The Homecare Ingredients Market involves a variety of ingredients that are used for manufacturing home care products such as surfactants, builders, enzymes and fragrances. Surfactants function as an active cleaning agent that breaks through dirt, grease and stains while builders help to soften hard water and enhance the cleaning action of surfactants. Enzymes are added to enable grease-cutting performance in laundry detergents and surface cleaners. Fragrances are used to impart pleasant smell to homecare products like dishwashing liquids, handwashes and surface cleaners. Surfactants are the major component of homecare ingredients owing to their performance benefits in reducing surface tension. The rising demand for green and sustainable products is driving manufacturers to develop bio-based and plant-derived surfactants.
The Global Homecare Ingredients Market is estimated to be valued at US$ 22.94 Mn in 2024 and is expected to exhibit a CAGR of 4.5% over the forecast period 2024 To 2031.
Key Takeaways
Key players operating in the Homecare Ingredients are Mitsubishi Chemical, Gabriel Performance Products, LLC, DIC Corporation, Kukdo Chemical, Georgia-Pacific (GP) Chemicals, SpecialChem, Brenntag Asia Pacific Pte. Ltd., SHOWA DENKO K.K., ICL Phosphate Specialty, and Merck KGaA. These players are focusing on expanding their production capacities and product portfolio through acquisitions and partnerships. The increasing population coupled with rising disposable incomes in developing countries has boosted the sales of homecare products, which in turn is driving the demand for Homecare Ingredients Market Growth . Moreover, the advent of green chemistry and sustainable production methods has accelerated research and development of bio-based ingredients by major companies in the market.
Technological advancements in ingredient formulation have led to development of products with multiple functionality. Companies are investing in customized solutions to cater to specific demands from end-use industries. Multi-functional ingredients reduce formulation costs and improve product performance. Advancements in encapsulation and micro-encapsulation technologies have enabled delivery of active ingredients in improved forms with long shelf-life.
Market Trends
Water soluble pouches containing single or multiple ingredients are gaining traction in the homecare ingredients market. They offer advantages over liquid/powder forms such as single-dose usage, compact packaging and improved stability. Manufacturers prefer water soluble pouches for compact dosing of enzymes, bleach and fragrances in laundry and dishwasher products.
Bio-based and plant-derived ingredients are witnessing increased demand owing to stringent regulations on the use of chemicals and growing preference for green products. Companies are investing in developing homecare ingredients from renewable biomass, agricultural waste and other biological sources to enhance their sustainability portfolios.
Market Opportunities
The growing demand for low-toxic, eco-friendly products from millennial consumers presents an opportunity for manufacturers to develop green homecare ingredients certified by environmental labels.
Expansion into emerging markets of Asia Pacific and Latin America through joint ventures with local players can help global ingredient suppliers to leverage high growth opportunities in these regions.
Impact of COVID-19 on Homecare Ingredients Market
The outbreak of the COVID-19 pandemic affected all industries worldwide including the homecare ingredients market. During the initial lockdown phases in 2020, supply chain disruptions led to reduced production and availability of ingredients. Shutdown of manufacturing facilities impacted the market growth negatively. However, as people were staying indoors, the demand for homecare products surged tremendously. The focus shifted to safety, hygiene and disinfection within homes to curb virus transmission. People started spending more on laundry detergents, surface cleaners, hand sanitizers and other disinfectants to sanitize household surfaces on regular basis. This spike in demand helped boost sales and revenue of homecare product manufacturers during the pandemic. Even post lockdowns, the awareness regarding indoor hygiene and sanitization has increased permanently. Companies are developing more effective formulations against viruses and bacteria to cater to changing consumer needs. They are also focusing on eco-friendly and sustainable ingredients to gain market share. Overall, while COVID-19 disturbed the initial market trends, increased health consciousness worked in favor of long term growth prospects for the homecare ingredients industry.
The homecare ingredients market in terms of value is highly concentrated in North America and Europe. North America currently holds the largest market share primarily due to growing demand for eco-friendly ingredients, presence of major players and high disposable incomes. Europe follows next due to stricter regulations regarding chemical usage in homecare products. However, Asia Pacific region is poised to be the fastest growing geographical market during the forecast period. Countries like China, India and Indonesia offer immense growth opportunities owing to rising middle class population, changing lifestyles and surging demand for more effective yet affordable homecare solutions. Developing nations in Africa and South America also show lucrative potential as consumer’s preference for packaged homecare items is increasing steadily.
Get more insights on Homecare Ingredients Market