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Eco-friendly cleaning and developing markets spur growth in ingredients
24th of July 2015
The market for ingredients in professional cleaning solutions has significant and sustainable growth potential, according to the latest Ingredients for Household, Industrial, and Institutional Cleaning Applications report from market research and management consulting firm Kline. In fact some country markets are experiencing double-digit growth rates during the forecast period from 2014-2019.
While mature markets like Europe and the United States represent a large portion of the total market sales, accounting for over USD 11 billion, developing markets - particularly China - are gaining market share. The Southeast Asia market is expected to grow at a compound annual growth rate (CAGR) of around 4.7 per cent through to 2019. India is forecast to post the strongest growth of almost 13 per cent over the same time period.
The household sector does dominate in all regions however in mature markets such as the US and Europe the industrial and institutional (I&I) segment has a relatively higher share compared to other regions. Laundry care formualtions lead the way in terms of ingredients consumption followed by hard surface cleaners and dishwash applications.
"I&I is more price sensitive than household segment and therefore formulators in this segment are reluctant to use expensive ingredients like enzymes and fragrances," comments Kunal Mahajan, project manager for chemicals and energy at Kline.
A growing demand for more eco-friendly products is also evident. Kline says as the market continues to focus on high efficacy, milder, and eco-friendly products, sales of products such as enzymes, alkyl polyglucosides, and others will continue to grow.Enzymes are expected to take advantage of the move towards ingredients with higher biodegradability, but also towards ingredients providing a better performance to cleaning products.
This means the enzymes market is expected to grow almost twice as fast as the market average, at 7.3 per cent. In Europe and the United States, consumption of enzymes is additionally boosted as their penetration increases in the I&I segment during the forecast period from 2014-2019.
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