The European market potential for soap

Europe is an interesting market for soap, with steadily increasing imports. This offers good opportunities for exporters from developing countries, especially in the higher mid-end market, as soap is increasingly becoming a luxury and gift item.

1. Product description: soap

In home decoration and home textiles (HDHT), there are several categories consisting of various product groups. The soaps in this sector are mainly the more luxurious ‘raw’ and chunky soap bars. These are categorised under ‘home care and body care’. Nearly half of HDHT retailers also sell body and face care products, and about a third of them have noted a growing need for such products.

This study uses the following codes to refer to trade in different types of soap:

Table 1: Product codes

Functionality

Soap’s main function is to clean the skin. In addition to this basic function, more luxurious soaps offer additional nourishing and relaxing benefits from conditioning ingredients and smells. They can also be decorative, with interesting shapes and trendy colours. Luxury soap bars are popular gift items.

Material

To make soap, vegetable or animal oils are generally mixed with lye and water. Vegetable oils range from palm oil to more luxurious oils like olive oil or shea butter. The choice of oils determines the quality of the soap. It influences aspects like the level of froth, and how hard and creamy the soap is. Adding the scent is the last part of the process. Natural or synthetic fragrances and colours can be added, as well as nourishing ingredients.

Ingredients that are related to a specific region or origin, like Moroccan argan oil, can add value to your soap. Natural and authentic soaps are especially popular in the higher-end segments. They are often made with sustainable ingredients, packaging and production methods.

Design

Handmade soaps are popular in HDHT. These ‘raw’ and chunky soap bars can be rough and uneven in shape or form. Special ingredients are often emphasised in the design, for example with colourful swirls or decorative flower petals. Logos or texts can also be embossed or stamped onto the soap. Interesting shapes can offer a humorous element that makes the soap more suitable as a gift.

Because soap is often gifted, nice wrappers and boxes add value to the traditional bar. Dispensers and soap dishes can achieve design value by using natural materials, especially types of stone. You can also create a set of matching bathroom accessories, as well as complementary products, like shampoo and conditioner bars.

Figure 1: Shaeco product family of body care, hair care and accessories

Source: Shaeco Shop @ YouTube

2. What makes Europe an interesting market for soap?

The European market for soap grew after the outbreak of the COVID-19 pandemic in 2020, and has continued to perform well since then. Developing countries account for about 15% of the import value in this market.

Source: UN Comtrade & Eurostat Comext (2025)

In 2020, the outbreak of the COVID-19 pandemic led to an increased focus on hygiene. Since then, Europe’s soap imports have been fairly stable at about €2.4 billion. With this, Europe accounts for about a third of the worldwide import market.

Developing countries directly supply about 15% of Europe’s soap imports. Between 2020 and 2024, imports from these countries fluctuated around €360 million on average. This makes Europe an interesting market for you, as an exporter from a developing country.

Various international trade disruptions continue to affect the cost and availability of raw materials, energy and transport. At the same time, lockdowns have led to an increased focus on the home. Combined with trends like wellness and sustainability, this may (partially) compensate for the pressure that the ‘cost-of-living crisis’ has put on consumer spending. In addition, soap bars can offer an affordable way for consumers to indulge in luxury on a limited budget. For more drivers of demand, see the section on trends.

3. Which European countries offer the best opportunities for soap?

The larger Western European economies are the main importers of soap. However, importers in these countries generally sell their products across Europe. Your best strategy is to focus on a particular segment, rather than a specific country.

Source: UN Comtrade & Eurostat Comext (2025)

Germany is Europe’s leading soap importer, accounting for 20% of imports in 2024. France followed with 10%, the United Kingdom (UK) with 9.4%, and the Netherlands with 8.9%. Italy and Poland rounded out the top 6, with about 5% each.

