Blog
03rd July 2020
A crisis is often a catalyst for revolution, establishing new industry structures and cost levels. For the chemicals industry, this is an excellent opportunity to get nearer to end-users and accelerate innovative digital-enabled business models that address customer needs. Cleaning chemicals are broadly used in various applications such as bathrooms, hospitals, kitchen appliances, schools, colleges, etc. These chemicals can be sanitizer, disinfectants, general-purpose cleaner, etc. The events of infections are also increasing, paving the way for the rise of the cleaning chemicals industry. The global urban population is likely to grow approximately 1.84% per year between 2015 and 2020, 1.63% per year between 2020 and 2025, and 1.44% per year between 2025 and 2030. Therefore, rapid urbanization coupled with fast commercialization made millions of business establishments look for cleaning chemical products to meet their cleaning and hygiene requirements leading to the rapid growth of the institutional and the industrial sectors. Therefore, the rising consciousness regarding workplace hygiene will be a crucial driver for the demand for industrial cleaning chemicals in the future. In developed regions, cleaning regulations are more stringent. Moreover, emerging economies are focusing more on cleanliness and hygiene through various initiatives, such as Swachh Bharat by the government in India.
Further, with the recent COVID-19 pandemic reaching a global total of more than 10.514 million cases is also affecting the studied market. The COVID-19 is marked as an acute respiratory disease caused by a novel Coronavirus (SARS-CoV-2), transmitted in most instances through respiratory droplets, direct contact with cases, and through contaminated surfaces/objects. Though the virus survives on environmental surfaces for a varied period, it gets quickly inactivated by chemical disinfectants. This crisis is expected to give a boost to the studied market. However, demand destruction has accelerated the chemical industry into an oversupply situation that was already looming pre-COVID-19. The automotive, petrochemicals, and consumer products sectors are amongst the hardest hit end-markets till now, with demand for chemicals falling by 20-30% by mid-2020. This is likely to hinder the growth of the studied market. On the other side, if we look back on the positive aspect again, the demand for pharmaceuticals, food additives, and disinfectants is reaching the zenith, and chemical companies exposed to these sectors are reporting record outbound volumes.
The US and Canada are crucial contributors to worldwide healthcare expenditure. The consciousness regarding hygiene and cleanliness is high in North America. Also, the high disposable income of the population in the US and a high standard of living are holding up the extension of the industrial cleaning chemicals market in the healthcare application. For instance, with inflated demand for disinfectant wipes and sprays soaring from medical professionals and consumers seeking to protect themselves from the new coronavirus, producers of quaternary ammonium disinfectant compounds see orders spike. Further, in April 2020, Lysol announced that it had received unprecedented demand for wipes and other disinfectant products. Adding to this, Clorox announced that they are working around the clock to meet the requirement.
Furthermore, not only the developed countries but also the developing countries like India face high demands for cleaning chemical products. For instance, consumer health and hygiene firm RB, known for its Dettol brand, is ramping up production to reach a sudden surge in demand for some of its products after coronavirus outbreak, according to a company official. It announces that the consumers and customers are facing shortages for some of our cleaning chemical products with this unprecedented demand. Moreover, Cities are taking up innovative approaches for the disinfection of public places using sodium hypochlorite. For example, Tiruppur has recently implemented a disinfection tunnel, which is now replicated in numerous cities in their agricultural/ vegetable markets.
Modeled on this, various establishments entrusted with the provision of essential services are deploying the disinfection chambers. For adequate geographical coverage in the disinfection of public streets, Cities of Rajkot and Surat have adopted high-clearance boom sprayers. Smart cities such as Chennai, Bengaluru, Raipur, and Guwahati have prepared themselves to use technology solutions such as drones to disinfect the public spaces in the situation where human access gets difficult leading to increase in domestic demand of the country. Therefore, the rising support of key players, which is likely to boost the global cleaning chemicals market and the need for cleaning chemicals in the healthcare sector, is expected to drive the worldwide cleaning chemicals market.
Detailed analysis of the Impact of Covid-19 on Industrial & Institutional Cleaning Market will be available in our Full Report.