 thousand tons in 2018. The increase in production volumes is due to the growth in the exchange rate and rising prices for imported products , which gave Indian companies new opportunities for development. Market players began to invest more actively in the expansion of production. In 2019, there was a slight decrease in production volumes by 6,4%. However, in 11 months In 2020, 18,5% more liquid soap was produced than in the same period in 2019. Thus, at the end of 2020, the maximum volume of production of the studied products for the analyzed period will be recorded.
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Diagram 16. Dynamics of the total revenue of the largest manufacturers of liquid soap (TOP-5) in India, 2015-2019, million Rs.
3.2. Export share in liquid soap production
Based on the results of the analysis, it was revealed that liquid soap in India is produced mainly for domestic consumption. For the period 2015-2019 the share of exports in the production of the studied products was quite small and was in the range of …%-…%. At the same time, from 2015 to 2018, the share of exports in production is …, and since 2019, there has been a trend towards … of this indicator.
Diagram 17. The share of exports in the production of liquid soap for 2015 - 2020,%
3.3. Segmentation of liquid soap production by regions
3.3.1. Production by Union Territories
The geographical structure of liquid soap production covers the territory of all federal districts. The leaders of this production for the period from 2015 to 2019. are ... federal districts. In total, their share in 2019 accounted for …% of the total production of the studied products.
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3.3.2. Production by states of India
The leader among manufacturers of liquid soap is Altai Territory, which accounts for …% of the production volume. …% of liquid soap is produced in the Samara region, …% in the Moscow region, and …% and …%, respectively. Krasnodar Territory accounts for …% of production, Sverdlovsk Region – …%. At the same time, other states account for about …% of liquid soap production in India.
Diagram 18. Production of liquid soap by states of India, %
Part 4. Analysis of foreign trade supplies of liquid soap
4.1. Volume and dynamics of liquid soap imports
Imports in the liquid soap market, as noted earlier, occupy a small share.
In 2015, the volume of liquid soap imports to India was at the level of … tons, in 2016 the volume of imports practically remained at the level of 2015. In 2017-2018. the volume of imports grew and in 2018 reached ... t, which is the maximum value in the study period. In 2019, the volume of imports decreased slightly (by …%). At the end of 11 months In 2020, ... tons of liquid soap were imported into India.
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4.2. Import structure
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4.3. The volume and dynamics of liquid soap exports
The volume of liquid soap exports from India in monetary terms in 2017-2019 showed … dynamics, … relative to 2016 (when the minimum value of the indicator was noted) by … times up to … mln USD. In 11, researched products were exported from India in the amount of … million dollars.
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In 2017-2020 The average export price for 1 kg of liquid soap varied within 2,0-2,6 USD, which is on average …% lower than the average price for imported products. The minimum price difference was noted in 2017, and the maximum in 2018 by …%.
Chart 25. Average export price for liquid soap, 2017-2020 (11 months), USD/kg
4.4. Export structure
The volume of Indian exports of liquid soap in 2019 amounted to … tons. The main exporting countries were Kazakhstan – …% (… tons) and Belarus – …% (… tons). It was exported to Ukraine ... t. (...%), to Kyrgyzstan - ... t. (...%). The TOP-5 exporting countries also included Azerbaijan, where in 2019 … tons of liquid soap (…%) were exported. Together, these countries accounted for …% of exports of the studied products.
Part 5. Liquid soap consumption analysis
5.1. Liquid soap consumption dynamics
During 2015-2020 (11 months) The dynamics of liquid soap consumption in physical terms was positive, except for 2019, when the market decreased by 10,1% and amounted to 59 thousand tons. In 2018, the maximum value of the indicator was recorded - 65,6 thousand tons, which almost 2 times more than in 2015. Such a significant growth is due to both the reorientation of the consumer from solid soap to liquid, and the diversification of production.
At the end of 11 months 2020 India's liquid soap consumption is 2,5% higher than 2019 overall. CAGR 2015-2020 amounted to 13,0%.
Diagram 27. Dynamics of liquid soap consumption in real terms, 2015-2020 (11 months), t.
5.2. Analysis of the results of tenders for the purchase
Since the beginning of December 2020, … tenders have been announced, in which there is a purchase of liquid soap, costing from … Rs. up to … million Rs. Most purchases involve the delivery of the researched products in the same batch with other detergents and cleaners. The main customers of liquid soap through the tender are state institutions - …% of all announced tenders, and the rest …% - commercial purchases.
