Home Care Market - Growth, Trends, Covid-19 Impact, and Forecasts (2023 - 2028)

Home Care Market - Growth, Trends, Covid-19 Impact, and Forecasts (2023 - 2028)

The home care market is projected to register a CAGR of 4.67% during the forecast period (2022-2027).

More time at home due to COVID-19 and related lockdown measures, the work-from-home scenario, and home quarantine created the need for hygiene with the added benefit of reducing the chance of infection, particularly in the frequent contact areas. With around 84% of consumers changing the way they clean their homes, players positioned their products to cope with the demand surge during the pandemic.

As consumers have become more conscious about personal and home hygiene after the COVID-19 outbreak, the demand for laundry care, surface care, and toilet care-related products, both personal and commercial, is expected to witness escalated growth.​In the recent past, online spending by consumers increased significantly, which boosted the online sales of household cleaners. Procter & Gamble, Henkel AG, Unilever, Church & Dwight, and Reckitt Benckiser Group are the leading players offering home care products globally.

With connected platforms, consumers are more informed and concerned about personal and environmental health. According to several studies, more than 20% of consumers globally prefer products with sustainable packaging made from recycled materials, leading to the demand for products with free-from claims over the medium term.

Hygiene is more than just cleanliness because cleanliness involves the removal of dirt, wastes, or unwanted things from the surface of objects using detergents and other necessary equipment. On the other hand, hygiene practices focus on preventing disease, with cleaning as one of the several methods. Earlier, despite a general awareness of its importance, hygiene consciousness among the masses in India was not too high. India's growing number of households and disposable income, and increased purchasing power for home care and home hygiene products, are driving the sales of home care products across the country’s residential sector. For instance, according to World Bank, the percentage of people using basic sanitation services in India increased from 59.85% in 2016 to 71.26% in 2020.

The adoption of a healthier lifestyle and the increasing concerns for hygiene are the key drivers for the home care market in North American countries, such as United States. The well-established real estate sector and household expenditure and the growth in housing units are directly related to home care sales in United States. For instance, as per the US Census Bureau, the number of housing units reached 140.8 million in 2020, from 135.58 million in 2016, contributing to the sales of home care products in United States at a significant scale. Vendors are introducing innovative products in terms of functionality, new ingredients, packaging, and fragrances. Consumer awareness and product knowledge about various home care products led to the introduction of high-performance and quality products. For instance, the rise in health consciousness among consumers about the prevalence of harmful diseases, such as diarrhea, led to an increase in the sales of toilet care products.

The home care market is highly fragmented. Key players in the market include Procter & Gamble, Unilever, Church & Dwight, Henkel AG & Co. KGaA, and Reckitt Benckiser Group PLC. Key players are focusing on online distribution channels for the online marketing and branding of their products to expand their geographic reach and increase their customer base. Leading manufacturers in the home care market are focusing on leveraging opportunities posed by the emerging markets of Asia-Pacific, like China and India, to expand their revenue base. Companies are differentiating their products in terms of functionalities, ingredients, prices, odors, packaging, and formats to gain a competitive advantage.

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