Rise in Disposable incomes
Organization of Economic Co-operation and Development (OECD) reports that the household disposable incomes across the world are increasing on account of rising consumerism and is expected to positively impact the personal hygiene products market.
Awareness towards Sanitation and Menstrual Hygiene
World Health Organization (WHO) reports that in 2017, over 432,000 deaths were believed to be caused by poor sanitation in low and middle income countries. Further, it states that improved sanitation can reduce the spread of tropical diseases like trachoma, diarrhoea which cause deaths every year. Improved sanitation also promote dignity and safety among women and girls and can help in improving school attendance. Menstrual hygiene is a topic which is surrounded by myths, stigma and is considered a taboo, however, it is important to understand and promote women welfare and empowerment. Programs such as Swachh Bharat Mission and distribution of disposable sanitary pads for women and girls were reported to improve the attendance rate in schools across India. The increasing awareness towards sanitation and menstrual hygiene is expected to drive the personal hygiene products market in the next few years.
COVID-19 and its aftermath
WHO as of May 10th 2020, reported 39, 17,366 confirmed cases and over 2, 74, 361 deaths globally due to the ongoing global pandemic. The role of hand sanitizers and other cleansing products in the battle against COVID-19 is proved vital by health care professionals across the world. As a result, the stockpiling of these products have skyrocketed the demand. Industry experts predict that products such as hand sanitizers, soaps and other cleansing products will have a significant demand globally over the next few months.
Technological Advancements
The product innovations and personalized packaging is an important factor for achieving a higher market growth. The packaging options such as recyclable sachets and tubes and a lower price are estimated to positively impact the personal hygiene products market.
Restraints
Effectiveness of Distribution Channels
The COVID’19 pandemic caused a disruption in the production and supply chain and thereby affected the sales of the personal hygiene products. Once the lockdown measures are lifted, the distribution channels will be re-established, however, lack of innovation in delivery systems, if not enhanced, is predicted to affect the sales of the personal hygiene products.
The increase in consumerism on account of higher disposable incomes and the importance of self-cleanliness during the COVID-19 global pandemic are some of the factors that are estimated to result in the market growth by a significant CAGR over the forecast period of 2020-2028. The focus of governments and UN agencies to promote awareness about sanitation, menstrual hygiene are further predicted to contribute to the market growth.
The personal hygiene products market is segmented by product, by application, by end user, by distribution channel and by region. Based on the distribution channel, the market is further bifurcated into online and offline channels. Among these segments, the offline segment accounted for the largest revenue generating segment in 2019 owing to the availability of various buying options pertaining to retail stores and brands as per consumer preferences.
Our in-depth analysis of the personal hygiene products market includes the following segments:
By Product
By Application
By Distribution Channel
By End User
By Region
On the basis of regional analysis, the personal hygiene products market is segmented into five major regions including North America, Europe, Asia Pacific, Latin America and Middle East & Africa region. The market in North America is anticipated to hold the largest share in the market on account of presence of leading market players in the region which are responsible for manufacturing and marketing the personal hygiene products. Higher disposable incomes, brand awareness and effective distribution channels are further predicted to result in the largest market share. The market in Asia Pacific region is estimated to grow at the highest rate during the forecast period as a result of rising female population in countries like India and China, as well as increasing awareness towards sanitation and increase in government spending on sanitation.
The personal hygiene products market is further classified on the basis of region as follows:
On April 17, 2020, P&G announced that it registered a 5% increase in sales as the global COVID-19 pandemic boosted consumer demand for products in healthcare, fabricare and homecare categories.
In 2023, market players might incur losses due to huge gap in currency translation followed by contracting revenues, shrinking profit margins & cost pressure on logistics and supply chain.
Controlling Inflation has become the first priority for global economies from last quarter of 2022 and to be followed in 2023. With skewed economic situations, rise in interest rate by governments to control spending and inflation, spiked oil and gas prices, high inflation, geo-political issues including U.S. & China trade war, Russia-Ukraine conflict to intensify the global economic issues.
The interest rates in the U.S. may be less sensitive in 2023 as compared to 2022; sigh of relief for businesses. Positive business sentiments, healthy business balance sheets, growth in construction spending (private construction value in 2022 stood at $1,429.2 billion, 11.7 percent (±1.0 percent) above the $1,279.5 billion spent in 2021, Residential construction in 2022 was $899.1 billion, up by 13.3 percent (±2.1 percent) from $793.7 billion in 2021, non-residential construction touched $530.1 billion, 9.1 percent (±1.0 percent) above the $485.8 billion in 2021.) showcases minimal impact of recession in the country.
Similarly, spiked spending in the European and major Asia economics including, India, China & Japan to showcase less impact on the global demand.
Author Credits: Radhika Gupta, Shivam Bhutani
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