The Hand Sanitizer Market Is Going To Explode, Providing New Business Opportunities
The global hand sanitizer market is set to explode, according to a report published by technavio. The total size of the market could grow by more than $12 billion by 2024 as the world tries to get to grips with coronavirus.
Manufacturers are trying to keep up with demand. Companies in related industries shift their production to reflect the needs of this rapid-growth sector. Early evidence suggests that hand-sanitizer manufacturers are now finally keeping up with demand.
Demand Continues To Grow
For businesses thinking about following this growth curve to the top, opportunities abound, especially in developed markets. Estimates suggest that 30 percent of overall growth will come from US consumers looking for convenient hand-washing products, especially while away from home. There’s also a sizable B2B market, with practically every major organization facilitating the close contact of people providing hand sanitizer onsite.
Firms thinking about entering the sector, therefore, have a choice of three routes. One is to position oneself as an agency that supports the industry’s efforts to ramp up production, like Chem Distro. You can offer raw ingredients, like alcohol or packaging, and then let brands whack their label on it. The second is to sell directly to companies and become a major B2B provider, offering products through existing distribution channels. And the third and final method is to create a consumer-facing brand: something many companies have already done.
Regulators Make It Easier To Enter The Market
The demand for hand sanitizer means that companies across the board are entering the market, churning out as much of the stuff as possible. No single enterprise has the industrial might to meet the sudden surge in demand, and so companies that traditionally made other things are redirecting their resources to fight the pandemic. Distilleries, for instance, are siphoning off alcohol production and diverting it to their hand sanitizer efforts.
Regulators know that the only way to get products to market quickly is if they loosen their grip slightly and give people the freedom to make the best economic choices, given the circumstances. For instance, the FDA loosened restrictions in March, allowing distilleries to make hand sanitizer, not just pharma companies. Similar things happened in Canada and the UK, too, opening up opportunities for entrepreneurs to sell in distant markets.
Multiple Companies Are Now Entering The Market
Many manufacturing firms have seen a dramatic downturn in the number of orders they’ve received from customers since the start of the year. Their regular business models, therefore, aren’t generating the revenue that they need to survive. Consequently, it makes sense to switch to supporting the production of products for which there is bumper demand. The lack of supply is pushing up the price, and the total volume is growing fast, even as the rest of the economy goes into a deep recession.
Multiple firms have already entered the fray, including, strangely, cannabis suppliers and space launch companies. And you can too. New business opportunities abound in the sector - an exciting development for anyone looking to capitalize on these challenging times.
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