GCC Laundry Chemicals Market Research Report: Forecast (2024-2030)

Market Insights & Analysis: GCC Laundry Chemicals Market (2024-30):

The GCC Laundry Chemicals Market size is valued at around USD 1.49 billion in 2024 and is further expected to grow at a CAGR of around 3.6% during the forecast period, i.e., 2024-30. Despite a further drop in value sales in 2023, in line with a weakening average unit price, laundry chemicals remained the largest category in home care chemicals in Saudi Arabia. The market growth is attributed to increased population and urbanization growth, the development of global events, a growing focus on hygiene and cleanliness, and so forth.

Fast population development and urbanization in GCC nations have prompted high popularity for laundry services, both private and business. As more individuals move into metropolitan regions, the adoption of laundry services is rising. Urban inhabitants in GCC typically have more occupied ways of life, with less time for household chores like laundry. Moreover, numerous metropolitan occupants live in apartments or more modest homes where they might not have access to personal laundry facilities, further driving the requirement for laundry services and the development of the market.

Besides, the facilitation of massive events and exhibitions in the GCC, including the Dubai Expo 2021 and the Qatar FIFA World Cup 2022, has extended the hospitality sector in the region. These occasions attract a wide range of visitors, representatives, and exhibitors from around the world, creating an augmented demand for hospitality offerings, including motel facilities, meeting places of work, dining alternatives, and tourist activities. This surging hobby in hospitality services, in flip, boosted the demand for laundry offerings and, in the end, the laundry chemicals industry.

In addition, the COVID-19 pandemic has raised customer and organizational focus on the essential importance of cleanliness and hygiene. Due to this heightened recognition, residential and industrial purchasers are more and more trying to find laundry detergents with robust sterilizing and sanitizing competencies. By ensuring that textiles, linens, and clothing are cleaned and sanitized, these chemical substances assist in lowering the threat of microbial contamination and the spread of pathogens including micro-organisms and viruses. The demand for laundry chemicals would upward push substantially in the coming years as consumers and businesses place an extra emphasis on hygiene and sterilization.

GCC Laundry Chemicals Market Driver:

Expanding Hospitality Sector – The GCC nations are known for their cultural & religious places, premium shopping, perfect seashores, and attractive destinations, making them appealing to travelers from around the world. The region’s strategic location between Europe, Asia, and Africa, along with modern infrastructure and top-class hospitality, has contributed to the consistent development of the travel industry. These variables have supported global traveler appearances in the region. As per the United Nations Annual Tourism Barometer 2023, the Middle East became one of the top-performing regions in the travel industry in 2023, with around 87.1 million global travelers, an increment of roughly 22% compared with 2019. This expansion in the travel industry has prompted the development of accommodation infrastructure, including lodgings, resorts, and cafés, across the GCC. Thus, there has been a skyrocketing demand for commercial laundries to keep up with sanitization and cleanliness principles in these facilities. This expanded demand for laundries leads to higher utilization of laundry chemicals in the GCC market. Moreover, governments in the GCC are implementing strategic initiatives to promote tourism and hospitality as key pillars of economic development. For instance,

• In 2024, the UAE Ministry of Foreign Affairs in the United Arab Emirates recently unveiled revisions to its visa exemption policy, expanding access for citizens from 87 countries to enter the UAE without the need for a pre-entry visa.

These developments, fueled by the strategic initiatives of the governments of GCC member states coupled with private sector entities in the hospitality industry, are expected to snowball the demand for laundry chemicals in the region.

GCC Laundry Chemicals Market Opportunity:

Growing Investment in Healthcare Infrastructures to Offer Lucrative Opportunities – The population of GCC economies is undergoing a gradual increase on account of a rising number of expatriates from South Asia, Africa, Southeast Asia, Europe, etc. Therefore, the demography of the region is undergoing a gradual shift. The average age of the individuals in GCC exceeds 30 years. A larger and older population drives demand for healthcare services, encouraging governments and private companies to invest in medical care infrastructure to address developing issues. In addition, governments in the GCC nations have been allotting significant budgets towards medical care, mirroring their obligation to further develop healthcare convenience, quality, and results. For instance,

• In 2022, Saudi Arabia plans to invest USD 66.67 billion in healthcare infrastructure and boost private sector participation.