Consumer spending is under pressure

The HDHT sector is sensitive to economic cycles. When economic circumstances and prospects are down, consumers postpone buying items they do not urgently need. When economic conditions are good, purchases of such non-essential products tend to rise. At the same time, decorative soaps are gifts that people buy for others or themselves first and foremost. Gifting and wellness products tend to be less affected in times of financial hardship. Even in higher segments, soaps are relatively affordable gifts.

European consumer confidence fell sharply in March 2022 due to the situation in Ukraine and the cost-of-living crisis that followed. Although it has improved since then, consumer confidence is still fragile, scoring below its long-term average.

* forecast

Source: OECD Economic Outlook 116

The cost-of-living crisis has clearly affected consumer spending (‘private consumption expenditure’) in the leading European markets. Forecasts for 2025/2026 continue to be modest, reflecting consumer confidence.

Germany is Europe’s largest soap importer

Europe’s leading soap importer is Germany. Its imports grew from €355 million in 2020 to €486 million in 2024, at an average annual rate (CAGR) of 8.1%. Germany is a key trade hub in Europe, which may have helped its strong performance. More than 40% of the country’s soap imports came from Poland. This illustrates how Polish exporters can benefit from being close to the Western European market, especially to Germany. Germany’s large domestic market and role as a trade hub can also make this an interesting market for you.

Germany’s soap imports from developing countries fluctuated between 2020 and 2024, but reached €36 million in both 2020 and 2024. Although the direct market share of developing countries was 7.5%, well below the European average, the concrete import value was the third-highest in Europe. About half of this can be attributed to Türkiye (€16 million), representing an overall market share of 3.4%. Indonesia also performed well, exporting €8.7 million in 2024. This translated to a market share of 1.8%.

France increases its soap imports from developing countries

France’s soap imports generally fluctuate around €240-250 million. In 2024, the country’s leading soap suppliers were European trade hubs Germany and the Netherlands, each accounting for 17% of imports. The UK followed with 13%, and Poland with 11%.

The direct import market share of developing countries grew from 10.5% in 2020 to 12.3% in 2024. Although slightly below the European average, this is promising. Import values grew from €26 million in 2020 to €30 million in 2024, at an average annual rate of 3.2%. Among developing countries, France’s leading suppliers are Malaysia (with a market share of 4.3% in 2024), Türkiye (2.4%), and Indonesia (2.0%). The country’s growing market for soap from developing countries could offer opportunities for you.

The UK is the leading importer of soap from developing countries

The UK’s soap imports peaked at €319 million in 2020, before falling to €229 million in 2024. The CAGR for the period between 2020 and 2024 was -7.9%. However, this simply represents a return to pre-pandemic import values. In 2024, the UK’s main soap suppliers were Germany (21%), Israel (17%) and China (14%). Among developing countries, leading suppliers included Indonesia (3.9%), India and Thailand (2.0% each).

The UK is Europe’s largest importer of soap from developing countries. In 2024, the direct market share of developing countries reached 32%, more than double the European average. The UK’s soap imports from developing countries fell from €122 million in 2020 to €73 million in 2024, at an average yearly rate of -12%. However, this decline can be attributed to a peak in 2020, during the COVID-19 pandemic. Compared to 2019 and before, recent import values are relatively high.

As the leading importer from developing countries, the UK could be an interesting market for you. Brexit may stimulate direct imports from developing countries, as these allow British buyers to avoid additional fees now that they are no longer part of the European Union’s single market.

The Netherlands is an important European trade hub

The Netherlands is another important European trade hub, with growing imports from developing countries. Its soap imports grew from €214 million in 2020 to €218 million in 2024, at a CAGR of 0.6%. This is a lot more than before the COVID-19 pandemic. Similar to Germany, the Netherlands’ role as an important European trade hub may have helped the country’s strong performance.

Leading suppliers to the Netherlands were Germany (24%), Israel (11%), Türkiye and Belgium (10% each). Between 2020 and 2024, soap imports from developing countries grew at a strong average annual rate of 10%, increasing from €36 million to €53 million. As a result, the direct market share of developing countries grew from 17% in 2020 to 24% in 2024. This is well above the European average. Among developing countries, the Netherlands’ main suppliers are Türkiye (10%), China (7.7%) and Indonesia (4.7%).

