Executive Summary

In 1996, the total UK market for soaps and detergents was worth £1.42bn, of which the largest sector was fabric washing, at a value of £960m.

The market is composed of fabric washing products, fabric conditioners, dishwashing products, toilet soaps, and household cleaning products. Of these, fabric washing products are the largest single sector at 67.5% of the total sector.

The extremely competitive nature of the market is due to its domination by only two companies, Procter & Gamble Ltd, and Unilever PLC. This has led to very high levels of brand development. In addition, however, it has also led to brand proliferation, extreme price competition, and pre-tax margin levels of between 4% and 5%.

The textile detergents sector has recently been shaken, by the aftermath of the Persil Power problem, which has resulted in loss of value, changes of share and changes of approach by the major companies. Soap markets are being strongly affected by the new ranges of synthetic detergents (syndets) in bar form, but also in liquid and gel format. The market for liquid soaps has risen by 100% over the last 4 years.

This is a mature, but highly-competitive, market. Significant volume growth is unlikely, and value growth has, historically, been depressed by price competition. However, within sectors, rapid product development is likely to continue.

Within the soap sector, novel liquid formats are growing to the detriment of standard bars. The major companies are already attempting to regain both share and profitability, by rationalising textile detergent products. Within dishwashing products, the market for higher-priced dishwasher products will continue to grow, at the expense of hand-washing liquids. The depth and rapidity of these changes offers opportunities for new companies to enter the market, and there are signs that the historic duopoly in the UK, is beginning to be challenged successfully.

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