Therefore, with the development of new hospitals, medical centers, and clinics, in addition to the extension of present medical care facilities, there would be a greater noteworthy requirement for laundry services to preserve hygiene pointers for affected person materials, towels, and textile materials. Moreover, the GCC nations are getting famous locations for medical tourism, drawing in sufferers from around the world seeking out pinnacle-notch medical remedies at competitive charges. To profit from this pattern and further lift their healthcare sector, governments, and private investors are further investing in cutting-edge medical facilities and particular medical care administrations, fueling the growth & expansion of the market during the forecast period.

GCC Laundry Chemicals Market Challenge:

High Prevalence of Counterfeit Laundry Chemicals to Hinder Market Growth & Development – Due to the region's rising population, urbanization, and disruptive growth in industries like healthcare and hospitality, there is a perennial demand for laundry chemicals. However, the industry lacks concrete norms for product quality. This has given counterfeiters a great opportunity to take advantage of these opportunities and grow a parallel gray market. Furthermore, the laundry chemicals industry’s intricate supply chains, which involve a number of middlemen and distributors, provide vulnerabilities that enable the growth of counterfeit goods in the market without being noticed. Significant amounts of fake detergents and subpar masks were discovered in 2021, leading inspection teams from the UAE Ministry of Commerce and police to detain two foreign nationals. More than 2,000,000 packages of tampered detergents are among the seized goods. This increased prevalence of counterfeit laundry chemicals is negatively impacting the market share of the authorized companies in the market.   

GCC Laundry Chemicals Market Trend:

Increasing Popularity of Concentrated Products – Concentrated laundry chemicals are getting more popular in the GCC, reflecting industry and customer preferences for affordable and eco-friendly solutions. Concentrated laundry formulations have become increasingly more appropriate to producers, stores, and consumers because of their many benefits over traditional laundry products. Since focused products usually require smaller doses in line with load than their non-focused counterparts, one important advantage is their cost-effectiveness. This results in lower chemical consumption overall as well as lower packing and shipping expenses. Furthermore, concentrated formulations frequently have stronger, more effective ingredients that provide equivalent or even better cleaning results with less product. Along with saving customers time and effort, this efficiency helps to cut down on the amount of water and energy used for washing.

Furthermore, the adoption of concentrated laundry chemicals is also being fueled by the GCC region's environmental advantages. Customers and organizations are seeking out products that have the least amount of waste and environmental effect feasible because of the emphasis on sustainability and reducing carbon footprints. These sustainability objectives are usually met via concentrated formulations, which additionally tend to use less packaging material and produce fewer emissions during production and delivery. The Gulf Cooperation Council (GCC) producers are working harder to create and market concentrated laundry chemicals to meet the increasing demand.

As this trend continues to gain momentum, concentrated products are poised to play a giant position in shaping the future of the laundry chemicals industry in the GCC region.

GCC Laundry Chemicals Market (2024-30): Segmentation Analysis

The GCC Laundry Chemicals Market study of MarkNtel Advisors evaluates & highlights the major trends and influencing factors in each segment. It includes predictions for the period 2024–2030 at the regional level. Based on the analysis, the market has been further classified as:

Based on Type:

• Emulsifiers
• Detergent
• Bleaches
• Fabric Softeners
• Others (pH Adjusters, Blocking Agents, etc.) 

Laundry detergent remained the dominant segment with a major market share. Nevertheless, a large segment of consumers still invariably purchase the standard versions of liquid detergents, as opposed to the dominance of the concentrated format within powder detergents, due to their widespread availability and attractive promotional offers. Fabric softeners and fabric fresheners have witnessed an influx of new brands, both local and imported, with retail shelf space inevitably expanding to offer a wider price range from which to choose across GCC countries. This ensures a larger audience, as consumers wanting to downgrade have numerous options to find one that suits their budget. Even among popular and well-known international brands, the competition in terms of range and promotional activities is fierce, in both offline and online spaces.