Poland mainly imports soap from European trade hubs

Poland is an emerging market in Eastern Europe. Its soap imports peaked at €140 million in 2020, after which they declined to €121 million in 2024. This translated to a CAGR of -3.5%. However, these import values continue to be a lot higher than before the COVID-19 pandemic. Poland mainly imports from European trade hubs Germany (39%) and the Netherlands (18%), suggesting these could be a good route to reach the Polish market.

The direct import market share of developing countries was fairly stable at about 16%, which is comparable to the European average. Direct imports from developing countries reached €20 million in 2024. They mainly came from Türkiye (6.3%), Malaysia (4.0%), Kosovo (3.6%) and Ukraine (2.8%). As the Polish market continues to mature, it may offer opportunities for you.

Belgium imports more soap from Türkiye in 2024

Like the Netherlands, Belgium is a relatively small country that functions as an important trading centre in Europe. Its soap imports peaked at €126 million in 2020, before declining to €114 million in 2024. This translates to a CAGR of -2.5%. However, like in many other countries, recent import values are still higher than before 2020. Belgium’s leading soap suppliers are the Netherlands (28%) and Germany (17%), followed by Türkiye (14%) and France (12%).

Belgium’s soap imports from developing countries grew from €14 million in 2020 to €24 million in 2024, at a strong CAGR of 14%. As a result, the direct import market share of developing countries grew from 11% in 2020 to 21% in 2024. This was mainly due to strong imports from Türkiye (€16 million) in 2024. Other important developing countries included China (4.3%) and Indonesia (1.6%).

4. Which trends offer opportunities or pose threats in the European soap market?

The market for soap is shaped by various trends, often related to trends for HDHT on a sector level. Key topics are gifting, wellness, sustainability and playfulness. Aspects of these trends are connected.

Soap, a perfect gift

Soap originally came in the form of a simple bar for washing hands and clothes – a commodity with an antibacterial function. This type of soap still exists and is sold in the lower-end market. Parallel to the upcoming markets for body care, cosmetics and wellness and spa, soap needed to reflect consumer preferences in terms of smell, effect on the skin, and even look (colour, shape, packaging). Soap became a suitable gift to pamper yourself or friends and family. Packaging and branding became more important.

Today, soap has moved firmly into HDHT. It has become a true lifestyle product. This is due to both the popularity of at-home spa concepts and the gift value of soaps. This gift value is created by appealing to people’s senses of sight and smell: stunning packaging, soaps in interesting shapes and colours, and – importantly – scent. If these elements are varied and surprising, consumers will find it easier to select a specific soap as a gift for someone.

Soap bars have become decorative items in their own right. They are displayed in various spaces in the home and are no longer just for the bathroom. Soaps are also turning into a valued home fragrance. By becoming an emotionally charged body and home care product and gift, some soaps are now a premium product. In 2024, fragrance/wellness products and gifts were among HDHT retailers’ best-selling product categories.

Convenience and hygiene also come into play, especially since the outbreak of the COVID-19 pandemic. Dispensers with liquid soap are ideal for those who consider them more hygienic, especially in public spaces. On the other hand, ‘raw’ and chunky bars of soap are considered luxury products. The gift and ‘statement’ character of these soaps matters more than convenience and hygiene. At home, consumers often prefer such luxury bar soaps.

Wellness: the at-home spa

European consumers are constantly trying to improve themselves, both in body and mind. In a global survey, 89% of respondents said they took more action to improve their wellbeing in 2024 than the year before. To boost their wellness, European consumers are increasingly turning to at-home spa and yoga practices. In a global Young Living survey, 53% of respondents reported they developed new wellness habits during the pandemic, including at-home spa experiences. These at-home rituals offer an affordable alternative to spa visits, especially during the ongoing cost-of-living crisis.

