The soap industry plays a key role in the economy of India. Soap is an FMCG product that has the highest market penetration in India, covering more than 80% of the country’s urban as well as rural households. An estimated 50 percent of the soaps that are produced in the country are sold in rural markets. The size of India’s soap market is expected to grow at a moderate rate over the next few years.
Performance for 2017-18
During FY 2017, beauty soap segment had the largest share with 50%, followed by health soap segment with 28.6%. UAE, Nepal and USA are the top three countries that imported Indian soaps. Demonetization had a negative impact on the soap market though. Many soap manufacturers in India had to reduce their production by nearly 20%. However, the implementation of GST brought some relief through lowered duty.
Market Share of Companies
There are about 700 companies that are key players in India’s soap industry. Together, these companies have a combined yearly revenue of an estimated $17 billion US dollars. They include Unilever, P&G and Dial, among others. An estimated 50 companies hold approximately 90 percent of the shares of this market.
According to Research reports, the market for soaps in India will grow at a CAGR of 5.5% during the period of FY 2016 to FY 2022.