The detergent and cleaning products market - Italy

1.2 The global market

The global household cleaning products market is projected to grow from $***.** billion in **** to $***.** billion in **** at a CAGR of *.*% in the forecast period.

The Covid pandemic has boosted the demand for products in **** and this has been driving the market in the following period. Rising attention to hygiene has been leading consumers to increase spending on disinfectants and other cleaning products, which has lead to a strong increase in demand.

Market size of household cleaning products Italy, ****-****, in billions of USD Source: ****

 In terms of geographical distribution, Asia and the Pacific hold the largest share of the market. The market is here driven by the increasing disposable income and by the large population which triggers a high demand.

In Europe, the market is well established and as such is projected to rise in the following years, driven by the rising demand for eco-friendly products and R&D investments of companies.

1.3 The Italian market

The market of household cleaning products is well established in Italy: the country has one of the most relevant productions at the European level.

According to Cerved data, the detergent and cleaning products sector grew moderately in ****, recording a value of around *.* billion euros and an increase of *.*% compared to the previous year. This derives from a slight increase in domestic consumption and a significant strengthening (***).  

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The following graph shows the volume and value of some chemical products of the markets: as we can see, the floor products are the most valuable ones of the sector.

Value and volume of cleaning products Italy, ****, in thousands of tons and millions of euros Source: ****

The following graph shows a breakdown of the floor and environment products presented in the graph above:  **.*% of the pie is taken by detergents and cleaners, while disinfectants hold another **.*%

Breakdown of Total products for floors and environments Italy, ****, in % Source: ****

1.4 Imports and exports

 s mentioned previously, the Italian production is very relevant at the European level. This is reflected in the coverage rate of the country: exports value considerably more than imports, ****.* million USD in ****, versus a value of imports of ***.* million USD in the same year. Exports have been rising for years, with a slight decline in **** due to the pandemic.

The coverage rate varies from ***% to ***%, showing the relevance of exports in the trade balance.

Evolution of imports and exports of detergents and cleaning products Italy, ****-****, in millions of USD and % Source: ****

Regarding the Contries of origin of imports, Germany is the first player, with a share of **.*%. The Netherlands and Belgium follow, with values of **.*% and **.*%. Other countries with relevant production of cleaning products include France(***). As we can notice, all major import countries are European.

Main countries of origin, imports Italy, ****, in % Source: ****

In terms of exports, Italy exports its products primarily to France, **.*%, the UK (***). As the graph shows, the vast majority of products is actually exported in other minor countries is smaller quantities, which however make up for **% of the pie.

Main destination countries of exports Italy, ****, in % Source: ****

1.5 COVID-19 Impact

The COVID-** pandemic has had devastating effects on many markets and industries. Due to the nature of the virus (***) sanitary measures have been put in place, the most significant of which have been the government-mandated closures that have kept people at home and stopped most economic activities. Italy, being the first European country affected by the virus, was the first to shut down, with the first national closure lasting from late February **** to early May of that year. Other more localized closures took place throughout the year through May ****.

Federchimica Assocasa (***) has analyzed the effects of Covid on the market and published a study on the topic, realized in collaboration with Nielsen.

The health emergency has determined different behaviors of consumers: it has caused a significant change in purchasing habits with less frequent spending, a higher average receipt, and less and less "feminine" spending. According to Nielsen data, the home care sector in the pre-Covid period (***) it scored **.*% by value. [***]

The graph below shows the result of a survey on the change in spending on cleaning products during the pandemic. As the result show, at the beginning of March almost half of the respondents had increased their spending in cleaning products. ...

2.1 Characteristics of the demand

Italians attribute major importance to their home, both because of a withdrawal of sociality towards a more intimate and personal dimension and because of the need for warmth and protection that the home naturally evokes as opposed to the outside word. This results in a cultural attachment to the state of the house, and, thus, to spasmodic attention to the hygiene of the domestic environment.

According to research conducted by Doxa, **% of Italians admit they attach great importance to their homes, which are usually medium to large in size: in Italy, the average size of homes is *** m* and almost half of Italians (***) have a home of over *** m*. Taking care of one's home on a daily basis, therefore, requires a considerable commitment, often turning into a tiring second job.

