The big detergent brands from the stable of Hindustan Unilever and Procter & Gamble either lost market share to regional and local brands or showed signs of fatigue. This is from the standpoint of market-share gains. The year wasn’t the very best either for Nirma — the original local challenger to the transnational detergents brands.
Data from market researcher Euromonitor show that homegrown detergent brands such as Ghari, smaller private labels, and other regional players together gained about 100 basis points (bps) in the Rs 20,000-crore laundry market that is still dominated by the Big Three above.
While the big three detergent brands still have a 60% share of the market, their dominance is slipping.
Hindustan Unilever, which sells the Surf Excel, Rin, and Wheel brands, is by far the market leader.
Having with nearly 39.6% in the laundry detergent segment. And the Mumbai-based giant has retained its share. RSPL, which owns the Ghari brand, has increased its share by 100 bps over the past five years.
With increasing penetration of washing machines and lower prices, laundry care consumers are shifting from bar detergents to powder detergents, a factor triggering growth for this category.
Compared with other categories the consumer’s behavior within home care, laundry care has the highest penetration rate.
Which is due to the increasing maturity of the segment. The projected growth for the forecast period is expected to remain lower at around 2% for the next five years.
However, with increasing penetration of washing machines and rising number of women in the workforce, the consumers are looking for faster methods of washing clothes. Hence, the market for powder detergents will expand at 4% a year to Rs 4,500 crore by 2021.