Some of you might be too young to remember Blockbuster Video (yes, I’m dating myself here). In short, Blockbuster dominated movie rentals for years—until a startup called Redbox, followed by the rise of streaming platforms, wiped out their market share and eventually, their business. Even with years of a head start, Blockbuster failed to acknowledge changing consumer trends and technology.
Ultimately, it wasn’t about price. It was about what consumers valued: convenience. Today, what we pay for streaming services far exceeds what we once spent on renting movies.
So, how does bar soap relate to Blockbuster?
The "why" is critical in understanding what I call the comeback of "analog body wash." Let's break down the facts and examine how the segment has shifted dramatically over the past four years due to evolving consumer demand.
State of the Industry
The global bar soap market is currently valued at $30.2 billion in 2023 and is projected to grow to $42.9 billion by 2032, reflecting a 4.5% CAGR.
The premium bar soap segment is indeed growing faster, with a CAGR of 5.6% projected from 2023 to 2030.
It’s not about price!
In 2020 the average retail price for bar soaps was between $1 to $3, and for the new kids on the block, it now ranges between $5 to $9.
Who’s driving this shift?
Millennials: This group leads the demand for eco-friendly, sustainable products, including natural bar soaps.
Gen Z: Gen Z is drawn to bar soaps with unique packaging and social media appeal.
The OG's (50+ years): They generally stick to traditional bar soaps, favoring familiar and reliable brands.
Millennials and Gen Z, traditionally underserved by the big players, are now driving significant trends in the body care industry. The brands they favor directly reflect the growth of the premium category, which is outpacing the overall market.
Now, the "why":
It’s no secret that younger audiences care about natural ingredients. We’ve seen other CPG categories disrupted by new brands aligning with this demand. And, as shown by the growth of the premium segment, they are willing to pay more for products that meet these expectations.
Soap, as part of the intimate personal hygiene routine, is a category where consumers are ready to invest. Unlike other areas where they may cut costs, such as apparel or tech, they prioritize health and wellness.
What’s the secret to modern bar soap brands thriving in an "analog" category?
Natural ingredients
Skin health benefits
Collaborations with adjacent interests (e.g., Dr. Squatch's collaborations with gaming, Disney, sports teams)
Targeted marketing: Relevant content shown on platforms like TikTok, Twitch, YouTube, Meta, and live sports.