Machine Washing Reshapes Laundry Habits
A quiet but significant transformation is underway in Indian households: the shift from handwashing to machine washing is fundamentally altering the laundry care market. As the number of washing machines in Indian homes increases, consumers are increasingly moving away from traditional detergent bars and powders toward liquid formulations, which are better suited for automatic machines.
According to Redseer data cited in LG Electronics India’s prospectus, annual washing machine sales in India have climbed from approximately 8 million units in 2019 to 12 million in 2024. This trend is expected to continue, with projections indicating sales could reach around 16 million units by 2029. In value terms, the market has expanded from Rs 14,500 crore in 2019 to Rs 24,500 crore in 2024, representing an annualised growth rate of about 11 percent.
Liquid Detergents Outperform Traditional Formats
This hardware adoption is directly influencing software—specifically, the products used in the wash. Data from market research firm NIQ (formerly Nielsen IQ), shared exclusively with Moneycontrol, highlights a stark divergence in growth across detergent formats in offline retail for FY26.
Liquid detergents grew by 15.5 percent, following a 20.9 percent expansion in the previous year. In contrast, detergent powders were nearly stagnant, registering a mere 0.1 percent growth, while detergent bars saw a decline of 5.9 percent.
The shift is particularly pronounced in organised retail channels. Liquids now account for 37 percent of laundry-detergent sales in modern trade and a commanding 53.9 percent in metro e-commerce, compared to just 11 percent of the overall offline retail category. NIQ analysts attribute this to rising washing-machine ownership, perceived efficacy of liquids, and sustained promotional activity.
FMCG Giants Capitalize on Premiumization
For major Fast-Moving Consumer Goods (FMCG) companies, this transition offers a critical opportunity to premiumize a mature category worth over Rs 35,000 crore.
Hindustan Unilever (HUL) is a key beneficiary of this trend. The company reported that its liquids portfolio crossed the Rs 4,000-crore revenue milestone in FY26. In its latest quarter, HUL’s fabric wash segment delivered double-digit underlying sales growth, with liquids accelerating their own double-digit growth trajectory.
Priya Nair, CEO and Managing Director of HUL, noted at the Barclays’ 19th Annual Global Consumer Conference that the Indian market is at a "tipping point." She explained that as consumers move to machine washing, their consumption patterns change, leading to higher product usage per wash. "We are the leaders in premium and have the largest index in the premium market," Nair stated, adding that the shift in consumption habits is driving this growth.
Similarly, Godrej Consumer Products (GCPL) is aggressively expanding its laundry care footprint. Its Godrej Fab detergent brand has crossed an annualised revenue run-rate of Rs 250 crore in just over a year. GCPL is also broadening its home-care portfolio with brands like Rizz dishwashing soap and Zap stain remover.
Future Trajectory and Market Potential
Despite the rapid growth, washing machine penetration in India remains relatively low, suggesting substantial headroom for future expansion. Data from LG Electronics India indicates that penetration stood at about 21 percent in June 2024 and is expected to rise to 24 percent by 2028.
GCPL believes India is likely to follow the development path seen in China, where liquid detergents became a dominant category. Citing Euromonitor data, GCPL points out that China’s liquid-detergent market grew at a compound annual growth rate of 16 percent between 2007 and 2023, reaching approximately $4 billion.
By comparison, India’s liquid-detergent market is currently estimated at about $0.5 billion. GCPL projects this figure could reach $4 billion by 2040, driven by continued urbanization, rising incomes, and the gradual replacement of handwashing with machine washing across the country.