Industrial and Institutional Cleaning Chemicals Market Size, Share & Industry Analysis, By Product Type (General Purpose Cleaners, Floor Care, Warewashing, Disinfectant & Sanitizer, Laundry Care, and Others), By End-User (Commercial, Manufacturing, Institutional & Government) and Regional Forecast, 2020-2027

The global industrial and institutional cleaning chemicals market size was USD 47.25 billion in 2019 and is projected to reach USD 68.16 billion by 2027, exhibiting a CAGR of 4.7% during the forecast period. North America dominated the industrial and institutional cleaning chemicals market with a market share of 35.7% in 2019.

Industrial and institutional cleaning chemicals are cleaning, and sanitation products used to destroy or inactivate the microorganisms and bacteria present on the surface. The cleaning chemicals are utilized to eliminate the organisms present on the surface. The cleaning chemicals are witnessing a surge in demand due to the increasing hygiene and sanitation standards at commercial, and hospitality establishments. Stringent food safety standards will boost the demand for cleaning chemicals from food & beverage manufacturers. Furthermore, the outbreak of the COVID-19 virus increased the awareness amongst consumers regarding the advantages of sanitation, which, in turn, will propel the growth of the market. Government and environmental regulations on the use of industrial and institutional cleaning chemicals will hinder the market growth.

COVID-19 Outbreak Has Surged the Demand for Cleaning and Disinfectant Products

COVID-19 outbreak had a minimal impact on the growth of the market. The increase in awareness amongst consumers regarding sanitation and cleanliness to curb the virus's spread is one of the prominent factors behind the surge in demand for cleaning chemicals. The industrial and manufacturing sectors witnessed a boost in the need for chemicals to maintain hygiene at the workplace. The non-predictable nature of the virus led hospitals to take the necessary precautions to stop virus transmission, which resulted in a significant rise in demand for cleaning chemicals. However, the key players' insufficient manufacturing capacities in the industrial and institutional (I&I) cleaning chemicals market caused supply chain bottlenecks and could not fulfill the rising demand.

Global Industrial and Institutional Cleaning Chemicals Market Overview

Market Size & Forecast:

• 2019 Market Size: USD 47.25 billion
• 2027 Forecast Market Size: USD 68.16 billion
• CAGR: 4.7% from 2020 to 2027

Market Share:

• North America dominated the market in 2019 with a 35.7% share, supported by high demand from the hospitality, healthcare, and food service sectors.
• By Product Type, the general-purpose cleaners segment held the largest market share in 2019 due to widespread use across institutional and industrial facilities for degreasing, sanitation, and surface cleaning.
• By End User, the commercial segment was the leading contributor in 2019, driven by rising hygiene awareness in retail stores, restaurants, offices, and malls.

Key Country Highlights:

• United States: Rapid growth in demand for disinfectants and sanitizers, driven by the COVID-19 pandemic and regulatory emphasis on sanitation in government and healthcare institutions.
• Canada: Investments in green cleaning products and bio-based formulations supported by environmental regulations.
• Germany: Strong demand from the food & beverage manufacturing sector due to strict hygiene norms and HACCP compliance.
• China: Surge in industrial cleaning chemical consumption driven by rapid growth in the manufacturing and food service sectors.
• India: Rising urbanization, expansion in the hospitality sector, and increased spending on healthcare infrastructure are boosting demand.
• Brazil & Mexico: Growth driven by food safety regulations and efforts to reduce hospital-acquired infections in public health facilities.

Industrial and Institutional Cleaning Chemicals Market TRENDS

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Rising Demand for Bio-based Products to Create Lucrative Growth Opportunities

Globally, the concerns regarding the adverse effects of petroleum-based solvents have stimulated the demand for sustainable products. The rise in consumer preference towards bio-based products has driven companies to use bio-based solvents to manufacture the products. Industrial and institutional cleaning chemicals derived from biological sources are less toxic and don’t contain volatile organic compounds. The green products comply with the environmental standards and air quality and are free from anti-bacterial constituents, reducing the risk of bacterial resistance to antibiotics. Companies in the market, including Diversey Inc., have introduced new green cleaning chemicals that comply with USDA, EPA, and Green Seal regulations. North America witnessed a growth from USD 16.19 Billion in 2018 to USD 16.87 Billion in 2019.

Industrial and Institutional Cleaning Chemicals Market Growth FACTORS

Rising Demand from Commercial and Hospitality Establishments to Drive the Market

The rising demand for cleaning chemicals from commercial and hospitality establishments is expected to drive the industrial and institutional cleaning chemicals market. The high importance of hygiene at places of hospitality will increase the consumption of cleaning chemicals. Restaurants and hotels aiming to provide food services of international standards to their consumers will boost the demand for cleaning chemicals. In addition, increasing disposable income and the rise in spending on tourism activities are estimated to support the market's growth. Moreover, the increase in sanitation standards at the workplace in developed countries and the increase in the number of cleanliness initiatives at the workplace in developing countries will surge the demand for cleaning chemicals.

