Valued at USD 4.4 billion in 2022, the global car care products market is projected to grow to USD 4.8 billion by 2027, with a CAGR of 1.9% throughout this period. Car care products include surface solvents and chemicals—acids and bases—used for stain removal, cleaning marks, and restoring gloss on vehicle surfaces. They are vital for preventing or repairing damages like swirl marks, scratches, and paint fading. The market features a diverse array of automotive appearance chemicals, including waxes, polishes, paint protection products, tire cleaners, rim protectors, and glass cleaners.
Interior segment is expected to be the fastest-growing segment during the forecast period
The interior segment refers to products that cater to maintenance and detailing of interiors of car interior. It includes interior trim, plastic and rubber part cleaner, glass cleaners, leather care products, dashboard cleaners, interior car polish, and floor cleaners. Car interior are usually made of leather and plastic. This interior materials have a tendency to fade their color as the age of the car increases. Most of the decaying is due to UV from sun that fades the color of the part. If the car stays in sun for longer hours, the interiors fade at faster rate than it ideally should and thus makes the car looks older than what it actually is. Hence in order to keep the car in good condition for long time and also to keep the resale value of the car as high as possible the interior car care segment is expected to see good growth in the given time period.
The cleaning and caring segment by product type is expected to hold the largest market share in 2021
With growing awareness of longevity of car, more and more consumers are now preferring a time to time car cleaning and detailing work. This helps the consumers to keep the new look of the car for longer period of time. As there is also increase in the used car market in certain regions like asia pacific, proper cleaning and caring of the car helps to maintain a good resale value of the car. This makes car care product and services a value for money deal for the owner of the car. Thus cleaning and caring segment is expected to see positive growth.
DRIVER: Use of e-commerce platforms by leading players to increase customer base
E-commerce refers to purchasing goods and services over the internet with the help of an e-commerce website or application. E-commerce is one of the fastest-growing markets in the world. The global e-commerce retail market has increased from USD 2.4 trillion in 2017 to USD 4.3 trillion in 2020 and experienced a growth of 79.2% from 2017 to 2020. Ease of purchase or convenience, pricing and discounts on various products and services, and home delivery are the major reasons for increasing preference of e-commerce platforms around the world. Considering the success of e-commerce platforms and increasing consumer spending on car care products to maintain the aesthetics of a vehicle, many car care product manufacturers such as 3M, Illinois Tool Works, SONAX, and others have adopted this strategy to sell their car care products through online platforms and retail stores as well.
RESTRAINT: Regulations pertaining to car wash and car care products
The Car care products market for DIY auto care products is directly impacted by the EPA's recommendation suggested car owners utilise professional detailing services rather than do-it-yourself (DIY) cleaning activities at home. If someone wants to run a carwash business, they should adhere to a number of rules and regulations that are associated to the environment's safety and the workers' safety at work. Each state or nation has its own regulatory permits and water runoff laws, and they all follow to the same law. The market depends on how strictly the laws like Clean Water Act of 1972 is applied by the EPA. Consequently, the demand for DIY and DIFM car maintenance products is directly impacted by these regulations.
OPPORTUNITY: Increasing demand for water-based cleaners
Water-based cleaners not only eliminate soils by dissolving contaminants, but they can chemically react with these pollutants, making them increasingly dissolvable in water. Most water-based cleaners consist of a range of other components as well to enhance their effectiveness. Some substances can include detergents or surfactants, builders, emulsifiers, saponifiers, sequestering agents, and chelating agents. Demand for water-based cleaners is increasing due to their various benefits over solvent-based cleaners in the car care products market.
CHALLENGE: Possibility of Recession in 2022-2023
Due to the recent series of global events like the Ukraine-Russia war, the global economy especially Europe and US has been seriously impacted causing disruptions in global supply chains and energy markets. As a result there is a rising concerns about an impending recession. There are increasing signs of this such as layoff in US, rising interest rates and lowering demand. In a recession, auto sales decline significantly as many buyers back out of the market. Due to this the car detailing work shops and service centers will see reduced visits by customers and hence the car detailing and care products will see a reduced demand. Due to this war the European union has been facing energy shortages and that has spiked the prices of other goods substantially therevt reducing the demands of goods and services that has negatively impacted the economies. Similarly the US Federal Reserves has also been increasing interest rates continuously that has negatively impacted the demands of goods and services in US as well. These signs of economic downturn or even a recession many negatively impact the market.
Individual sources will the fastest growing consumers during the forecast period
The increasing awareness regarding car detailing has helped to increase the demand for car care product. However the increasing labour cost has compelled many car lovers to take up the task on an individual level rather than visiting to a car care workshop. With presence of sufficient training material online regarding car detailing many of these consumers now learn and do some basic detailing task themselves. With time the number of such people is expected to increase and so will the demand for car care products.
Passenger cars will be the biggest market for car care products
The passenger vehicles are increasing a high rates due to the increasing sales in Asia Pacific region. There is also increasing market for used cars. Used cars fetch a good value only when sold in a good condition. Hence in order to keep the car in good condition for long time and also to keep the resale value of the car as high as possible. This is expected to drive the demand for care products. Also, the sales of premium and luxury cars have increased significantly globally, especially in US, Europe and China. This has proportionally driven the demand of car care products globally. The growing passenger car fleet, especially in Asia Pacific is expected to boost car care products market in the coming years.
Content Source:
https://www.marketsandmarkets.com/PressReleases/car-care-product.asp
https://finance.yahoo.com/news/car-care-products-market-worth-093000340.html
