This study analyzes the world industrial and institutional (I&I) cleaning chemical industry. It presents historical demand data for the years 2001, 2006 and 2011, and forecasts for 2016 and 2021 by product (e.g., general purpose cleaners, floor care, warewashing, disinfectants and sanitizers, laundry care), market (commercial, manufacturing, institutional and government), world region and major country. The study also considers market environment factors, details industry structure, evaluates company market share and profiles industry participants.
Developing markets to spur world growth over 4.7% annually through 2016
Worldwide demand for I&I cleaning chemicals will grow 4.7 percent annually, exceeding $44 billion in 2016. Overall, the fastest growing applications will be in health care, and food and beverage processing. Developing markets in Asia, Africa and Eastern Europe will lead advances. This is particularly true in China, where the market ceiling continues to grow upward due to an unparalleled combination of modernization and economic expansion. A few other countries, such as India, are likely to register comparable rates of growth. But India remains a much smaller and less fully developed market for I&I cleaning chemicals.
The outlook will also improve in developed markets as well. In the US market, still by far the world’s largest, gains will be strongest in health care, in light of the aging US population, which will lead to more frequent doctor visits and more hospital traffic. In the health care market, unlike other environments with less rigorous disinfection requirements, the long-term concerns about overuse of disinfectants creating super-resistant strains of bacteria usually take a back seat to the more immediate and pressing concerns of patient care, infection control, and the prevention of hospital-acquired infections.
Disinfectants to lead growth
Around the world, sales of disinfectants and sanitizers will experience healthy advances as food industry participants at all levels seek to satisfy the stringent safety requirements of consumers, regulators, and national and global food retailers and foodservice companies. Worldwide increases in infection control efforts will boost demand in health care settings, a trend that will be beneficial not only for specialized disinfectants, but for more general janitorial/sanitation products as well.
Interest increases in sustainability
Environmental and regulatory considerations are spurring technological development and changes in the cleaning chemical product mix. Moreover, manufacturers are seeking ways to make their products more sustainable. Consequently, products that present the greatest concern in terms of environmental and workplace safety will face greater competition from plant-derived compounds and other more environmentally benign ingredients. This is true in developing markets as well, although many of the innovations will come in the form of packaging reductions and reduced energy consumption in production, rather than dramatic changes in product formulation.
General purpose, floor care products to pace advances
General purpose cleaners and floor care products will remain the largest product categories, combining to account for almost 45 percent of overall demand. However, growth in demand for these products will be somewhat slower than average. General purpose cleaners will be replaced by more specialized products, particularly in developing markets. Growth for floor care products will be restrained by market maturity in many of the larger markets, and a trend favoring somewhat simplified floor care routines, in part to reduce labor costs. Nevertheless, favorable growth prospects exist for multifunctional general purpose cleaning products with greater convenience and user safety -- such as those products that contain antibacterial additives or are suitable for use in a variety of applications.
Profiles 30+ global industry players such as Clorox, Diversey, Dow Chemical, Ecolab, Procter & Gamble, Solvay, Stepan and Zep
This study covers the world market for industrial and institutional (I&I) cleaning chemicals by market (commercial, manufacturing, and institutional and government) and type (general purpose cleaners, floor care products, warewashing detergents, disinfectants and sanitizers, laundry detergents, and other). There is often a great deal of similarity between household and I&I cleaning products in terms of composition and purpose, and in some cases they are identical. The main distinction for the purposes of this study is the location in which the products are used. Data is presented for six geographical regions, and for numerous countries. Historical data for I&I cleaning chemical types and markets for 2001, 2006, and 2011 and forecasts for 2016 and 2021 are provided in dollars. The term “demand” refers to sales or apparent consumption, and denotes production plus imports less exports. Demand is presented at the manufacturers’ level. Tabular details may not add to totals due to independent rounding and ratios may be rounded for the sake of clarity.
Corporate figures presented in Section VIII, “Industry Structure,” represent estimates based on the best available information at the time of writing. Sources include annual reports, SEC Form 10-K reports, security analyst reports, corporate product literature, and interviews with industry competitors and participants.
Macroeconomic and demographic indicators presented in this study were obtained from The Freedonia Group Consensus Forecasts dated June 2012. Gross Domestic Product (GDP) historical data are derived from the national income and products accounts from the Organisation for Economic Co- Operation and Development (OECD) for its member countries, from the European Bank for Reconstruction and Development (EBRD) for its member countries, and from the International Monetary Fund for its member countries that are not part of the OECD or EBRD. Sources of GDP estimates for other countries are based on information from the World Bank and a variety of sources including the countries’ statistical bureaus. GDP forecasts are developed from a consensus of public agencies and private firms.
All estimates of gross domestic product and components of GDP are done in terms of constant purchasing power parity in a benchmark year (2010) that is one year before the base year (2011) used in this study. Purchasing power parity GDP estimates for the benchmark year are obtained from the OECD; Eurostat; the World Bank; the International Monetary Fund; the US Central Intelligence Agency; and selected other sources. These purchasing power parity GDP estimates for the benchmark year are based on gross domestic product data expressed in the individual countries’ local currency, which are then converted to US dollars by valuing each country’s output at US prices in the benchmark year. This approach values the same physical output at a consistent price for all countries, thereby reducing the distorting influence of different price levels in the different countries. The alternative approach of using exchange rates to convert local currency GDP to US dollars would tend to overvalue the output of countries with high average price levels and undervalue the output of countries with low average price levels, because exchange rate conversions only partially reflect the relative prices for goods and services that are domestically consumed and invested. Furthermore, factors other than relative prices, such as demand and supply in currency markets, interest rates, and capital flows, affect exchange rates.