Market Definition
Home Care products encompass a vast range of consumer commodities used for maintaining & organizing the household. These products are specially designed to streamline household chores, elevating their efficiency while ensuring that the homes are clean & fresh. It includes a wide range of products, from cleaning agents, laundry detergents, and air fresheners to dishwashing liquids, surface cleaners, carpet cleaners, and pest control products, among others.
Market Insights
The Saudi Arabia Home Care market is projected to grow at a CAGR of around 5.0% during the forecast period, i.e., 2023-28. This is attributed to various factors, such as the ever-increasing health & hygiene concerns after the COVID-19 outbreak. The demand for home insecticide products, laundry care products, surface care products, and toilet care products is witnessing escalated growth.
In the past few years, online consumer spending drastically expanded, boosting the online sales of these products in the country. Saudi Arabia is moving through a rapid urbanization phase, with a vast population migrating from rural to urban areas for better living standards & job opportunities that lead to more nuclear families & busy lifestyles, resulting in a growing demand for these products. The country has an emerging population with a rising number of the working class.
| Report Coverage | Details |
|---|---|
| Study Period | Historical Data: 2018-21 |
| Base Year: 2022 | |
| Forecast Period: 2023-28 | |
| CAGR (2023-2028) | 5.0% |
| Region Covered | Central, East, West, South |
| Key Companies Profiled | Unilever, Henkel Jebel Ali FZCO, Reckitt Benckiser Group PLC, The Clorox Company, Procter & Gamble, Knooz Al-Ardh Detergent Manufacturing Co. LLC, Madar Group, Basic Chemical Industries, Gulf Hygiene Co. Ltd., 3M |
| Unit Denominations | USD Million/Billion |
As more people are entering the workforce, the surging need for home care products spikes to reduce time & manage both work-life balances, followed by dishwashing detergents that offer excellent cleaning for busy households or laundry detergents that remove stains quickly & efficiently, hence aiading in influencing the Saudi Arabia Home Care market share.
Moreover, with a burgeoning per capita income & a continuous uptick in disposable income among consumers, Saudi Arabia has witnessed a remarkable surge in spending on discretionary products, particularly in the realm of home care. This encompasses a wide range of products, ranging from state-of-the-art robotic vacuum cleaners & ingenious smart home devices for seamless home automation to top-tier air fresheners that exude opulence & sophistication.
Additionally, E-commerce has been experiencing a remarkable wave in Saudi Arabia, propelled by the exponential growth of internet penetration & widespread smartphone usage, coupled with the evolving preferences of consumers. In particular, consumers are gradually moving towards online shopping for an array of products, followed by convenience, seamless accessibility, and an extensive range of options at their fingertips.
Hence, the proliferation of e-commerce platforms has bestowed consumers with the unprecedented ability to meticulously compare prices, thoroughly peruse product reviews, and make astute well-informed purchasing decisions. Furthermore, the tantalizing allure of online promotions, irresistible discounts, and personalized recommendations wield profound influence in shaping consumers' purchasing behavior in the fiercely competitive market. Besides, the market is influenced by various factors like rapid urbanization, shifting demographics, heightened awareness about health & hygiene, increased disposable income, evolving lifestyles, and the growing prominence of e-commerce. As a result, there is an escalating demand for home care products that offer convenience, efficiency, sustainability, and well-being, underscoring the dynamic nature of this market in the following years.
Market Dynamics
Significant Driver: Rapid Urbanization in the Country Drives the Market
The country has seen rapid urbanization in the last few years as more people move from rural areas to cities in search of better livelihoods, creating a demand for home care products that are tailored to urban living. With the frequent movement to urban areas of the country, the requirement for compact & space-saving products has risen due to smaller living spaces such as apartments & condos, where space is limited, which helps in saving time & labor-saving costs. For instance,
Moreover, the focus on premium & modern products is supplemented with expanding disposable income, which offers advanced features such as high-end vacuum cleaners with HEPA filtration & has catered to the demand for these products in the country in the coming years.
Possible Restraint: Religious Beliefs & Cultural Sensitives to Encumber the Growth
The religious beliefs & cultural sensitivities in Saudi Arabia is the key challenge in the Home Care market due to the conservative nature of society. Saudi Arabia has a strong Islamic culture, and the local populace holds these traditions in the highest regard, with an unwavering commitment to their adherence. As a consequence, the acceptability of the products in the market is limited.
