According to a recent study by Kline & Co., the market for janitorial and housekeeping products in the U.S. has experienced steady growth since 2002 and should reach $3.2 billion by the end of 2006.
“Recent price increases that were precipitated by a spike in raw material costs have helped the market, but the floor-care market in particular has slowed during the past four years, as facilities managers have cut costs by reducing the frequency of waxing and stripping floors,” says Bruce Boynick, senior associate for Kline’s research division.
Contract cleaners account for the majority of users of janitorial and housekeeping cleaning products, which include floor and carpet care, surface cleaners and disinfectants, and odor control and hand care products. Retail hosts, industrial facilities, hospitals, hotels, schools and nursing homes are also heavy users, the research shows.
Foam soaps and hand sanitizers are some of the fastest growing categories, and most products in the market are sold via distribution rather than direct sales by manufacturers, the study reports.
Janitorial and paper supply houses are the main distributors, but food service, industrial, health care and hotel distributors, and warehouse clubs are also gaining as popular sources, the research notes.
According to the study, there is only moderate concentration in the market. The kitchen and laundry chemicals sector is particularly diverse, for example, with over 100 major suppliers. The janitorial sector is becoming more consolidated due to mergers and acquisitions, but it is still quite scattered, particularly in food service distribution.
“The business is large and the velocity of change is considerable,” says Boynick. “Environmental awareness and product safety certainly are of heightened concern to end users.”
Kline & Co. is a management consulting and market research firm for the specialty chemicals, life sciences, consumer products, and petroleum and energy industries.