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U.S. Demand For I&I Chemicals Is on the Rise: Sales Projected To Exceed $9 Billion by 2008

November 22, 2005

U.S. demand for industrial and institutional (I&I) cleaning chemicals is projected to increase 4% a year, reaching $9.3 billion in 2008, according to Industrial & Institutional Cleaning Chemicals, a new study from The Freedonia Group, Inc., Cleveland, OH. According to the study, value gains will be boosted by the increasing market presence of environmentally compatible products and higher quality, multifunctional cleaning chemicals. However, the study also stated that volume gains would be restrained by a greater use of concentrated cleaners and reduced usage rates for high volume raw materials such as caustic soda, soda ash and commodity solvents.
Disinfectants and sanitizers will record the fastest growth among I&I cleaning chemical types through 2008, with growth well above average, the study predicted. Gains will be driven by heightened safety and health concerns regarding the spread of infectious diseases and risks associated with foodborne pathogens and other contaminants. These same trends will also promote gains for hand cleansers, which are increasingly formulated with antibacterial agents. However, the study predicts that prospects for products containing antimicrobial additives could be adversely affected if indiscriminate use of disinfectants is proven to be a contributing factor in the proliferation of drug-resistant strains of bacteria.
General purpose cleaners and floor care products are expected to continue to account for the largest shares of I&I cleaning products demand, at more than 40% of overall demand in 2008. But growth in both categories is projected to lag behind the overall pace for I&I cleaning chemicals due to competition for market share in a crowded field.
Raw material products that present the greatest challenges in terms of environmental and workplace safety, such as chlorine, alkalis and some solvent types, are projected to register below average growth, while surfactants and other less controversial constituents will lead raw material gains. More info: www.freedoniagroup.com.
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