Industrial & Institutional Cleaning Chemicals Industry

• Publication date: July 2012
• Report size: 363 pages

Health & safety concerns create boost in demand I&I cleaning chemical demand will grow 4.2 percent annually to nearly $13 billion in 2016. Food-related applications at every link of the value chain -- food production, food and beverage processing, grocery stores and other retailers, and foodservice -- account for a large share of overall demand, which will be boosted by concerns about the safety of the food supply. Such concerns ar...

Health & safety concerns create boost in demand

I&I cleaning chemical demand will grow 4.2 percent annually to nearly $13 billion in 2016. Food-related applications at every link of the value chain -- food production, food and beverage processing, grocery stores and other retailers, and foodservice -- account for a large share of overall demand, which will be boosted by concerns about the safety of the food supply. Such concerns are fueled by recent product recalls of food contaminated by Listeria (cheese, salad, lettuce, onions) and Salmonella (alfalfa sprouts, spinach, dog food, papaya, tuna), as well as more notorious incidents of the past several years, most notably that involving the Peanut Corporation of America.

Disinfectants & sanitizers to lead growth based on food industry needs

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. In the health care market, another key outlet for disinfectants and sanitizers, demand will grow in light of the aging of the US population, which will lead to more frequent doctor visits and more hospital traffic. In this market, unlike other environments with less rigorous disinfection requirements, the longterm 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 nosocomial (hospitaloriginated) infections.

Interest increases in sustainable raw materials

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 increasing competition from plant-derived compounds and other more environmentally benign ingredients.

General purpose & floor care products to remain largest segments

General purpose cleaners and floor care products will remain the largest product categories, combining to account for about 40 percent of overall demand in 2016. 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 that contain antibacterial additives.

Study coverage

Details on these and other key findings are offered in Industrial & Institutional Cleaning Chemicals, an upcoming US Freedonia industry study provides historical demand data for 2001, 2006, and 2011, plus forecasts for 2016 and 2021 by market, product and raw material. The study also assesses market environment factors such as environmental regulations, examines industry structure, evaluates company market share, and profiles more than 30 industry competitors, including BASF, Clorox, Croda, Diversey, Dow Chemical, Ecolab, MacDermid, Procter & Gamble, Solvay, Stepan and Zep.

Cleaning Compound Industry in the United States

TABLE OF CONTENTS

INTRODUCTION xi

I. EXECUTIVE SUMMARY 1

II. MARKET ENVIRONMENT 4

General 4
Macroeconomic Overview 5
Demographics 8
Consumer Spending Patterns 12
Business Establishment Trends 15
Nonresidential Building Floor Space 18
Nonresidential Building Construction 21
Motor Vehicle Overview 24
Manufacturing Overview 27
Nonresidential Cleaning Services Overview 31
Pricing & Product Mix 34
Historical Market Trends 37
Environmental & Regulatory Issues 39
Environmental Concerns 41
Phosphates 42
Solvents 42
Other 44
User Safety Issues 45
International Activity & Foreign Trade 46

III. MARKETS 48

General 48
Commercial 52
Foodservice 55
Foodservice Overview 56
Cleaning Chemical Demand 58
Retail 62
Retail Overview 62
Cleaning Chemical Demand 65
Laundry & Dry Cleaning 67
Laundry & Dry Cleaning Overview 68
Cleaning Chemical Demand 69
Offices 73
Office Overview 74
Cleaning Chemical Demand 75
Car Washes 77
Car Wash Overview 77
Cleaning Chemical Demand 79
Hotels & Lodging 81
Hotel & Lodging Overview 82
Cleaning Chemical Demand 83
Transportation & Distribution 85
Transportation & Distribution Overview 86
Cleaning Chemical Demand 87
Other Commercial Markets 89
Manufacturing 91
Food & Beverage Processing 93
Food & Beverage Processing Overview 94
Cleaning Chemical Demand 96
Fabricated Metal Products 99
Fabricated Metal Processing Overview 100
Cleaning Chemical Demand 101
Electronic Components 104
Electronic Components Overview 105
Cleaning Chemical Demand 106
Other Manufacturing Markets 108
Institutional & Government 110
Health Care 112
Health Care Facilities Overview 113
Cleaning Chemical Demand 115
Government 118
Government Facilities Overview 119
Cleaning Chemical Demand 120
Educational & Other Institutional Markets 122
Educational & Other Institutional Facilities Overview 123
Cleaning Chemical Demand 124