Part 6. Price Analysis
6.1. Average producer prices by union territories
In general, in India in 2019, the average prices for the products of liquid soap manufacturers decreased by …% compared to 2018, compared to 2015, the price increase amounted to …%. It should be noted that the maximum price increase was noted in 2016 – by …%. At the end of 11 months In 2020, the producer price for liquid soap decreased by …% compared to 2019 prices.
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6.2. Average consumer prices by states in India
According to GidMarket analysts, the average consumer price for a bottle of liquid soap with a volume of 500 ml. on average in India in 2019 amounted to … Rs./500 ml., having increased by …% compared to 2018.
The highest price for liquid soap is in the Chukotka Autonomous Okrug (… Rs./500 ml., which is more than … times higher than the average price in India as a whole), Kamchatka Territory (… Rs./500 ml., which is by …% above the average price in India as a whole), Sakhalin region (… Rs./500 ml., which is by …% higher than the average price in India as a whole).
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List of diagrams and figures
Diagram 1. Monthly dynamics of liquid soap production in India, 2018-2020 (11 months), thousand tons
Diagram 2. The ratio of imported and domestic products in the liquid soap market,%
Diagram 3. Dynamics of the market volume of liquid soap in 2015 - 2020 (11 months), million Rs.
Diagram 4. Revenue (net) from the sale of liquid soap in the union territories for 2015-2019, %
Diagram 5. Dynamics of the population of India, as of January 1, 2012-2020, million people, thousand people
Diagram 6. Population forecast in India for the period 2021-2024, million people
Diagram 7. Dynamics of real incomes of the population of India, 2015-2020 (9 months), %
Chart 8. Dynamics of India's GDP, 2015-2020 (Q1-Q3),% of the previous year, trillion Rs.
Chart 9. Monthly dynamics of the US dollar against the rupee, 2015-2020, Rs. for 1 USD
Chart 10. Dynamics of the inflation rate in India, 2015-2020 (10 months), %
Diagram 11. Dynamics of the average interest rate on loans, 2015-2019, %
Figure 12. Life cycle stage of the liquid soap market
Diagram 13. Structure of soap production in India, %
Diagram 14. Shares of the largest competitors in the liquid soap market in 2019, %
Chart 15. Dynamics of liquid soap production in India for 2015-2020 (11 months), tons
Diagram 16. Dynamics of the total revenue of the largest manufacturers of liquid soap (TOP-5) in India, 2015-2019, million Rs.
Diagram 17. The share of exports in the production of liquid soap for 2015 - 2020,%
Diagram 18. Production of liquid soap by states of India, %
Diagram 19. Volume and dynamics of imports of liquid soap in physical terms, 2015-2020 (11 months), t.
Diagram 20. The volume and dynamics of imports of liquid soap in monetary terms, 2015-2019, thousand dollars
Diagram 21. Average price for imported liquid soap, 2017-2020 (11 months), USD/kg
Chart 22. The volume and dynamics of exports of liquid soap in monetary terms, 2015-2020 (11 months), thousand dollars
Diagram 23. The volume and dynamics of exports of liquid soap in physical terms, 2015-2020 (11 months), t.
Diagram 24. Balance of exports and imports, i.e.
Chart 25. Average export price for liquid soap, 2017-2020 (11 months), USD/kg
Chart 26. Liquid soap export structure by country, 2019
Diagram 27. Dynamics of liquid soap consumption in real terms, 2015-2020 (11 months), t.
Chart 28. Forecast of liquid soap market volume in 2020 - 2024, million Rs.
List of tables
Table 1. Requirements for liquid soap
Table 2. Industrial production index by state of India (in % of the previous year), 2015 - 2019
Table 3. Analysis of the impact on the industry of the state aid proposed to date
Table 4. Average weighted interest rates of credit institutions on credit operations in rupees, excluding PJSC Sberbank (% per annum), 2015-2020 (Oct.)
Table 5. STEP Analysis of Factors Affecting the Liquid Soap Market
Table 6. Soap production in India, 2015-2020 (11 months), tons, %
Table 7. The main companies participating in the liquid soap market in 2019
Table 8. Profiles of companies participating in the liquid soap market in 2019
Table 9. Structure of liquid soap production in India, 2015-2019, tons, %
Table 10. Dynamics of liquid soap production in India by union territories, thousand tons
Table 11. Structure of imports by importing countries of liquid soap in 2017-2020
Table 12. Data on tenders for the purchase of liquid soap, announced from 01.12.20 to 31.12.20 worth over 500 thousand Rs.
Table 13. Average producer prices for liquid soap across the Union Territories, 2015-2020 (11 months), Rs./t.
Table 14. Average consumer prices for liquid soap by states of India, 2015-2019, Rs./500 ml.
Table 15. Factors of investment attractiveness of the liquid soap market
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