Insights

Industrial Cleaning Chemicals Global Industry Report

October 15, 2024

The industrial cleaning chemicals market continues to grow, demonstrating a compound annual growth rate (CAGR) of 7.3%, increasing from $57.56 billion in 2023 to $61.75 billion in 2024. This record growth can be attributed to several factors, including:

  • Increasing industrialization and manufacturing
  • Stricter regulatory requirements
  • Compliance regarding occupational health and safety
  • Emphasis on sustainable practices
  • Growth in the food processing sector
  • Ongoing hygiene standards for healthcare facilities
  • Water treatment and pollution control requirements

The market is forecast to continue seeing steady growth, on pace to reach $82.57 billion in 2028 at a CAGR of 7.5%. This growth is expected to stem from:

  • Ongoing globalization of supply chains
  • Rapid urbanization
  • E-commerce growth
  • Green chemistry
  • Biofilm control in food processing
  • Customized cleaning solutions
  • Specialty chemicals

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Segmentation

By Product Type:

  • General Cleaners
  • Metal Cleaners
  • Oven and Grill Cleaners
  • Dishwashing
  • Commercial Laundry
  • Dairy Cleaners
  • Disinfectants

By Ingredient Type:

  • Surfactants
  • Solvents
  • Chelating Agents
  • pH Regulators
  • Solubilizers
  • Other

By Application:

  • Manufacturing and Commercial Offices
  • Healthcare
  • Retail and Foodservice
  • Hospitality
  • Automotive
  • Aerospace
  • Food Processing
  • Other

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In 2023, the commercial segment led the sector, possessing an impressive revenue share of more than 69%. This is due to increasing commercial use in various sectors, including food service, healthcare, retail stores, and public institutions. There is a growing demand for all-purpose cleaners, disinfectants, and sanitizing products in these spaces, driving growth in the market.

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High production standards set by various regulatory institutions promote the use of cleaning chemicals in the manufacturing sector, contributing to market growth and penetration. Therefore, the manufacturing segment also contributes significantly to the global share of the revenue market, including food and beverage processing, electronic component manufacturing, and metal fabrication.

By product type, the segment of general-purpose cleaners led the market with a revenue share of more than 34% last year. This high share is due to its use in removing messes such as hard soil stains, grease stains, and stains on hard floor surfaces, all within households, factories, public spaces, and institutions. This segment has a broad product portfolio customized to different consumer demands. Such varied and extensive use contributes to the segment’s high global demand.

Market Drivers and Trends

There is a growing demand for industrial cleaning chemicals in the automotive industry, which is expected to fuel the market going forward. These chemicals are used to manufacture vehicle components to remove contaminants, oils, greases, and residues from surfaces, including metal, plastic, and rubber parts.

The major manufacturers in the industrial cleaning chemicals market are seeking to gain a competitive edge in the market by creating new and innovative products, and eco-friendly industrial cleaning chemicals that are environmentally conscious yet effective for cleaning. There is a higher demand for these environmentally friendly types of products as consumers are becoming more cautious when choosing safer and plant-based cleaning chemicals that reduce carbon footprints and are less damaging to the environment. This means there is a great deal of untapped potential in this industry segment.

By Region

In 2023, North America was the largest region in the market, holding a 32% market share valued at $16 billion, primarily driven by the United States’ demand for industrial and institutional cleaning chemicals. There is a massive presence of companies across industries and manufacturing units and a demand for healthcare and maintenance in public spaces. U.S. manufacturers are highly active in researching and developing new products and expanding their portfolios.

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The second largest market is the Asia-Pacific region, which is growing rapidly due to the area’s growth of manufacturing industries. New business arrangements are quickly growing, creating more opportunities for industrial and institutional cleaning chemical manufacturers. There is also burgeoning development in the region, so macroeconomic factors such as growing populations, more healthcare facilities and industrial manufacturing output, and raw material availability at cost-effective rates are driving demand for the region's industrial and institutional cleaning chemicals segment.

In Europe, there is a growing demand for cleaning chemicals with low volatile organic compound (VOC) content in the food and beverage industry to maintain hygiene in manufacturing units and workplaces.

In the Middle East and Africa, there is an increase in strict policies regarding food safety standards and the avoidance of food-related health issues. This is accelerating the growth of the industrial cleaning chemicals market in these regions.

M&A

The industrial cleaning chemicals market is highly competitive, and businesses of all sizes are investing heavily in research and development to diversify their product portfolios and get an advantage over other companies in the space by patenting new innovations. The market remains highly concentrated, with the presence of several major multinational players focused on continuous inventiveness to grow their user bases. These major players also target future market growth and develop cost-effective and efficient technological solutions for industrial and institutional cleaning chemicals. Mergers and acquisitions remain a key strategic factor for these companies when it comes to being innovative, tapping new markets, and growing their customer base on a global scale.

There are also new opportunities in the market regarding the use of enzymes in industrial cleaning chemicals. Enzymes act as catalysts that are capable of speeding up biological processes. At lower temperatures, they allow significant environmental savings through their ability to provide high performance and act as an alternative to phosphates in products such as laundry, dishwashing, floor cleaning, medical device cleaning, and ware washing. The use of enzymes in detergent products and chemicals represents a significant opportunity for industrial cleaning chemicals manufacturers and opens up more opportunities for mergers and acquisitions.

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