Steady growth forecast for global I&I cleaning chemicals market

The global industrial and institutional (I&I) cleaning chemicals market was worth over $40-bn in 2016 having witnessed a Y-o-Y growth of 3.9% over 2015. Sales revenue of this segment of cleaning chemicals is expected to increase at a CAGR of 5.2% over the period from 2016 to 2026, according to a new analysis by Future Market Insights.

I&I cleaning chemicals are chemicals used during routine cleaning of institutes, warehouses, research and development laboratories, offices and industrial facilities and other such places. Global consumption of these chemicals is estimated at 15.5-mt by the end of 2016.

Use in healthcare and food sectors

Threat of infectious diseases has made consumers conscious about hygiene and this has resulted in an overall increase in health expenditure. Growing awareness among consumers about infectious diseases caused by pathogens, bacteria and viruses is expected to drive demand for cleaning chemicals during the forecast period. It is estimated that over 20%-30% of healthcare related infections could be prevented by intensive hygiene and control programmes. Moreover, National Action Plan to Prevent Health Care-Associated Infections set by the U.S. Department of Health and Human Services (HHS) is also focussing on decreasing the number of such infections by 2020. Thus, due to continuation of promotional campaigns designed to increase awareness among consumers regarding the advantages of cleaning products, demand for cleaning chemicals is projected to increase.

Exponential growth in the food service industry, which includes food retail, full and limited service restaurants and bars and taverns, is expected to influence major players and encourage them to establish new facilities and outlets. Increase in food and beverage production along with expansion of cold chain capacities to minimise food loss at production and distribution levels are some of the major factors anticipated to fuel demand for cleaning chemicals over the forecast period.

Segmentation highlights

Based on a primary source, the global I&I cleaning chemicals market can be segmented by application as commercial, industrial and domestic. Industrial application is further classified as hand hygiene chemicals, building care chemicals, and others. The commercial and domestic application segments are further bifurcated as laundry care chemicals, building care chemicals, kitchen care chemicals, hand hygiene chemicals, and others. Each sub-segment can be further categorised based on chemicals such as citric acid, lactic acid, formic acid, phosphoric acid, acetic acid, hydrochloric acid, chloralkalis, surfactants, chelating agents, phosphates, biocides, and solvents. According to the report, the commercial segment will hold significant share in the global I&I cleaning chemicals market, registering a significantly high CAGR in terms of value during the period of assessment. The segment is estimated to create incremental opportunity of $12.33-bn during projected period.

Laundry care chemicals sub-segment in industrial applications is estimated to exhibit a CAGR of 5.9% in terms of value. The segment is anticipated to create incremental opportunity of $5.05-bn, which is approximately 34% of the total incremental opportunity.

Regional market projections

The I&I cleaning chemicals market is segmented on the basis of region as North America, Latin America, Western Europe, Eastern Europe, Asia Pacific (excluding Japan), Japan and Middle East and Africa. APEJ is expected to register relatively high CAGR in terms of value during the assessed period. China and India are highly focussed on increasing hygiene awareness. Western Europe and North America are estimated to collectively account for a share of market value of over 51.5% by 2016 end.