Industrial Institutional Cleaning Chemicals Market

Market Overview

The global industrial institutional cleaning chemicals market size was valued at USD 69.3 billion in 2022. It is estimated to reach USD 138.53 billion by 2031, growing at a CAGR of 8.0% during the forecast period (2023–2031). The prevalence of disease outbreaks and the emergence of plant oil-based chemicals promote market growth.

"Institutional cleaning" applies to any cleaning task at a non-private residence. This is the most fundamental definition of the term. Maintenance of offices, colleges, hospitals, hotels, and restaurants are examples of this category of work. Offices, manufacturing facilities, and institutions such as schools and hospitals all use industrial and institutional cleaning chemicals to maintain their hygienic and sanitary conditions. These compounds can also be found in many cleaning products sold in retail stores. Without proper care, cleaning products may contain corrosive or combustible substances. Whether inhaled or ingested, these substances can negatively affect a person's health.

Industrial and institutional cleaning supplies are cleaning chemicals commonly used in various contexts. These environments include manufacturing facilities, research and development laboratories, pharmaceutical facilities, residential areas, institutions, and offices. Other examples of businesses that use industrial and institutional cleaning products include pharmaceutical companies, research and development laboratories, and research and development laboratories. They can be categorized as chemicals used for hand hygiene, building maintenance, kitchen maintenance, and laundry maintenance.

Market Dynamics

Market Drivers

Prevalence of Disease Outbreaks

HAIs are infections not detected during admittance but transmitted during a patient's hospital stay or other healthcare facilities. These infections include catheter-associated urinary tract infections (CAUTI), ventilator-associated pneumonia (VAP), surgical site infections (SSI), and central line-associated bloodstream infections (CLABSI), according to the Centers for Disease Control and Prevention (CDC). Healthcare-associated infections are caused predominantly by infection control practices, individuals' immune status, and numerous infectious agents throughout healthcare facilities.

Additional factors include immunosuppression, extended hospital stays, intensive care unit stays, and age. ICUs account for approximately 20% of these forms of infections. The primary pathogens responsible for healthcare-associated infections include, among others, Staphylococcus aureus, Clostridium difficile, and Escherichia coli. These pathogens can be transmitted through prolonged contact with contaminated environment or healthcare personnel. In Canada, healthcare-associated infections continue to be a significant issue, necessitating the development of various strategies to prevent contamination of medical devices.

Emergence of Plant Oil-Based Chemicals

The availability of plant-based chemicals as a substitute and efficient replacement for petrochemical-based chemicals is anticipated to significantly drive the market for cleaning chemicals. Petrochemicals and oleochemicals derived from plant oils such as palm kernel, palm stearin, and coconut oil can produce I&I cleansing chemicals. Strict government regulations for managing and controlling chemicals worldwide, which promote sustainable development and the use of bio-based chemicals instead of oil- and gas-based chemicals, have significantly shifted detergent manufacturers' attention toward oleochemical-based chemicals.

According to the American Chemical Society, chemists working on bio-based chemicals are addressing global environmental issues and the socioeconomically unsustainable reliance of manufacturers on petroleum, a key feedstock for a broad range of products. Developing renewable feedstock derived from plant sources using catalytic chemistry is essential for sustainability. Increased consumer awareness of the chemical ingredients' sustainability in producing consumer products has occurred.

Market Restraint

Threat of New Entrants

Several start-ups have been able to enter the market due to favorable initiatives by regional governing bodies in the United States and the European Union, as well as financial incentives and tax breaks. However, the cost of acquiring raw materials is a significant concern for manufacturers of biobased cleaning products. Existing synthetic product manufacturers face a greater threat from businesses that introduce products with a renewable content of one hundred percent bio-based origin. This expense of product development, registration, and capital investment hinders the market entry of small businesses. Most companies in the industry are significant chemical companies with offensive strategies that pose a threat to the new entrant. It is anticipated that the threat of new entrants will be minimal, given that established players hold significant market shares and have a robust and established supply chain.

Market Opportunities

Bargaining Power of Suppliers

The fact that many different sellers are competing for customers' attention in the market is one factor that contributes to the availability of a steady supply of goods. The rising demand for feedstock in other industrial applications leads to a decreased supply of raw materials, further increasing the costs of acquiring raw materials. Companies such as Godrej and BASF, which are among the most significant manufacturers of surfactants, are vertically integrating their operations by acquiring biotechnology and plantation companies. The existence of a large number of suppliers also leads to low switching costs for suppliers, which in turn leads to an increase in the suppliers' negotiation leverage.

Regional Analysis

North America Dominates the Global Market

Based on region, the global industrial institutional cleaning chemicals market is bifurcated into North America, Europe, Asia-Pacific, Latin America, and the Middle East and Africa.

North America is the most significant global industrial and institutional cleaning chemicals market shareholder and is estimated to exhibit a CAGR of 7.1% over the forecast period. One of the world's primary centers for manufacturing, North America considerably contributes to annual GDP growth. With global companies like Boeing Co., Microsoft, Valero Energy Corporation, Philipps 66, General Electric Co., Chevron Corporation, General Motors Inc., and others, the United States dominates the region's manufacturing industry. The region's expanding industrial capabilities make it possible to use a wide range of cleaning agents to keep warehouses and offices clean.

Furthermore, the manufacturing sector is disproportionately strong in the region because the Innovation Cities Index highlights 10 out of the top 20 cities in North America as global innovation hubs. Due to the need to maintain workplace hygiene and guarantee the facilities' correct operation, these factors are anticipated to increase demand for industrial cleaning solutions.

