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Soaps and Detergents - EN PDF
Soaps and Detergents - EN PDF
1
[Manufacture of Soaps, Detergents and Fragrances]
2
Manufacture of
Soaps, Detergents and Fr agr ances
3
Abdulaziz Al Khalifa
CEO
“
According to the analysis
of the data published by
the Planning and Statistics
As part of Qatar’s initiative to promote private sectors’ entrepreneurship,
particularly the small and medium-sized enterprises (SMEs), which are vital
tributaries to the country’s aspired diversified and sustainable economy, Qatar
Development Bank (QDB) plays a vital role in this domain wherein it puts a great
deal of time and effort into promoting local entrepreneurship and facilitating
Authority, the market size the formation of new ventures on a sound and viable business basis.
of detergents, toilet soaps QDB’s role is not limited to financing enterprises as it provides SMEs and
entrepreneurs with non-financial support services throughout all the phases of
and fragrances in 2018 their businesses, in a bid to achieve its vision “to develop and empower Qatari
was approximately 75,600, entrepreneurs and innovators to contribute in the diversification of the Qatari
economy.”
36,600 and 9,000 metric
In line with its objectives to establish reliable data and analysis as pre-requisite
tons, respectively. for new business ventures, and in order to extend meaningful support to
Qatari entrepreneurs, QDB is publishing a series of reports on potential SME
opportunities currently available across various sectors in the local market.
These reports aim at providing entrepreneurs potential opportunities to enter
particular sectors with relevant information and perspectives pertaining to
these sectors, including competitive landscape and data pertaining to existing
companies operating in such sectors.
This report focuses on ’Manufacture of Soaps, Detergents and Fragrances’,
sector. This sector is further categorized into three broad segments, a)
Detergents which include laundry detergents, dishwashing products and other
household cleaning products b) Toilet soaps which include soap bars, bath gels,
shampoos, shaving gels, hand wash, hand sanitizers, etc. and c) Fragrances
which include perfumes, deodorants & antiperspirants and air fresheners.
Qatar used to rely on imports of products under this sector. However, there
is increased participation from the local SMEs especially in the detergent
and fragrance segments. This helped in import substitution particularly since
the commencement of diplomatic situation in Qatar. Currently, there are five
companies manufacturing detergents in Qatar and is expected to add more
company/capacity in 2019. With the additional capacities, the detergent
companies will be able to cater to the demand of detergents in Qatar. Two of
the detergent companies also produce hand wash in limited amounts, which
is the only product under toilet soap manufactured in Qatar. There are two
companies manufacturing perfumes in Qatar, which will cater to a small portion
of the fragrance segment.
I invite readers to go through the report and learn more about the sector
prospects.
[CEO’s Message] 5
Table of contents
CEO’s Message .............................................................................................................................................................4
2. Detergents .............................................................................................................................................................22
2.1 Sub-Sector Overview....................................................................................................................................................................... 22
2.2 Global Market Overview ................................................................................................................................................................. 26
2.3 GCC Market Overview .................................................................................................................................................................... 28
2.4 Qatar Market Overview ................................................................................................................................................................... 32
3. Toilet Soaps............................................................................................................................................................44
3.1 Sub-Sector Overview....................................................................................................................................................................... 44
3.2 Global Market Overview ................................................................................................................................................................. 46
3.3 GCC Market Overview .................................................................................................................................................................... 48
3.4 Qatar Market Overview ................................................................................................................................................................... 52
6. References ...........................................................................................................................................................112
[Table of contents]
7
List of Charts
Chart 1. Global Imports of Detergents, 2017-----------------------------------------------------------------------------------------------------------26
Chart 10. Qatar Share of Imports in Domestic Consumption of Detergents, 2006 - 2017-----------------------------------------------------35
Chart 11. Qatar Demand and Supply Analysis for Detergents, 2018 - 2026----------------------------------------------------------------------36
Chart 12 Average Import Prices for Detergents (QAR Per Kg), 2016 And 2017----------------------------------------------------------------38
Chart 18. Qatar’s Historical and Current Demand for Toilet Soaps, 2006 - 2017-----------------------------------------------------------------52
Chart 22. Share of Imports in Domestic Consumption for Toilet Soaps, 2008 - 2017-----------------------------------------------------------55
Chart 23. Qatar Demand and Supply Analysis for Toilet Soaps, 2018 - 2026---------------------------------------------------------------------56
Chart 24. Average Import Prices for Toilet Soaps (QAR Per Kg), 2016 - 2017--------------------------------------------------------------------58
Chart 38. Qatar Historical and Current Demand for Fragrances, 2006 - 2017--------------------------------------------------------------------78
Chart 43. Qatar Key Sources of Imports of Fragrances by Value, 2006 - 2017-------------------------------------------------------------------81
Chart 44. Qatar Key Sources of Imports of Deodorants by Value, 2011 - 2017-------------------------------------------------------------------82
Chart 45. Qatar Key Sources of Imports of Perfumes by Value, 2011 - 2017----------------------------------------------------------------------82
Chart 46. Qatar Key Sources of Imports of Air Fresheners by Value, 2011 - 2017---------------------------------------------------------------83
Chart 47. Share of Imports in Domestic Consumption for Perfumes, 2006 - 2017---------------------------------------------------------------84
Chart 48. Qatar Demand and Supply Analysis for Perfumes, Antiperspirants and Air Fresheners, 2018 – 2026-------------------------85
Chart 49. Average Import Prices for Perfumes (QAR Per Kg), 2016 And 2017--------------------------------------------------------------------87
[List of Charts] 9
List of Tables
HS Codes for Detergents ------------------------------------------------------------------------------------------------------------------------17
Figure 2. List of Leading Brands in Qatar and their Market Share, 2017--------------------------------------------------------------------------40
[List of Figures] 11
[Manufacture of Soaps, Detergents and Fragrances]
12
Acronyms and Abbreviations
AED Arab Emirates dirham
APEJ Asia Pacific, excluding Japan
CAGR Compounded annual growth rate
EUR Euros
FDA Food and Drug Administration
GCC Gulf Cooperation Council
HS Harmonized System
KOH Potassium hydroxide
KSA Saudi Arabia
MEA Middle East and Africa
NaOH Sodium hydroxide
NDC National Detergents and Cosmetics Company
OTC Over the counter
P&G Procter & Gamble
QDB Qatar Development Bank
QDC Qatari Detergents Company
UAE United Arab Emirates
UK United Kingdom
US United States of America
US$ United States Dollar
This sector comprises of three broad segments i.e. detergents, toilet soaps and
fragrances. Increasing awareness of personal hygiene and the increase in population
will drive the demand for products under this sector. Qatar has traditionally been reliant
upon imports to meet its demands. However, post the embargo in Qatar, there has
been an added impetus to increase capacities or start new companies to be able to
cater to the local demand in Qatar.
[Executive Summary]
15
1. Introduction
1.1 Detergents
Detergents are soap-like compounds
that are used for cleaning purposes.
They are cleaning agents that help in
removing dirt and grease from porous
and non-porous surfaces. Chemically,
they are sodium salts of long-chain
alkyl benzene sulphonic sulphates.
Detergents are used in making a
number of cleaning products used
in day-to-day life such as laundry
detergents and laundry aids,
dishwashing products and household
cleaning products.
