Worldwide sales of hand sanitizers are on a track to total US$ 1.4 Bn in 2020, witnessing an increase of 5.8% year-over-year, according to Future Market Insights (FMI). With the rise of COVID-19 as a global pandemic, hand sanitizer has become one of the most sought-after consumer products on the market.
2020 will be a remarkable year for hand sanitizer manufacturers, primarily due to global health authorities raising awareness about the importance of maintaining hand hygiene to prevent the spread of the virus. A sudden spike in sales also comes on the tails of panicked consumers trying to stock up, in the light of lengthy quarantines and social distancing requirements.
Instant Hand Sanitizer Gel Remains Product of Choice
FMI forecasts that sales of instant hand sanitizer gel remain higher than their foam counterparts – which will account for 41% of overall hand sanitizer sales. Demand for instant hand sanitizer gel will continue to grow in and beyond 2020, as it emerges as a viable alternative to use in the absence of soap and water.
“Bar soaps and liquid soaps have been the most effective and the gold standard for killing germs for years. Hand sanitizers, useful in a pinch, gained popularity among hygiene-oriented millennial, driven by convenience over bar soaps. The outbreak of COVID-19 thus undeniably boosted the sales of hand sanitizers,” says the FMI analyst.
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North America’s Market to Take the Center Stage
From a regional perspective, North America remains a prominent market, as the pandemic’s epicenter shifts from China to the U.S. Moreover, at the start of 2020, the Federal Bureau of Investigation (FBI) ordered US$ 40,000 of hand sanitizers and face masks for preventive measures, as the number of cases climbed up in the nation.
An unprecedented increase in demand and a series of panic buying forced retailers to ration hand sanitizers. East Asia will continue to offer greater opportunities, especially for local manufacturers, as consumers readily adhere to various initiatives to contain the virus and prevent new infection.
A headwind coming from product shortages, triggered by hoarding, lower production, and logistics delays, has become a deterrent to the market growth. In response to widening demand-supply gap, a growing number of distilleries are jumping into the hand sanitizer game and offering alcohol-based solutions. The market is further witnessing an influx of indie brands with innovative offerings, and the trend is expected to continue during the pandemic crisis.
According to the FMI study, the hand sanitizer market is expected to exhibit a CAGR of 7.2% during the period of 2020-2030. Gain access to FMI’s exclusive COVID-19 tracker here.
Source: Future Market Insights