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Hand Care Products Market Size, Share, & Trends Analysis Report (2023 – 2030)
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Report Overview
The global hand care products market was valued at USD 7.5 billion in 2022 and is projected to expand at a CAGR of 4.2% from 2023 to 2030. The rising awareness about hygiene and health is driving the demand for hand care products. Growing urbanization, rising population, and increasing disposable incomes are further bolstering the market growth. Furthermore, the increasing use of natural and organic ingredients in the manufacturing of hand care products is fuelling the growth of the market. For instance, in February 2022, the UK-based personal care brand, The Handmade Soap Company, launched a range of new hand care products made with natural and organic ingredients such as shea butter and natural oils.
The growing health consciousness among consumers is leading to a rise in the demand for products that are free from harsh chemicals and artificial fragrances. This is creating a significant opportunity for manufacturers to launch products with natural ingredients such as aloe vera, olive oil, shea butter, and coconut oil. For instance, in October 2021, The Body Shop, a UK-based personal care brand, launched a new range of hand care products with natural and organic ingredients such as shea butter, almond oil, and vitamin E.
In addition, the increasing demand for hand sanitizers during the COVID-19 pandemic is also contributing to the growth of the market. The outbreak of the pandemic has led to a surge in the demand for hand sanitizers as people are more conscious about hygiene and personal safety. Furthermore, the rising demand for hand sanitizers has led to the launch of innovative products, such as those with moisturizing properties. For instance, in April 2021, Procter & Gamble, a US-based company, launched a new moisturizing hand sanitizer with aloe vera and vitamin E.
Moreover, the rising trend of premiumization is driving the demand for high-end and luxury hand care products. For instance, in August 2021, L’Occitane, a French beauty and skincare brand, launched a new range of luxury hand care products, including hand creams, hand balms, and hand washes. The increasing popularity of hand care subscription boxes is also expected to create opportunities for market participants in the coming years. These subscription boxes are specially curated to meet the individual needs of the customers and contain a variety of hand care products. For instance, in October 2021, The Body Shop launched a subscription box of hand care products, which contains a selection of hand creams, hand washes, and hand scrubs.
Product Insights
The hand sanitizer segment accounted for the largest market share of around 28.7% in 2022. Growing awareness regarding the importance of personal hygiene and cleanliness, increasing adoption of hand sanitizers to prevent the spread of germs, and rising demand for alcohol-based hand sanitizers are some of the key factors driving the growth of the segment. According to an article published by the American Cleaning Institute (ACI), in November 2020, 80% of people agreed that hand sanitizers are essential items to keep in their homes.
The hand lotions segment is expected to expand at a CAGR of 8.2% over the forecast period. Growing demand for moisturizing lotions, increasing awareness regarding skin care, rising trends of self-grooming, and the emergence of various hand lotions brands are some of the key factors driving the growth of the segment. According to an article published by the American Academy of Dermatology (AAD), in November 2020, 65% of people agreed that hand lotion is an essential item for keeping their skin healthy and hydrated. In addition, increasing fashion trends and beauty awareness among individuals is another factor driving the growth of the segment.
Distribution Channel Insights
The supermarkets and hypermarkets segment captured the major share of over 38.5% in 2022. The growth of the segment is mainly driven by the rising consumer inclination towards supermarkets & hypermarkets as a primary source to purchase personal care products. According to a study by Statista in 2020, more than 50% of consumers prefer to purchase personal care products from supermarkets & hypermarkets due to the wider variety of products available. These establishments also provide a reasonable selection of products and assist customers in making rapid purchasing decisions for the required hand care product.
The online segment is anticipated to expand at the highest CAGR of 11.3% over the forecast period. E-commerce development in the hand care industry has been rapid, with companies launching online websites and shopping apps to increase their brand visibility among consumers. For instance, in May 2022, Nivea launched its online store for hand care products in the US. The store offers a wide range of products including hand creams, lotions, and soaps. Additionally, it has a feature that helps customers choose the most suitable product for their skin type.
Type Insights
The hand sanitizer segment accounted for the largest revenue share of 42.6% in the year 2022. The surge in health awareness among consumers and the need for personal hygiene are the major factors driving the growth of this segment. Also, the increasing demand for convenient and time-saving products is further propelling the growth of the segment. Moreover, the increasing demand for hand sanitizers due to the presence of Covid-19 has led to an increase in the demand for the product.