Furthermore, GCC-based detergent producers like Persil, Henkel, etc. are investing in R&D to create novel formulations that address particular consumer preferences and environmental concerns. This includes hypoallergenic solutions, environmentally friendly detergents, and goods designed for various fabric types. Manufacturers have the opportunity to grow their customer base and propel market growth throughout the forecast period by targeting these niche markets.

Based on the Distribution Channel:

• Retail Stores
• Hypermarket & Supermarkets
• Online
• Business-to-Business (B2B)

Hypermarkets and Supermarkets held the majority share of the GCC Laundry Chemicals Market in 2023 due to their wide reach and availability, bulk purchases, promotional campaigns, etc. Hypermarkets and supermarkets are typically large-scale retail establishments with widespread presence across urban and suburban areas in the GCC. Their extensive network guarantees vast accessibility for consumers, making it convenient for them to buy laundry chemicals along with their everyday grocery purchasing, thereby contributing to their multiplied proportion in the market. The promotional schemes provided by hypermarkets and supermarkets in Dubai, Abu Dhabi, Doha, Riyadh, and other cities are the fundamental elements that contributed notably to the essential market proportion of supermarkets and hypermarkets in the regional laundry chemicals industry.

Sales volume commonly rises as a result of promotions that inspire customers to make purchases, including buy one, get one offer, discounts on bundled products, or loyalty rewards packages. Furthermore, big hypermarkets and grocery chains like Carrefour, LuLu, etc., are planning to increase their presence in the region as a part of their expansion strategies.

GCC Laundry Chemicals Market (2024-30): Regional Projections

Geographically, the GCC Laundry Chemicals Market expands across:

• Saudi Arabia
• The UAE
• Qatar
• Kuwait
• Oman
• Bahrain

In 2023, Saudi Arabia grabbed the most market share of the GCC Laundry Chemicals Market. The country has been undergoing a large societal and financial transition. The societal reforms encouraging women's participation in the workforce have boosted the demand for washing machines in the country. The local authorities’s quest to keep Saudi nationals employed and to continue to nationalize jobs, together with an increasing number of working women, is augmenting the demand for laundry care in 2023.

The Saudi Arabian government is enforcing several projects and plans, such as the National Development Plan and Vision 2030, to improve the nation’s infrastructure and business setup and deliver human beings access to the economy. This results in a boom in the number of expatriates living in the country. Based on the Saudi Census 2022, the number of non-Saudi citizens extended from about 12.6 million in 2019 to approximately 13.4 million in 2022. Moreover, there's a greater need for laundry to clean clothing, linens, towels, and different textiles because of Saudi Arabia’s rapid population growth. As a result, there's a better consumption of laundry detergents, fabric softeners, stain removers, and related chemicals, driving the Saudi Arabia Laundry Chemicals Market.

To promote cleanliness, hygiene, and healthcare standards, the Saudi Arabian government and industry participants are also launching several educational campaigns and awareness initiatives, such as the Professional Textile Care Program. As a result, end users growing awareness of the importance of fabric care and hygiene would fuel the growth of the Saudi Arabia Laundry Chemicals Market during the forecast period.

Gain a Competitive Edge with Our GCC Laundry Chemicals Market Report

1. GCC Laundry Chemicals Market Report by MarkNtel Advisors provides a detailed & thorough analysis of market size & share, growth rate, competitive landscape, and key players. This comprehensive analysis helps businesses gain a holistic understanding of market dynamics & make informed decisions.
2. This report also highlights current market trends & future projections, allowing businesses to identify emerging opportunities & potential challenges. By understanding market forecasts, companies can align their strategies & stay ahead of the competition.
3. GCC Laundry Chemicals Market Report aids in assessing & mitigating risks associated with entering or operating in the market. By understanding market dynamics, regulatory frameworks, and potential challenges, businesses can develop strategies to minimize risks & optimize their operations.