The government estimates that the hand sanitizer market will grow to $5.1BB by 2024, a 600% increase. The product’s growing demand brings some big players into a once fragmented market. Exxon/Mobil announced the production of 160,000 gallons of hand sanitizer in their Louisiana refinery with a plan to donate to local and national health care providers and first responders. And, they are not alone in this endeavor. Many major distillers including Anheuser Busch and Bacardi are currently manufacturing hand sanitizer to donate to facilities in their local communities.
Major retail discounters like The 99¢ Store, Dollar General and others including Walmart and Target currently sell hand sanitizer at low prices. Even though the demand is through the roof, retailers and discount store prices are stable with no indication of substantial increases. It raises the question, with so many producers of hand sanitizer, will the market become oversaturated?
The supply chain indicates a growing demand for hand sanitizer but there are other issues like the shortage of plastic containers and their perceived effect on the environment. FDA requires that the only pharmaceutical grade ingredients are used in the manufacture of sanitizer and these components are in short supply. Many manufacturers indicate that they have a reduced capacity because of supply chain interruptions. The fear is that the market will be unable to meet the growing demand. However, this fear has not materialized.
