The market for detergents and cleaning products - Spain

1.2 World Market

global market share.

Globally, the markets for detergents and cleaning products are dominated by Asia, Europe and North America. However, these are different markets. The Asian market is emerging and should expand due to mass consumption. On the other hand, the European and North American markets are more developed, although they will also expand due to the growth of more environmentally friendly products and the consequences of covid.

Global market share of the detergents and cleaning products market World, ****, % Source: ****

Global turnover.

Global turnover is estimated at $***.* billion in ****. With a CAGR of *.*%, the market is expected to grow to $*** billion by ****[***]. Covid and the massification of consumption in Asia are key elements to understand this growth.

Global turnover World, ****, $ billions, $ Source: ****

1.3 European market

In ****, the European market for detergents and cleaning products was worth a total of **.* billion euros. **.** % of this came from the consumer hygiene consumer hygiene while the remaining **.**% came **.**% came from the professional professional hygiene. This turnover decreased by **.**% between **** and ****. This is explained by the fact that **** was an extraordinary year in which sales were boosted by the covid ** scare. However, it can be seen that covid is still having an impact on the market in ****. The pandemic did indeed have several impacts psychological impacts that are still affecting citizens as shown by the segmentation between consumer and professional hygiene products; while the value of the professional hygiene market collapsed between **** and **** (***) stated in **** that theindustry had *** factories throughout Europe with **,*** direct jobs and ***,*** jobs throughout the value chain.

The following graph shows the global distribution of the European detergents and cleaning products market shares.

Detergents market shares Spain, ****, % Source: ****

Hygiene at the consumer's destination

Consumer hygiene corresponds to the sector that includes all consumer cleaning products and detergents. Between **** and ****, the turnover of dishwashing products, surface cleaning products and cleaning products will increase by *.*%, *% and *.*%, respectively. In contrast, there was a slight decline in bleach products (***). The entire sector ...

1.4 Domestic Market

The detergents and cleaning products market grew from **** to ****. A CAGR of *.**% can be calculated over this period and turnover also increased by **.**%. The year **** was an exception for the sector with a decrease in turnover of *.**% between **** and ****. However, we see that the sector resisted well to the covid crisis and had a new impulse with this one. Indeed, there was an increase in turnover in ****, and even if the figures for **** do not count the month of December, an amplification of the sector is estimated as well.

Evolution of market turnover Spain, ****-****, Billions, €. Source: ****

We do not have the figure to analyze the segmentation of the Spanish market. However, it can be thought that market shares have in Spain a level comparable to what can be found throughout Europe.

1.5 Foreign trade

A surplus sector.

The following figures come from official UN cometrade data, concerning the product category "Organic surfactants other than soaps, surface-active preparations, washing preparations and cleaning preparations" (***).

Spain is a producer and exporter of detergents and cleaning products. As can be seen in the following graph, Spain has always had a trade surplus in this sector. That surplus continued to increase from **** to **** thanks to an increase in exports (***). The year **** marked a turning point for the Spanish industry. If there was indeed a stagnation of exports between **** and ****, the year covid created a boost for the sector.

Evolution of Spanish foreign trade Spain and the World, ****-****, million €. Source: ****

Spanish imports.

The following graph clarifies the origins of Spanish imports , showing that Spain trades mainly with its European partners. Most of the country's imports come from Germany(***). These three countries then account for **.**% of total Spanish imports.

origins of imports Spain, ****, % Source: ****

Spanish exports.

The French, Portuguese and German markets are the markets with the most opportunities for the Spanish sector, representing**.**%, **.**% and **.**% of Spanish exports. The **.**% of Spanish exports to "the rest of the world" also show that Spain has a certain competitiveness in the sector by exporting ...

2.1 Consumption behavior

It is important for Spaniards to consume cleaning products. A Deloitte study done in **** highlights some key points:

Cleaning products appear as the second most important item that Spaniards want to keep, with **% of Spaniards likely to spend on these products in the * weeks . The following graph presents in **** the net propensity to spend by product category in the next * weeks in a survey conducted by Deloitte. It appears, however, that clothing care products suffer from a *% decrease.

Net propensity to spend by category, in the next * weeks Spain, ****, % of respondents

With **% of Spaniards preferring to buy cleaning products in a physical store, the graph below shows the response to the question "How do you plan to buy each of the following items over the next four weeks?"It stands out that, contrary to the national average , the propensity to buy in a physical place is higher.