The Harmonized System (HS) codes
of products that come under the
detergents segments are as follows:
Polishes and creams, for footwear, furniture, floors, coachwork, glass or metal, scouring
pastes and powders and similar preparations (whether or not in the form of paper, wadding,
34059010
felt, nonwovens, cellular plastics or cellular rubber, impregnated, coated: Other: Polishes
preparations for glass and mirrors
[Introduction]
17
Table 2. HS Codes for Toilet Soap
Soap; organic surface-active products and preparations for use as soap, in the form of bars,
cakes, molded pieces or shapes, whether or not containing soap; organic surface-active
products and preparations for washing the skin, in the form of liquid or c: Soap and organic
34011130
surface active products and preparations, in the form of bars cakes, molded pieces or shapes,
and paper, wadding, felt and nonwovens, impregnated, coated or covered with soap or
detergent: for toilet use (including medicated products ): Shaving soap
Soap; organic surface-active products and preparations for use as soap, in the form of bars,
cakes, molded pieces or shapes, whether or not containing soap; organic surface-active
products and preparations for washing the skin, in the form of liquid or c: Soap and organic
Toilet soap 34011140
surface active products and preparations, in the form of bars cakes, molded pieces or shapes,
and paper, wadding, felt and nonwovens, impregnated, coated or covered with soap or
detergent: for toilet use (including medicated products ): Medicated soap
Soap; organic surface-active products and preparations for use as soap, in the form of bars,
cakes, molded pieces or shapes, whether or not containing soap; organic surface-active
products and preparations for washing the skin, in the form of liquid or c: Soap and organic
34011150
surface active products and preparations, in the form of bars cakes, molded pieces or shapes,
and paper, wadding, felt and nonwovens, impregnated, coated or covered with soap or
detergent: for toilet use (including medicated products ): Disinfectant soap
Soap; organic surface-active products and preparations for use as soap, in the form of
bars, cakes, molded pieces or shapes, whether or not containing soap; organic surface-
active products and preparations for washing the skin, in the form of liquid or c: Soap and
34011170 organic surface active products and preparations, in the form of bars cakes, molded pieces
or shapes, and paper, wadding, felt and nonwovens, impregnated, coated or covered with
soap or detergent: for toilet use (including medicated products ): Paper, wadding, felt and
nonwovens, impregnated or covered with soap or detergent, whether or not perfumed
Soap; organic surface-active products and preparations for use as soap, in the form of bars,
cakes, molded pieces or shapes, whether or not containing soap; organic surface-active
products and preparations for washing the skin, in the form of liquid or c: Soap and organic
34011180
surface active products and preparations, in the form of bars cakes, molded pieces or shapes,
and paper, wadding, felt and nonwovens, impregnated, coated or covered with soap or
detergent: for toilet use (including medicated products ): toilet soap
Soap; organic surface-active products and preparations for use as soap, in the form of bars,
cakes, molded pieces or shapes, whether or not containing soap; organic surface-active
products and preparations for washing the skin, in the form of liquid or c: Soap and organic
34011190
surface active products and preparations, in the form of bars cakes, molded pieces or shapes,
and paper, wadding, felt and nonwovens, impregnated, coated or covered with soap or
detergent: Other
Soap; organic surface-active products and preparations for use as soap, in the form of bars,
cakes, molded pieces or shapes, whether or not containing soap; organic surface-active
products and preparations for washing the skin, in the form of liquid or c: Soap and organic
34011920
surface active products and preparations, in the form of bars cakes, molded pieces or shapes,
and paper, wadding, felt and nonwovens, impregnated, coated or covered with soap or
detergent: Other: Rosin, tall oil or napththenate soaps
Soap; organic surface-active products and preparations for use as soap, in the form of bars,
cakes, molded pieces or shapes, whether or not containing soap; organic surface-active
Toilet soap
products and preparations for washing the skin, in the form of liquid or c: Soap and organic
34011930
surface active products and preparations, in the form of bars cakes, molded pieces or shapes,
and paper, wadding, felt and nonwovens, impregnated, coated or covered with soap or
detergent: Other: Artificial soap prepared for special use
Soap; organic surface-active products and preparations for use as soap, in the form of bars,
cakes, molded pieces or shapes, whether or not containing soap; organic surface-active
products and preparations for washing the skin, in the form of liquid or c: Soap and organic
34011940
surface active products and preparations, in the form of bars cakes, molded pieces or shapes,
and paper, wadding, felt and nonwovens, impregnated, coated or covered with soap or
detergent: Other: Coated or covered with soap or detergent, whether or not Perfumed
Soap; organic surface-active products and preparations for use as soap, in the form of bars,
cakes, molded pieces or shapes, whether or not containing soap; organic surface-active
products and preparations for washing the skin, in the form of liquid or c: Soap and organic
34011990
surface active products and preparations, in the form of bars cakes, molded pieces or shapes,
and paper, wadding, felt and nonwovens, impregnated, coated or covered with soap or
detergent: Other: Other
Soap; organic surface-active products and preparations for use as soap, in the form of bars,
cakes, molded pieces or shapes, whether or not containing soap; organic surface-active
34012010
products and preparations for washing the skin, in the form of liquid or c: Soap in other
forms: Other: In the form of powder
[Introduction]
19
Table 2. HS Codes for Toilet Soap
Soap; organic surface-active products and preparations for use as soap, in the form of bars,
cakes, molded pieces or shapes, whether or not containing soap; organic surface-active
34012020
products and preparations for washing the skin, in the form of liquid or c: Soap in other forms:
Other: In the form of paste
Soap; organic surface-active products and preparations for use as soap, in the form of bars,
cakes, molded pieces or shapes, whether or not containing soap; organic surface-active
34012030
products and preparations for washing the skin, in the form of liquid or c: Soap in other forms:
Other: In the form of aqueous soap
Toilet soap
Soap; organic surface-active products and preparations for use as soap, in the form of bars,
cakes, molded pieces or shapes, whether or not containing soap; organic surface-active
34012090
products and preparations for washing the skin, in the form of liquid or c: Soap in other
forms: Other: Other
Soap; organic surface-active products and preparations for use as soap, in the form of bars,
cakes, molded pieces or shapes, whether or not containing soap; organic surface-active
34013000 products and preparations for washing the skin, in the form of liquid or c: Organic surface
active products and preparations for washing the skin, in the form of liquid or cream and
put for retail sale, whether or not containing soap
1.3 Perfumes
Perfumes are concentrated scents
that are worn on the body or
clothing. They are manufactured
using essential oils, fixatives and
solvents (e.g. alcohol and water).
They are available in a variety of
fragrances and cater to diverse
tastes and budgets. There are
many different types of liquid
perfumes available in the market
which differ based on their oil
concentration. Perfumes can
also be found in solid state, in
the form of stick, and are applied
directly to the body.
[Introduction]
21
2. Detergents
a) General purpose detergents: These are suitable for all washable fabrics. Liquid
detergents are most useful to remove oily soils and pretreating soils and
stains. Powdered detergents are particularly useful for removing
clay and ground-in dirt.
b) Light duty detergents: These detergents are predominantly used for hand or
machine-washing of lightly stained items and delicate fabrics.
a) Bleaches: Bleach aids in removing stains and are used to brighten fabrics.
They help convert the soils into colorless and soluble particles, which can then be removed by the detergents.
Liquid chlorine bleaches are good disinfectants and deodorizer.
Oxygen bleaches work on almost all washable fabrics and are more gentle and safe in nature.
b) Bluings: These products are a blue dye, used to whiten and brighten textiles especially white fabrics. They absorb the yellow
color of the light spectrum, counteracting the yellowing process of many fabrics.
c) Boosters: These are often used during the washing process in addition to detergents. They predominantly enhance the stain
removal, brightening and water-softening qualities of the detergents.
d) Enzyme presoaks: These products are used to soak fabrics prior to washing in order to loosen difficult stains and soils. They can
also be added to wash water to increase the cleaning power.
e) Fabric softeners: Fabric softeners are usually added during the final rinsing phase of a wash cycle. They help to decrease static
and wrinkling, making fabrics softer, decreasing drying time and they also act as deodorizers.
f) Prewash soil and stain removers: These help to pretreat difficult stains and soils on synthetic fabrics.
g) Starches, fabric finishes and sizing: These are used during the final rinse or after drying to make the fabrics more crisp and soil
resistant.
h) Water softeners: As detergents are more effective in soft water, water softeners are added during the wash to inactivate the hard
water minerals.
[Detergents]
23
C. Dishwashing Products
a) Hand dishwashing detergents: These help to remove food soils and provide lasting suds that indicate how much cleaning
power is left in the wash water.
b) Automatic dishwashing detergents: These help to remove
food soils emulsify grease and oil, suppress foam caused by
protein soil and tie-up hardness of minerals. They produce
very little or no suds in order to curb the interference with the
washing action of the machine.
c) Rinse agents: These assist in draining the water from the dishes and
utensils by lowering the surface tension. This helps in minimizing spotting,
filming and drying.
d) Film removers: These help by removing the hard water film and reducing the cloudiness inside the dishwasher and from
utensils.
e) Lime and rust removers: These are used to remove lime deposits and rust from the interiors of the dishwasher.
a) All-purpose cleaners: These are used to loosen the soil and stop it from redepositing on the clean surface.
b) Abrasive cleaners: These are used to loosen the heavy accumulation of soil in smaller areas.
c) Glass cleaners: These are used to loosen oily deposits on the glass surface, and aid in the drying of glass surfaces without
streaks.
d) Glass and multi-surface cleaners: These help remove stains from any smooth surface, leaving it shiny and free from streaks.
e) Tub, tile and sink cleaners: These aid in removing stains, mildew and molds from bathroom surfaces. Some are also used as
disinfectants.
f) Metal cleaners: These assist with the removal of tarnish, soil deposits from the surface of the metal, and also help in providing a
polished finish.
g) Oven cleaners: These products are used to remove the burned-on grease and other food deposits from the walls of the oven.
They are thick in consistency in order to cling to the vertical walls of the oven.
h) Rug shampoos and upholstery cleaners: These products are used to remove oily and greasy soils from upholstery and aids in
their suspension to avoid the dirt from redepositing.
i) Toilet bowl cleaners: They are used to remove/prevent the hard water stains depositing in the toilet bowl. Some also act as
deodorizers and disinfectants.
j) Drain openers: These products are used to unclog kitchen and bathroom drainages. They produce heat that melts deposited
fats, which can then be rinsed away by water. Some products contain bacteria that helps to prevent the drain from clogging.
[Detergents]
25
2.2 Global Market Overview
The home care market is growing considerably, with increasing awareness of personal hygiene and healthy living. The home care
products include categories of products such as toilet care, laundry care, dishwashing, surface care and air fresheners. In 2017,
home care products registered a global revenue of approximately US$146 billion, with US$85 billion belonging to the laundry care
category1.
