Ever since the world has been affected by the COVID-19 pandemic, there has been an enormous increase in demand for hand sanitisers. When it comes to hygiene products, hand sanitisers serve as one of the most popular segment in the market. The surging demand for hygiene products is acting as the primary factor affecting the global hand sanitisers market.
In India, prior to the outbreak of coronavirus, the market of hand sanitisers was primarily dominated by few players such as ITC’s Lifebuoy, RB’s Dettol, ITC’s Savlon and Godrej’s Protekt. In the region, hand sanitisers, which used to fall under the niche category, has emerged as one of the most popular hygiene products during the pandemic. The demand for the product surpassed its supply, and thus, domestic players entered the market to fill this demand supply gap amidst the lockdown. Thus, India’s local brands have found a new footing in the wake of ever-growing demand for hygiene products in the country.
In fact, the market records of January and February 2020, shows that nearly 85% of the hand sanitiser market in India was ruled only by the top three players. These key players accounted for most of the sales of hand sanitisers as compared to the small players and manufacturers, who together occupied only 15% share in the Indian hand sanitiser market. However, in March 2020, the situation began to change and the top key players started losing their market share, managing to occupy only 39% share in the regional market. Since the government suddenly announced the nationwide lockdown in the country to prevent the spread of COVID-19, this created a disruption in the supply chain of various FMCG products. The halted production operations, further created more supply chain disruptions. There was nothing that the top key players could do to meet this rising demand.
Impact of COVID-19 on the Global Hand Sanitisers Market - Download in PDF
In this scenario, local brands and small players have kick-started their businesses and have entered the market to meet the enormous demand coming from the consumers. The lockdown has unknowingly served as a blessing for India’s local brands, and small key players and manufacturers who have finally found their place in the general and medical stores due to the surge in demand for various fast-moving consumer goods or FMCG products, particularly hand sanitisers.
It has been estimated that around 152 new key players and manufacturers entered the hand sanitisers market segment in the month of March. This has emerged as the most appropriate opportunity for these small key players, local brands and regional manufacturers to enter the market of hand sanitiser and change the scenario.
Amidst this situation, not only other FMCG players got the opportunities to launch their very own hand sanitiser products, the government of India has also issued license to around 45 sugar mills and distilleries, where more alcohol-based hand rubs could be manufactured.
Earlier, when there was no competition around key players, they occupied a large chunk of the market share. But small manufacturers and local brands grabbed this opportunity, making their debut in the market. The brands like Dabur Sanitise and Emami BoroPlus are some of the names that have entered into the category and have become a part of the hand sanitiser market segment in no time. In fact, Asian Paints Ltd. also made its way into the hand sanitiser segment and jumped into the market by launching Viroprotek range of products.
In the month of March, the Ministry of Consumer Affairs fixed the maximum retail price of hand sanitiser at Rs 100 per 200 ml bottle till June 30 this year to control the sharp rise in the prices of product, which was observed after the outbreak of the coronavirus and prevalent fear mongering regarding the unavailability of stock.
The COVID-19 pandemic, which was followed by the mass shutdown, has created an opportunity for local brands and small manufacturers to flourish and expand their market in the region. They are expected to dominate the hand sanitiser market currently as they are ones filling the supply demand gap, further expanding their business in the sector which was once ruled by handful of players. This pandemic has not only provided them with the opportunity to enhance their business, but has also helped the country to generate employment opportunities by creating new job jobs in the sector.