Shopping channels according to the question "How do you plan to buy each of the following items over the next four weeks?" Spain, ****, % Source: ****

Regarding the brand, **% would buy branded products and **% would buy local products . The graph below compares the data for Spain with France and Italy. It can be seen that Spaniards ...

2.2 Consumer trends in the cleaning and detergent sector

Spanish consumers have matched pre-covid drugstore purchases with ** occasions per year. The average purchase ticket was €*.** per purchase. However, the rise in the cost of supplies in **** and inflation will have an impact on Spaniards.

It is noticeable :

A *% drop in the turnover of household cleaning products compared to ****. A *.*% decrease in the turnover of laundry care.

Evolution of the Spanish market for the purchase of cleaning and laundry care products Spain, ****-****, % Source: ****

A change of habits with a substitution of the purchase of detergents (***) towards a purchase of fabric softeners although it has also decreased by *.*%. Increase of *.*% in the purchase of fragrance enhancers.

Evolution of the Spanish market for the purchase of detergents, fabric softeners and fragrance enhancers. Spain, ****-****, % Source: ****

a decrease in the use of washing machines with an average of three per week. They are **% of Spaniards who claim to put fewer washing machines, and are twice less the use of the washing machine per month. This evolution is also due to the fact that **% of Spanish households now have awashing machine with a higher capacity of between *kg and *kg.

The white brand is something for which the Spaniards opt, **.*% of them use it ...

2.3 Trends

A DIY (***) trend.

In Spain, there is a DIY trend that touches consumers who want to limit their CO* emissions, produce locally without spending a lot of money [***]

The demand for professional cleaning.

The crisis of the covid had as consequence the modification of the perception of the cleaning to the work. If there was during the crisis a decrease in turnover due to the closure of offices, the public sector and the need to clean these spaces fueled a new demand. The sector knew a turnover extension of *.*% between **** and ****, with a higher turnover than in ****. With these new needs to clean and disinfect these new spaces and the return to the office, this sector then triggers the demand for cleaning products.

3.1 Production

how are detergents produced ?

To produce detergents, the following stages are to be highlighted:

Research and development phase in laboratories to elaborate the products. Production phase in factories. The raw materials used are synthetic surfactants (***) although the industry wants to develop more sustainable products. Sales phase.

The following value chain can then be formed for the consumer hygiene sector:

The Spanish market :

In ****, there were *** companies in the sector "Manufacture of soaps, detergents and other cleaning and polishing articles"[***].

3.2 A market dominated by large groups

The detergents and cleaning products market is dominated in Spain by brands owned by * multinationals: Henkel, Reckitt, Unilever and Procter & Gamble. In addition, there are the private labels of supermarkets such as Al Campo or Mercadona and also ofSpanish groups such as Asevi or Persán. It is therefore a highly competitive market with brands belonging to large groups. The number of players is large and this leads to price competition. Large groups have an advantage in competition because they can easily share the fixed costs of their production lines. It also seems difficult for new players to integrate this market. The psychological factor, whose well-established brands benefit, forms a barrier to market entry.

Source: ****

Source: ****

Source: ****

Source: ****

Spanish groups :

The Spanish market also has Spanish groups. The Sevillian group Persán appears as one of the leaders in the Spanish market. It had a turnover growth of **% between **** and **** and realized a net profit of ** million euros in ****, with a turnover (***) of *** million euros. The group had already knowna revenue growth of **% between **** and **** during the pandemic. [***]

The following list presents the Spanish detergent and cleaning products groups producing in Spain :

Persan : with its brands Flota, san and puntomatic. La ...

3.3 Distribution

The majority of purchases are made in physical locations (***), and the Internet accounts for only *.*% of purchases[***] Also, sales of detergents are made in large supermarkets, drugstores and supermarkets.

Private label brands.

The following table presents the market shares of distributors in Spain in ****. Although we do not have the market shares for private label detergents, these figures are still interesting to get an idea of which are the preferred private label brands of Spaniards, taking into account that **.*% of Spaniards prefer private label brands to other brands.