1
Lucintel - Market research, 2Euromonitor
6% France
5% China
4% Italy
5% United Kingdom
4% Poland 4% Netherlands
Household care products are dominated by top brands such as Procter & Gamble (P&G), Unilever and Henkel etc. P&G registered
net sales of US$ 20.89 billion in 2016 for fabric and home care products, with their biggest market being the US3. Tide and Ariel
are their most famous products. P&G introduced Tide Pureclean as the first bio-based detergent to address the growing consumer
needs for natural detergents. Unilever registered a turnover of EUR10 billion in 2016 for their home care segment, accounting for
19 percent of their total turnover4. Surf, as well as other household products such as Comfort, Sunlight, Domestos and Cif etc.,
are some of its most well-known products. Henkel’s laundry and home care products, such as Persil, Purex, Pril etc., generated an
estimated net sales of EUR5.7 billion, accounting for 31 percent of Henkel’s total net sales in 2016.
[Detergents]
27
2.3 GCC Market Overview
1,063 1,098
1,077
1,000 1,022 1,000
900 900
800 800
%
R 12.3 785
700 CAG 700
672
USD million
USD million
600 600
500 500
100 100
0 0
2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
500 500
450
423
11.1% 417
CAGR
400 400
USD million
USD million
328
285
300 262 300
223 227 232
200 200
100 100
0 0
2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
[Detergents]
29
Table 4. Key Manufacturers of Detergents in the GCC Region
Company Country Year of Installed Units Types of Products
Establishment Capacity
Knooz Al-Ardh
Saudi
Detergents NA NA NA • Laundry care and home care products
Arabia
Factory
Reckitt Benckiser UAE 1996 NA NA • Laundry care and home care products
Wafir Company
Saudi
for Industrial 2002 50,000 MT • Laundry care and home care products
Arabia
Detergent
Modern Arabian
Saudi
Crystal Industries 2001 NA NA • Home care products
Arabia
Company Ltd.
Fayfa Chemicals UAE 1991 77,000 liters • Laundry care and home care products
Al Basma
UAE NA NA NA • Laundry care and home care products
Detergents
Falcon Detergents
UAE NA NA NA • Laundry care and home care products
Ltd.
Nazih Group UAE 1975 NA NA • Laundry care and home care products
La Famille
UAE 2007 NA NA • Laundry care and home care products
Industries
The National
Oman 1981 NA NA • Laundry care and home care products
Detergents Co.
Sallan Industrial
Oman 2015 NA NA • Laundry care and home care products
Investment LLC
Al Sanea Chemical
Kuwait 1977 NA NA • Laundry care and home care products
Products
Al Sharan Idustries Kuwait 1968 NA NA • Laundry care and home care products
Al-Tadamon Intl Kuwait 1992 NA NA • Laundry care and home care products
Middle East
Chemical Kuwait 1983 NA NA • Home care products
Manufacturing Co.
Al-Bahar Industries
Kuwait 1985 NA NA • Laundry care and home care products
WLL
Unilever5 UAE 2016 100,000 MT • Laundry care and home care products
Global Detergent
Qatar NA 390,000* cartons • Laundry care and surface care products
Factory
• Dishwashing liquid
Gulf Detergents
Qatar NA 12,000* MT • Surface cleaners
Factory
• Disinfectants
• Kitchen care
Advance Chemical
Qatar 2016 12,000 MT • Laundry care and home care
Manufacturing Co.
• Disinfectants
5
Sustainable brands
[Detergents]
31
2.4 Qatar Overview
80 80
74.0
70 66.7 70
59.6
60 60
%
R 12
CAG 52.5
50 47.3 50
Market Size ('000 tons)
10 10
0 0
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
Source: Team Analysis based on data from Planning and Statistics Authority
This increase in demand was significantly driven by an increase of the population in Qatar, which grew at a CAGR of 9.1 percent.
An increase in the number of hypermarkets/supermarkets in Qatar also supported the reach of international brands in the region.
Demand for detergents reached 74,000 tons in 2017.
40 84.9 75
36
71.4 65
68.0
32
59.6 55
28
52.8 54.4
Import (USD million)
45
Import ('000 tons)
24
39.8 38.4
20 35
33.9
16 29.1
25
17.0
12
18.4 15
8
5
13.6
12.9
17.3
17.3
16.6
19.4
19.2
24.4
27.0
30.6
36.6
42.7
0 -5
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
Source: Team Analysis based on data from Planning and Statistics Authority
6
AISE, Primary research
[Detergents]
33
In value terms, the import has increased from US$17million in as Unilever, Procter & Gamble and Henkel, have their regional
2006 to reach US$84.9million in 2017, growing at a CAGR of manufacturing plants there.
15.8 percent. However, post the start of diplomatic situation in mid-2017,
Saudi Arabia was the single largest source of imports from Oman has emerged as the largest supplier to Qatar with a share
2011 to 2016, with an average share of 57 percent during this of 31 percent, an increase from 5 percent in 2016.
period, followed by UAE (18 percent), Oman (5 percent), China Import share of Saudi Arabia and UAE has decreased
(4 percent), and the US (2 percent each). substantially from 55 percent and 14 percent in 2016 to 22
Qatar used to source most of their detergents from Saudi percent and 9 percent, respectively in 2017.
Arabia (KSA), as all the three major international brands, such
100% 100%
Rest of the world
90% 90%
60% 60%
Switzerland
50% 50%
Saudi Arabia
40% 40%
30% 30%
20% 20%
0% 0%
2011 2012 2013 2014 2015 2016 2017
Source: Team Analysis based on data from Planning and Statistics Authority
B Exports: QDC accounts for majority of the detergent exports in Qatar. National Detergent and Cosmetics Company have
marginal revenues from exports. Based on primary research, QDC is trying to establish a network outside of Qatar in order to
export 50 percent of their total production. As per the Chart 9, only 1,100 tons of detergents were exported from Qatar in 2015.
However, due to the recent changes in the political situation, QDC is finding it difficult to export detergents due to longer
transit time for the goods to reach their destination. Increase in sales in local market compensates for the reduction in exports.
Local sales increased due to lower competition from other brands and the sentiment of encouraging procurement from a local
company after the blockade.
3.5 3.5
3.0 3.0
2.5 2.5
Exports ('000 tons)
1.5 1.5
1.0 1.0
0.5 0.5
2.1
0.9
1.2
2.7
2.9
1.1
0 0
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
Source: Team Analysis based on data from Planning and Statistics Authority
C) Share of Imports in Domestic Consumption: Imports account for approximately 58 percent of the total consumption in Qatar
in 2017. Historically, the percentage share of imports during 2006 and 2017 has been fluctuating within the range of 51 percent
to 64 percent, primarily owing to the presence of two domestic manufacturing facilities, namely Qatar Detergent Company and
National Detergent and Cosmetics Company. The share of imports is expected to decrease in the near future especially in the
B2B segment as existing companies plan to increase their capacity as well as new companies are being set up.
Chart 10. Qatar Share of Imports in Domestic Consumption of Detergents, 2006 - 2017
100 50%
59% 58% 58%
64% 57% 57% 57% 58%
90 56% 45%
61%
74.01
80 40%
31.3
51%
70 35%
59.61
52.48
29.0
60 30%
% Import
47.33
Weight, 000 MT
22.6
50 25%
20.4
39.84
40 34.33 33.02 20%
15.4
29.41 28.79
14.9
13.9
30 22.89 15%
12.1
12.2
21.24
7.7
12.9 10.0
20 10%
5%
17.3
16.6
19.4
19.2
24.4
27.0
29.9
36.6
42.7
10
13.6
0 0%
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
Source: Team Analysis based on data from Planning and Statistics Authority
[Detergents]
35
2.4.4 Demand Forecast
Assessment of historical demand for detergents indicates a strong correlation with the population growth in Qatar. The per capita
consumption of detergents and forecasted population growth have been taken as the basis to forecast the demand for the future.
Overall, the market demand is projected to grow at a CAGR of 1.65 percent from approximately 75,600 tons in 2018 to 86,100
tons in 2026. New facilities have commenced production in the recent past and with additional capacity coming online, the local
production capacity will exceed the demand for detergents in Qatar by 2020. Currently, the local facilities are not operating at full
capacity.
Chart 11. Qatar Demand and Supply Analysis for Detergents, 2018 - 2026
100 100
90 90
86.1
84.9
83.7
83.6
83.6
83.6
83.6
83.6
83.6
83.6
82.4
81.0
79.6
80 80
77.0
78.3
75.6
74.0
70 70
65.0
60 60
50 50
40 40
30 30
20 20
10.6
2.5
3.0
10 10
(5.3)
(2.6)
(1.2)
1.3
(4.0)
0.1
0 0
2018E 2019F 2020F 2021F 2022F 2023F 2024F 2025F 2026F
-10 -10
-20 Demand (’000 tons) Capacity (’000 tons) Demand - Supply gap (’000 tons) -20
Source: Team Analysis based on data from Planning and Statistics Authority
Dish Washing Liquid (liter) Min Price (QAR) Max Price (QAR)
17.9 20.3
Min Price (QAR) Max Price (QAR)
6.0 14.5
[Detergents]
37
Oman was the leading importer of detergents to Qatar in 2017 and prices increased from QAR3.6 per Kg in 2016 to QAR7.6 per
Kg in 2017, an increase of 108.5 percent. Prices from Kuwait also increased threefold during 2016 and 2017, reaching QAR7.9 per
Kg from QAR2.5 per Kg.