The hand wash segment is anticipated to expand at the highest CAGR of 8.8% over the forecast period. The increasing awareness of personal hygiene, the need for frequent hand washing, and the rising demand for natural ingredients in cosmetics are the primary factors driving the growth of this segment. Also, the growing demand for hand wash from the travel and hospitality industry is further increasing the growth of the segment. Furthermore, the increasing trend of gifting hand wash products is further aiding the growth of the segment.
Regional Insights
Europe held the largest share of the market in 2022 and is expected to maintain its lead over the forecast period. Increasing awareness among consumers regarding the use of hand care products is a key factor driving the regional market’s growth. Moreover, the presence of leading players such as Beiersdorf, Edgewell Personal Care, and Unilever is further expected to propel the growth of the market. For instance, in May 2021, Beiersdorf launched the new Nivea Hand Sanitizer, which was designed to protect hands from bacteria and viruses.
Asia Pacific is projected to be the fastest-growing region in the global market. High demand for hand care products, especially in countries such as China, India, Japan, and South Korea, is expected to drive the regional market’s growth. Moreover, the increasing number of manufacturers, especially in emerging countries such as India, is expected to further fuel the growth of the regional market. For instance, in April 2021, Indian manufacturer Godrej launched the new ‘Gentle Care’ range of handwash products.
Financial Projections
In this part of the hand care products business plan, we will provide a detailed breakdown of all income and expense categories of the business. These forecasts include cash flow projections and capital requirements for your hand care products business. Usually, these projections are drafted for a 5-year period.
Revenue Assumptions
The main sources of revenue for a hand care products business come from sales of hand care products, such as lotions, creams, soaps, scrubs, and other related items. You can also boost your income by selling other products related to hand care such as nail care products, gloves and mittens, and sanitizers.
Projecting Expenses
In this section, all the regular expenses related to keeping the hand care products business running will be described. The list of operating expenses includes the cost of the raw materials, packaging, shipping, wages, marketing, advertising, and other administrative costs. Additionally, you should also consider the cost of obtaining licenses, insurance policies, and taxes.
Key companies & market share insights
Some of the key companies operating in the hand care products market are increasingly focusing on product launches and expansion of the distribution channel to gain prominent visibility among consumers. Some of the initiatives are:
– In June 2022, Johnson & Johnson launched a new line of hand soaps and creams designed to provide superior moisturizing and protection to the skin.
– In August 2022, Unilever launched the Dermal Care range of hand creams, designed to provide superior hydration and nourishment to the skin.
– In October 2022, Procter & Gamble launched the Olay body wash and hand wash range, to provide superior cleansing and nourishment to the skin.
Some of the prominent players in the hand care products market include:
– Unilever
– Johnson & Johnson
– Procter & Gamble
– L’Oréal SA
– Beiersdorf AG
– Vi-john Group
– Kao Corporation
– Estee Lauder Companies, Inc.
– Reckitt Benckiser
– Coty, Inc.
Global Hand Care Market Segmentation
This report forecasts growth at global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2017 to 2030. For this study, Grand View Research has segmented the global hand care product market based on product, distribution channel, type, and region:
1. Product Outlook (Revenue, USD Million, 2017 – 2030)
– Lotions
– Creams
– Ointments
– Others
2. Distribution Channel Outlook (Revenue, USD Million, 2017 – 2030)
– Supermarkets & Hypermarkets
– Online
– Others
3. Type Outlook (Revenue, USD Million, 2017 – 2030)
– Mass
– Premium
4. Regional Outlook (Revenue, USD Million, 2017 – 2030)
– North America
– Europe
– Asia Pacific
– Central & South America
– Middle East & Africa
Frequently Asked Questions
[Q]: What are the factors driving the hand care products market?
[A]: A key factor driving the hand care products market is the rising consumer awareness regarding the importance of taking care of the hands. Growing consumer demand for products that nourish, protect, and keep hands looking younger and healthier is driving the demand for premium hand care products. Additionally, the increasing popularity of organic and natural hand care products is expected to further drive the market.
[Q]: What are the key players in the hand care products market?
