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.
World Demand for Industrial & Institutional Cleaning Chemicals to Exceed $44 Billion in 2016
World demand for industrial and institutional (I&I) cleaning chemicals is projected to increase 4.7 percent per year to $44.4 billion in 2016. Although North America and Western Europe will continue to account for more than half of global demand, much faster growth is expected in developing regions. The Chinese market will continue to grow at a robust pace, even as economic growth in China begins to moderate. The potentially large Indian market will post the world’s fastest gains, but will remain far less developed, even by the standards of the region. These and other trends are presented in World I&I Cleaning Chemicals, a new study from The Freedonia Group, Inc., a Cleveland-based industry market research firm.
Among more developed markets, growth will improve as the global economic condition brightens. In the US market, by far the world’s largest, I&I cleaning chemicals will benefit from the economic recovery, boosting manufacturing activity and raising the patronization rates of commercial establishments -- which will contribute to increases in demand for products used to clean restaurants, hotels, and other commercial facilities. There will be a similar rebound in Western Europe and Japan, although gains in those locations will be generally smaller.
The products expected to register above average growth are generally those which are used in faster growing applications, such as health care and food processing. Disinfectants and sanitizers will be the foremost beneficiaries of this trend, particularly in areas in which they typically have been underutilized, but also in developed areas due to more intensive infection control efforts and the continuously evolving nature of bacterial and other microbial threats.
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