Market Trends of Industrial And Institutional Cleaning Chemicals Industry
General-purpose Cleaners Segment Anticipated to Dominate the Market
- The general-purpose cleaning products segment is the most significant product type segment of the industrial and institutional cleaning chemicals market. Products in this segment are mainly used as ware-wash, floor cleaners, etc., at hospitals, hotels, and offices.
- Most chemicals used in industrial and institutional cleaning are biocides and surfactants.
- Japan stands as a leading producer of industrial cleaning chemicals, owing to its abundant availability of raw materials and labor force. Data from the Ministry of Economy, Trade and Industry revealed a decline in domestic demand for cationic surfactants in Japan, dropping by 350 tons (-3.31%) in 2023 compared to the previous year. However, the consumption in the last two years outpaced that of earlier years.
- As per data from Happi Magazine and Circana, the household cleaning product segment with the highest multi-outlet sales in the United States in 2023 was all-purpose cleaners/disinfectants, which totaled over USD 1.7 billion in sales.
- As cleanliness is a factor that has the highest importance in hospitals and healthcare, the growth of the healthcare industry and the increasing number of new hospitals play a significant role in the growth of the cleaning chemicals market.
- Asia-Pacific is home to two of the most populous countries in the world, i.e., China and India, which are also home to more than 60% of hospitals worldwide.
- India is home to about 70,000 hospitals, of which the private sector owns more than 63%.
- Furthermore, along with hospitals, the hotel industry is another significant end user of general-purpose cleaning products. According to Hospitality Net, in 2022, about 2,480 new hotels were opened globally, and it was expected that in 2024, about 2,707 additional new hotels would be opened globally.
- Moreover, data from IKW, the German Cosmetic, Toiletry, Perfumery and Detergent Association, indicated that household cleaning products in Germany raked in approximately EUR 1.24 billion (~USD 1.37 billion) in 2023, marking a 0.8% rise over 2022.
- Given the critical reliance of end users like hospitals and hotels on general cleaning products, demand for the general-purpose cleaners segment is poised to rise in the coming years.
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North America to Dominate the Market
- North America dominates the global industrial and institutional cleaning chemicals market. Factors such as a surge in hospital construction and increased public awareness of the importance of maintaining a hygienic environment are driving the regional market鈥檚 growth.
- The cleaning industry encompasses residential, commercial, specialty, and laundry services. According to data from the Bureau of Labor Statistics, in 2022, US consumers spent an average of USD 169.83 on laundry and cleaning supplies.
- Furthermore, data from Happi Magazine and Circana revealed that liquid laundry detergent sales in the United States reached approximately 620 million units in 2023.
- According to data from the American Hospital Association, as of January 2024, the United States had about 6,120 hospitals, of which 84% were community hospitals.
- Canada is among the fastest-growing countries in North America, along with the United States and Mexico. As per StatCan, the number of hospital establishments in Canada reached 1,280 as of 2022.
- The food and beverage processing industry is one of the major end-user industries of industrial chemicals. The Mexican industry is expected to grow over the forecast period due to the rising trend of eating packaged food, increased standards of living, coupled with increased spending power.
- The car wash segment is pivotal in this market, offering a diverse array of cleaning chemical products. These products cater to OEMs for new vehicles and the aftermarket for on-road washing. With an increasing emphasis on car care and maintenance, the demand for car washing products is on the rise in the region.
- The demand for automobiles has been increasing over the past few years, positively affecting the industrial and institutional cleaning chemicals market鈥檚 growth. As per OICA, US automotive production reached 10.61 million units in 2023 from 10.05 million units in 2022.
- Given these applications and the strong regional demand, North America is set to remain the largest regional market for industrial and institutional cleaning chemicals market over the coming years.
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