Indian fabric care category projected to achieve 7% growth, outpacing global market trends

The fabric care market in India is poised for robust growth, with projections indicating that it will surge from Rs 521 billion in 2022 to Rs 639 billion by 2025. According to a consumer research report by Mintel, liquid detergents are expected to play a dominant role in this market, driving not only its expansion but also leading in the introduction of new products.

Mintel's report also indicates that the Indian laundry care market is anticipated to experience a compound annual growth rate of over 7 percent. This growth trajectory is notably higher than the projected 4.28 percent growth for the global laundry care market between 2022 and 2027. A separate report from Technavio supports these observations, estimating that the global laundry care market will reach $23.85 billion by 2027.

Traditionally, powder detergents have been the preferred choice for fabric care in India. However, since 2019, the market has witnessed a shift with liquid formats gaining prominence. Mintel predicts that this trend will continue to shape India's fabric care sector in the foreseeable future.

Manoj Arora, Managing Director of Sacheerome—a manufacturer and supplier of fragrances and flavors—attributes this shift to a growing emphasis on maintaining a healthy lifestyle. Consumers are now seeking higher-quality detergents that not only clean their clothes but also offer mood-enhancing fragrances. Arora suggests that consumers are looking for a more holistic experience, seeking an emotional connection with the brands they choose.

The Covid-19 pandemic has significantly influenced consumer behavior. According to Mintel's research, consumers are more conscientious about the products they use, with a heightened focus on cleanliness and pleasant scents. This has translated into a preference for products that not only clean effectively but also provide a refreshing scent for their homes and clothes.

India has traditionally relied on handwashing, with powder detergents being the dominant category in the market. However, evolving cleaning practices and a desire for greater convenience have led to a shift in the fabric wash and care industry. Mintel highlights that this change has led to an increased adoption of washing machines across the country.

The Founder and Head of Marketing at UClean, Gunjan Taneja, emphasizes the growing significance of fragrance in consumer decision-making when it comes to laundry care. Taneja notes that consumers are increasingly environmentally conscious, seeking high-quality liquid detergents that align with their sustainability preferences.

A recent study by KPMG underscores the demand for sustainable cleaning solutions, with 76 percent of consumers making purchasing decisions based on a company's environmental efforts. While both powder and liquid detergents are utilized in washing machines, the liquid format is rapidly becoming a high-growth market. This trend is particularly pronounced in tier-1 locations, including metro cities, across India.

Hindustan Unilever (HUL) has achieved noteworthy success, with 19 of its brands entering the Rs1,000-crore turnover club. Notably, Surf Excel became the first home and personal care brand in India to surpass $1 billion in annual sales during FY23. HUL's home care liquids portfolio, encompassing fabric conditioners, liquid detergents, and dishwashers, achieved an annual turnover of over Rs 3,000 crore.

Homegrown direct-to-consumer (D2C) brands such as Hapiso and Volt are making strides in the market with innovative offerings that stand out from traditional products, including laundry pods. Tanya Rajani, Senior Analyst for Beauty and Personal Care at Mintel India, notes that prime purchasers, particularly Indian mothers, perceive powder detergents as having superior qualities. Rajani suggests that there is room to leverage claims related to fabric maintenance to attract consumers investing in premium clothing. Furthermore, innovation in new product formats holds potential to resonate with discerning consumers. These trends collectively shape the dynamic fabric care market in India.

With input from IANS