Global Sodium Lauryl Sulfate Market - 2024-2031

Global Sodium Lauryl Sulfate Market - 2024-2031

Global Sodium Lauryl Sulfate reached US$ 673.3 million in 2023 and is expected to reach US$ 935.7 million by 2031, growing with a CAGR of 4.2% during the forecast period 2024-2031.

The growing rates of washing machine ownership in developing countries would augment well for the growth of the global sodium lauryl sulfate (SLS) market. Already consumers in developing markets are moving away from powdered to liquid detergents and cleaners. Over time, such trends are becoming more prominent.

A slew of recent studies that point to potentially carcinogenic properties of sodium lauryl sulfate could cause a potential slowdown in market growth in the future. If a serious link is found between SLS and cancer, then health authorities could move to swiftly limit or outright ban its usage across various industries. Such a prospect would be highly detrimental to the global market.

Dynamics

Rising Demand for Cleaning Products in Emerging Markets

Since detergent demand has saturated in developed markets, emerging nations remain the sole promise of major growth for multinational FMCG companies. Per capita consumption of detergent in India is only 2.7kg, as compared to nearly 10kg in U.S. For the foreseeable future, emerging markets will remain the major source of demand for sodium lauryl sulfate.

Despite the inherent promise of growth, the market has been characterized by intense competition among the major players. In a recent instance, Unilever slashed prices of its detergent products in India to improve Q4 sales for 2023 and competitive in face of stiff competition from cheaper, local players. Volume growth for detergent and household cleaning products in rural India has remained relatively stagnant in the post pandemic period.

Growing Demand for Premium Personal Care Products

As more and more consumers in emerging market move towards middle class status, their spending on personal care products increases since they prefer slightly premium products. The challenge faced by FMCG companies is to attract this newly emerged middle class towards premium offerings without discouraging them with steep prices.

One trick that companies have figured out is to utilize natural ingredients which gives the product a more premium appearance. At the same time, sodium lauryl sulfate is used for formulating the product base, which keeps the overall costs down. By combining natural herbal extracts with SLS, FMCG companies can offer premium products at more economical prices, thus increasing their reach among new consumer demographics.

Volatility in Global Commodity Prices

Since sodium lauryl sulfate is mostly derived from palm kernel, coconut or petroleum oil, volatility in commodity prices has a huge impact on the production of SLS. A sharp upswing in oil prices creates significant pricing pressure on producers. Similarly, a drop in global oil prices floods the market with cheaper input materials, leading to overproduction and a crash in prices of SLS.

Even if producers decide to use more eco-friendly options like palm kernel and coconut oil, it still does not exempt it from the volatility in prices. In fact, crop production and adverse weather events have a disproportionately high impact on plant-based oil prices. Such extremely volatility in oil prices will discourage SLS producers from long-term planning and will be ultimately detrimental to the overall growth of the global market.

Segment Analysis

The global sodium lauryl sulfate market is segmented based on type, production method, application and region.

Due to Cost Constraints, Inorganic-based Product Method is Preferred

Given the fact that most of the detergent and household cleaners are mass-market, high volume and low margin products, producers are incentivized to keep raw material costs as low as possible. Therefore, most of the high-volume producers prefer sodium lauryl sulfate produced by inorganic method from petroleum oil.

Comparatively speaking, SLS produced from palm kernel and coconut oil has relatively higher input cost. For mass market producers, were competition is cut throat, even a tiny increase in input costs can magnify through the value chain, causing the company to lose market share. SLS produced from organic sources is mostly preferred by manufacturers of premium cleaning products.

Geographical Penetration

Asia-Pacific Will Continue to Reign Supreme in the Global Market

A rapid growth in middle-income population in fast-developing economies like India, Indonesia, Thailand and Vietnam is what attracts multinational FMCG players to expand their operations in the region. Each market has its own unique dynamic that influences demand. For instance, in Indonesia, consumers like innovation in their detergent products, but are unwilling to pay more. Hence, companies offer bundles and discounts to entice buyers.

Many companies also noted the increasing sophisticated among Chinese consumers, who tended to prefer more premium cleaning products with natural ingredients. One unique aspect of the Chinese market was the fact that despite increasing raw material costs, detergent prices remained more or less stable. Many industry analysts believe that the high penetration of e-commerce sales (about 32% in China) and growth of budget friendly stores like Pingduoduo is creating downward pressure on prices.

COVID-19 Impact Analysis

A new growth avenue was opened for detergent and cleaning liquid manufacturers as the pandemic created heightened awareness about sanitation. The FMCG industry witnessed a hitherto unprecedented rise in demand, leading some analysts to term it as a ‘once-in-a-century’ type of market. Large-scale producers, holding high amount of inventory were able to ride out any disruptions due to supply chain problems.

Even as excessive demand tapered off after 2020, it still remained steady throughout most of 2021 and early 2022. Producers took advantage of the situation to increase their distribution networks and deepen trade ties with the FMCG sector. Even in the post-pandemic period, the market will continue to witness steady growth.

Russia-Ukraine War Impact Analysis

The most devastating impact of the Russia-Ukraine war was felt by the Russian FMCG market as western chemical producers wound up their operations due to economic sanctions. For local detergent and personal care manufacturers, the shortfall of SLS supplies forced them to raise prices by as much as 30% over the course of a few months.

The Russian government had to step in and institute price control measures to bring down escalating costs for consumers. The government had to devise a long-term plan for sourcing sodium lauryl sulfate from Chinese suppliers to stabilize the Russian market. As long as western sanctions remain in place, the Russian market demand for SLS will remain volatile.

By Type
• Liquid
• Dry

By Production Method
• Inorganic-based
• Organic-based

By Application
• Dishwashing Liquids
• Household Detergents and Cleaners
• Industrial Cleaners
• Personal Care Products
• Others

By Region
• North America
U.S.
Canada
Mexico
• Europe
Germany
UK
France
Italy
Spain
Rest of Europe
• South America
Brazil
Argentina
Rest of South America
• Asia-Pacific
China
India
Japan
Australia
Rest of Asia-Pacific
• Middle East and Africa

Key Developments
• In January 2023, a study was published by a team of researchers from University of Patras in Greece, outlining the environmental impact of sodium lauryl sulfate on marine life. The study found that exposure to SLS can upset the balance of the marine ecosystem.
• In March 2024, Odele, a U.S.-based manufacturer of premium personal care products launched a new volumizing shampoo free from sodium lauryl sulfate.

Competitive Landscape

The major global players in the market include Acme Hardesty, BASF SE, Clariant, Solvay SA, Merck KGaA, Huntsman International LLC, Chemmax Chemical Co. Limited, ChemCeed, Alpha Chemicals Private Limited and Stepan Company.

Why Purchase the Report?
• To visualize the global sodium lauryl sulfate market segmentation based on type, production method, application and region, as well as understand key commercial assets and players.
• Identify commercial opportunities by analyzing trends and co-development.
• Excel data sheet with numerous data points of pouch tapes market-level with all segments.
• PDF report consists of a comprehensive analysis after exhaustive qualitative interviews and an in-depth study.
• Product mapping available as excel consisting of key products of all the major players.

The global sodium lauryl sulfate market report would provide approximately 58 tables, 52 figures and 185 Pages.

Target Audience 2024
• Detergent Manufacturers
• Personal Care Product Manufacturers
• Chemical Manufacturers
• Industry Investors/Investment Bankers
• Research Professionals