RESTRAINING FACTORS

Regulations by the Government on the Use of Cleaning Chemicals to Restrain Growth

Industrial and institutional cleaning chemicals are used to maintain hygiene and sanitation levels at offices, manufacturing facilities, and institutions such as hospitals and schools. The cleaning supplies can contain flammable and corrosive chemicals, which might cause health problems when exposed to them. Many cleaning products and supplies can irritate the throat & eyes, headaches, or even form cancerous cells. The cleaning chemicals contain solvents that have high VOC content. VOCs released while using cleaning products contribute to chronic respiratory problems, asthma, and allergic reactions. Owing to the factors mentioned above, organizations such as the Centers for Disease Control & Prevention (CDC), and the National Library of Medicine (NLM) have regulated the use of cleaning chemicals. Hence, the regulations by the government will act as a restraint for the market.

Industrial and Institutional Cleaning Chemicals Market SEGMENTATION ANALYSIS

By Product Type Analysis

General Purpose Cleaners Segment Dominated the Market in 2019

Based on product type, the market includes general-purpose cleaners, floor care, warewashing, disinfectant and sanitizer, laundry care, and others. The general-purpose cleaners segment held the dominant share of the market in 2019. The segment's dominance is attributed to its extensive usage for degreasing, metal cleaning, and sanitation application. Additionally, low cost and efficient cleaning offered by general-purpose cleaners will surge its demand.

The disinfectant & sanitization segment is projected to witness high growth during the forecast period owing to demand from the food & beverage industry. The rise in sanitation and hygiene standards at food & beverage manufacturing facilities is anticipated to fuel the market.

By End-User Analysis

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Commercial Segment to Generate Highest Revenue

In terms of application, the market is segmented into commercial, manufacturing, and institutional & governmental. The commercial segment is expected to have a dominant share in the market during the forecast period. Improvement in hygiene standards in developing economies combined with the rise in awareness regarding sanitation due to the corona pandemic is anticipated to drive the market. The manufacturing segment is projected to witness a high growth rate during the forecast period. Cleaning chemicals are used not only for maintaining sanitation in manufacturing facilities but also for cleaning metal equipment and degreasing them to facilitate their functioning. Additionally, increasing demand for cleaning chemicals from food & beverage manufacturers to minimize the number of contaminants in facilities and maintain the product's quality will drive the segment's growth.

• The institutional & government segment is expected to hold a 11.2% share in 2019.

REGIONAL Industrial and Institutional Cleaning Chemicals Market ANALYSIS

The market size in North America stood at USD 16.87 billion in 2019. North America is the major contributor to the growth of the market due to the escalation in the hospitality industry's demand. Additionally, a spike in demand for disinfection and sanitation products in North America due to the COVID-19 outbreak has increased industrial and institutional cleaning chemicals' consumption. Asia Pacific is witnessing a high growth rate during the market during the forecast period. The rise in demand for cleaning chemicals from healthcare, retail, food service, and manufacturing facilities will fuel the market's growth in the region.

• In U.S., the institutional & government segment is estimated to hold a 11.2% market share in 2019.

The market in Europe is characterized by surging demand from the food & beverage industry. Stringent hygiene and sanitation standards at manufacturing facilities and the workplace are estimated to drive market growth. In Latin America and the Middle East & Africa, an increase in food safety standards and activities related to preventing hospital-acquired infections will accelerate market growth.

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KEY INDUSTRY PLAYERS

Key Players to Adopt Various Growth Strategies to Maintain their Dominance in the Market

The global industrial and institutional cleaning chemicals market is fragmented as key players are investing in research and development activities to develop bio based formulations for various applications. Major manufacturers have established their presence in the market by providing application-specific products. Companies such as Ecolab have invested heavily in the development of bio-based cleaning products and the innovation of packaging and dispensing equipment. The dominance of the key players is characterized by brand association and global distribution networks.

LIST OF KEY COMPANIES PROFILED IN Industrial and Institutional Cleaning Chemicals Market:

• The Procter & Gamble Company (U.S.)
• The Clorox Company (U.S.)
• Kimberly-Clark Corporation (U.S.)
• Ecolab (U.S.)
• Diversey Inc. (U.S.)
• Dow (U.S.)
• Graham Chemical Corporation (U.S.)
• Croda International plc (UK)
• BASF SE (Germany)
• Brenntag (Germany)
• Clariant SA (Switzerland)
• Solvay SA (Belgium)
• Other Players

KEY INDUSTRY DEVELOPMENTS:

• January 2019- Reckitt Benckiser and Diversey Inc. formed a strategic alliance in the North American industrial and institutional cleaning market. The expanded partnership builds on Reckitt Benckiser’s strength in convenient, ready-to-use solutions via brands including Lysol, Airwick, Easy-Off, and Resolve, and Diversey’s advanced institutional cleaning expertise in hospitals, schools, and office complexes across the country.

REPORT COVERAGE

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The market research report provides a detailed analysis of the market and focuses on key aspects such as leading companies, product types, and leading product applications. Besides this, the report offers insights into the market trends and highlights vital industry developments. In addition to the factors mentioned earlier, the report encompasses several factors that have contributed to the advanced market's growth in recent years.

Report Scope & Segmentation