April 20, 2024
Homecare Ingredients Market

The Global Homecare Ingredients Market Is Driven By Increasing Demand For Green Formulations

Homecare ingredients such as surfactants, builders, enzyme modifiers, and solvents are widely used in the production of cleaning and hygiene products. These ingredients help remove dirt, grease, and other contaminants from home surfaces and fabrics efficiently. They also improve the efficacy and effectiveness of cleaning formulations. The global demand for green homecare products is increasing rapidly owing to rising environmental concern among consumers. Many leading brands are opting for plant-derived, bio-based, and organic ingredients to manufacture sustainable cleaning products. Natural ingredients offer comparable performance to synthetic ones and are easily biodegradable.

The global Homecare Ingredients Market is estimated to be valued at US$ 22 billion in 2024 and is expected to exhibit a CAGR of 4.5% over the forecast period 2024 to 2031, as highlighted in a new report published by Coherent Market Insights.

Market key trends

Increasing demand for eco-friendly products: Due to the growing environmental awareness among consumers globally, there is increasing preference for ‘green’ products which have lower environmental impact. This has prompted homecare product manufacturers to opt for more sustainable ingredients derived from natural sources such as plant oils and essential oils. Many leading brands are also introducing bio-based formulations made using biodegradable and recyclable materials.

Innovation in formulations: Manufacturers are focused on innovations in formulations by developing newer blends of homecare ingredients to deliver enhanced multi-purpose effectiveness. For instance, combining surfactants, enzyme modifiers, and green solvents help create 2-in-1 or 3-in-1 products for multiple cleaning tasks. Novel delivery systems are also designed for prolonged freshness and easier application. Continuous R&D is supporting product differentiation in the market.

Porter’s Analysis

Threat of new entrants: Low economies of scale in the ingredients industry pose a low threat of new entrants. However, stringent regulations pose a barrier to entry.
Bargaining power of buyers: Large buyers such as manufacturers have strong bargaining power against ingredient suppliers due to their sizeable demand.
Bargaining power of suppliers: The ingredients industry is highly fragmented, giving suppliers low bargaining power against buyers.
Threat of new substitutes: Substitute ingredients are available for functions such as thickening or fragrances. However, formulation expertise maintains customer loyalty.
Competitive rivalry: The homecare ingredients market is competitive with many global and regional players. Product differentiation is low.

Key Takeaways

The Global Homecare Ingredients Market Demand is expected to witness high growth.

Regional analysis:The Asia Pacific region is expected to dominate the homecare ingredients market owing to increasing disposable income, growing population, and rapid urbanization in developing countries such as India and China. These factors are driving demand for homecare products and subsequently homecare ingredients in the region.

Key players operating in the homecare ingredients market are Archer Daniels Midland Company, BASF SE, Clariant, Croda International, DowDuPont, Huntsman International, Solvay S.A, Evonik Industries, and Stepan Company.

*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it