Inspired by Asian lifestyles, European consumers are creating a spa atmosphere in the home with longer and more intensive bathing. Soaps play an important role in these rituals. They bring freshness to the body, as well as mental stimulation through smell and even colour. A wellness positioning in soaps can also make your soaps appealing as welcome gifts, especially if they are part of a spa set with towels, scrub products and massage tools. These sets allow you to literally wish your friends and family (or yourself) ‘well’.

Figure 5: At-home bathing rituals

Source: IKEA Canada @ YouTube

Scents can play an important role in wellness, as they are known to affect people’s wellbeing. Scientific research indicates they can improve your mood, reduce anxiety and promote sleep. For example, lavender and citrus are generally relaxing, while peppermint is invigorating. This is reflected in international consumer research. In one survey, 85% of respondents reported that fragrance can positively impact their mood and wellbeing.

The most popular (timeless) soap fragrances include:

• Lavender;
• Rose;
• Rosemary and mint;
• Milk and honey;
• Sweet orange.

The consumer base for wellness is getting larger, as different drivers can be at play – ranging from healing to pleasure. Since this use of soap relates to health, natural and organic ingredients are popular. Consumers tend to assume that these are safer or more effective than synthetic ingredients, even though this is not always true.

Because European consumers often associate spa and yoga practices with oriental origins, they appreciate ‘exotic’ ingredients. As the spa experience is connected to relaxation and even healing, soaps and related items for this segment often come in muted, natural colours and branding.

Sustainability: people and planet

European consumers and designers are making more sustainable choices, especially in the mid-high to high-end market segments. In Europe’s leading HDHT markets, most consumers believe that having a sustainable lifestyle is important. Sustainable values are also important in body care. 50% of European consumers prefer eco-friendly skincare brands, and 64% are willing to pay more for skincare products that align with their eco-friendly values.

Consumers often associate ‘sustainable’ with ‘healthy’, and natural ingredients are popular. The industry is generally more interested in renewable offers with limited environmental impact. This leads to more sustainable packaging, environmentally and socially responsible production and reduced transport. Refillable soap dispensers are an example of this. Soap bars generally have less environmental impact per wash than liquid soap, especially if they are (hand)made from responsibly sourced natural ingredients and packaged in paper.

For soap, key topics regarding social and environmental sustainability include:

• Materials: Are your ingredients renewable? Are they traceable and responsibly traded? Can you source local ingredients that are unique to your region or culture?
• Production process: Can you reduce your energy use, for example in the heating and mixing of raw materials? Can you prevent water pollution? Can you reduce and/or reuse waste? In general, can you ensure low-impact production? Are you using management systems that report your traceability and environmental footprint?
• Labour and ethical practices: Does production take place in a safe and healthy way? Are your labour contracts fair?
• Transport: Do you use clean transport options? Do you pack containers effectively? Are your packing materials recyclable? Do you not use more packaging than needed?

As today’s consumer is asking for more transparency, sustainable claims are often supported with certification. Certification can also help you comply with increasingly strict European sustainability legislation, as it requires careful documentation and traceability of ingredients and processes. COSMOS and NATRUE are some of the most common international standards for natural and/or organic cosmetics like soap.

You should be aware that natural ingredients are not always sustainable. They must be sourced from responsible, preferably certified suppliers. For example, palm oil is a focus of the new EU Deforestation Regulation (EUDR), because its production often leads to environmental degradation and habitat destruction. The Roundtable on Sustainable Palm Oil (RSPO) certifies sustainable palm oil (products).

Playful soaps

A major long-term trend in soaps is to add a playful touch. Using playfulness is a good way to connect with consumers. You can add playfulness or humour with colour, figurative or other expressive shapes, text on soaps, and playful packaging. This trend is closely connected to the gift aspect of soap. Especially in the middle segments, it is a common strategy. Playful soaps are usually more price-sensitive than soaps that are more ‘serious’, like a wellness soap.

Globally Cool carried out this study in partnership with GO! Good Opportunity and Remco Kemper on behalf of CBI.

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