Detergent Cake and Detergent Powder Manufacturing Industry
Detergent Cake and Detergent Powder Manufacturing Industry. Start a Washing Powder and Cake Business
Detergent is a blend of surfactants with cleaning properties. The surfactants are the compounds similar to the soap and mostly soluble in hard water. The alkyl benzenesulfonates and their compounds are the main ingredients of the detergent.
Detergents are mainly grouped into three types of detergents such as anionic detergents, cationic detergents, and non-ionic & zwitterionic detergents. In the household context detergents are referred as laundry detergents and foaming agents as a cleaning material. Detergents are usually available as powders or concentrated solutions. The household detergents are for daily household cleaning purposes while industrial detergents are used for the industrial needs.
The main advantage of detergent powders is that they are easy to use and remove the dust, dirt, grease, oil and other environmental pollutants with ease and effectiveness. Detergent powders can be used for hand wash as well as machine wash applications.
Detergent Cake is detergent in cake form, which can be used with hand as well as in soft water. Detergent cakes are generally formulated using one or more surfactants to improve their cleaning performance and make them good even for use in hard water conditions. Detergents are available in three forms, namely powder detergent, bar detergent and liquid detergent. Powder detergents are widely accepted by Indian consumers and dominate the industry. Even though detergent bars are still used in rural areas, they are fast disappearing from the market because of ineffectiveness.
Features:
- Effective cleaning
- Safe chemicals
- Lasts long
- Exact composition
- Hygienically processed
- Effective results
Apart from their use in clothes washing, detergents also have applications in the following industries:
- In industry, in laundry and dry cleaning.
- In textile processing, grain milling, metal plating and foods canning.
- In dairy foods and beverages processing and in restaurants.
- In plant maintenance and industrial house-keeping.
Market Outlook
Detergents, as a constituent of the overall FMCG industry, accounts for a near 12% of the total demand for all FMCG products estimated at over Rs. 530 bn. Detergents, chemically known as alfa olefin sulphonates (AOS) are used as fabric brightening agent, anti-deposition agent, stain remover and as a bleacher. A major input for the production of detergents is a petrochemical, Linear Alkyl Benzene (LAB), while soaps rely more on an inorganic chemical, caustic soda, as a major input.
The overall market for detergent is growing with a CAGR of 13.06% from the last five years. the detergent market in India is expected to grow from INR 151.89 bn in 2015 to INR 243.04 bn by 2020 at a CAGR of 9.86%. The demand for detergents has been growing at an annual growth rate of 10 to 11 per cent during the past five years. Where an urban consumer prefers washing powder and detergents, a rural consumer is more inclined towards washing cakes and bars. But, over the last few years.
At present, the size of the Indian FMCG market is estimated to be Rs 125,000 crore and is growing at the rate of 12 per cent yearly. According to an industry reports, the sector is expected to grow by up to 17 per cent annually to touch Rs 400,000 crore by 2020.
The per-capita consumption rate of detergents in India is 2.7 kg per annum and this market is expected to grow at the rate of 7 to 9 per cent per annum in terms of volume. The penetration level of detergent bars and powder in India is higher as compared to the urban market. The use of certain chemicals and other toxic elements in detergents can potentially deteriorate purchase intent, which can hamper market growth.
Detergents
| Demand : Past and Future | |
| Year | (In ‘000 Metric Tonne) |
| 1990-91 | 220 |
| 2000-01 | 565 |
| 2001-02 | 676 |
| 2002-03 | 610 |
| 2003-04 | 590 |
| 2004-05 | 650 |
| 2005-06 | 600 |
| 2006-07 | 705 |
| 2007-08 | 790 |
| 2008-09 | 854 |
| 2009-10 | 927 |
| 2010-11 | 1019 |
| 2011-12 | 1120 |
| 2012-13 | 1225 |
| 2013-14 | 1340 |
| 2014-15 | 1450 |
| 2015-16 | 1558 |
| 2016-17 | 1675 |
| 2017-18 | 1800 |
| 2018-19 | 1935 |
| 2019-20 | 2080 |
| 2024-25 | 3056 |
Due to rapid urbanization, the emergence of small pack size and sachets, the demand for this product is flourishing. In addition, an increasing per capita income helps to boost the purchasing capacity of the population. Furthermore, a wide range of available choice, health awareness and hunger for good living are other reasons for the growing demand for detergent powder.
