HI&I cleaning applications

Key Growth Forces in the Chinese HI&I Ingredient Market 

The market of ingredients for household, industrial, and institutional (HI&I) cleaning applications is going through changes across all regions of the world. Innovation in dosage forms, increasing disposable income in developing countries, the growing importance of the green movement, and environmental regulations are some of the key trends driving those changes. Herewith, we are highlighting some insights into the Chinese market from our HI&I study, scheduled to be published in Q4 2020.  

 The market of the HI&I cleaning industry in China is mature, and price is regarded as the key factor for cleaning product manufacturers when choosing ingredients and designing formulas. The outbreak of COVID-19 has positively affected household product consumption in China. However, the I&I segment has been adversely hit due to lockdowns and social distancing policies, as well as safety concerns about going out for social/entertainment purposes. However, offset by performance of household segment, the Chinese HI&I ingredient market is forecast to maintain moderate growth during the forecast period.  

In volume terms, the most recent statistics show growth in the market from 2018-2020 at 3% CAGR. The impact of COVID-19 and thus decline in the I&I segment is not the only reason for a slightly slowerthaninitiallyanticipated growth. 

Another reason for some decline in cleaning ingredient demand in the I&I segment is the fact that many manufacturing facilities that did not meet the new environmental laws were shut down in China. 

However, in value terms, the overall market has grown, as anticipated by Kline’s 2018 study. This is mainly due to the shift toward natural, biodegradable, and milder ingredients (essentially, more premium ingredients). For example, for surfactants, demand is moving toward alkyl polyglucosides, as the demand for unit dose and concentrated products rises. Moreover, demand for betaines is expected to rise due to their ecofriendly profile. Betaines are expected to grow at a CAGR of around 7%, while APGs will grow at a CAGR of around 9%.  For the same reason, demand for enzymes is expected to rise at a CAGR of 6%-7%. 

Overall, detergents are trending toward liquid, high concentrations such as unit dose, and biodegradability due to growing sustainability efforts in China. These efforts are driven by government legislations and leading companies alike, and the trends will shape demand for ingredients in the coming years.  

To gain in-depth 2020 data and insights on this market, subscribe to our Ingredients for Household, Industrial, and Institutional Cleaning Applications report. It examines the ingredients market for cleaning applications globally with a focus on the seven most important markets. The study has two deliverables: a database and report. One report per region will focus on key trends, drivers, and restraints in the market. 

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