INDUSTRY ANALYSIS: SOAPS

Bath & Shower

Overview:
1) Retail values in bath and shower sector has a projected growth of 9% by
2025 to reach INR 201 bn.
2) HUL continues to be the leader in this sector in the year 2015 with a value
share of 46%
3) CAGR of 1% with projected sales estimates to be INR 214 bn by 2020
4) Increased awareness for liquid soaps, sanitizers boosted growth in 2015
Key trends in Industry:

Bath and shower remains the pioneer market accounting for close to 27%
of retail sales in 2015.Bar soaps account for 89% of retail value sales in
2015. Brands as Dettol, Lifebuoy, Palmolive introduced new products in
the form of liquid soaps.
Current retail growth was 9% as opposed to an estimated growth of 13%.
The saturation in market is considered to be the reason for the lower
growth.
Intimate washes as V wash, Avon got a boost in 2015 due to increasing
awareness and rose to a value of 33% reaching INR 600mn. There has
been very high innovation in these products with increasing technology
bringing out newer products with added benefits and functions
Liquid soaps showed high retail value growth of 22% in 2015 and sales
reached INR 6 bn
Demand for natural and organic products also increased in 2015.
Availability of Patanjali Ayurveds soap range gave boost to this market.
Patanjali has established itself as a niche player in this market.

Sales of bath and shower: % value growth 2011-2015

% current value growth
Bar soap
Bar additives
Body wash/shower gel
Intimate Hygiene
-Intimate washes
-Intimate wipes
Liquid Soap
Talcum
Bath and shower

2014/15

2010-15 CAGR

2010-15 Total

8.8
18.6
33.3
33.3
22.3
2.2
8.8

12.8
19.5
29.8
5.8
12.6

82.3
143.5
269.0
32.7
81.3

25

20

15
2014-15(Actual)

10

2015-16(Forecast)

0
Bar soap

Body wash

Liquid soap

Talcum

Bath & Shower

-5

Competitive landscape

HUL continued to lead in bath and shower segment with value share of
46%. Its leading brands Lux and lifebuoy comprises of 12% retail value
share.
Market remains dominated by international players as HUL and Reckitt
Benckiser accounting for retail value of 55%.
Domestic players include Godrej, Wipro, Helene Curtis India, J K Domestic
and Karnataka soaps and detergents.
Indian markets are highly price sensitive. Rising disposable incomes
increase the scope of premium products in coming years. Major products
include Lux, dettol, lifebuoy, santoor, breeze and ponds.
Private label soaps and detergents are also available at hypermarkets and
chemist shops. However, the market share remains negligible compared to
the big players.

Shares of Major Players in bath and shower Industry: % value 2011-2015

% retail value
HUL
Reckitt Benckiser
Godrej Consumer Products
Wipro
ITC Ltd.

2011
47.2
8.5
9.3
7.6
4.4

2012
46.8
8.4
9.3
7.0
5.2

2013
46.8
7.8
9.2
6.5
5.6

2014
46.3
8.7
8.4
7.2
6.1

2015
45.7
8.9
8.1
7.5
5.9

Market share in soaps FY 2015

HUL
Reckitt Benckiser

23.9
5.9
7.5

Godrej Consumer Products

45.7
8.1

Wipro
ITC Ltd.

8.9

Others

Future Outlook

Bath and shower consumers show a higher inclination to switch to

premium products. The products record a CAGR of 1% which will remain
constant in coming years to record a sales of INR 214 bn by 2020.
The bath and shower segment in India has reached its saturation. There is
a very slight chance that it will reach the projected growth of 4%. Soaps
will continue to remain as the major contributor of growth.
Intimate washes is a relatively new segment and with increasing
awareness the projected growth has been estimated at CAGR of 26% with
sales reaching to INR 2 bn by 2020.
Liquid soaps will have higher growth with majority of consumers shifting
from bar soaps to liquid soaps. Forecasted growth of liquid soap is with a
CAGR of 14% and sales to reach INR 1 bn by 2020.

Forecast sales of bath and shower by category % value growth

% constant value
growth

2015-16

2015-20 CAGR

2015-20 Total

Bar soap
Bar additives
Body wash/shower gel
Intimate Hygiene
-Intimate washes
-Intimate wipes
Liquid Soap
Talcum
Bath and shower

1.2
11.3
26.7
26.7
13.8
-1.7
1.6

0.7
12.0
25.6
25.6
13.5
-2.2
1.3

3.7
76.2
212.7
212.7
88.1
-10.4
6.5