Products containing alcohol or derived from pork are considered taboo by some consumers due to religious prohibitions, hence making them the least acceptable by the individuals of the nation. Moreover, manufacturers are bound to adhere to & ensure that their products align with the original norms & regulations, thus posing unique challenges to product diversity in the country.
Growth Opportunity: Upcoming Smart City Projects in the Country
Saudi Arabia is constantly & rapidly developing smart cities as part of its farsighted Vision 2030 plan, which aims to diversify its economy & elevate the standard of living for its citizens. The ambitious smart city initiatives in the country are poised to accommodate the needs of a burgeoning elderly population as the nation undergoes a significant demographic transformation with a notable upswing in the number of senior citizens. As a result, the demand for home care products expanded in the coming years to satisfy consumer demand. For instance,
These smart city projects in Saudi Arabia are promoting the adoption of the products rapidly due to changing lifestyles, cleanliness, and hygiene in homes. Moreover, the growing awareness of health & hygiene in Saudi Arabia after the COVID-19 pandemic also led to the adoption of these products by consumers to safeguard themselves. Therefore, the manufacturers have a wide opportunity to scale up these products to fulfill the market demand in the future.
Key Trend: Growing Demand for Eco-friendly Home Care Products
The growing demand for eco-friendly home care products is the key trend gaining popularity in the market. The trend is followed by the surging awareness of the sustainability of the environment & the need for responsible consumption. Consumers in Saudi Arabia are becoming more conscious about the impact of their buying decision on the environment & support the Saudi Green Initiative 2030.
Additionally, biodegradable cleaning products are the one category that highly gained traction in the market as launched by various companies in Saudi Arabia. These eco-friendly products are devoid of any toxic chemicals, such as phosphates, chlorine, and parabens, as well as are specifically designed to degrade quickly & safely without polluting the ecosystem &d with no adverse effect on marine life. Therefore, companies operating in Saudi Arabia, are taking proactive measures to align with this shifting paradigm.
Market Segmentation
Based on Product Type:
Laundry Care has dominated the market in the historical years & is predicted to follow the same trend during the forecast period as well, owing to the culture of regular laundering & the demand for neat & clean clothes ingrained due to the cultural belief of the country. The hot climate of Saudi Arabia leads to frequent changing of clothing as a result of sweating, hence increasing the demand for laundry care products.
Moreover, manufacturers in the region are developing eco-friendly & organic laundry detergents to remove stains, as well as the companies in the country are advertising their products through different channels, which has also boosted the awareness of hygiene, influencing the consumer's buying decision, consequently contributing to the growth of the segment in the coming years.
Based on Distribution Channel:
Of them, all, Supermarkets/Hypermarkets hold a significant share of the market owing to their wide availability across the country & easy accessibility to a large population. Supermarkets & hypermarkets in Saudi Arabia have developed in a modern way offering a wide range of products under one roof, making it convenient for consumers to purchase home care products in one go. Moreover, these stores offer promotional discounts, bundle deals, and loyalty programs on various occasions to attract more customers, hence attributing to the market growth during 2023-28.
Regional Projection
Geographically, the market expands across:
Among all the regions across Saudi Arabia, the Central region is envisioned to attain a remarkable share of the Home Care market during 2023-28, owing to the highly dense populated area of Riyadh, which is the capital of Saudi Arabia. This region is the economic hub of the country as it is widely developed, leading to modernization & changing consumer preferences that contribute to higher demand for these products in the region. The Central region is the hub of commercial & major business units, including Riyadh, that attract a vast number of expatriate populations & enterprises. As a result, there is an upsurge in demand for home care products in the country, further enhancing the market size in the coming years.
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Frequently Asked Questions
A. The Saudi Arabia Home Care Market is expected to grow at a CAGR of around 5.0% during 2023-28.
A. Rapid urbanization is expected to drive the Saudi Arabia Home Care Market during 2023-28.
A. Unilever, Henkel Jebel Ali FZCO, Reckitt Benckiser Group PLC, The Clorox Company, Procter & Gamble, Knooz Al-Ardh Detergent Manufacturing Co. LLC, Madar Group, Basic Chemical Industries, Gulf Hygiene Co. Ltd., 3M, and others are the top players in the Saudi Arabia Home Care Market.
A. Laundry care is the leading type in the Saudi Arabia Home Care Market.
A. The growing demand for eco-friendly products is the key trend shaping the growth of the Saudi Arabia Home Care Market.
A. Religious beliefs & cultural sensitives to encumber the growth of the Saudi Arabia Home Care Market.
