HAND SANITIZER MARKET ANALYSIS

The global hand sanitizer market was valued at US$ 2,675.0 Mn in 2021 and is forecast to reach a value of US$ 3,188.4 Mn by 2028 at a CAGR of 2.5% between 2022 and 2028. The global hand sanitizer market is experiencing strong growth due to the COVID-19 outbreak around the world and increase in demand for hand sanitizers. Moreover, increasing awareness regarding sanitation and personal hygiene is expected to boost the growth of the market. However, factors such as availability of unlabelled and unlicensed bottles and reducing consumer preference for hand sanitizers is expected to hamper growth of the hand sanitizer market.

Global Hand Sanitizer Market: Regional Insights

Based on geography, the global hand sanitizer market is segmented into North America, Latin America, Europe, Asia Pacific, and Middle East & Africa.

Among regions, North America is expected to gain highest share in the market over the forecast period due to the outbreak of COVID-19 (pandemic) in this region. For instance, the COVID-19 crisis has exponentially surged the demand for hand sanitizers. According to World Health Organization (WHO), in United States of America, from 3 January 2020 to 5:01pm CEST, 12 September 2022, there have been 93,822,524 confirmed cases of COVID-19 with more than 1,038,273 deaths. Thus, with the increase in cases of COVID-19, demand for hand sanitizers is also expected to increase in the U.S.

Asia Pacific is also expected to witness robust growth in the global hand sanitizer market due to the increase in demand for hand sanitizers in this region. As COVID-19 is spreading rapidly, the demand for hand sanitizers has also increased in the region, especially in India. For instance, India’s hand sanitizer production capacity went up during the pandemic. Dalmia Bharat Sugars and Industries (DBSIL) set up sanitizer manufacturing plants in three facilities at Sitapur (UP), Shajahanpur (UP), and Kolhapur (Maharashtra).

Figure 1. Global Hand Sanitizer Market Share (%), by Region, 2021

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Global Hand Sanitizer Market Drivers:

The emergence of COVID-19 (global pandemic) across the globe is expected to augment the growth of the global hand sanitizer market during the forecast period. As COVID-19 has been exponentially spreading, the demand for hand sanitizers has also increased with the pharma companies and others producing hand sanitizers in huge quantities. According to World Health Organization (WHO), worldwide, as of 5:01pm CEST, 12 September 2022, there have been 605,912,418 confirmed cases of COVID-19, including 6,491,649 deaths.

Rising awareness among people about the significance of hand hygiene is expected to propel growth of the hand sanitizer market over the forecast period. For instance, CDC recommends washing hands frequently, especially when people are in a public place, or after blowing their nose, coughing, or sneezing. In April 2020, Vegamour launched its hand sanitizer that exceeds the Centers for Disease Control and Prevention (CDC) standards for hand hygiene.

Global Hand Sanitizer Market Opportunities:

Rise in demand for hand sanitizers around the world is expected to provide significant growth opportunities for players in the hand sanitizer market. For instance, as COVID-19 is spreading rapidly, demand for hand sanitizers has also increased worldwide. In March 2021, Swanrose India, a wholly-owned subsidiary of Swanrose Inc., the US-based entity, announced the launch of a ‘once-a-day' hand sanitizer, Just Human. Just Human is the first hand sanitizer to provide extended protection. The product has got USFDA registration and DCGI clearance in India.

Increase in focus on the development of hand sanitizers to meet increasing demand is expected to provide lucrative growth opportunities for players in the global hand sanitizer market. For instance, in April 2020, SC Johnson, a manufacturer of household and professional cleaning and disinfecting products, converted a line reserved for testing new products to produce up to 75,000 bottles of hand sanitizer (in the wake of COVID-19) per month for health workers, first responders, and the company’s own production employees.

Global Hand Sanitizer Market Trends:

Increase in demand for alcohol-based and foam-based hand sanitizers is expected to propel the growth of the global hand sanitizer market. For instance, in March 2020, Sparitual pledged to produce 75% alcohol-based hand sanitizers from its LA-based factory to help fight the spread of COVID-19. For alcohol-based hand sanitizers, the Food and Drug Administration (FDA) recommends a concentration of 60% to 95% ethanol or isopropanol.