However, the imports from UK, USA, Turkey, Germany and France saw a decrease in the import prices in 2017 as compared to 2016.
Turkey recorded the maximum decrease of 39 percent while Germany and USA witnessed a decline of 16 percent and 12 percent
in the import prices. France and UK saw a marginal decline of 1.7percent and 0.5 percent in 2017.
Chart 12. Average Import Prices for Detergents (QAR per Kg), 2016 - 2017
25 25
21.6
20 20
18.1
15 15
14.1
QAR/Kg
12.4
10.8
10.7
10 10
8.6
7.9
7.6
6.7
6.5
5.5
5 5
5.3
5.2
3.6
2.5
2.5
2.5
0 0
Oman Saudi Arabia UAE UK USA Kuwait Turkey Germany France
2016 2017
[Detergents]
39
Figure 2. List of Leading Brands in Qatar and their Market Share, 2017
02
Mr. Muscle 18% 07 Oemino 12%
Figure 2 represents the market share of leading brands prior to the diplomatic situation. Our research indicated that the market
share has made gradual shift towards local brands especially in the B2B segment.
STRENGTHS WEAKNESS
• Domestic manufacturers have been able to establish a • As a mass product, the detergents market is dominated
successful brand, e.g. Pearl. by strong international brands.
• Domestic manufacturers have a presence in all product • The focus has been less on detergents manufacturing
segments, as well as price segments (premium, in Qatar due to the market being small and numerous
economy, export). products readily available.
• Key ingredients for manufacturing detergents are
available locally.
OPPORTUNITIES THREATS
• Most of the international brands serve the Qatar market • Multiple low cost detergent brands from the UAE
from manufacturing facilities based in the KSA or the and Oman have entered the Qatar market and are
UAE. The diplomatic situation has increased the time challenging the domestic manufacturers on price.
and cost to reach customers. (However, UAE brands will not pose a threat while the
• Qatari products especially laundry detergent, dish soap diplomatic situation continues).
and disinfectants have gradually increased in popularity • The diplomatic situation has restricted the export
post blockade due to customers preferring to support opportunity of local manufacturers.
local products. • If the embargo is lifted, the captive local market will be
• The corporate segment offers a good opportunity for open to competition from regional companies.
domestic manufacturers to increase their market share. • Local production can compete at international standards
as proven by QDC. However, a long-term incumbent
such as QDC would prove to be a significant competitor
as it claims it can meet 100% of the country’s need in
the laundry detergent segment.
Note: SWOT analysis relates to new companies planning to enter the detergents market in Qatar
[Detergents]
41
Figure 4. Michael Porter’s Five Forces Analysis - Detergents
THREAT OF
NEW ENTRY
High
• Reasonably high investment
required to set up powdered
detergent manufacturing.
• Although the investment required
for liquid detergent segments
is relatively lower, it is essential
to establish a brand in order to
compete with strong international
brands.
• oThe time taken to obtain
certifications in environmental
requirements and safety standards
could act as a hindrance.
COMPETITIVE
RIVALRY
BARGAINING BARGAINING
High
POWER – SUPPLIERS POWER – CONSUMERS
• Stiff competition from
Low international brands in the High
• Although raw material is premium segment and • Expat population accounts
available in Qatar, the Qatari from regional players in the for nearly 90% and has been
manufacturing facilities rely on economy segment. exposed to international brands.
imports for their raw material • Existing local manufacturers These brands have a presence
requirements. have emerged as strong in market for a long time and
players over the years. hence is the preferred choice for
• As such, the bargaining power of
consumers.
suppliers is low.
THREAT OF
SUBSTITUTION
Low
• There are innovative products,
such as liquid detergents, gel,
organic detergents, combination
detergents etc., that have
recently been introduced.
However, these are variants of
detergents and not an actual
substitute for detergents and
can be produced by the existing
players.
[Detergents]
43
3. Toilet Soaps
Bar soaps
Heavy
Liquid soaps duty hand
cleaners
7
Healthy Cleaning 101
[Toilet Soaps]
45
3.2 Global Market Overview
Convenience and cleanliness are two factors contributing to milder and natural alternatives on their skin. As per a survey,
shifting trends in this market. In recent times, the usage of bar up to 50 percent of the US and European consumers look for
soaps has been substituted by an increase in consumption natural ingredients, such as organic or natural essential oils and
of liquid soap. This change in preference is attributed to the fruit extracts and packaging with a natural claim8.
younger population perceiving liquid soap to be more hygienic
and antibacterial. Furthermore, bar soaps have a tendency to The global toilet soap industry is dominated by few multinational
leave residue in showers, they require a dish for storage and are companies. These companies face fierce competition from the
not as long lasting as liquid soaps. supermarket chains in the mature markets who are introducing
in-house products while in the developing economies,
Consumers are also making more informed and conscious competition arises from small and medium sized local companies
purchasing decisions pertaining to leading a healthy lifestyle. and artisanal soap manufacturers.
Ingredients derived from superfoods, probiotics and vitamins
will be driving new product development with bath and shower The multinational companies invest more in branding, research
products. Ingredients made with natural products are growing in and development to target the end consumer while the local
popularity, with consumers becoming more conscious of using players and SMEs focus on institutional segments or B2B
network for the sale of their products.
The global imports of toilet soap totaled US$17 billion in 2017, Global exports of toilet soap totaled US$17 billion in 2017, with
with the US leading the imports with a 7 percent share of the Germany being the largest exporter with a 10 percent share
total imports. The UK and Germany accounted for 5 percent of total exports. US is the second largest exporter with an 8
each, followed by Canada, France and China with a 4 percent percent share, followed by China, Italy, the UK and France with
share each of total imports. a 5 percent share each.
Chart 14. Global Imports of Toilet Soaps, 2017 Chart 15. Global Exports of Toilet Soaps, 2017
54% Others
66% Other 7% USA 10% Germany
5% UK
8% USA
5% Germany
4% Canada 5% China
3% Japan 5% France
3% 4% Poland
United Arab Emirates
4% Indonesia
Source: Team Analysis based on data from TradeMap Source: Team Analysis based on data from TradeMap
8
Stephenson personal care
1,125
1,200 1,200
1,082 1,061
1,100 1,100
9.2% 1,000 968
1,000 CAGR 1,000
902
900 900
800 800
USD million
USD million
700 700
600 600
480
500 446 500
383
400 400
320
300 300
200 200
100 100
0 0
2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
9
Transparency Market Research
700 700
627
7.9% 539
USD million
USD million
600 600
CAGR
500 500
415
400 355 363 400
299
300 300
200 200
100 100
0 0
2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
[Toilet Soaps]
49
3.3.3 Key Market Players
The toilet soap market in the GCC is dominated by international brands such as Colgate-Palmolive, P&G and Unilever etc. These
international brands have their manufacturing units in GCC such as P&G in Saudi Arabia, Unilever in UAE and Reckitt Benckiser in
UAE. A few local toilet soap manufacturers are also present in this market. Most of the largest local companies, such as Sidco (KSA),
Wafir (KSA), Scitra (UAE), NDCO (Oman), Al Sharan (Kuwait) and QDC (Qatar), are predominantly detergent manufacturers that also
produce liquid/bar soaps.
Year of Installed
Company Country Units Types of Products
Establishment Capacity
Saudi
Sidco 1982 NA NA • Liquid soap
Arabia
Saudi
Al Mina Group 1976 NA NA • Liquid soap
Arabia
Koonz Al-Ardh
Saudi
Detergents NA NA NA • Liquid soap
Arabia
Factory
Saudi
Crystal Arabia 2001 NA NA • Liquid soap
Arabia
Wafir Company
Saudi
for Industrial 2002 NA NA • Liquid soap
Arabia
Detergent
Al Basma
UAE NA NA NA • Liquid soap and hand sanitizers
Detergents
Falcon Detergents
UAE NA NA NA • Liquid soap
Ltd.
La Famille
UAE 2007 NA NA • Liquid soap and hand sanitizers
Industries
The National
Oman 1981 NA NA • Bar and liquid soap and shampoos
Detergents Co.
Sallan Industrial
Oman 2015 24,000 MT • Bar and liquid soap and hand sanitizers
Investment LLC
Al Sanea Chemical
Kuwait 1977 NA NA • Liquid soap and hand sanitizers
Products
Unilever10 UAE 2016 100,000 MT • Laundry care and home care products
Al Sharan
Kuwait 1968 NA NA • Bar and liquid soap and hand sanitizers
Industries
Al-Tadamon
Kuwait 1992 NA NA • Liquid soap, hand sanitizer and shampoos
International
Middle East
Chemical Kuwait 1983 NA NA • Liquid soap
Manufacturing Co.