The survey also revealed almost obsessive attention to home cleaning: one in two Italians cleans their home one or more times a day (***) rely on the help of a domestic helper, **% said they do their own cleaning, underscoring the importance that Italians attach to their home and its care. The most active in cleaning the home are the housewives of the Centre-South of the country, but it also emerges the importance ...

2.2 Consumer profile and habits

The Italian cultural attention to tidiness and cleanness of the house offers a potential demand on the rise, with customers looking for products to help them in the care of their home.

B*C

From a survey conducted by Houzz, it emerged that a good **% of Italians prefer to carry out ordinary domestic cleaning on a weekly basis, while for in-depth cleaning they wait for the change of season. Only **% of the sample carves out a few hours each day to clean a specific room in the house, while **% do it over the course of a single day a week. Among household chores related to cleaning the house, the activity characterized by the highest level of stress is cleaning the bathroom, hated by **% of the sample and followed by activities that require vacuuming (***).

As for the bathroom, **% of Italians dedicate themselves to cleaning this environment once a week, while a good **% do it once a day, although to a lesser extent.

Among the most important requisites of a good home care product, there is its efficacy, important for **% of the subjects, the quality/price ratio, considered by **% of the sample, and the habit of using a certain product - **% - which ...

2.3 Drivers of demand

The Italian attention to hygiene

The cultural ways of the country definitely represent a driver for the market, with the customer habits described before constituting a solid and rising demand.

The following graph represents the comparison in opinion on cleanliness and hygiene, measured by a survey conducted by Vileda. The difference in the approach to cleaning between the two countries is substantial, with **% of Italians believing that cleaning is primarily about achieving hygienic cleanliness and only **% of Germs stating so.

The importance given to cleaning is also o the rise, as **% of Italian declare, both in terms of everyday cleaning, that in terms of spring cleaning.

Opinions on cleanliness and hygiene Italy and Germany, ****, in % of approval Source: ****

Rising attention to home care

According to data presented by Assocasa and NielsenIQ, home care has been on the rise for years. It is driven by the attention that consumers give to the status of their houses, which must be spotless, comfortable, and stylish places to enjoy and show.

The sector recorded, from February **, ****, to the same date in ****, sales of * billion *** million euros, up *%. This increase depends on the succession of lockdowns and the emergence of the need to clean more and ...

2.4 New trends: sustainability and eco-friendly prodcuts

The sensitivity of companies and consumers towards the development of eco-friendly Ecolabel products is growing more and more. They have for the moment a low market penetration, but a good growth potential, showing above-average growth rates (***).

The consumption habits are changing and this is affecting the demand: a recent survey showed that **% of Italians interviewed say they buy organic and eco-friendly products for household cleaning, while **% prefer only environmentally friendly detergents. Only **% still find them too expensive to substitute for traditional ones.

The following graph shows the change in sales value of sustainable hoe care products. The most popular are biodegradable products with reference to packaging composition, followed by those with less use of plastic in packaging, which have led to a growth of more than **%. It is also interesting to notice that lost all categories experienced a growth from **** to ****.

Change in sales value of sustainable home care products Italy, ****/****, in % Source: ****

In light of these changes, Dimensione Pulito has interviewed the major players in the industry.

Diversey has been working in the field of eco-sustainability for some time: "We have chosen to be at the forefront of environmental sustainability for decades, for example by choosing to eliminate certain raw ...

3.1 Market structure

As. the following graph shows, the market is driven by the sales of chemical products by companies: these hold **.*% of value, with another **.*% of consumables.

Breakdown of turnover of detergents and cleaning products companies Italy, ****, in % Source: ****

 In terms of geographical scope, the market is composed of mainly local companies with a narrow scope. The majority operate in a provincial or regional area, while only *.*% operate internationally. 

The geographical scope of detergents and cleaning products companies Italy, ****, in % Source: ****

3.2 Value chain

A scheme of the value chain is presented below. 

3.3 Distribution channels

 The following graph shows the sales channel used by the cleaning products companies t reach the B*B business. As the graph shows, most companies employ agents and direct sales as their main method of business development.

Sales channel used by detergents and cleaning products companies Italy, ****, in % Source: ****

E-commerce

Among the main channels of purchase of home care products by Italians we find the web, thanks to the familiarity of the Italian population with the channel and the confidence towards online purchases, with only **% of the sample afraid of the security of personal data during online transactions on websites.