IV. PRODUCTS 127
General 127
General Purpose Cleaners 131
Alkaline Cleaners 134
Acid Cleaners 137
Solvent-Based Cleaners 139
Other General Purpose Cleaners 142
Floor Care Products 144
Floor Finishes 147
Floor Strippers 150
Carpet Care Products 152
Warewashing Detergents 155
Disinfectants & Sanitizers 158
Manufacturing 161
Institutional 163
Commercial 164
Laundry Care Products 165
Vehicle Wash Products 168
Hand Cleansers 171
Other 174

V. RAW MATERIALS 178
General 178
Chlor-Alkalis 181
Caustic Soda 183
Soda Ash 184
Chlorine 185
Other 186
Solvents 187
Alcohols 189
Hydrocarbons 191
Chlorinated 192
Terpenes 194
Ethers 197
Other 198
Applications 199
Surfactants 202
Nonionic 206
Anionic 208
Cationic & Amphoteric 208
Applications 210
Phosphates 213
Biocides 215
Other 218

VI. INDUSTRY STRUCTURE 221
General 221
Market Share 224
Industry Restructuring 227
Competitive Strategies 229
Product Differentiation 231
Integration & Diversification 232
Product Development 234
Cooperative Agreements 234
Marketing 236
Distribution 237
Company Profiles 239
Akzo Nobel NV 240
Albemarle Corporation 243
Arch Chemicals, see Lonza Group
ArmaKleen, see Church & Dwight
Armand Products, see Church & Dwight
Arrow-Magnolia International Incorporated 244
Barr (WM) & Company 246
BASF SE 248
Berwind Corporation 251
Betco Corporation 253
Cellucap Manufacturing Company 256
Certified Laboratories, see NCH
Chemsearch, see NCH
Church & Dwight Company Incorporated 258
Clariant International Limited 262
Clorox Company 264
CPAC Incorporated 268
CRC Industries, see Berwind
Croda International plc 271
DECCO US Post-Harvest, see United Phosphorus
Dial, see Henkel
Disco, see Cellucap Manufacturing
Diversey Holdings, see Sealed Air
Dow Chemical Company 273
Earth Alive Clean Technologies Incorporated 278
Eastman Chemical Company 280
Ecolab Incorporated 281
Flavor & Fragrance Specialties 286
FMC Corporation 287
Fuller Brush Commercial, see CPAC
Georgia-Pacific, see Koch Industries
GOJO Industries Incorporated 289
Henkel AG & Company KGaA 292
Huntsman Corporation 295
Illinois Tool Works Incorporated 298
Innophos Holdings Incorporated 301
ITW Dymon, see Illinois Tool Works
Katy Industries Incorporated 303
Kay Chemical, see Ecolab
Kimberly-Clark Corporation 304
Koch Industries Incorporated 306
Lonza Group Limited 308
MacDermid Incorporated 310
Mantek, see NCH
National Chemical Laboratories Incorporated 312
NCH Corporation 317
Neutron Industries, see State Industrial Products
Niagara National, see Zep
Petroferm Incorporated 322
PQ Corporation 324
Procter & Gamble Company 326
Reckitt Benckiser plc 328
Rhodia Novecare, see Solvay
Rochester Midland Corporation 330
Sealed Air Corporation 334
Sherwin-Williams Company 336
Solutia, see Eastman Chemical
Solvay SA 337
Spartan Chemical Company Incorporated 339
State Chemical Solutions, see State Industrial Products
State Industrial Products Corporation 343
Stepan Company 347
Tennant Company 349
3M Company 350
United Phosphorus Limited 354
Zep Incorporated 355
Other Companies Mentioned in Study 360

LIST OF TABLES

SECTION I -- EXECUTIVE SUMMARY
Summary Table 3

SECTION II -- MARKET ENVIRONMENT
1 Macroeconomic Indicators 8
2 Population & Households 12
3 Personal Consumption Expenditures 15
4 Business Establishments 18
5 Nonresidential Building Floor Space 21
6 Nonresidential Building Construction Expenditures 24
7 Motor Vehicle Indicators 27
8 Manufacturers’ Shipments 31
9 Nonresidential Cleaning Service Revenues 34
10 I&I Cleaning Chemical Market, 2001-2011 38