Reckitt Benckiser UAE 1996 NA NA • Home care products and liquid soaps
Al-Bahar Industries
Kuwait 1985 NA NA • Liquid soap and hand sanitizers
W.L.L
FITCO Detergent
Qatar NA NA NA • Hand wash
Factory
Qatar Detergent
Qatar 1978 NA NA • Liquid soap
Company
Sustainable brands
10
[Toilet Soaps]
51
3.4 Qatar Market Overview
Chart 18. Qatar’s Historical and Current Demand for Toilet Soaps, 2006 - 2017
50 50
45 45
40 40
8% 35.8
R 14. 36.3 34.9
35 CAG 35
31.8
Market Size ('000 tons)
30 28.0 28.6 30
25.0
25 25
22.0
20 20
15.9
15 15
12.6
10 7.9 8.6 10
5 5
0 0
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
Chart 18: Qatar’s Historical and Current Demand for Toilet Soaps, 2006-2017
Awareness for hand, body and hair hygiene has increased in the present world. Demand for toilet soaps is driven by the growth in
population and an increasing awareness of the importance to ensure personal well-being. Population in Qatar grew at a CAGR of
9.1 percent from 2006 to 2017. In line with the increase in the population, demand for toilet soaps in Qatar grew at a CAGR of 14.8
percent from 7,900 tons in 2006 to 35,800 tons in 2017.
Split of Market
39.9%
Segment Bar soap
2017
[Toilet Soaps]
53
3.4.3 Trade Analysis
Imports for toilet soap grew at CAGR of 16.9 percent from 8,000 tons in 2006 to 30,800 tons in 2015. However, post 2015, imports
have witnessed a decrease of 14.7 percent and registered volume of 22,400 tons in 2017. The drop in imports during the year 2017
could be due to the diplomatic situation leading the local distributors to rely on their inventory till identifying new or alternative
sources of imports.
Chart 20. Qatar Imports of Toilet Soaps, 2006 - 2017
40 100
99.5
92.6 92.4
35 90
85.9
82.9
80
30
67.3 70
25
53.5
20 50
30.8
42.1
35.9
28.4
40
27.4
15
27.8
32.8
23.9
30
22.4
15.6
21.1
10 21.2 22.0
20
11.9
5
7.6
8.6
10
0 0
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
Source: Team Analysis based on data from Planning and Statistics Authority
In terms of value, imports increased from US$21 million in 2006 to US$ 99.5 million in 2015. In line with the decrease in trade
volume, value has also registered a decrease and was US$92.4 million in 2017.
100% 100%
Rest of the world
90% 90%
60% 60%
50% 50%
30% 30%
20% 20%
10% 10%
Oman
0% 0%
2011 2012 2013 2014 2015 2016 2017
Source: Team Analysis based on data from Planning and Statistics Authority
Chart 22. Share of Imports in Domestic Consumption for Toilet Soaps, 2008 - 2017
90 100%
100% 97%
99% 96%
99% 95%
80 94%
96% 95%
95% 96%
70
60 90%
50
Weight, 000 MT
85%
40 36.26
0.3 31.85
28.59 29.92
30 27.97 1.1 80%
0.1 24.98 1.2 1.5 23.89
21.97 1.1 1.5
20 15.87 0.8
12.62 0.2 75%
10 0.7
15.6
21.1
35.9
27.8
23.9
27.4
30.8
28.4
22.4
11.9
0 70%
2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
Source: Team Analysis based on data from Planning and Statistics Authority
[Toilet Soaps]
55
Chart 23. Qatar Demand and Supply Analysis for Toilet Soaps, 2018-2026
45 45
40 40
41.7
41.1
40.5
39.8
39.2
38.5
37.9
37.2
35 35
36.6
30 30
31.7
31.1
30.5
29.8
29.6
29.2
28.5
27.9
27.2
25 25
’000 tons
20 20
15 15
10 10
5 5
10.0
10.0
10.0
10.0
10.0
10.0
10.0
10.0
7.0
0 0
2018E 2019F 2020F 2021F 2022F 2023F 2024F 2025F 2026F
Demand (’000 tons) Capacity (’000 tons) Demand - Supply gap (’000 tons)
Source: Team Analysis based on data from Planning and Statistics Authority
Minimum price (QAR) Minimum price (QAR) Minimum price (QAR) Minimum price (QAR)
Maximum price (QAR) Maximum price (QAR) Maximum price (QAR) Maximum price (QAR)
Dettol hand sanitizers are the most expensive at QAR170 per liter. A vast variety of shampoos are available in the market and
usually priced in the range of QAR24 to QAR46 per liter. Premium brands for toilet soaps such as The Body Shop, Lush, L’Occitane,
Yves Rocher etc. have their own range of products and are increasing their customer base due to their use of environment-friendly
and natural ingredients. They are priced higher and have their own outlets as opposed to regular toilets soaps that are sold via
supermarkets and neighborhood stores.
[Toilet Soaps]
57
Saudi Arabia was the leading exporter of toilet soaps to Qatar in 2017. Most of the imports to Qatar from Saudi Arabia and UAE
were done before the start of the diplomatic situation. Based on the data available, the import prices of toilet soaps from Saudi
Arabia and UAE increased by 8 percent and 30 percent, respectively in 2017. Imports from Oman increased 13 times during 2017
(2,779 tons in 2017 from 208 tons in 2016). The data reflects an increase of price per Kg from QAR 4.5 to QAR 22.3, however, there
is no valid justification for the same. Products being re-routed from UAE and Saudi Arabia via Oman could result in a marginal
increase in price. However, it does not justify a five-fold increase in import prices.
The imports from Turkey, UK, Germany, India and USA saw a decrease in the import prices in 2017 as compared to 2016. Turkey
recorded the maximum decrease of 50 percent while UK and Germany witnessed a decline of 30 percent and 23 percent in the
import prices. India and USA saw a decline of 9percent and 8.5 percent in 2017.
Chart 24. Average Import Prices for Toilet Soaps (QAR per Kg), 2016 - 2017
70 70
57.7
55.3
60 60
50 50
37.4
40 40
QAR/Kg
QAR/Kg
34.2
32.2
29.7
30 30
24.7
22.3
20.7
20 20
18.4
12.5
12.6
11.5
10 10
2.5
14.3
9.6
9.0
9.0
8.3
0 0
Oman Saudi Arabia UAE UK USA India Turkey Germany France
2016 2017
Source: Team Analysis based on data from Planning and Statistics Authority
STRENGTHS WEAKNESS
• Toilet soap is a mass product and a daily need for the • The market for toilet soaps is dominated by strong
entire population. As such, the demand for this product international brands and a new player will find it difficult
is significant. to capture the market especially in the higher segments.
• The soap making industry does not require highly- • Any new company in the market will have a gestation
skilled labour. period while going through the consumer adoption
• Key ingredients for manufacturing soaps are available process, i.e. product awareness, product interest,
locally. product evaluation, product trial and product adoption.
OPPORTUNITIES THREATS
• The current political situation and the customer • As toilet soaps are used for personal hygiene, people
sentiment encourages the use of local products. are reluctant to try something, which they are not aware
• There is only limited local production i.e. two players of. Brand loyalty and the trust established plays a major
producing liquid soap i.e. only hand wash. role in product adoption.
• Except hand wash, no other forms of soap are currently
being produced locally largely due to the marketing
and branding effort required to reach the end consumer
Note: SWOT analysis relates to new companies planning to enter the soaps market in Qatar
[Toilet Soaps]
59
Figure 7. Michael Porter’s Five Forces Model – Toilet Soapst
THREAT OF
NEW ENTRY
High
• Although the investment required
for manufacturing toilet soaps
is not high, entrepreneurs find
it difficult to enter the market
due to the long gestation period
for creating brand awareness
and adoption of the product by
consumers.
COMPETITIVE
RIVALRY
BARGAINING BARGAINING
High
POWER – SUPPLIERS POWER – CONSUMERS
• Presence of stiff competition
Low from international brands in High
• Local manufacturers can easily all product segments. • International brands have a
access raw materials from the presence in the Qatar market
cheapest source. for a long time, both in the mass
and premium segments A local
• As such, the bargaining power of
manufacturer will have to create
suppliers is low.
a strong brand and awareness in
order to find acceptance with the
consumers.
THREAT OF
SUBSTITUTION
Low
• There are many products such
as liquid soaps, body wash and
many variants of each product.
However, these are product
variants and not an actual
substitute for soaps.
[Toilet Soaps]
61
4. Fr agr ances
[Fragrances]
63
4.2 Global Market Overview
Research and Markets: Perfume market, 12Global Industry Analysts, Inc.: Fragrances and Perfumes,13Global Industry Analysts, Inc.: Fragrances and
11
6% Germany
61% Others
6% UK
5% Netherlands
5% UAE
Global Import
of Deodorants 5% USA
2017 4% France
3% Brazil
3% Spain
3% Belgium
4% Italy 6% France
5% Netherlands 6% Argentina
10% 5% Mexico 5% Poland
Global Export of Germany
4% Perfumes, 2017
Netherlands
4% UK 10% Spain Source: Team Analysis based on data from TradeMap
5% UAE
The global export of air fresheners totaled approximately US$4
5% Singapore billion in 2017. China is the leading exporter of air fresheners
6% Italy
9% US with a 15% market share followed by the US and Mexico at 11
percent and 10 percent respectively.
