Project Description

Detergent and Disinfectant Market Assessment for Saudi Arabia

  • The detergent and disinfectant market in KSA is valued at US$ 1.03 Bn with approximately US$ 873 Mn coming from the detergent market and US$ 153 Mn from the disinfectant market. Mecca, Riyadh, and Eastern province account for nearly 67% of the total detergent and disinfectant market with a market share of 687 Mn US$
  • Key end user segments include household market with a market share of 75%, while hospitality/healthcare accounts for 15% of total market. Disinfectant market is broadly classified into multipurpose cleaners, hand sanitizers, surface and floor cleaners. Key end user segment in disinfectants is the household market which has a market share of 62%, corporates amount for 8% share while hospitality/healthcare accounts for 25% of total market; all others account for 5%.
  • Raw materials form the major cost component and account for almost 45% of the total cost. Labor cost ranges between 14%-17%, whereas the selling, general and administrative expenses amount to 20%-22% of operational overheads including production and distribution ranges between 8%-10%. The operating margin for global brand varies between 16% and 25%, and the net margin varies in the range of 8-13%
  • The detergent and disinfectant industry are low involvement products where the price point of a product directly relates to the volume of the products sold and value generated through it. Activities such as high discount promotions, advertisements, and fight for shelf space is prevalent amongst the global players to obtain higher market share. Some hypermarkets are pushing their private label brands at highly discounted prices
  • The detergents and disinfectants market is highly concentrated and shows characteristics of oligopoly with 3-4 key global players dominating the majority of the market. The large companies either have production plants in industrial areas of Saudi Arabia itself or they distribute their products in the Kingdom through importing products from their plants in other GCC nations and rest of the world. All the key global players either have their subsidiaries in the Kingdom or they have formed strategic alliances with national scale distributors called the NBO’s (National Brand Owners) to run their operations

Table of Content:

Macro / Market Analysis – KSA and Regional:

  • Key trends in detergent and disinfectant industry
  • Key global trends in detergent and disinfectant market
  • Key drivers and inhibitors of the market
  • Technology trends, future market innovations in product

Market sizing

  • Total sales of detergent and disinfectant (2018-2023), US$
  • Market by detergent products within the segment, 2022, US$
  • Powder detergents
  • Liquid detergents
  • Market by disinfectant products within the segment, 2022, US$
    • Surface and floor cleaners
    • Hand sanitizers
    • Dishwashing liquids
    • Multipurpose spray cleaners
  • Market by players (share of key competitors), 2022, US$
  • Market by key regions of operation, 2022, US$

Supply side considerations (5-6 detergent and disinfectant players were studied in detail)

  • Product range and segments
  • Competitor analysis – sales (revenues), market shares, production, etc.
  • Logistics – warehousing, delivery timelines and supply chain methodology
  • Staffing numbers and profile
  • Products sold
  • Pricing and commercial term trends, margins etc.
  • Channels to market, distribution system features, marketing activities
  • Other features of their operation such as establishment year, proportion of domestic and export sales, expansion plans
  • USP’s and product strengths

Overview of the demand side

  • Overall detergent and disinfectant spending in KSA (US$, 2018-22)
  • Breakdown by Private vs public spending
  • Demand of the detergent and disinfectant (as identified by usage and purchase norm), in volume and value (US$, 2022)

Demand Side Considerations

  • Key end-users of detergent and disinfectant – segmentation, etc.
  • Key purchase criteria, usage practices, purchase cycle, drivers of choice
  • Preferred pricing of the product across different type of players
    • By type of product segmented
  • Distribution and channel dynamics, trends
  • Current brand used, satisfaction levels with products and after sales services
  • Need gaps
  • Regulatory environment and Government Considerations
  • Analysis of challenges / benefits of regulations
  • Other considerations if any

Market Assessment

  • Critical success factor and risks to entry
  • Recommended business model
  • Key investment drivers and inhibitors for a new entrant to operate in the market