Source: ****

4.1 Typology of supply and price distribution

Detergents and cleaning products represent several products grouped in the following categories:

Surface cleaners : (***) laundry care products (***) Dishwashing products (***)

Positioning of the offer :

Source: ****

Positions that stand out :

For surface cleaners, we see that the offer proposes basic products at a cheap price with perfumes. The offer in ecological products has a higher price as well as the products allowing multiple uses.

For laundry care products,the offer of basic products with fragrances stands out. Also, an offer oriented towards consumers with a higher purchasing power appears. Finally, we see that organic products are also hypoallergenic. The competition is strong in this sector, the prices vary little between those who say they are organic and those who say they are normal. The quantity of the product also appears to be an adjustment variable.

For dishwashing liquids we see a competition between the basic products and those offering an ecological and hypoallergenic offer. The price difference is multiplied by *.

So, if the quantity as well as the ecological, hypoallergenic and multipurpose criteria appear to create a multitude of products and offer, we see a sector that competes with prices.

4.2 Price trends in the market

Two price trends can be distinguished regarding the market of detergents and cleaning products. From **** to April **** we can see a price stability with an increase in the price index of only *.**%. The economic recovery after the end of the covid crisis and the war in Ukraine, imposed an increase in the price of a barrel of oil that created a tendency to increase prices for this sector, in the inflationary environment that Spain has known. The price index then rose by **.**% between September **** and December ****.

Industrial price index class **** Manufacture of soaps, detergents and other cleaning and polishing preparations Spain, ****-****, indexes based on *** of year **** Source: ****

how will prices evolve ?

To understand how prices will evolve, it is necessary to analyze the price of raw materials and wages.

Evolution of the price of a barrel of oil. As detergents require petrochemical ingredients, the evolution of oil prices impacts the global price of detergents. By ****, JP Morgan analyzes that the price of a barrel is unlikely to exceed *** euros per barrel. This is good news for the sector. The war in Ukraine had raised the price of a barrel of Brent to $***.** in March ****, and in February **** the price of ...

4.3 A more sustainable offer

The supply of cleaning products and detergents is being compacted in order to offer more environmentally friendly products and to contribute to the European "green deal". The A.I.S.E. companies (***) are therefore following some measures to reduce their impact on the environment:

A strategy for **** to use at least **% recycled plastic in packaging. Packaging that is recycled. Informing consumers how to reduce their energy consumption when using these products (***). Cooperation between companies to disseminate more sustainable production methods with the "CHARTER & KPI REPORTING".

Since ****, it is therefore : - **% of CO* emitted per ton of production, - **% of energy used for production and - **% of packaging. In ****, **.*% of the European production will follow the charter, and *,*** million cleaning products will be on the market. The offer has therefore to be adapted to follow these reforms which allow to offer more and more sustainable products at the European level and to follow the line of the European "green deal". The counterpart products are certified"AISE MARK"

Source: ****

In ****, according to AMELDA, cleaning products accounted for *% of all packaging produced on the Spanish market.

The following sustainable labels are also highlighted to ensure a more sustainable offer:

Ecocert is a label granted ...

5.1 Legislation

Royal Decree ***/**** of May *, ****

This decree regulates the manufacture, circulation and sale of detergents in Spain. Companies must then be registered in the General Sanitary Register of Foodstuffs and communicate the new formulas to the Toxicological Information Service of the Institute of Toxicology. Companies must inform the consumer of the toxicity of the products and products which are too toxic are prohibited.

The REACH Regulation

The REACH regulation(***) is a European legislation that came into force in **** with the aim of making safer the manufacture and use of chemical substances in the European industry.

This regulation applies to all chemical substances, both those used in industrial processes and those present in everyday products (***). The regulations place a responsibility on companies to identify and manage the risks associated with the substances they manufacture and market. If companies cannot demonstrate that substances can be used safely, their use may be prohibited or restricted.

The REACH regulation affects a large number of European companies, such as manufacturers, importers, downstream users, etc

The CLP Regulation

The CLP, or Classification, Labeling and Packaging, Regulation of December **, ****, defines the regulatory framework for the classification, labeling and packaging of chemicals for placing on the market. Manufacturers, importers or ...

6.1 Segmentation

• Unilever España
• Mercadona
• Carrefour
• Linasa
• AC Marca
• Jabones Pardo SA
• Pons químicas (Asevi)
• Persán
• Procter & Gamble España
• Reckitt España
• Henkel Ibérica
• Productos Disiclin SA
• Paredes Orapi
• Orapi groupe