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Rebounding European janitorial market offers new opportunities for suppliers
The market for janitorial cleaning chemicals in Europe, which until recently was seen as 'flat to declining', posted modest growth of 1.6%, according to Kline's recently published study 'Janitorial Cleaning Products in Europe: Market Analysis and Opportunities'.
Improving economies, end users' preferences for multipurpose product features, and the need to maintain clean and germ-free facilities contribute to the market's growth.
Commercial and institutional end users in Europe consumed an estimated EUR 1.5 billion worth of janitorial and housekeeping cleaning products in 2014. Building and contract cleaners are the leading end-use segment in Europe and performed above the overall market growth due to a growing number of end users outsourcing their cleaning to contractors.
Germany represents the largest of the five markets analysed in Europe, closely followed by the UK, which is the highest growth market in 2014. France is the third largest market with estimated market share of nearly 20%. Italy and Spain are the smallest markets among those profiled and have recently begun to see signs of economic recovery with increases in tourism, which translates into increased sales of janitorial products to the hospitality, restaurants, and catering end users there.
Hard-surface cleaners and hand cleaners and sanitisers are the leading product categories in all five country markets analysed. With the increasing life expectancy in Europe and expanding older population, the demand for services provided by hospitals, nursing homes, and assisted living facilities is also growing.
Such facilities create strong demand for products that help disinfect and sanitise surfaces, especially high-touch surfaces, such as door knobs and handrails.
It is also important that the hands of patients, staff members, and visitors are clean in order to reduce the spread of infections in these healthcare facilities.
As a result, these end-use segments are expected to continue to demand more janitorial cleaning products through 2019. The UK is the leader in both segments with an expected growth of 2.3%.
"Products that combine efficiency with innovative features have proven to be successful in this marketplace," comments Laura Mahecha, industry manager at Kline's I&I practice. "Moreover, end users seek cleaning chemicals that are efficacious, easy-to-use, and cost-effective."
At the same time, the ecological impact of janitorial cleaning chemicals is becoming a growing concern for EU authorities, which results in increasing pressure for eco-sustainability. EU authorities are increasingly pushing suppliers to produce eco-sustainable products under the European Green Public Procurement Criteria (GPP).
The overall competitive landscape in the five countries profiled is fragmented, with a mixture of large international suppliers and local market players vying for market share in Europe. Multinational suppliers, such as Ecolab and Sealed Air/Diversey, employ strategies where these companies sell directly to their largest customers and use distributors to reach smaller end users with their brands.
However, competition from local manufacturers, such as Dr. Schnell in Germany, Orapi in France and Zenith in the UK, is growing as they can now offer more customised products, based specifically on end users' product needs and preferences.
Janitorial Cleaning Products in Europe: Market Analysis and Opportunities provides subscribers with a comprehensive assessment of the European market for janitorial cleaning chemicals. The findings are based on extensive structured research with end users in each of the five countries conducted in native languages in addition to extensive unstructured research with manufacturers and distributors in each of the five countries profiled. The report focuses on key trends, changes, challenges and business opportunities and helps understand how end users purchase and use such products, the role of cleaning contractors, regulatory impacts, and the competitive landscape in this industry.
4th February 2016