[Fragrances]
67
Chart 30. Global Export of Air fresheners, 2017 A key trend defining the perfume industry is that large players
are concentrating on enhancing their geographical presence
and expanding their customer base by entering into strategic
38% Others 15% China
brand acquisitions
1,171
Source: statista.com
4,734
Givaudan
Hasegawa Firmenich
439 01 3,411
10 02
Robertet SA IFF
09 03
3,116
518
2,312
654 04
Sensient 08
Symrise
Flavors
07 05
1,068 06
1,261
Takasago
Frutarom
Mane SA
1,171
1,171
69
4.3 GCC Market Overview
Beautyworld Middle East, 19Beautywolrd Middle East, 20Euromonitor International, 21Cosmetics Business
18
USD million
1,000 1,000
800 800
629
600 543 600
498
400 400
200 200
0 0
2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
Deodorant Imports: Historical import data reveals that imports of deodorants in the GCC increased from US$ 213 million in 2008
to US$ 371 million in 2017 at a CAGR of 6.3 percent. Imports decreased from US$ 543 million in 2014 to US$ 371 million in 2017.
400 % 400
CAGR 6.3 379 371
350 350
USD million
USD million
300 300
250 250
213
200 200
50 50
0 0
2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
[Fragrances]
71
Air freshener Imports: The historical import data reveals that imports of air fresheners in the GCC increased from US$ 115 million in
2008 to US$ 163 million in 2017 at a CAGR of 4 percent. Imports did not fall as drastically as perfumes or deodorants as it is more
of a daily use product and major demand arises from businesses than end consumers.
250 250
USD million
125 115 125
100 100
75 75
60
48 51
50 50
25 25
0 0
2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
700 700
584
600 559 557 600
USD million
USD million
500 500
400 400
300 300
200 200
100 70 70 79 100
0 0
2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
[Fragrances]
73
Deodorant Exports: The analysis of historical export data indicates that exports of deodorants increased from US$55 million in 2008
to US$179 million in 2017 at a CAGR of 14 percent.
USD million
100 100
80 80
60 55 60
40 40
20 20
6 6 7
0 0
2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
105 105
90
90 84 90
81
11.1%
USD million
USD million
75 75
CAGR
60 60
45 45
34
30 30
15 9 10 15
5
0 0
2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
[Fragrances]
75
4.3.3 Key Market Players
Competition in the GCC region is fierce with local manufacturers playing a major role in market supply. Arabian Oud and Abdul
Samad Al Qurashi from the KSA are the market leaders within the kingdom. The market share of Arabian Oud in the KSA reached
35 percent in 201524. They are also looking to expand their reach into western markets, such as the UK and Europe. Ajmal, from
the UAE, is another key player in the region, having invested around US$10 million to setup a 150,000 square feet facility in Dubai’s
industrial area to manufacture perfumes25. They have the capacity to produce 75,000 bottles of perfumes per day.
Many fragrance houses such as Mane, Robertet, Expressions Parfumes and Technico Flor have recently set up base in the UAE to
better serve the large appetite of the Middle East for fragrances. Spanish company, Eurofragrance, set up a 10,000 square feet
facility in Dubai, spending AED10 million, to cater to the increasing demand for perfumes in the Middle East 26.
Year of Installed
Company Country Units Types of Products
Establishment Capacity
bottles per
Arabian Oud Saudi Arabia 1982 200,000 • Perfumes
month (bpm)
• Perfumes and
La Famille Industries UAE 1984 NA NA
deodorants
Al Sanea Chemical
Kuwait 1977 NA NA • Air fresheners
Products
[Fragrances]
77
4.4 Qatar Market Overview
Chart 38. Qatar Historical and Current Demand for Fragrances, 2006 - 2017
12 12
11 11
10 9.0 10
9 8.6 8.6 9
8.3 8.2
8.0 8.0
8 7.0 8
CAGR 7.2% 6.9
Market Size ('000 tons)
6 5.6 6
5 4.7 5
4 4
3.2
3 3
2 2
1 1
0 0
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
12 160.0
144.7
11 135.5 141.0
132.2 140.0
10
117.3 116.8
9 120.0
8 99.8
100.0
6 84.3 80.0
67.8
5 59.7 68.3
60.0
48.5
4
3 40.0
6.1
2.9
4.2
4.9
6.2
7.3
7.1
7.6
7.2
7.6
7.3
7.9
2
20.0
1
0 0.0
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
Source: Team Analysis based on data from Planning and Statistics Authority
7 115.7 120.0
111.5 108.3 112.0
6
96.1 100.0
90.3
5
Imports (USD millions)
83.6
80.0
Imports ('000 tons)
4 68.7
59.9 60.0
53.0
56.6
3 44.3
40.0
2
20.0
2.3
3.2
3.8
4.9
5.4
5.2
5.0
4.3
5.0
4.2
4.6
3.3
0 0.0
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
Source: Team Analysis based on data from Planning and Statistics Authority
[Fragrances]
79
Chart 41. Qatar Imports of Deodorants, 2006-2017
2.5 19.0 20
18
16.3 16.5
2.0 15.4
16
14.4
14
12.0
9.7
10
7.8
1.0 8
6
4.4
4.3
0.5 4
2.5
0.5
0.6
0.8
0.9
0.8
0.9
1.0
1.0
1.5
1.4
1.2
2
0.3
0 0
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
Source: Team Analysis based on data from Planning and Statistics Authority
2.5 14
12.7
12
2.0
9.6 9.9 10.0
9.2 10
8.5
Imports (USD millions)
1.5 8
Imports ('000 tons)
5.8
5.9 6
1.0
4.0
3.5 4
2.4
0.5
1.7
2
0.5
0.4
1.0
1.1
1.7
1.9
1.6
1.6
1.9
1.5
0.3
0.4
0 0
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
Source: Team Analysis based on data from Planning and Statistics Authority
100% 100%
Rest of the world
90% 90%
80% 80%
30% 30%
20% 20%
France
10% 10%
0% 0%
2011 2012 2013 2014 2015 2016 2017
Based on the import value in 2017, Saudi Arabia recorded a decline of 49 percent in their imports to Qatar while UAE witnessed
a decline of 48 percent. Oman and Turkey emerged as the new sources of import to Qatar for perfumes, deodorants and air
fresheners with the import value increasing by approximately 136 percent (US$1.76 million in 2016 to US$4.16 million in 2017) and
121 percent (US$0.8 million in 2016 to US$1.76 million in 2017), respectively.
[Fragrances]
81
Chart 44. Qatar Key Sources of Imports of Deodorants by Value, 2011-2017
100% 100%
90% 90%
Rest of the world
80% 80%
70% 70%
50% 50%
10% 10%
Germany
0% 0%
2011 2012 2013 2014 2015 2016 2017
100% 100%
Rest of the world
90% 90%
80% 80%
Italy
70% 70%
UK
USA
60% 60%
UAE
50% 50%
40% 40%
20% 20%
France
10% 10%
0% 0%
2011 2012 2013 2014 2015 2016 2017
Source: Team Analysis based on data from Planning and Statistics Authority
80% 80%
70% 70%
60% 60%
40% UK 40%
India
30% Oman 30%
20% 20%
UAE
10% 10%
0% 0%
2011 2012 2013 2014 2015 2016 2017
[Fragrances]
83
Share of imports in domestic consumption:
During 2006 to 2016, the requirement of perfumes, deodorants and air fresheners in Qatar was almost entirely serviced by imports
except for a small portion of Arabic perfumes. Primary interviews indicate that there are no domestic manufacturers of these
products except for Arabic perfumes, which are produced by artisanal perfumeries or at a small scale.
Going forward, the requirement of these products in Qatar is likely to be entirely met by imports except for perfumes, where local
manufacturers such as S.Ishira and The Perfume factory is expected to capture a small share of the perfume market.
14 100%
88% 88% 88% 88% 88% 88% 88% 88% 88% 88% 88% 88% 90%
12
80%
10 70%
9.0
8.7 8.6
8.3 8.1 8.2 8.3
60%
% of imports
Import (USD million)
8
7.0 6.9
50%
6 5.6
40%
4.7
4 30%
3.3
4.2
4.9
6.2
7.3
7.1
7.6
7.2
7.6
7.3
7.9
6.1
20%
2
2.9
10%
0 0%
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
Source: Team Analysis based on data from Planning and Statistics Authority
Going forward, the market demand is estimated to grow at a CAGR of 1.65 percent from 9,000 tons in 2018 to 10,200 tons in 2026.
Only a small portion is expected to be supplied by local manufacturers i.e. S.Ishira, The Perfume Factory and artisanal perfumeries.
