Demand for Industrial and Institutional Cleaning Chemicals to Exceed $10 Billion in 2014

Demand for industrial and institutional (I&I) cleaning chemicals in the US is projected to increase 4.0 percent annually to $10.7 billion in 2014.  Overall, the anticipated economic recovery will boost demand across the board following a weak 2009, perhaps most vigorously in markets especially hard hit by the recent recession.  Laundries, car washes and transportation facilities are expected to be among the commercial segments which will post such returns to form after down periods.  In contrast, the health care market -- far less affected by the recent economic downturn -- is expected to continue to register industry-leading growth, due to the incessant need to combat viral and bacterial threats. These and other trends, including market share and product segmentation, are presented in Industrial & Institutional Cleaning Chemicals, a new study from The Freedonia Group, Inc., a Cleveland-based industry market research firm.

Sales of disinfectants and sanitizers will experience the fastest advances of any major product type, as food industry participants seek to satisfy the stringent safety requirements of consumers, regulators, and national and global food retailers and foodservice companies, especially following several recent foodborne illness outbreaks.  Food and beverage processors will rely on I&I cleaning products to help them avoid nationwide food product recalls, such as the recall of hundreds of food products possibly containing Salmonella-contaminated hydrolyzed vegetable protein in 2010.  More recently, hundreds of millions of eggs have been recalled in light of thousands being made ill by Salmonella.  In addition, trends toward the use of more expensive and user-friendly disinfectants and sanitizers in foodservice establishments will boost value gains in that segment.

General purpose cleaners and floor care products will remain the largest product categories, combining to account for 40 percent of overall demand in 2014.  However, demand for these products will be restrained by market maturity and intense competition for market share in a crowded field of firms.  Nevertheless, favorable growth opportunities exist for multifunctional general purpose cleaning products with greater convenience and user safety -- such as those products suitable for use without specialized training or additional safety equipment. 

The Freedonia Group is a leading international business research company, founded in 1985, that publishes more than 100 industry research studies annually. This industry analysis provides an unbiased outlook and a reliable assessment of an industry and includes product segmentation and demand forecasts, industry trends, demand history, threats and opportunities, competitive strategies, market share determinations and company profiles.