The soap market, solid and liquid soap, has witnessed growth in recent years despite the economic and financial crisis, nearing EUR63 million last year, up 24% on the year and over 50% against 2008.
Market growth was mainly supported by sales of liquid soap, which almost tripled during the crisis, to EUR20 million. The segment now contributes almost one third to the overall market, from just 18% ahead of the crisis.
The liquid soap market has started rising in recent years, with the development of modern retail, with supermarket and hypermarket chains holding the largest share of this segment.
“Romania is following the model of Western markets, where liquid soap holds an 80% market share and solid soap just 20%. The local market had been lagging behind and this is why it has expanded strongly and it will continue doing so,” believes Kostas Fidanakis, commercial manager of InterstarChim.
InterstarChim also holds in its portfolio liquid soap produced at its plant of Bucharest.
After in 2013 both segments of the soap market rose, this year sales of solid soap are losing ground to those of liquid soap.
“At the same time, the weight of private labels is rising on both categories,” says Sorana Georgia, CEO of Billa supermarket chain.
Two international giants are battling on Romania’s liquid soap market, Unilever and Colgate Palmolive, which own the three brands that control over 60% of the market, namely Dove, Protex and Palmolive.
The solid soap market has undergone a series of changes. Thus, private labels in 2013 entered for the first time the ranking of the three largest players on the solid soap market, replacing Nivea.
“Private labels are growing each year and price is the main reason Romanians focus on them,” adds Fidanakis, who produces private label liquid soap for major retailers.
On the solid soap market, private labels have come to hold 13.5% of the market, matching that of Palmolive, the brand coming second in the ranking. The market is led by Dove brand of Unilever, which also leads on the liquid soap market.
As a matter of fact, Romania’s soap market is dominated by international brands in the context where Romania has no solid soap market. Recent years, though, have seen producers of liquid soap emerge, either under their own brand or private label. However, these are small entrepreneurial businesses that do not have the strength to battle international giants.
(English version by Catalina Apostoiu)