Market Definition
Industrial & institutional cleaning chemicals are sanitation & cleaning products that are used to destroy microorganisms & bacteria present on the surface. These products include sanitizers, detergents, biocides, surfactants, and laundry care products. Despite its widespread use, industrial and institutional cleaning chemicals are most commonly found in the healthcare and food & beverage industries. The growing awareness among the population regarding hygiene and sanitation standards in residential and commercial spaces is one of the factors driving the demand for industrial and institutional cleaning chemicals.
Market Insights
The Saudi Arabia Industrial and Institutional Cleaning Chemicals Market is projected to grow at a CAGR of around 5.40% during the forecast period, i.e., 2022-27. The market held a considerable share during the historical period, owing to the rising contagious diseases, increasing construction of healthcare & hospitality buildings, growing manufacturing industry, etc. In 2020, due to the COVID-19 pandemic, the demand for disinfectants skyrocketed across various industries, including healthcare, corporate, etc., to stop the spread of the virus. However, even after the relaxation of COVID restriction, the fear of getting infected still pertains to the customers, hence continuing the use of sanitizers, cleaners, and disinfectants in commercial, healthcare, and other sectors. Thus, these factors have led to the growth of the Industrial and Institutional Cleaning Chemicals market during 2017-2021.
| Report Coverage | Details |
|---|---|
| Study Period | Historical Data: 2017-20 |
| Base Year: 2021 | |
| Forecast Period: 2022-27 | |
| CAGR (2022-2027) | 5.40% |
| Region Covered | Central, East, West, South |
| Key Companies Profiled | 3M, Akzo Nobel N.V., Albemarle Corporation, BASF, Clariant AG, Henkel AG & Co. KgaA, Huntsman International LLC, National Chemical Laboratories Inc., Nouryon, Procter & Gamble, Solvay, Spartan Chemical Company Inc., Stepan Company |
| Unit Denominations | USD Million/Billion |
Furthermore, the relaxation of the COVID-19 restrictions & the resumption of tourism further boosted the demand for a hygienic & infection-free environment for the tourists & their safety. Hence, a safe & clean tourism environment would further promote the tourism industry of Saudi Arabia. Thus, the increasing tourism industry has propelled the requirement for sanitization & disinfectants in tourist destinations for hygiene purposes. For instance:
Therefore, the rising usage of disinfectants, cleaners, sanitizers, etc., in industrial, residential, healthcare, hospitality, and educational institutions, among others, would impel the demand for Industrial and Industrial cleaning chemicals in Saudi Arabia during the forecast period, i.e., 2022-27.
Key Trends in the Market
The growing demand for green & bio-based chemical products would benefit from the demand for sustainable cleaning solutions. The necessity for these products is consistently rising across various industries, including pharmaceutical, food & beverage, residential, industrial, and other commercial spaces, to contribute toward a green & sustainable environment. The health benefits from using environmentally friendly cleaning products are one of the main reasons propelling the demand for green cleaning chemicals.
Moreover, the rising consumer demand for natural cleaning products ensures safety concerns regarding health while reducing their environmental footprint are some of the other reasons driving the market for green & bio-based cleaning chemicals in Saudi Arabia.
Impact of Covid-19 on the Saudi Arabia Industrial and Institutional Cleaning Chemical Market
With the emergence of the COVID-19 pandemic, the demand for industrial and institutional cleaning chemical products has shown unprecedented growth. However, due to government restrictions several cleaning chemical manufacturing facilities were closed, resulting in stock shortages at many hospitals & healthcare centers. Moreover, the growing threat of the virus has led the population of Saudi Arabia to make use of disinfectants, sanitizers, and floor cleaners on a large scale.
Additionally, the government is actively participating in promoting the usage of cleaning chemicals as a preventive measure. In 2021, the Ministry of Islamic Affairs, Dawah, and Guidance reopened seven mosques after sanitization, which were temporarily closed for cleaning after COVID-19 cases were confirmed among worshippers.
Thus, keeping these factors into account, the demand for industrial & institutional cleaning has increased in the last year, owing to factors such as rising health concerns, hygiene, cleanliness, and so on. Further, these factors are expected to have a positive impact on the market for industrial and institutional cleaning.
Market Segmentation
Based on Raw Materials:
Among them, the Solvents held a considerable share in the Saudi Arabia Industrial and Institutional Cleaning Chemicals Market, owing to the rising government initiatives for the manufacturing of sanitizers, disinfectants, and general-purpose cleaner liquids to meet the escalating demand of the health-conscious public. Also, under Vision 2030 of the government of Saudi Arabia, the government plans to invest approximately USD65 billion in the development of the healthcare infrastructure of the country.
Further, for the manufacturing of solvent disinfectants in the country, with the support of the government, various startups started a new production plant of the chemicals. Additionally, in response to growing concerns about the harmful chemicals used in cleaning chemicals, several companies have begun to manufacture bio-based sanitizers and other disinfectants in the region.
Based on the End User:
Of them all, the demand for the cleansing chemicals has surged in the healthcare sector due to growing bacterial & viral diseases, rising hygiene & cleanliness standards among the patients, etc. Thus, to reduce the spread of contagious diseases, the regular use of sanitizers, disinfectants, etc., has accelerated the demand for chemical cleansers in Saudi Arabia. Furthermore, the increasing construction projects in the healthcare sector would boost the demand for the cleaning of hospitals to reduce the spread of bacterial & viral diseases among the patients. For instance:
Recent Developments by Leading Companies
Market Dynamics:
Key Driver: Increasing Construction of Hospitals to Boost the Demand for the Cleaning Chemicals
The Saudi Arabia government has increasingly focused on the development of its healthcare sector, and the country accounts for approximately 60% of the healthcare expenditure of Gulf Cooperation Council (GCC) countries, as per International Trade Administration (ITA). The investments include various development in the healthcare sector, such as the construction of hospitals, spending on chemicals for providing a clean and hygienic environment to the patients, etc. Hence, the rising construction of healthcare buildings has propelled the demand for chemical disinfectants during 2017-2021. For instance:
Possible Restraint: Strict Government Regulations Regarding the Usage of Certain Chemicals to Restrict the Market Growth
Industrial and institutional cleaning chemicals are disposed to various environmental & governmental regulations due to their volatile organic compounds content as they are toxic when inhaled. The government of Saudi Arabia banned certain chemicals, including hand sanitizers, disinfectants, etc., in order to protect their population from the harmful side effects of chemical content present in it. In 2020, the Saudi Food and Drug Authority (SFDA) warned consumers against the use of Clean Touch Hand Sanitizer Gel due to the excess presence of Isopropyl alcohol in it. The SFDA had taken necessary actions to ban the product in the Kingdom & take legal steps against non-compliance.
Thus, the government of Saudi Arabia put strict regulations on the usage of certain cleaning chemical products that have adverse effects on the health of the consumers in Saudi Arabia. Consequently, due to strict regulations, several cleaning chemicals could not enter the market of Saudi Arabia, thereby restricting the market growth of Industrial and Institutional cleaning chemicals.
Key Questions Answered in the Market Research Report:
Frequently Asked Questions
A. The Saudi Arabia Industrial and Institutional Cleaning Chemical Market is expecting around a 5.40% CAGR during 2022-27.
A. Solvents are anticipated to emerge as an opportunity area for the leading players in the market during the forecast period.
A. The growth opportunities driving the Saudi Arabia Industrial and Institutional Cleaning Chemical Market include the growing demand for Green & Bio-based Chemicals to attain sustainable environmental growth.
