Seje's Great Leap Forward After Decline... "Sales Increase Up to 6 Times"

[Asia Economy Reporter Yujin Jo] Due to the spread of the novel coronavirus infection (COVID-19), cleaning products are experiencing an unprecedented sales boom. With the increase in single-person households reducing demand within homes, attention is focused on whether the detergent industry, which has been in decline for several years, can expand its market thanks to COVID-19.

According to Gmarket on the 3rd, sales of laundry and kitchen detergents have grown by an average of 54% compared to the same period last year over the past two months (February 1 to March 31). By product category, sales of disinfectants surged by 527%, while sales of laundry and bathroom detergents, kitchen detergents, and baking soda and citric acid increased by 25-74%, 49%, and 44%, respectively. Sales of hand wash (liquid soap), which has bacteria removal effects, grew by 532%, and bar soap sales also rose by 63%.

In the case of E-Mart, kitchen detergent sales increased by 18.5%, more than doubling compared to 7.4% last year. According to Pigeon, the manufacturer of laundry detergent Actz, sales in the detergent sector showed double-digit growth in March, immediately after the COVID-19 crisis alert was raised to a serious level. An industry insider said, "In Italy, where confirmed cases have recently surged, kitchen and laundry detergents recorded a sales boom of over 200% compared to the previous month in February, showing that the detergent industry is experiencing an unexpected boom due to COVID-19."

This sales boom contrasts with the detergent industry's trend of gradual decline over recent years. Total detergent sales recorded growth rates of -6%, 8%, and soap sales -5%, 1% in 2018 and last year, respectively. An industry insider said, "Considering the increase in product categories, this essentially shows negative growth."

The structural downward trend in the detergent industry is attributed to the increase in single-person households and the emergence of sterilization home appliances such as laundry specialty franchises and stylers. Single-person households buy prepared food through delivery services and use sterilization home appliances like laundry specialty stores or stylers, sharply reducing direct demand for detergents.

The industry is paying close attention to whether changes in quarantine and hygiene awareness triggered by COVID-19 will lead to market expansion. Manufacturers cannot immediately feel the increase in demand as much as sellers do, but they are growing expectations for future demand growth. A representative from Aekyung Industrial said, "It takes about a month and a half for 2-4 person households to use up the detergent stockpiled at home, so unless there is panic buying, it is difficult to immediately feel market changes like sellers do, but we are monitoring demand trends."

An LG Household & Health Care representative said, "With increased interest in individual quarantine and hygiene due to COVID-19, we expect new demand for related products."

This content was produced with the assistance of AI translation services.