According to a new report from Global Industry Analysts, Inc. (GIA), the global market for disinfectants is projected to reach $2.9 billion by 2017, primarily driven by increased focus on hygiene and growing concerns over spread of infectious diseases in both residential and commercial/industrial spaces.
Rising demand from food industry, driven by stringent regulations guiding food safety, and increased adoption in water disinfection and aquaculture applications are also expected to drive growth opportunities in the short- to medium-term period. Innovative promotional campaigns and robust demand from developing markets, Asia-Pacific in particular, also bodes well for the market.
Disinfectants remain indispensable in most industries. For instance, in the healthcare and food processing industry, cleaning and sanitation is one of the most important activities. Demand for disinfectants that sanitize food preparation surfaces especially are gaining traction, given the high risks associated with foodborne pathogens and bacterial and viral food related infections. There is also increased usage of disinfectant chemicals in various conventional cleaning products. Increased consumer focus on meeting safety, social, and self-actualization needs, especially by enabling safe food storage, eliminating pests and insects, disinfecting household surfaces, controlling garbage in a hygienic manner and by improving sanitary conditions are driving gains for disinfectants in the consumer segment. Rapid proliferation of lifestyle gurus and home experts across the globe are also driving consumers to take household maintenance to a next level, thereby encouraging them to use advanced household cleaning and safety products such as surface disinfectants.
The report says that the global disinfectants market, in retrospect, has been resilient to the recent recessionary pressures for the simple reason that sanitation and hygiene are essential and periods of recession and economic slowdown do not weaken the need. Irrespective of the state of the economy, schools, institutions, hospitals, industrial facilities, workshops, manufacturing facilities, need to be cleaned and disinfected. Additionally, clean working conditions are imperative for building better employee morale. Also the recent outbreaks of infectious diseases and epidemics, such as H1N1 influenza, avian influenza, pertussis, seasonal influenza, cholera and West Nile virus infection, among others, have made spending on cleaning and disinfectant products less discretionary and more indispensable. The role played by cleaning and disinfectant products in addressing key society and social issues related to health and well being makes the market for the same resilient to recessionary forces.
Against this backdrop, the report says that branded cleaning and disinfectant products survived, even as most brands of packaged goods crumbled. The category that benefited the most was private labeled (in-store) brands and with consumer flight towards cheaper private labels forecast to long outlast the recession, its opportunities galore for supermarkets and grocery stores. To survive the onslaught of competition from private brands, P&G introduced cheaper and economic version of its popular upmarket brands, despite the dangers associated with floating existing brands downmarket. The year 2008, however, witnessed slight deceleration in growth as a result of higher office/commercial building vacancy rates, and closure/shutdown of plants and manufacturing facilities, both of which reduced the need for janitorial activities. The year 2009 witnessed the market make a quick recovery of its lost growth momentum. In Japan, demand for disinfectants rose in the year 2011, immediately following the earthquake and Tsunami which rocked the country, leaving behind post-disaster health concerns. Demand waxed supported by government initiated disinfection/disinfestation operations.
The report adds that in the upcoming years, continued demand for cleaners and disinfectants to maintain inherently dirty and grimy industrial/commercial floors, titles, will drive up growth. The need to comply with stringent rules and regulations designed for ensuring safety of food supply will especially boost demand for disinfection products in food service industry. Disinfectant chemicals are used at all levels of food production, including preparation, processing, sale and service and therefore attract market opportunities across the value chain. Growing adoption of disinfectants for water desalination and re-use as an effort to improve accessibility to safe drinking water and address issues such as growing water-borne diseases and fast depleting natural water resources also augurs well for the future of this market.
Europe continues to represent the largest regional market for disinfectants. Well established legislations and usage guidelines governed by regulatory standards such as Biocidal Products Directive (BPD) have been a key factor in the European market growth over the years. Asia-Pacific represents the fastest growing regional market with revenue from the region waxing at a CAGR of about 6.3 percent over the analysis period. By disinfectant delivery system, Aerosol Disinfectants market represents the largest and the fastest growing segment. Non-Aerosol Disinfectants market meanwhile is projected to grow at a CAGR of about 4.2 percent over the analysis period. Industrial processing represents the largest and the fastest growing end-use application for disinfectants.