12 12
10.2
10.1
9.9
9.8
9.6
9.4
9.3
10 10
9.1
9.0
8.9
8.7
8.6
8.4
8.3
8.1
7.9
7.8
7.6
8 8
Import ('000 tons)
6 6
4 4
2 2
1.3
1.3
1.3
1.3
1.3
1.3
1.3
1.3
1.3
0 0
2018E 2019F 2020F 2021F 2022F 2023F 2024F 2025F 2026F
Demand (’000 tons) Capacity (’000 tons) Demand - Supply gap (’000 tons)
Drapers Online
27
[Fragrances]
85
Figure 9. Market Price for Air Fresheners
Spray
Gels
Antiperspirant gels are commonly used by individuals on a day-to-day basis. The most popular brands under this segment are Dove
(manufactured in UK), Nivea (manufactured in Thailand) and Rexona (manufactured in UK) etc., and are generally priced in the range
of QAR7.5 to QAR10.5 for a 50 ml bottle. Gillette is the most commonly used antiperspirant for men and is priced at QAR15.38 for
a 100 ml bottle.
Deodorants are also fast moving commodities used by individuals. Dove, Nivea, Rexona and Axe are among the most popular
brands present in the market. All of these products are generally priced between the range of QAR6 to QAR17.
10.3 50 ml 10.4 50 ml 10 50 ml
Gel QAR Dove QAR Nivea QAR Rexona
In terms of volume, UAE was the leading exporter of fragrances to Qatar in 2017. Most of the imports to Qatar from UAE were prior
to the start of the diplomatic situation. Based on the data available, the import prices of perfumes from UAE increased by 8 percent
in 2017.
Chart 49. Average Import Prices for Perfumes (QAR per Kg), 2016 and 2017
250 250
209.7
198.9
181.9
200 200
174.5
140.4
150 150
’000 tons
122.0
100 100
80.9
64.6
64.2
50 50
48.9
46.5
17.9
14.3
17.8
37.1
34.4
28.6
23.5
0 0
Oman Saudi Arabia UAE UK Italy France Turkey Germany India
2016 2017
Source: Team Analysis based on data from Planning and Statistics Authority
[Fragrances]
87
Import prices from Turkey saw a three-fold increase in 2017, while Oman, Germany and Italy saw an increase of 60 percent, 31
percent and 24 percent, respectively. On the other side, prices of imported perfumes, deodorants and air fresheners from UK, India
and France saw a decline of 42 percent, 25 percent and 9 percent respectively.
29
Times of Oman
STRENGTHS WEAKNESS
• The per capita consumption of perfumes and • A perfume manufacturer needs the expertise of a
deodorants in the GCC is among the highest in the perfumer, or skilled expertise, which is not easily
world, as locals enjoy applying layers of scents. available to create distinct notes.
• The high disposable incomes and tradition of using • An entrepreneur entering the perfume, deodorant and
expensive perfumes creates a significant demand for air freshener market needs to invest a significant amount
the perfume industry. of time and money in research and development, as
well as marketing the products developed.
• Mass products such as deodorants and air fresheners
require large investments for branding.
OPPORTUNITIES THREATS
• The perfume and deodorant market is expected to • Competition is increasing due to international players,
register a faster growth due to an increase in tourism such as Giorgio Armani, Yves Saint Laurent and Guerlain
and business travel to the region. entering the Middle Eastern fragrance market.
• UAE and KSA have dominated the GCC market • Strong competition from unique brands such as those
due to lower prices. The supply of quality Arabic coming from Azerbaijan will make it difficult to compete.
perfumes has reduced after the blockade. The current • Local / Arab perfume segment is captured by
political situation presents an opportunity for local perfumeries that are already well established e.g. Al
entrepreneurs. Jazeera perfumes, Abdel Samad Al Qureshi.
• Global fragrance houses, which can adapt to brand-
conscious Gulf consumers still enjoy hefty advantage
over most local perfumers in the form of bigger
marketing budgets, technology and overall experience
in the industry.
Note: SWOT analysis relates to new companies planning to enter the perfumes market in Qatar
[Fragrances]
89
Figure 12. Michael Porter’s Five Forces Model – Fragrances
THREAT OF
NEW ENTRY
Medium
• The initial investment may not be
too high but the time taken for
research and development and
getting products into the market
is high.
COMPETITIVE
RIVALRY
BARGAINING BARGAINING
High
POWER – SUPPLIERS POWER – CONSUMERS
• Presence of stiff competition
High from international, as well as High
• There are a few fragrance regional brands in all product • o Branding is essential for
manufacturing companies in segments. perfumes and the stronger
the world who dominate the the brand, the lower the
fragrance supply in the market bargaining power of consumers.
However, the bargaining power
of specialized cosmetics and
fragrance stores is high, as
perfume brands would like to
maintain a presence in specialty
retail stores.
THREAT OF
SUBSTITUTION
Medium
• Perfumes have become
an essential component of
grooming and are not easily
replaced, however, there is a
threat from counterfeit products
entering the market.
[Fragrances]
91
5. Setting up a Soap,
Detergent or
Fragrance
Manufacturing
Facility in
Qatar 5.1 Critical Success Factors
Soaps and detergents are one of the oldest and major segments
within the chemical industry. These products are designed and
formulated utilizing simple chemistry, but have a high degree of
differentiation. Research and development costs are increasing and
continue to rise, and most of these products are becoming high-
tech in nature. These include products such as soaps, detergents,
laundry aids, bleaches, perfumes etc. Some of the critical success
factors common to all three segments are packaging, regulations,
access to the right distribution channels, etc. The critical success
factors for each segment are further described below:
Detergents:
• Product innovation – market
leaders have a wide range
of products with different
specifications to target
specific requirements.
Product innovation allows
companies to participate in
a sector where the needs
of consumers are evolving,
either at formulation level,
at product level, or at packaging level. As markets increasingly
mature, manufacturers are under high pressure to have faster
new product development cycles.
Crutcher
Derergent Detergent
Stray
Drying
Agglomeration Dry Micing
1) Spray drying process: With this process, dry and liquid ingredients are combined to form slurry in a tank called a crutcher. The
slurry is heated and pumped to the top of the adjacent tower, and is then sprayed through the nozzle using high pressure which
produces small droplets. These droplets are passed through a current of hot air, which helps form hollow granules as they dry.
The dried granules are then screened to confirm that they are uniformly shaped. Ingredients such as bleach, enzymes and
fragrance that are heat sensitive are added to the granules after they have cooled down.
2) Agglomeration process: This process leads to production of high density powders, these powders allow more compact packing.
In this process, dry raw materials are blended with liquid ingredients with the help of a liquid binder. By rolling and mixing these
ingredients together they collide and adhere to each other forming large particles.
3) Dry mixing: This process is used to blend together dry ingredients. In some cases, small quantities of liquid ingredients may be
used.
Cleaning Institute
30
Blending Process
Liquid detergents have evolved in recent times and more concentrated liquid detergents are being introduced to the market. These
products are generally produced by using high energy mixing processes in combination with stabilizing agents.
Kettle process
Salt
Glycerin Nigra
Impurities
Fat and alkali are The soap and glycerin In the pitching process,
melod in a kettle The are treated with salt, the soap is boiled
mass thickness and causing the soap to again with water. The
produces soap and raise to the top mass separates into
glycerina neat soap and nigre.
1) Kettle process: In this process a steel tank, about three stories high, is used to heat the fat and alkali. The steam coils embedded
in the kettle produce heat to bring the fat and alkali mixture to a boil. As the mixture boils, the fat reacts with alkali forming a
thick paste. This thick paste contains soap and glycerin. In the next step, the mixture is treated with salt in order to separate
soap and glycerin. With the addition of salt, soap rises to the top and glycerin settles to the bottom of the kettle. Glycerin is
then extracted from the bottom of the kettle. The next step is called ‘strong change’ wherein a strong caustic soda solution is
added to remove fats that have not saponified. The remaining solution in the kettle is heated again to convert the remaining fat
to soap. In the next step called ‘pitching’, water is added to the soap solution in the kettle and boiled again. Due to this, two
layers are formed where the top layer, called ‘neat soap’, is about 70 percent soap and 30 percent water and the lower layer,
called ‘nigre’, contains impurities such as dirt, salt and most of the water. The top layer containing soap is removed from the
kettle and cooled to obtain the end product.
Madehow
31
Continuous process
Alkail
fatty acids
glycerin
Wooden frame
Benzene or Rotating tank
petroleum
ether
glass sheets
Essential
oil
Alcohol
Perfume Steam
Fragrant oils oil Gas
Liquified
essence
The grease is dissolved in alcohol, The waxy material is placed in ethyl Steam passing through plant materials
which is then ovepareted with heat to alcohol, and the oil dissolves and rises change essential oils to gas and extract
leave behind the oil to the top. The alcohol is evaporated
and the perfume concentration settles
to the bottom.
Blending:
once the process of extraction is over, the oils are blended together by a master, often known as a ‘nose’, using different formulas.
Sometimes it can take several years and as many as 800 different scents to develop a formula for a fragrance. After the development
of a formula, the scent is diluted with a quantity of alcohol that differs for each scent. Most perfumes consist of 10 to20 percent
perfume oils dissolved in alcohol, along with trace of water.
Aging:
a good perfume is aged for several months or even years after it has been blended, following which a ‘nose’ will test the perfume
to check the correctness of the scent.
