India Soap Market Report and Forecast 2024-2032

India Soap Market Size

The market size of soap industry in India was approximately USD 3.77 billion in 2023. The market is projected to grow at a CAGR of 6.8% between 2024 and 2032, to reach USD 6.8 billion by 2032.

India Soap Market Outlook

• Premium soap bars (skin protection) and liquid body wash remain more urban-centric categories in India.

• As per the analysis of growth in India soap market, Herbal soaps, composed of essential oils and organic ingredients, are witnessing a surge in popularity due to the growing inclination towards natural products.

• HUL, with its key brands like Lifebuoy, Lux, Dove and Pears, dominates the Indian soap market, while Wipro (Santoor) and Patanjali are some popular names in the natural segment.

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India Soap Market Overview

Soap is a salt of fatty acids in the form of a solid shape that is used as a surfactant for washing, bathing, and cleansing. Soaps can be made from natural plant oils or acids derived from animal fat and they can kill microorganisms such as any bacteria during the cleaning process. Soap functions as a thickener in industrial settings, an element in the composition of lubricants, and as a precursor to catalysts. In addition, they are also used in industrial applications, for instance, in laundry and carpet cleaning and cleaning automobiles.

With the rampant spread of the COVID-19 virus in 2020, consumers exceedingly invested in disinfectant soaps, such as Dettol and Lifebuoy, thus, propelling the growth of the India soap market. For instance, according to the Economic Times report, dated July 2020, Dettol Soap, a well-known bathing soap with antibacterial properties, became the largest-selling soap brand in India, which was the direct fallout of the Covid-19 pandemic. This growth is expected to continue in the forecast period due to the increased risk of virus resurgence in the country. In addition, the rising health awareness and the growing consciousness regarding sanitation and hygiene, especially among the rural population, are anticipated to propel the market growth in the forecast period.

Recent Developments and Challenges

Growing awareness regarding personal hygiene, demand for premium soaps; growing shift towards natural, sustainable, and ethically sourced products; and growth of the e-commerce sector are the major trends impacting the market.

India Soap Market Trends

One of the crucial trends in the market is the rising popularity of eco-friendly soap as well as soap brands that follow ethical practices. Packaging made of ethically sourced papers, recycled papers, and recycled plastics, which is part of the circular economy and minimises environmental waste is gaining popularity. The rising demand for cruelty-free soaps which does not partake in animal cruelty and promote animal welfare also boosts India soap demand.

Moreover, brands are continuously focusing on product development and new launches to cater to the evolving demands of consumers. In June 2023, Piramal Pharma Limited's Consumer Products Division (CPD) launched Tetmosol Icy Cool, which claims to reduce the body temperature by 6 degrees Celsius and prevent skin conditions such as itching and rashes that are prevalent in summer. This doctor-recommended brand has enhanced its presence in India and is available in around 3.33 lakh chemist stores.

Industry Outlook

The Bureau of Indian Standards (BIS) classifies soaps into two categories: toilet soaps, which make up 85% of the market, and beauty soaps, accounting for 15% of the soap industry in India. FMCG companies, however, categorize the Indian soaps market into four segments: Freshness and beauty soaps (50%) such as Lux, Santoor, Cinthol, and Godrej No.1; Health soaps (25%) like Dettol and Lifebuoy; Skin protection soaps (15%) including Pears, Dove, and Fiama Di Wills; and Natural soaps (10%) such as Hamam, Margo, and Patanjali. This segmentation reflects consumer preferences for various soap benefits ranging from basic hygiene to premium skin protection and natural ingredients.

According to ITC Trademap, in 2023, India imported a total of 116,916 tons of soap from various countries, which boosted the growth of the India soap industry. The largest quantity came from Indonesia, contributing 84,980 tons. Malaysia followed with 24,334 tons. Other significant exporters of soap to India included Germany with 1,445 tons, the United States with 1,520 tons, and the United Arab Emirates with 2,320 tons. The United Kingdom and Bangladesh exported 429 tons and 378 tons respectively. Thailand contributed 498 tons, while South Korea sent 274 tons. Smaller quantities were imported from Canada (80 tons), Saudi Arabia (127 tons), the Netherlands (81 tons), and China (164 tons) which increased India soap market revenue.

Factors Contributing to the Growth of the Soap Market in India

• Expansion of the retail sector, including supermarkets and e-commerce, improves product accessibility.