Introduction of novel products by market players is expected to drive growth of the global hand sanitizer market. For instance, in April 2020, in the wake of the huge global demand for hand sanitizers following the outbreak of COVID-19 (pandemic), ITC Ltd. announced the launch of a hand sanitizing liquid under the Savlon brand.

Global Hand Sanitizer Market Restraints:

Availability of unlabelled and unlicensed bottles of hand sanitizers is expected to hinder growth of the global hand sanitizer market. For instance, as coronavirus (COVID-19) cases increased worldwide, hand sanitizer demand increased. Several companies are providing hand sanitizers at lower prices with unregulated or adulterated contents, especially in developing countries. In 2020, Procuraduria Federal del Consumidor, the Mexican federal consumer protection agency, seized 1,435 unlabelled and unlicensed bottles of hand sanitizers and face masks.

Reducing consumer preference for hand sanitizers is expected to hamper the growth of the hand sanitizer market. For instance, many hand sanitizer-related accidents were reported worldwide, thus, restraining the use of hand sanitizers. Moreover, several hand sanitizers have been shown to be detrimental for the skin with long-term usage. This has led to a lack of consumer trust in the effectiveness of hand sanitizers.

Figure 2. Global Hand Sanitizer Market Share (%), by Product Type, 2021

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Global Hand Sanitizer Market Segmentation:

The global hand sanitizer market report is segmented into Product Type, Distribution Channel, and Geography.

Based on Product Type, the hand sanitizer market is segmented into Gel/Liquid, Spray, Foam, and Sanitizing Wipes. Out of which, Gel/Liquid Segment is expected to dominate the hand sanitizer market during the forecast period and this is attributed to the outbreak of COVID-19 worldwide. Gel/liquid-type sanitizers are packed in small-sized pocket friendly bottles, keeping convenience factor in mind, which in turn to increase the sales of gel hand sanitizers.

Foam Segment is also expected to witness robust growth in the near future and this is owing to its easy penetration into the skin and stays for a longer period. Foam based sanitizers provide easy application on hands as it does not need to get rubbed off and thus provide the convenience of saving time and stays for a longer period.

Based on Distribution Channel, the market is segmented into Hypermarkets/Supermarkets, Convenience Stores, Pharmaceutical Stores, E-commerce, and Other Distribution Channels. Of which, Hypermarkets/Supermarkets Segment is expected to dominate the market over the forecast period and this is attributed to the high demand for hand sanitizers. Hypermarkets and Supermarkets provide a customer-friendly shopping environment where customers can buy the products of their choice by choosing apt products from multiple brands, as per the requirement.

E-commerce Segment is also expected to witness significant growth in the near future and this is owing to the nationwide lockdown and fear of going outside due to COVID-19. Alcohol-based hand sanitizer gels, recommended by the WHO, sold out on prominent online platforms, such as Amazon, in the first couple of months of the outbreak.

Global Hand Sanitizer Market: Key Developments

In June 2020, Unilever Philippines repurposed its manufacturing line to produce Lifebuoy sanitizers to provide better hygiene during the time of pandemic.

In March 2020, Himalaya augmented the production of its PureHands sanitizers, by initiating more production lines and adding new facilities to its plant, with an aim to satiate the shortfall of hand sanitizers in the market.

Global Hand Sanitizer Market: Key Companies Insights

The global hand sanitizer market is highly competitive. This is attributed to the rise in demand for hand sanitizer around the world, as a result, players in the market are focusing on launching novel products in the market.

Some of the key players in the global hand sanitizer market are:

Vi-Jon Inc., Henkel AG & Co. KgaA, Edgewell Personal Care, Himalaya Global Holdings Ltd., GOJO Industries Inc., L Brands Inc., Unilever PLC, Reckitt Benckiser Group PLC, 3M Company, and Colgate-Palmolive Company, among others.

*Definition: Hand sanitizer is generally used to kill many viruses/bacteria/microorganisms on the hands. It is used to clean the hands and kill infection-causing microorganisms. They are formulated to kill common germs that can threaten immune system if not adequately managed. Alcohol-based hand rubs are the best alternative to soap and water for washing hands.