• The continuous and dispersed phases are then combined to form an emulsion.
The active ingredient is sometimes added at this stage.
• Fragrance and coloring are added to the solution and then the product is pressure packed into containers.
Silverson
32
Finishing
operations
3
Batching
2
Heater
construction
2
Phenol-formaldehyde,
1 epoxy, polyphenylene oxide,
Fragrance pack polycarbonate, polyphenylene
construction sulfide and polymide are some
of the thermoplastic materials
used in the making of electrical
pluag apparatus for the housing
of air fresheners.
The disposable cartridge used for
plug-ins are constructed using a
transparent, vapor-impermeable
polyvinyl film and a variety of other
thermoplastics, such as polystyrene,
polypropylene, polyethylene, polyvinyl
acetate and polyvinyl chloride. The
manufacturing lines can run to either
primary packages or refill packages.
103
5.3 Raw Material Requirement
B) Builders
Builders are primarily used to reduce the water hardness which, in turn, enhances the cleaning efficiency of the surfactant. This
is achieved either by holding hardness minerals in the solution (sequestration), forming an insoluble substance (precipitation) or
by trading electrically-charged ions (ion exchange). Commonly-used sequestering builders are complex phosphates and sodium
citrate. Sodium carbonate and sodium silicate are commonly-used precipitating builders. An ion exchange builder that is commonly
used is sodium aluminosilicate.
Please see the table below enlisting key ingredients used to form laundry detergents, dishwashing detergents and household
cleaners33:
Table 7. Key Ingredients used to Manufacture Detergents
Carboxymethyl cellulose,
Prevent soil from resettling after polycarborylates, Laundry
Anti-redeposition agents
removal during washing. polyethylene glycol, Dishwashing
sodium silicate
33
Healthycleaning101
Laundry
Provide special identity to product.
Colorants Pigments or dyes Dishwashing
Provide bluing action.
Household cleaners
Laundry
Reduce transparency or make product
opaque. Polymers, titanium
Opacifiers Dishwashing
dioxide
Provide a special effect.
Household cleaners
Laundry
Control sudsing where suds would Alþl phosphates,
Suds suppressors Dishwashing
interfere with cleaning action. silicones soap
Household cleaners
Raw materials for detergent manufacturing were imported from Saudi Arabia and UAE prior to the diplomatic situation. Local
manufacturers are looking for alternative sources for raw material such as India, China and Malaysia.
B) Alkali
Previously, alkalis utilized for soap-making were obtained from the ashes of plants; however, they are now produced commercially.
Alkalis, today, are basically substances that are a chemical base and neutralize acid by reacting with it.
The common types of alkali used today in soap-making are caustic soda, chemically known as sodium hydroxide (NaOH), and
caustic potash, also known as potassium hydroxide (KOH).
Please see table 8, which outlines the key ingredients used for manufacturing of toilet soaps34:
Table 8. Key Ingredients used to Manufacture Toilet Soap
Ingredient Primary Functions Examples
Abrasives Supply smoothing, scrubbing and/or polishing action. Calcite, feldspar, quartz, sand
Neutralize or adjust acidity of other Ammonium hydroxide,
Alkalis ingredients. Make surfactants and builders more efficient. ethanolamines, sodium carbonate,
Increase alkalinity. sodium hydroxide, sodium silicate
Healthycleaning101
34
5.3.4 Raw Material for Antiperspirant or Deodorant Stick Lemon, orange, mandarin, bitter orange, bergamot, cedar leaf,
caraway, cloverleaf, geranium, cedarwood, lavender, patchouli
Antiperspirants are made of active drug ingredients that help
and many others are examples of fragrances used to make
control perspiration and gelling agents that aid in making the
plug-ins. These fragrances are further mixed with synthetic
gel stick. Other ingredients, such as colorants and fragrance, are
components, such as aldehydes, alcohol, esters, ketones etc.,
added to make the product aesthetically pleasing.
to obtain unique fragrances. These mixtures blended together
Active ingredients: Aluminum chlorohydrate, aluminum are combined with a variety of gelling ingredients. These gels
chloride, aluminum sulfate and aluminum zirconium complexes can be organic or inorganic in nature and are prepared hot. The
and aluminum zirconium tetrachlorohydrex glycine is the most fragrances are added as the gel cools in order to preserve the
commonly-used ingredient. Based on the weight of finished integrity of the fragrance36.
products, these ingredients are used in the proportion of 8 to
25 percent.
35, 36
Madehow
• The soap and detergent industry is highly regulated with • Ensure adequate spaces between the chemicals and the
several requirements that aim at reducing the release walls, exits, windows, hazards and passageways to facilitate
of chemical substances into the environment during the mobilization.
process of manufacturing.
Some of the key standards regulating the industry include37, 38:
• The Gulf Technical Regulation, under the GCC
• Gulf Standard GSO 2059:2010 “Synthetic liquid
Standardization Organization, establishes the rules and
detergents for Clothing and fabrics”.
mandatory requirements applicable on detergents placed
on the market within the GCC countries, in order to ensure a • Gulf Standard GSO 2060:2010 “Synthetic liquid
high degree of environmental protection and human safety. detergents for clothing and fabrics – Test methods “.
• Gulf Standard GSO 151:2007 “Synthetic Detergents –
• The ingredients and mixture for perfumes are subject
Detergents Powder “.
to many regulations. These include the manufacturing,
transporting, storing, packaging and disposing of both • Gulf Standard GSO 152:2007 “synthetic detergents-
fragrance ingredients and the products they are used in. methods of testing synthetic powdered detergents for
Furthermore, in order to prevent misuse and any potential household use”.
health hazards, Qatar’s Ministry of Environment has imposed • Gulf Standard GSO ISO 2271:2008 “Surface active
strict regulations for the import and sale of alcohol-based agent –synthetic detergents- determination anionic
perfumes. To sell perfumes in Qatar, a supplier needs to: active matter by manual or mechanical (direct two-phase
titration) “.
- Provide a laboratory certificate outlining the composition
of the product, in which the ethanol content does not • Gulf Standard GSO ISO 4325:2007 “Soaps and
exceed 90 percent and the methanol content stays detergents – Determination of chelating agent content
below 0.05 percent. – Titrimetric method “.
- Needs to ensure that one or more ingredients have been • Gulf Standard GSO ISO 607:1994 “Surface active agents
added to the product to make it unfit for drinking. and detergents -methods of sample division”.
- Affix a prominent warning advising users that the product • Gulf Standard GSO ISO 4316:1994 “Surface active
is for ‘external use only’ in both English and Arabic. agents- Determination of PH of aqueous solutions-
Potentiometric Method”.
• The perfumes and colognes should also only be sold in
• International Standard ISO 2268:1972 “Surface active
bottles that have spray nozzles on them. agents (non-ionic) - Determination of polyethylene
glycols and non-ionic active matter (adducts) - Weibull
• Chemicals should be stored in classified packages, leaving a
method “.
space from the ceiling of no less than 1.5 meters. Two thirds
of the total area of the warehouse should be occupied. This • Gulf Standard GSO 1810:2007 “Labeling for chemical
should be calculated according to the premises design, the products”.
level of protection needed and the quantity to be stored. • International Standard ISO 8212:1986 “Soaps and
Packages should be stored on a wooden base. detergents - Techniques of sampling during manufacture”
3. Category insight: Liquid soap trends in the personal care and household sectors -
http://www.stephensonpersonalcare.com/blog/2017-03-29-category-insight-liquid-
soap-trends-in-the-personal-care-and-household-sectors
7. GOIC database
9. Growth Opportunities in the Global Laundry Care Products Market Report - http://
www.lucintel.com/laundry-care-market-2017.aspx
11. http://www.kafkaesqueblog.com/2014/02/20/the-global-fragrance-industry-world-
markets-popular-fragrances-sales-figures/
12. http://www.madehow.com/Volume-2/Perfume.html
13. http://www.madehow.com/Volume-2/Soap.html
14. http://www.perfumerflavorist.com/fragrance/trends/Euromonitor-International-
Presents-Consumer-Trends--394004471.html
16. https://www.thespruce.com/how-laundry-detergent-ingredients-work-2146619
17. International Association for Soaps, Detergents and Maintenance Products (AISE) - https://www.aise.eu/our-industry/market-and-
economic-data.aspx
21. Research and Markets: Perfume Market: Global Industry Trends, Share, Size, Growth, Opportunity and Forecast 2017 – 2022 -
https://www.businesswire.com/news/home/20170223006224/en/Perfume-Market-Global-Industry-Trends-Share-Size
23. Statista: Leading flavor and fragrance companies worldwide 2010-2016 - https://www.statista.com/statistics/435238/top-flavor-
and-fragrance-companies-worldwide/
25. Top 10 Trends in Home Care for 2017 – Euromonitor International - https://blog.euromonitor.com/2017/06/top-trends-home-
care-2017.html
[References]
113
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114
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to grow Qatar’s private sector and diversify its economy. His
Highness Sheikh Hamad Bin Khalifa Al Thani, the Father Amir,
identified these as vital tasks in developing Qatar into a modern
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