Among the factors that induce more and more Italians to buy products and equipment for home care online, we find the wide variety of products characterized by different formulations, some very innovative and eco-friendly, the possibility to choose bulky packaging that can be easily stored at home, savings on spending due to the presence of discounts, promotions and loyalty programs, the wide differentiation of products. This last aspect, in particular, is the one that mostly drives Italians towards the online purchase modality.

Other channels

The major channels of distribution are Supermarkets, drug stores, and hypermarkets.

At the store format level, in ...

3.4 Main players

The markets is driven by national companies that maintain a local scope. However, Italy also hosts some bigger players such as:

Arco Chimica Itidet  Allegrini S.p.a. Diversey Gruppo Kemika Dianos 

As the graph below shows, the two most used legal forms are individual entrepreneurs, indicating the presence of many smaller players, and limited liabilities companies., with a share of **.*%

Breakdown of companies by legal form Italy, ****, in % Source: ****

4.1 Overview of the offer

The products for home cleaning are many and with different scopes: e can categorize them by the area of use, which is usually characterized y different needs in terms of chemical principles and materials.

Detergents for the kitchen

The kitchen is a delicate and particular environment, prone to store dirt, crumbs, limestone, food residues, bacteria to be eliminated. Precisely because it is a room designed to contain food, it is necessary to use products that are non-toxic in contact with surfaces. Some examples of the products are:

dishwashing detergent Dishwasher gel or tablets salt for the dishwasher rinse aid for the dishwasher surface cleaner (***) limescale remover

Detergents for the bathroom

The bathroom is a receptacle for dirt and germs and should be thoroughly and frequently cleaned and sanitized. To properly clean this room the following products are necessary:

bleach alcohol detergent for sanitizing surfaces limescale for faucets toilet sanitizing tablets descaling water

Detergents for the bedroom or the study

The bedroom and study do not require the thorough and frequent cleaning of rooms such as the bathroom or kitchen, but you certainly cannot neglect to sanitise all surfaces, from closets to drawers, from chandeliers to knick-knacks. Some examples include:

alcohol Multi-surface ...

4.2 Prices

Cleaning products are many and differ largely from each other: multipurpose cleaners might be very cheap (***), while products such as laundry detergents can cost up t * euros or more.

Prices, therefore, vary according to the product's purpose and dimension. However, it is interesting to analyze the difference in prices between the different macro-regions in Italy. The following map shows the average price for a multipurpose cleaner product across Italy: as we can notice, the North benefits from much lower prices compared to the Center and South, where the product can cost up to *.* euros.

Average price of multipurpose cleanersItaly, ****, in euros

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This graph displays the monthly Consumer Price Index (***) for household cleaning and maintenance products in Italy from January **** to November ****, where the year **** equals ***. The Consumer Price Index measures the changes in the market price of a 'basket' of consumer goods and services purchased by households.

In November ****, the CPI of household cleaning and maintenance products registered at **.* points. It is interesting to note the rise in the Index at the beginning of the pandemic (***).

Consumer Price Index (***) of household cleaning products Italy, ****-****, in CPI Source: ****

5.1 Regulation

On October *, ****, Regulation (***) No. ***/**** of the European Parliament and of the Council of March **, ****, on detergents came into force. The Regulation provides technical criteria for unifying the legislation of the various Member States with regard to the placing on the market of detergents and of surfactants for detergents.

For the purposes of this Regulation, "detergent" means any substance or preparation containing soaps and/or other surfactants intended for washing and cleaning activities. Detergents may be in any form (***) and maybe marketed and used domestically, institutionally, or industrially.

The regulation aims to harmonize:

the biodegradability of surfactants and the consequent bans or restrictions that could be imposed on their marketing the labeling of detergents for both domestic and professional use the information that manufacturers must make available to competent authorities, medical personnel, and the Member States. 

The result is to ensure the free movement of detergents and surfactants between EU countries, imposing on manufacturers the fulfillment of very precise obligations in order to ensure a high degree of protection of human health and the environment.

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6.1 Segmentation

• Arco Chimica
• Itidet
• Allegrini
• Kemika
• Diversey
• Procter & Gamble