Demand for Hand Sanitizer During COVID-19 Pandemic

Hand sanitizer is an antiseptic solution composed of ethyl or isopropyl alcohol and hydrogen peroxide mixed with fragrance, water and glycerine. The antimicrobial agents help to kill or permanently inactivate common pathogens such as bacteria and fungi. It has a self-drying formulation and hence is best used as an alternative to soap and water. It is used to prevent the transmission of infection, which is majorly caused through hand transmission, further causing several diseases such as nosocomial food-borne illness and others. Studies suggest that using Hand sanitizers also reduces the risk of gastrointestinal and respiratory infections. Increasing living standards and increase in Health expenditure with a solid support from the WHO and FDA have added to the surge in the demand for Hand sanitizers. For instance, organizational initiatives such as First Global Patient Safety Challenge by World Health Organization (WHO) promotes 'clean care is safer care' to spread awareness about basic hand hygiene across the world.

The global market for Hand Sanitizers is valued at USD 2.6 billion in 2018 and the market is estimated to register a CAGR of 39% during the forecast period (2019-2025). The hand sanitizer market has witnessed a quantum leap in growth, propelled in bulk by the Corona virus outbreak that began in Wuhan, China in 2019.The Hand Sanitizer Market is segmented by Product Type, Distribution Channel, End use and by Geography.

By Product type the market can be segmented into Gel, foam, spray, liquid and sanitizing wipes. The Gel segment generated the maximum revenue in 2018 with the market share of 49.4%. Inclusion of different flavours of gel-based sanitizers has also been a key driver, for instance Himalaya Wellness in 2017 launched sanitizers available in fruits flavours including strawberry, green apple, litchi and orange. However, foam-based hand sanitizers are expected to grow at a higher rate and register the fastest CAGR of 13.0 % between 2019 and 2025, owing to the fact that it penetrates into the skin and stays for a longer period of time. Foam pumps are generally smaller and provide greater convenience of handling. For instance, in April 2018, Arrow Solutions has launched KR10 Hand Sanitizer Foam, which is an alcohol-free foam sanitizer designed for frequent use.

By Distribution Channel the market can be segmented into Hypermarket/Supermarket, online Store, Convenience Store, Pharmacy Store and Others. Of this Hypermarket and supermarket accounted for the largest market share of 39.4%. This channel was driven by the growing number hypermarkets and supermarkets across regions which provide quick access to the product and it also enables the consumer with the advantage of physically scanning the product before making a buy. Online Channel of distribution is close with a projected CAGR of 13.1% between 2019-2025 owing the increase in digital marketing by top players, increase in penetration of mobile phones, easy payment options and attractive discounts made available as compared to offline options. India, China, Mexico, and Brazil have fuelled the growth of the segment. Moreover, online retailers including Amazon, Walmart, Alibaba, and other such service providers are adding to this category as a main focus area. The key players profiled in the report are Reckitt Benckiser Group, The Himalaya Drug Company, Procter and Gamble, Gojo Industry Inc., Henkel Corporation, Unilever, Vi-Jon Laboratories Inc., Chattem Inc., Best Sanitizers Inc., and Kutol Products Company. These companies also operate in the hospital disinfectant products market.

By end use, the market can be segmented into domestic/household, healthcare, educational institutions, restaurants, public and private organizations and others domestic/household segment is projected to be the fastest growing segment with a CAGR of 9.38% during the forecast period 2019-2025. This is owing to rising awareness among domestic consumers on the need of sanitizing to reduce the risk of diseases. There has been a shift in the use of these products from industrial application to household use.

By geography the market is dominated by North America accounting for a share of 32.2% in 2018. Growing concerns over health and hygiene maintenance by majority of the population in the region is expected to boost the market growth. Wider product availability, along with increased penetration of online as well as offline channels is a key factor driving the market in the region. Asia Pacific is expected to register the fastest CAGR of 13.3% from 2019 to 2025.

A few notable changes as such as the DIY Hand sanitizers and the shift towards organic and environment friendly hand sanitizers can disrupt the global markets. But above all the top manufactures have been pressurized by the FDA to submit data regarding the long-term impact of hand sanitizers, particularly hormonal effects and the contribution to anti-biotic resistant bacteria. These will establish the safety of these hand sanitizers and will help in regulating the chemicals being used in hand sanitizers.

Data Sources: Online Interview of John D'Souza (Market Decipher Analyst)