SECTION III -- MARKETS
1 I&I Cleaning Chemical Demand by Market & End User 51
2 Commercial Markets for I&I Cleaning Chemicals 54
3 Foodservice Establishments, Employment, & Sales 58
4 Foodservice Market for I&I Cleaning Chemicals 61
5 Retail Establishments, Employment, & Sales 65
6 Retail Market for I&I Cleaning Chemicals 67
7 Laundry & Dry Cleaning Establishments, Employment, & Receipts 69
8 Laundry & Dry Cleaning Market for I&I Cleaning Chemicals 73
9 Office Construction Building Stock, Expenditures, & Floor Space 75
10 Office Market for I&I Cleaning Chemicals 77
11 Car Wash Establishments, Employment & Receipts 79
12 Car Wash Market for I&I Cleaning Chemicals 81
13 Hotel & Lodging Establishments, Employment, & Receipts 83
14 Hotel & Other Lodging Market for I&I Cleaning Chemicals 85
15 Transportation Establishments, Employment, & Income 87
16 Transportation & Distribution Market for I&I Cleaning Chemicals 89
17 Other Commercial Markets for I&I Cleaning Chemicals 91
18 Manufacturing Markets for I&I Cleaning Chemicals 93
19 Food & Beverage Shipments, Establishments, & Employees 96
20 Food & Beverage Processing Market for I&I Cleaning Chemicals 99
21 Fabricated Metal Product Shipments 101
22 Fabricated Metal Processing Market for I&I Cleaning Chemicals 104
23 Electronic Components Shipments 106
24 Electronic Components Market for I&I Cleaning Chemicals 108
25 Other Manufacturing Markets for I&I Cleaning Chemicals 110
26 Institutional & Government Markets for I&I Cleaning Chemicals 112
27 Health Care Facilities & Employment 115
28 Health Care Market for I&I Cleaning Chemicals 118
29 Government Expenditures, Facilities, & Demographics 120
30 Government Market for I&I Cleaning Chemicals 122
31 Educational & Other Institutional Facility Floor Space 124
32 Educational & Other Institutional Markets for I&I
Cleaning Chemicals 126

SECTION IV -- PRODUCTS
1 I&I Cleaning Chemical Demand by Type 130
2 General Purpose I&I Cleaning Chemical Demand by Type 133
3 Alkaline General Purpose I&I Cleaner Demand by Market 137
4 Acid General Purpose I&I Cleaner Demand by Market 139
5 Solvent-Based General Purpose I&I Cleaner Demand by Market 142
6 Other General Purpose I&I Cleaner Demand by Market 144
7 I&I Floor Care Product Demand by Type & Market 147
8 I&I Floor Finish Product Demand by Market 150
9 I&I Floor Stripper Demand by Market 152
10 I&I Carpet Care Product Demand by Market 155
11 I&I Warewashing Detergent Demand by Market 158
12 I&I Disinfectant & Sanitizer Demand by Market & Segment 161
13 Laundry Care Product Demand by Market 168
14 I&I Vehicle Wash Product Demand by Market 171
15 I&I Hand Cleanser Demand by Market 174
16 Other I&I Cleaning Chemical Demand by Market 177

SECTION V -- RAW MATERIALS
1 Raw Material Demand in I&I Cleaning Chemicals 180
2 Chlor-Alkali Demand in I&I Cleaning Chemicals by Type 183
3 Solvent Demand in I&I Cleaning Chemicals by Type 189
4 Solvent Demand in I&I Cleaning Chemicals by Application 202
5 Surfactant Demand in I&I Cleaning Chemicals by Type 206
6 Surfactant Demand in I&I Cleaning Chemicals by Application 212
7 Phosphate Demand in I&I Cleaning Chemicals 215
8 Biocide Demand in I&I Cleaning Chemicals 218
9 Other Raw Material Demand in I&I Cleaning Chemicals 220

SECTION VI -- INDUSTRY STRUCTURE
1 US I&I Cleaning Chemical Sales by Company, 2011 223
2 Selected Acquisitions & Divestitures 228
3 Selected Cooperative Agreements 235

LIST OF CHARTS
CHART NUMBER PAGE

SECTION II -- MARKET ENVIRONMENT
1 I&I Cleaning Chemical Pricing, 2001-2021 36
2 I&I Cleaning Chemical Market, 2001-2011 39

SECTION III -- MARKETS
1 I&I Cleaning Chemical Demand by Market, 2011 52
2 Commercial Markets for I&I Cleaning Chemicals, 2011 55

SECTION IV -- PRODUCTS
1 I&I Cleaning Chemical Demand by Type, 2011 131
2 General Purpose I&I Cleaning Chemical Demand by Type, 2011 134

SECTION V -- RAW MATERIALS
1 Raw Material Demand in I&I Cleaning Chemicals, 2011 181

SECTION VI -- INDUSTRY STRUCTURE
1 US I&I Cleaning Chemical Market Share, 2011 225