Hand Sanitizer Market is Estimated to Witness High Growth Owing to Rising Hygiene Concerns and Increased Market Availability
The Hand Sanitizer Market is estimated to be valued at USD 7.21 billion in 2024, exhibiting a CAGR of 2.2% over the forecast period (2024-2031). The rising awareness regarding health and hygiene and growing number of new product launches by prominent players is expected to boost the market growth in the coming years. Furthermore, rising incidences of infectious diseases are influencing consumers to seek improved hand hygiene solutions.
Increased health awareness
There is a rising awareness among consumers regarding health and hygiene. Proper hand washing and sanitization is considered important to prevent spread of infectious diseases. This is a key driver for increased demand of hand sanitizers.
Growing product availability
Major players are focusing on new product launches with varied scents, formulations and package sizes to cater to diverse consumer needs. Increased availability of innovative products at affordable price points is another driver propelling the hand sanitizer market growth.
Increase in the prevalence of infectious diseases globally acts as major driver for the hand sanitizer market
With the rising prevalence of infectious diseases such as COVID-19, H1N1 flu, SARS, etc. globally in recent years, there is growing awareness among general public about importance of hand hygiene. Proper and frequent hand washing or use of hand sanitizers is considered one of the most effective ways to curb spread of such infectious diseases. This has led to a significant growth in demand for hand sanitizers worldwide. Various government and health organizations have also been promoting the usage of hand sanitizers through mass awareness campaigns during pandemics or outbreaks. The increased focus on hygiene and sanitation is expected to drive continued demand for hand sanitizers over the forecast period.
Growing health and wellness trend among consumers fuels the market growth
In recent years, there is a noticeable shift in consumer preference toward personal wellness and hygiene products. More number of people are focusing on boosting their immunity through minor lifestyle changes like frequent hand washing. Hand sanitizers have become an integral part of health and wellness regime for germ protection for many. The rising health awareness and growing health & wellness trend among consumers globally is having positive impact on the sales of hand sanitizers. Various players in the market are innovating and developing hand sanitizers formulations focusing on natural and herbal ingredients to cater to increasing demand from health-conscious consumers. This evolving consumer pattern acts as another driver for substantial growth of hand sanitizer market.
High supply chain and distribution costs limit market expansion
Production and supply chain of hand sanitizers involves multiple interconnected stages like procurement of raw materials, manufacturing, packaging, storage, transportation to distribution channels and finally to consumers. This complex and lengthy supply chain process leads to high operational costs associated with it. Particularly during pandemic outbreaks, meeting surging demand poses challenges due to disruptions caused by lockdowns across regions. Additionally, maintaining consistent supply to meet changing demand levels during or post crisis periods requires agile planning which incurs additional costs. The high supply chain and distribution costs associated with hand sanitizers impact the pricing and limit market expansion to certain extent.
Raw material price volatility poses major challenge
Major raw materials used in the manufacturing of hand sanitizers include alcohol, glycerin, hydrogen peroxide, carbomer, etc. The prices of these key raw materials can experience significant volatility depending on several macroeconomic and geopolitical factors impacting supply. Particularly, the bulk prices of alcohol which is the major raw material have shown sharp fluctuations in recent times. Since alcohol forms a major part of total input cost for hand sanitizers, unstable raw material prices affect the operating margins and overall profitability of manufacturers. It also restricts their flexibility to target widening consumer segments with varying price points. The unpredictable raw material cost environment acts as a major restraint challenging stable growth of the hand sanitizer market.
Increasing e-commerce penetration expands accessible market
With improved internet and smartphone penetration, e-commerce has emerged as an important sales channel even for hygiene and personal care products. Online portals provide access to much wider set of consumers irrespective of their locations. They also offer attractive features like product comparisons, reviews, bulk orders, expedited deliveries, etc. benefiting both buyers and sellers. E-commerce opens newer opportunities for hand sanitizer companies to promote and sell customized products online for various needs like personal, commercial, B2B. It also helps optimize distribution reach in a cost-effective manner. The rising digitalization and uptake of e-commerce is expected to drive market growth as reachable consumer audience continues to expand over the coming years.
Growing demand from corporate and commercial sector presents new prospects
With the increased focus on hygiene and productivity in workplace, there is rising preference among corporate and commercial establishments like offices, airports, malls, hotels, and restaurants towards hand hygiene compliance. Many are installing sanitizer dispensers at common areas and high traffic zones. Growing demand from institutional buyers including hospitals and healthcare sector also presents a steady opportunity stream. Market players are innovating larger commercial packs of sanitizers with bundled offerings of dispensers and refills catering exclusively to such procurement needs. Overall, the increasing demand from non-residential sectors acts as a significant growth lever for the hand sanitizer market in future.
Link - https://www.coherentmarketinsights.com/market-insight/hand-sanitizer-market-5235
Key Developments
- In 2023, PURELL, a renowned name in hand hygiene, broadened its consumer product range by unveiling PURELL Foam Hand Sanitizer
- In 2022, Reckitt and Essity, two prominent players in the global hygiene and health industry, announced the launch of a range of co-branded disinfection products for professional hygiene
- In 2021, IRP (Innovative Research Products), a leading manufacturer of personal care products, launched a new hand sanitizer series to meet the growing demand for effective hand hygiene solutions
- In 2020, Cadila Pharmaceuticals, a leading pharmaceutical company based in India, launched a range of hand sanitizers to meet the growing demand for effective hygiene products during the COVID-19 pandemic
Key Players
Reckitt Benckiser Group plc, Procter and Gamble, The Himalaya Drug Company, GOJO Industries, Inc., Henkel AG and Company, Unilever, Vi-Jon, Chattem, Inc., Best Sanitizers, Inc., Kutol, Edgewell Personal Care, L Brands Inc., Unilever PLC, 3M Company, and Colgate-Palmolive Company
