Detergents Market of Pakistan

The household care market experienced another reasonable performance in current value terms in 2005, maintaining the near double-digit increase seen in 2004. The household care environment is dominated by multinationals, with which local companies struggle to compete. A continuous rise in health and hygiene awareness, coupled with consumers' increasingly western lifestyles, had a very positive effect on demand for household care products among a core of more affluent urban consumers. The high number of Pakistanis returned to the country having left to work abroad also contributed to growth in demand for more advanced products.

Laundry care products continue to dominate the household care environment overall in 2005, accounting for 65% of total sales value. This high proportion of total sales is due to the necessity status of these products for Pakistani consumers, the majority of whom live on very low incomes, as well as rapid product development on a regular basis. Standard powder detergents and bar detergents account for the greatest share of laundry detergent sales due to their multiple uses and low prices. However, other more advanced products are gradually emerging due to the slow shift towards western lifestyles among a few urbanites.

Growth over the forecast period will be driven by several factors. These include the continued migration of rural consumers to urban areas in search of work and an improved standard of living. The number of Pakistanis returning to the country having worked abroad will also fuel growth, as these consumers bring with them knowledge of the products available in the west, as well as general lifestyle trends to which they have become accustomed. These factors will be underpinned by the increased penetration of supermarkets and hypermarkets in urban Pakistan, which will be able to offer consumers a wide range of modern, convenient products at highly competitive prices. Throughout the country consumers will continue to demand basic household care products they know to be effective, demonstrating little interest in the short to medium term in highly advanced and expensive products or formats.