Home care chemicals comprise a wide variety of products used in the maintenance of a typical household. These vary from laundry chemicals to dishwashing liquids used on a daily basis. The market for home care chemicals around the world has been growing with increasing prosperity of the average customer, with the rising GDPs in several regions around the world providing a thrust to the market. Even the recent economic uncertainties in regions such as North America and Europe have been unable to dent the market for home care chemicals.
The global market for home care chemicals, according to research conducted by Persistence Market Research, was worth US$16.1 billion in 2014. The market is further expected to exhibit a steady 4.6% CAGR till the end of the ongoing decade.
The reason why the 2008-09 crisis in the U.S. and the Grexit turmoil in recent years haven’t been able to affect the global home care chemicals market is the steadily growing demand for the same from Asia Pacific. Here’s a brief description of Asia Pacific’s role in the global home care chemicals market:
Rising urbanization …
Asia Pacific contains some of the most dynamic economies in the world. Apart from China and Japan, which are the second and third largest economies in the world, India (9th or 10th, depending on the metric), Australia (12th), South Korea (13th or 14th), and Indonesia (16th or 17th) are also among the top 20 largest economies in the world. This is leading to mass urbanization of the population of these countries, driven by the heavy government outlays on urban infrastructure.
… Leading to Growing Middle Class
Urbanization and consequent modernization of the lifestyle of these countries has led to the rising prominence of the middle class, the upgrade to which brings with it a certain set of inevitable expenses that would be considered luxuries by lower economic strata but needs by higher ones. With growing disposable incomes, the common customer now has purchasing power largely on par with higher economic strata, allowing the purchase of luxury merchandise such as home care chemicals.
Growing Presence of Sales Channels
Notwithstanding the economic progress of the average APAC consumer, the home care chemicals market has also been massively helped in another way by urbanization. The presence of super/hypermarkets, bringing with them easy access to a wider variety of items to choose from, has been conspicuously rising across Southeast Asia in recent years. The competitiveness in pricing brought about by the diverse items available in these icons of the urban world has made home care chemicals more accessible to the common consumer than ever.
Online retailing, or ecommerce, has also grown by leaps and bounds in Asia Pacific in the past few years. Hand in hand with growing broadband connectivity in the aforementioned countries, the ecommerce sector has made shopping convenient for consumers.
Latin America Home Care Chemicals Market Rising, MEA Market Hamstrung by Income Disparity
The market for home care chemicals in Latin America is also growing due to the same factors that have made Asia Pacific the most lucrative regional home care chemicals market. Led by countries such as Mexico, Brazil, Argentina, and Chile, the developing economic conditions in Latin American countries have helped generate demand from the home care chemicals market. On the other hand, prevalence of substandard living conditions in Africa, removing the need for home care chemicals in the first place, have held back the MEA home care chemicals market.