Liquid detergent gains penetration in India even as handwash declines

Tide laundry detergent is shown on display in Compton, California, U.S., January 10, 2017. REUTERS/Mike Blake - RC17C51DE640

Liquid detergents have gained penetration in India even as handwashes, a liquid product that became popular during the pandemic, see a decline in usage. According to data from market research firm Kantar, detergent liquids had a penetration of 15.9 percent in July 2021 on MAT (moving annual total basis), which further went up to 19.8 percent in July 2022 on MAT basis.

Companies such as Hindustan Unilever (HUL) and Procter & Gamble offer liquid detergents under their brands popular detergent brands Surf Excel and Ariel, respectively. P&G’s Tide and Godrej Consumer Products’ Genteel are other brands present in the category.

HUL’s chief financial officer and executive director, finance and IT, Ritesh Tiwari while addressing a post-earnings investor call in July shared that liquid detergents have emerged as a strong contributor to the growth and market development in the home care category.

Overall, as per Kantar, liquid detergents clocked 40 percent growth in July 2021-July 2022 period on a MAT basis. It is to be noted that the category is still nascent and way behind detergent powders, which command 97 percent sales volumes as compared to 3 percent by detergent liquids.

According to Kantar, other liquid FMCG product categories such as liquid dish wash and face wash have also witnessed growth in the country. Between MAT July 2021 and MAT July 2022, face wash added 12 percent additional households and dish wash liquids added 6 percent additional households.

Handwash, meanwhile, lost 24 percent of its households on a MAT basis between July 2021 to July 2022. Sales of handwash products in India have been declining with a decline in COVID-19 cases. The share of consumers using handwashes had skyrocketed to 35.3 percent of its total estimated market in January 2021 on a moving annual total (MAT) basis, but dropped to 23.7 percent in January 2022, when the country grappled with a third but less severe wave of COVID-19, according to data from Kantar.

The firm, however, adds that this trend in handwash reflects the correction of artificial growth led by the pandemic and when tracked including the pre-Covid period — between July 2019 and July 2022 — the handwash category grew by 14 percent.

The top companies operating in the handwash segment such as Reckitt (Dettol), ITC (Savlon), HUL (Lifebuoy), and Godrej Consumer Products (Godrej Protekt Mr. Magic) have rushed to stem the decline in penetration by launching innovative products such as powder to handwash. The product comes in powder form in sachets and is priced as low as Rs 10 (for most brands) and can be used to refill an entire handwash bottle. The pricing makes the product accessible to the masses and is an attempt to drive the penetration of the product across the country.

For instance, one Savlon Powder Handwash sachet claims ITC makes 200 ml liquid handwash that provides more than 120 washes. In comparison, a 200 ml refill pack of Savlon Handwash liquid is priced at Rs 69 and that of its competitor Dettol costs Rs 47.

While brands such as Godrej Consumer Products (GCPL) and ITC were the first to launch the product, recently even Reckitt and HUL have joined the bandwagon.

GCPL earlier in July launched a similar product for body wash in India under its brand Godrej Magic Bodywash. The product is an attempt by the company to drive the penetration of body wash in the country, said GCPL’s MD and CEO Sudhir Sitapati during the launch.