The detergent industry in India is mostly captured by organized players but unorganized regional players do have significant hold in the rural areas. HUL, Rohit Surfactants, P&G, Nirma and Jyothy Laboratories are the major players in the organized market. They have popular brands like Ghari, Surf Excel, Active Wheel, Rin, Tide, Nirma, Ariel, Mr. White and Henko in their product portfolio. On the basis of pricing, organized detergent market can be further divided into three categories such as popular (economy), mid-range and premium. Popular category consists of brands like Ghari, Nirma and Wheel; mid-range category consists of Tide, Rin and Mr.White; and premium category includes Surf Excel, Henko and Ariel. Hindustan Unilever dominates the high priced premium and mid-range category whereas Ghari dominates the low priced popular category.
Global Detergent Market:
The global detergent market to grow at a CAGR of 4.51% during the period 2019-2023. Detergents are surfactants or a mixture of surfactants, which exhibit high-quality cleansing properties in diluted solutions. Alkyl benzenesulfonates and its compounds are the main ingredients of the detergent.
Global Detergent Market: Revenue Share (%), By Region, 2017
A key factor driving the growth of the market is the growth in surfactants market. Surfactants help in reducing the surface tension of water and thereby increase the wetting and spreading dynamics of water. These compounds improve the cleaning performance by enabling quick and effective wetting of substrate surfaces such as clothes dishes and others. Moreover, the detergent segment accounted for the largest share in the global surfactants market in 2017. Thus, the growth in surfactants is expected to enhance the growth of the detergent market, during the forecast period.
The rapid changing lifestyles of people and global modernization are the key drivers for the detergent industry. Industries like chemical, paint, textile, paper and automobile are the key factors and demand drivers for the use of industrial detergents. Rising population and growing disposable income of the consumers enables increase in demand for the clothing, hospitality, and the end users are major driver for detergent market growth. On the other hand there are some restraints to the growth of detergent market such as government rules, norms, and regulations, environmental reforms, and CSRs.
The key manufacturers in the Detergent include:
P&G, Unilever, Church & Dwight, Henkel, Clorox, ReckittBenckiser, Kao, Scjohnson, Lion, Colgate, Amway, Phoenix Brand, LIBY Group, Nice Group, Blue Moon, Shanghai White Cat Group, Pangkam, Nafine, Lam Soon (Hong Kong) Limited, Lonkey, Reward Group, Kaimi, Baoding Qilijia Daily Chemical, Beijing Lvsan Chemistry
FMCG Market in India
FMCG market in India is expected to grow at a CAGR of 20.6 per cent and is expected to reach US$ 103.7 billion by 2020 from US$ 49 billion in 2016.
FMCG Market in India (US$ Billion)
The rural FMCG market in India is expected to grow at a CAGR of 14.6 per cent, and reach US$ 220 billion by 2025 from US$ 29.4 billion in 2016. FMCG is the 4th largest sector in the Indian economy.
Growing awareness, easier access, and changing lifestyles are the key growth drivers for the consumer market. The focus on agriculture, MSMEs, education, healthcare, infrastructure and employment under the Union Budget 2018-19 is expected to directly impact the FMCG sector. These initiatives are expected to increase the disposable income in the hands of the common people, especially in the rural area, which will be beneficial for the sector.
With rise in disposable incomes, mid- and high-income consumers in urban areas have shifted their purchasing trend from essential to premium products. In response, firms have started enhancing their premium products portfolio. Indian and multinational FMCG players are leveraging India as a strategic sourcing hub for cost-competitive product development and manufacturing to cater to international markets.
Fast moving consumer goods (FMCG) sector is an important contributor to the India’s GDP growth. Currently, FMCG industry is the fourth largest sector in the Indian economy and provides employment to around 3 million people. Over the years, India FMCG sector has been growing at a healthy pace on account of growing disposable income, booming youth population and increasing brand consciousness among consumers.
Indian FMCG Market Share, by Segment (%), 2020F
Top 10 India FMCG Brands are:
- Hindustan Unilever Ltd.
- ITC (Indian Tobacco Company)
- Nestlé India
- GCMMF (AMUL)
- Dabur India
- Asian Paints (India)
- Cadbury India
- Britannia Industries
- Procter & Gamble Hygiene and Health Care
- Marico Industries
Starting a detergent powder or synthetic washing powder business is one of the most feasible business options owing to the straightforward manufacturing process involved. Detergent powder market is one segment of the FMCG market in the world with significant growth potential. Being a consumer good, people use it on a daily basis for clothes, hand wash and kitchen utensils and its demand is found in the market all through the year. Moreover, an entrepreneur can initiate a detergent manufacturing business with moderate capital investment.
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