• Increasing urbanization leads to higher demand for personal care products and influences India soap demand forecast.

• Innovative product offerings, such as herbal and organic soaps, attract health-conscious consumers.

• Aggressive marketing and advertising campaigns by soap manufacturers enhance brand visibility.

• Increasing penetration of international soap brands in the Indian market.

Challenges Faced by Manufacturers in the India Soap Market

• Intense competition from numerous local and international brands pressures pricing and margins.

• Volatile raw material costs, particularly oils and fragrances, affect profitability and India soap demand growth.

• Counterfeit and low-quality products undermine brand trust and market share. 

• Environmental concerns and sustainability issues in soap production and packaging.

• Changing consumer preferences towards natural and organic products require continual product innovation.

Key Growth Opportunities in the India Soap Market

• Expansion into rural markets with tailored product offerings to meet diverse needs.

• Leveraging e-commerce platforms to increase reach and sales, particularly among younger demographics increases India soap market opportunities.

• Partnerships with healthcare and wellness brands to emphasize the benefits of hygiene.

• Exploring export opportunities to neighbouring countries and emerging markets.

• Development and promotion of herbal and organic soaps to attract health-conscious consumers.

Key Indicators of Prices in the India Soap Market

• Supply chain efficiency and logistics costs influence overall product costs.

• Production costs, including labour, energy, and packaging, impact final pricing and demand of India soap market.

• Promotional expenses and marketing costs influence retail prices.

• Government taxes and regulatory compliance costs can affect pricing structures.

• Raw material costs, particularly oils and fragrances, significantly influence soap prices.

Key Indicators of Demand in the India Soap Market

• Increasing population growth boosts overall soap consumption and India soap market value.

• Advertising and promotional activities by soap manufacturers increase consumer awareness and demand.

• Rising awareness of personal hygiene and health drives demand.

• Introduction of new and innovative soap products attracts consumer interest.

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India Soap Industry Segmentation

“India Soap Market Report and Forecast 2024-2032” offers a detailed analysis of the market based on the following segments:

India Soap Market Share

Conventional soap holds the majority of the market share due to its high accessibility and affordable pricing

Based on type, conventional soaps account for a major share of the India soap market due to its widespread availability across the country. It is available in almost all retail shops and online stores within an affordable price range, which enhances its appeal among customers. Moreover, it is available in a wide range of fragrances and formulations which is another crucial factor boosting the segment growth.

As per the India soap market dynamics and trends, the organic segment is predicted to grow considerably in the forecast period. This growth can be attributed to the increased preference for organic products among consumers. In addition, benefits associated with organic soaps, such as the use of natural elements and little to no use of chemicals are also significant factors contributing to the segment growth. In addition, increased demand for paraben-free soaps with skin-friendly and antibacterial properties is further aiding the market growth.

Solid soaps maintain their dominance in the Indian market due to their high acceptance and long-lasting nature

On the basis of form, the solid segment is anticipated to occupy a substantial soap market share in India. This can be attributed to the affordability of solid bar soaps compared to their liquid counterpart as well as sale strategies such as buy-3-get-1 offers, which attract consumers to go for bar soaps. Moreover, bar soaps last for a longer period of time compared to liquid soaps, offer an eco-efficient solution, and are packaged in environmentally friendly packaging such as paper, boosting its appeal in the Indian market.

Meanwhile, liquid soaps are steadily gaining prominence especially in terms of kitchen care products, wherein liquid soaps are proving to be a durable and mess-free option. They also serve as a hygienic option for soap sharing as they are available in pump bottles and dispensers, which require minimal direct contact.

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Competitive Landscape

The market leader in soap industry in India are launching new products to meet evolving customer demands and are increasingly investing in product marketing and social media campaigns to create brand awareness

Other soap companies in India are Procter & Gamble Hygiene and Health Care, Wipro Enterprises (P) Ltd, Reckitt Benckiser (India) Pvt. Ltd., Jyothy Labs Limited, Patanjali Ayurved Limited, Cholayil Pvt. Ltd., Karnataka Soaps and Detergents Limited, Baldha Industries Private Limited, and Ivory Soap Works Ltd., among others.

Key Highlights of the Report

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India Soap Market Report Snapshots

India Soap Market Size

India Soap Market Trends

India Soap Market Share

India Soap Companies