Rise of washing machines: Why FMCG firms are betting big on liquid detergents

New business data points to the fact that More washing machines in Indian homes are beginning to change not just how clothes are washed but what is used to wash them.

Annual washing-machine sales in India have risen from around 8 million units in 2019 to 12 million in 2024 and are projected to reach around 16 million by 2029, according to Redseer data contained in LG Electronics India’s prospectus.

That expansion is opening up another opportunity for consumer goods firms: persuading households that have traditionally relied on detergent bars and powders to switch to liquid detergents.

The shift is already visible. Data shared exclusively with Moneycontrol by market research firm NIQ, formerly Nielsen IQ, reveals liquid detergents grew 15.5 percent FY26 in offline retail after expanding 20.9 percent in the previous year.

Detergent powders, by comparison, were almost flat, growing just 0.1 percent, while detergent bars declined 5.9 percent.

For Hindustan Unilever (HUL), Godrej Consumer Products (GCPL) and other FMCG firms, liquids offer an opportunity to premiumise a mature laundry category worth more than Rs 35,000 crore as more Indians move from handwashing to washing machines.

India’s washing-machine market has been expanding steadily.

In value terms, the market increased from around Rs 14,500 crore in 2019 to Rs 24,500 crore in 2024, representing an annualised expansion rate of around 11 percent, according to Redseer. It is projected to reach around Rs 38,000 crore by 2029.

Despite that expansion, washing-machine penetration stays relatively low, leaving considerable headroom for expansion. According to data from LG Electronics India, washing-machine penetration stood at around 21 percent in June 2024 and is anticipated to climb to 24 percent by 2028.

The change is additionally being fuelled by consumers moving towards automatic and larger-capacity machines, a trend that could further alter laundry habits.

Liquid detergents, which are easy to dose and dissolve quickly fit naturally with machine washing, while detergent bars are largely associated with handwashing.

“The biggest reason for the shift in consumption is when consumers move from hand wash to machine wash. And as they move to machine wash, they use more product,” HUL CEO and managing director Priya Nair stated at Barclays’ 19th Annual Global Consumer Conference earlier this month.

“We are the leaders in premium and have the largest index in the premium market and as a result, as the market shifts the consumption that we use in each wash starts to change,” she stated, adding that the Indian market was at a tipping point.

NIQ additionally sees washing-machine ownership as an important driver of the category.

“Rising washing-machine ownership, perceived efficacy and continued promotional activity should backing adoption of liquid detergents,” stated market watchers at the market research firm.

While expansion could moderate as the base becomes larger, they expect liquids to continue outperforming powders and bars and steadily gain share.

The transition is already much further along in organised retail. Liquids account for 37 percent of laundry-detergent sales in modern trade and 53.9 percent in metro e-commerce, according to NIQ, compared with around 11 percent of the category in overall offline retail. FMCG firms bet on liquids

Hindustan Unilever is already seeing the shift play out across its home-care portfolio.

The maker of Surf Excel, Rin, Active Wheel and Sunlight stated its liquids portfolio crossed the Rs 4,000-crore topline milestone in FY26. In its latest quarter, fabric wash delivered double-digit underlying sales expansion, with liquids further accelerating their double-digit expansion trajectory.

Godrej Consumer Products is additionally looking to capture the opportunity as it expands its presence in laundry.

Its Godrej Fab detergent brand crossed Rs 250 crore in annualised topline run-rate in just over a year. The maker of Cinthol soaps is additionally expanding into other home-care adjacencies, including Rizz dishwashing soap and Zap stain remover.

The firm believes India could eventually follow the path noted in China, where liquid detergents became a much larger category as the market developed. Citing Euromonitor data, GCPL has stated China’s liquid-detergent market grew at a compound annual expansion rate of 16 percent between 2007 and 2023 to reach around $4 billion.

India’s liquid-detergent market is estimated at around $0.5 billion and is projected by the firm to reach $4 billion by 2040.

There is still a long way to go.

Powders stay deeply entrenched in Indian households, particularly in general trade and among price-conscious consumers, while handwashing continues across a large part of the country.  But with rising washing machine adoption, the opportunity for detergent makers stays huge.