[A]: Key players in the hand care products market include Unilever, L’Oréal, Henkel AG & Co. KGaA, Beiersdorf AG, Reckitt Benckiser, Procter & Gamble, Johnson & Johnson, Kao Corporation, The Himalaya Drug Company, and Clarins Group.
[Q]: What types of products are available in the hand care products market?
[A]: The hand care products market is segmented into moisturizers, hand washes, sanitizers, hand masks, and scrubs. Moisturizers are the most commonly used hand care products.
[Q]: Which region offers the largest opportunity for sales of hand care products?
[A]: The Asia Pacific region is expected to be the most lucrative market for hand care products, with an absolute dollar opportunity of $ 5.3 B (USD). The region is expected to experience rapid growth over the forecast period due to the increasing demand for organic and natural products, rising disposable incomes, and growing consumer awareness regarding the importance of taking care of the hands.
[Q]: What are the trends in hand care products?
[A]: The increasing popularity of natural and organic hand care products and the introduction of innovative products are expected to drive the growth of the hand care products market. Additionally, the growing demand for multi-functional products and the increasing use of smart packaging are expected to further boost the growth of the market.
Research Methodology
mpact Analytix employs a comprehensive and iterative research methodology focused on minimizing deviance in order to provide the most accurate estimates and forecasts possible. The company utilizes a combination of bottom-up and top-down approaches for segmenting and estimating quantitative aspects of the market. In Addition, a recurring theme prevalent across all our research reports is data triangulation which looks market from three different perspectives. Critical elements of the methodology employed for all our studies include:
Preliminary data mining
Raw market data is obtained and collated on a broad front. Data is continuously filtered to ensure that only validated and authenticated sources are considered. In addition, data is also mined from a host of reports in our repository, as well as a number of reputed paid databases. For a comprehensive understanding of the market, it is essential to understand the complete value chain and in order to facilitate this; we collect data from raw material suppliers, distributors as well as buyers.
Technical issues and trends are obtained from surveys, technical symposia, and trade journals. Technical data is also gathered from an intellectual property perspective, focusing on white space and freedom of movement. Industry dynamics with respect to drivers, restraints, and pricing trends are also gathered. As a result, the material developed contains a wide range of original data that is then further cross-validated and authenticated with published sources.
Statistical model
Our market estimates and forecasts are derived through simulation models. A unique model is created and customized for each study. Gathered information for market dynamics, technology landscape, application development, and pricing trends are fed into the model and analyzed simultaneously. These factors are studied on a comparative basis, and their impact over the forecast period is quantified with the help of correlation, regression, and time series analysis. Market forecasting is performed via a combination of economic tools, technological analysis, industry experience, and domain expertise.
Econometric models are generally used for short-term forecasting, while technological market models are used for long-term forecasting. These are based on an amalgamation of the technology landscape, regulatory frameworks, economic outlook, and business principles. A bottom-up approach to market estimation is preferred, with key regional markets analyzed as separate entities and integration of data to obtain global estimates. This is critical for a deep understanding of the industry as well as ensuring minimal errors. Some of the parameters considered for forecasting include:
Market drivers and restraints, along with their current and expected impact
Raw material scenario and supply v/s price trends
Regulatory scenario and expected developments
Current capacity and expected capacity additions up to 2030
We assign weights to these parameters and quantify their market impact using weighted average analysis, to derive an expected market growth rate.
Primary validation
This is the final step in estimating and forecasting our reports. Exhaustive primary interviews are conducted, face to face as well as over the phone to validate our findings and assumptions used to obtain them. Interviewees are approached from leading companies across the value chain including suppliers, technology providers, domain experts, and buyers so as to ensure a holistic and unbiased picture of the market. These interviews are conducted across the globe, with language barriers overcome with the aid of local staff and interpreters. Primary interviews not only help in data validation but also provide critical insights into the market, current business scenario, and future expectations and enhance the quality of our reports. All our estimates and forecast are verified through exhaustive primary research with Key Industry Participants (KIPs) which typically include:
Market-leading companies
Raw material suppliers
Product distributors
Buyers
The key objectives of primary research are as follows:
To validate our data in terms of accuracy and acceptability
To gain an insight into the current market and future expectations
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