The linear alkylbenzene sulfonate (LAS) segment held a major share of the global SLS, SLES and LAS market in 2018. The sodium lauryl ether sulfate (SLES) segment is expected to remain moderately attractive during the forecast period. It is expected to expand at a CAGR of ~4% between 2019 and 2027.Developing economies of Asia Pacific, such as India, Vietnam, and Indonesia, are witnessing a rise in the demand for anionic surfactants, including SLS, SLES, and LAS.
Low manufacturing and labor costs and rate cuts in taxes imposed on detergent manufacturing are prompting market players to shift their production bases to countries in South Asia and Southeast Asia, in order to achieve economies of scale. For instance, the Government of India slashed the goods & services tax (GST) applicable on detergents and other mass consumption goods from 28% to 18% in November 2018.Increasing demand for cost-effective surfactant ingredients with a high rate of biodegradability and superior cleaning properties is anticipated to present significant opportunities for the global SLS, SLES and LAS market during the forecast period.
Key Drivers and Restraints of SLS, SLES and LAS Market
A continuous shift toward concentrated liquid and tablet detergents is likely to fuel the global SLS, SLES and LAS market in the near future. The threat of internal substitution in the global SLS, SLES and LAS market is projected to be high from 2019 to 2027, as certain manufacturers have started switching from LAS to mild anionic surfactants such as SLS and SLES. The trend of using mild and bio-based surfactants is gaining momentum in the market. This switch in consumption trend is high in developed economies vis-à-vis developing economies, owing to buyers’ preference for low-priced products.
The demand for surfactants for use in cleaning products is expected to be driven by high focus on sustainability and multi-functionality during the forecast period, wherein, product innovation remains vital for market participants to remain competitive. For instance, the gradual shift toward the consumption of more concentrated products and all-in-one solutions has been a notable trend in recent years.In developed markets such as Western Europe and the U.S., the demand for SLS, SLES, and LAS remains sluggish. Hence, it is vital for manufacturers to enhance their penetration in these emerging markets in order to sustain long-term growth.
Detergents & Cleaners Prominent in Global SLS, SLES and LAS Market
Based on application, the global SLS, SLES and LAS market has been segregated into detergents & cleaners, personal care, oilfield chemicals, textiles & leather, and others (including paints & coatings, polymer additives, and agricultural chemicals).
Among these applications, detergents & cleaners was the dominant segment of the global SLS, SLES and LAS market, accounting for ~ 50% of the market share in 2018.
SLES is gaining immense usability, owing to its good solvency, wide compatibility, thickening effect, high biodegradability, and anti-hard water-ability. Its exceptional performance in terms of emulsification, decontamination, dispersion, and solubilizing, and its foaming attributes are boosting the applicability of SLES in hand-washing liquids, shampoos, and bubble bath liquids.
Asia Pacific and North America to be Lucrative SLS, SLES and LAS Markets
Asia Pacific is expected to dominate the global SLS, SLES and LAS market, in terms of volume as well as revenue, in the near future. Asia Pacific accounted for ~ 30% share of the global SLS, SLES and LAS market in 2018.North America and Europe are attractive regions of the global SLS, SLES and LAS market, due to the presence of established personal care and detergent industries in the region. However, the rising trend of using sulfate-free personal care products in developed countries in Europe, such as the U.S, Germany, and France, is likely to hinder the demand for SLS, SLES, and LAS in these countries during the forecast period.
India is projected to be a lucrative market for SLS, SLES and LAS during the forecast period. The country is a large untapped market, with substantially low penetration of consumer appliances. In 2018, the washing machine industry in India was valued at US$ 1.09 Bn.Emerging rural areas of India offer immense potential for the electronic appliances sector. Increasing demand for electronic appliances, such as washing machines, depicts a promising outlook for the detergents & cleaners industry in India. This, in turn, is expected to boost the market for SLS, SLES, and LAS in India from 2019 to 2027.