All wipe categories grew in 2014, according to Kline Research, a consultancy. Sales of industrial and commercial cleaning wipes increased 5 percent in end markets. Wipes have advantages over other cleaning products and recent changes to EPA wipes regulations have allowed wipes to achieve even greater sales growth in this booming market.
Due to the strong demand for disinfectants and disinfection wipes in the healthcare sector, hard surface cleaning products accounted for the largest share of the market with a growth rate of 5.6% in 2014, outpacing the average growth of the overall market.
All wipe products saw significant growth in 2014, mainly due to the fact that wipe was in its infancy at the time. The top five manufacturers of industrial and commercial cleaning wipes account for 84 percent of the overall market, and the sales of these leading manufacturers vary so much that one manufacturer's sales can double that of another.
The industrial and commercial wipes market is expected to accelerate as the manufacturing sector continues to grow and is expected to grow at a cagR of 4% through 2019.
As the market evolves, it is expected that many end markets will require wipes to be certified by relevant bodies as free of harmful ingredients and environmentally friendly. Green logos will also catch on, becoming a point of differentiation across all product categories.
Drivers of growth
The industrial and commercial cleaning wipes market offers manufacturers an opportunity to enter this growing sector. Wipes consumption is expected to grow in most end markets, reflecting consumer demand for quality cleaning products and for keeping equipment clean. Wipes provide simplicity and convenience to end users and will help them grow in all end markets in the future, mainly in general purpose wipes. The use of wipes is expected to play a key role in achieving this goal by reducing the transmission of bacteria and diseases through devices in end-use areas such as medical devices, catering services, and large and medium universities where device surfaces and hand cleaning are highly valued.
Manufacturers may target a particular product category or expand the market. Clorox, the market leader in all end applications, wants to expand its end consumer base by selling innovative wipes to secure its market leadership position. Companies like Reckitt Benckiser and Kimberly-Clark compete with Clorox for market share by offering specific products to different end consumers. In addition, small businesses also want a significant share of the wipes market. Mergers and acquisitions may affect market dynamics and sales categories. For some industry leading manufacturers, if their key product categories are weak, they will look for companies with strong strength in these areas to acquire.
Warehouse membership stores are a very important intermediate distribution channel, lowering the prices of many products on the dealer's hands, but still only selling to smaller customers. Such channels will not change the dynamics of the entire sales channel, but will change the delivery platform, credit platform and service platform. Compared with other distribution channels, industry organizations, small businesses, retail stores, and entertainment organizations are more likely to purchase wipes at warehouse membership stores. Some organizations want to replace industrial cleaning wipes with retailer brand wipes, which can not only meet urgent cleaning needs but also reduce costs.
In addition to the effectiveness and efficiency of the product, the safety of the product is also the most concerned issue for end consumers, whether for their own employees or for guests and visitors. Manufacturers can help customers with onerous liability insurance costs.
In addition to the product marketing of environmental protection series, environmental awareness is still the theme of the industry. Many end consumers want to buy green products at regular prices. The sustainability and feasibility of disposal of waste wipes is also of great significance.
Wipes outsell other cleaning products
In the industrial and commercial cleaning and wipes market, all product categories and companies grew in 2014 by more than 5%. Kline Consulting surveyed more than 500 end consumers and conducted more than 40 in-depth industry interviews with manufacturers and distributors to produce the report 'Industrial and Commercial Wipes in the United States: Market Analysis and Opportunities.' The report shows that market leaders like Clorox and many smaller brands like Metrex Research and Spartan Chemical are growing faster than the market average. This overall growth is due to end consumers viewing wipes as a convenient and effective way to clean equipment.
Recent changes to the EPA's wipes regulations have also helped boost sales. Currently, reusable wipes and wipes containing single-use agents are also subject to the regulation, and sales of wipes for various industrial and commercial uses are expected to grow.
In order to understand the market from the point of view of end consumers, Kline company conducted an organized survey of many end consumers. The survey found that despite the importance of these products to users, loyalty to a particular wipe brand was low, with less than a third of respondents saying the wipe brand was an important factor in their purchase. More than half of respondents said they would buy another brand if a dealer stopped selling one.
The largest area of use for cleaning and disinfecting wipes is in healthcare, followed by colleges and universities. Driven by their heavy use, sales of these products accounted for 80 percent of all hard surface wipes sold and grew 5.6 percent in 2014, with the use of fitness equipment wipes increasing the most in this category. Another category of general-purpose wipes has also seen a surge in industrial use because they are ideal for cleaning up grease and oil.
Sales of hand sanitizing wipes grew fastest in colleges and universities, highlighting the importance of wipes in minimizing the risk of disease transmission among children and adolescents. In particular, kindergarten to high school students are the biggest users of wipes, accounting for more than half of them.
According to Kline's findings, end consumers use wipes for a variety of reasons, but surface disinfection and hygiene remains the primary use of wipes. Various fields to keep the equipment clean, eliminate germs are very important. Convenience, time saving and worker safety are also important factors in purchasing wipes. But end consumers also expressed some concern about the cost of such wipes compared to traditional cleaning products.