Asia-Pacific is anticipated to exhibit a CAGR of 7.9% over the forecast period. The Asia-Pacific region is home to the world's largest market for industrial and institutional chemicals, with countries such as China, India, and Japan serving as the region's primary manufacturing pillars. China is currently the world's leader in manufacturing. The area is home to a diverse range of product manufacturers, including those involved in the processing of food, the fabrication of metal, the production of electronics, the manufacturing of healthcare equipment, the formulation of laundry care products, and many more. The rapidly increasing number of newly established businesses around the region would reflect heavy growth potential for chemical producers to serve the regional market space.

Europe is ruled by powerful industrial economies like Germany, France, Italy, Spain, and others. An increasing number of companies and other market players are influencing the local economy. A market with significant growth potential for various chemical manufacturers has been developed due to the area's rapid industrialization and sophisticated machinery. With the growth of commercial space, public infrastructure, different institutions, and other reasons, the need for industrial cleaning chemicals is anticipated to rise.

In Latin America, the increase in commercial and manufacturing hubs such as Argentina and Brazil, among others, is a significant factor propelling the market for cleaning chemicals in this region. The land in these nations is suitable for establishing manufacturing facilities, and the labor force is inexpensive and well-trained, with easy access to raw materials and a substantial local market for a variety of finished products. Additionally, there is a market for produced products outside of these nations. These factors will likely remain essential for regional cleaning chemical manufacturers in the coming years.

In the Middle East and Africa region, the key reason driving the market for cleaning chemicals is the rise of the industrial sectors in South Africa and Saudi Arabia. Likely, rising demand for processed food goods throughout Middle Eastern countries such as the UAE, Saudi Arabia, and other nations will continue to be the main driver behind the demand for cleaning chemicals. Other nations in the region may also contribute to this demand growth. In addition, the growth of heavy industries throughout South Africa is anticipated to offer opportunities for chemical makers to serve the local market sector.

Segmental Analysis

The global industrial and institutional cleaning chemicals market is bifurcated into the raw material process, product, and application.

Based on the raw material process, the global industrial and institutional cleaning chemicals market is bifurcated into chloralkali, surfactant, solvents, phosphates, biocides, and other raw material processes. 

The surfactant segment dominates the global market and is projected to exhibit a CAGR of 7.4% over the forecast period. Surfactants are utilized in various cleaning solutions, including laundry detergents, soap formulas, and more, since they can reduce the surface tension of water. In addition, surfactants have many other uses, including in the formulation of adhesives, lubricants, anti-fogging solutions, inks, shaving creams, and fabric softeners. Most detergent and soap compositions use anionic surfactants because they are effective against various soils.

On the other hand, non-ionic surfactants have historically been used to make multipurpose cleaners since they are very good at emulsifying oils. Cationic surfactants have strong antimicrobial characteristics, frequently desired in applications like fabric softener formulations and others. Furthermore, various cosmetic and personal care items, including shampoos and more, are produced using a variety of surfactants, including amphoteric surfactants.

Based on the product, the global industrial and institutional cleaning chemicals market is bifurcated into general-purpose cleaners, disinfectants and sanitizers, laundry care products, vehicle wash products, etc. 

The general-purpose cleaners segment dominates the global market and is predicted to exhibit a CAGR of 7.4% during the forecast period. General-purpose cleaners, usually called all-purpose cleaners, are made up of either all these chemicals alone or a mixture of solvents, surfactants, builders, and chelates. Removing hard soil, grease, hard floor surfaces, and other stains is frequently accomplished using all-purpose cleaners. It is possible to guarantee surface disinfection by lowering surface microbial activity and eliminating bacteria and viruses because these cleaning products contain disinfectants.

For simplicity of use, general-purpose cleansers are packaged in trigger-spray bottles and aerosol cans. Among the top international companies that produce a variety of all-purpose cleaners are Simple Green, 3M Professional, Mr. Clean, Purell, Clorox Scientia, Microban, and Lysol. The ability of these producers to provide a wide range of quality cleaning products on a global scale is expected to lead to rapid market expansion shortly.

Based on end-use, the global industrial institutional cleaning chemicals market is bifurcated into commercial and manufacturing. 

The Commercial segment owns the highest market share and is predicted to exhibit a CAGR of 7.3% over the forecast period. Applications for cleaning chemicals in the global commercial sector are mostly found in the food service, healthcare, laundry, retail, and institutional building sectors. These businesses consistently need various cleaning chemicals. All-purpose cleansers, disinfectants, and sanitizing chemicals are needed in retail stores, department stores, and various public institutions such as colleges, recreational areas, courts, and more. Additionally, the healthcare industry has a significant demand for large-filiated disinfection solutions and sanitizers for various equipment to maintain overall hygiene in the area.

However, it has been noted that as product quality has improved and new application areas have emerged, there is a growing market for all-purpose, one-stop cleaning solutions. Internal research studies support this carried out by the 3M Company and can be used for disinfecting surfaces, removing grease-based hard stains from walls and floors, and having the ability to clean glass and hard floors. These variables are expected to represent a high level of innovation in the worldwide market and a constant demand for a range of cleaning chemical products for commercial applications.

Recent Developments

• October 2023- Sasol Chemicals announced the launch of Carinex and Livinex, two brands that will expand Sasol’s offerings of sustainable products.
• June 2023- BASF expanded production capacity for alkyl polyglucosides in Cincinnati, Ohio. New site extension in Cincinnati to meet rising local demand for bio-based and biodegradable surfactants.