Global Hand Hygiene market

The Global Industrial Hand Hygiene Market Outlook and Trends

Food Service and Hospitality Applications will Drive Market Growth

October 2012

9833-39

9833-39 2

Contents

Section Slide Numbers

Executive Summary 3

Hand HygieneIntroduction 5

Global Industry TrendsIndustry Outlook 10

Hand HygieneEmployment Characteristics 17

Occupational Health and Safety 26

Hand HygieneRegulatory Environment 30

Hand HygieneProduct Types 34

Market MetricsDrivers and Restraints 41

Market and Industry Trends 50

Competitive Scenario 54

Strategic Recommendations 59

The Frost & Sullivan Story 62

9833-39 3

Executive Summary

9833-39 4

Source: Frost & Sullivan analysis.

Executive Summary

Industrial hand hygiene, which is the act of cleaning hands in industrial scenarios, is covered in this

study.

Hand hygiene products are segmented according to their mode of action:

o Cleansing

o Sanitizing

o Protecting

o Restoring

The industries covered are food and beverages, services and hospitality, automotive service and

transportation, and manufacturing and industry. The healthcare industry is not covered, although it is

the largest application for hand hygiene products.

Cleansing products have the largest segment in the market and will continue to dominate the market.

Sanitizers are gaining acceptance because of their ease of use. However, they are suitable in only a

few industries and are ineffective as cleansing products, which will limit their use.

Developed nations are far ahead in use of hand hygiene, and the opportunities there are greater,

because education and awareness drive the growth of the market for hand hygiene products. Strong

regulations for industrial hand hygiene are not in place but can be expected in the future as

governments start focusing on public health and well being.

9833-39 5

Hand HygieneIntroduction

9833-39 6

The World Health Organization (WHO) defines hand

hygiene" as the action of cleaning hands for the purpose

of physically or mechanically removing dirt, organic

material, and microorganisms.

The Centers for Disease Control and Prevention (CDC)

adds, "It is well-documented that the most important

measure for preventing the spread of pathogens is

effective hand washing."

Hand hygiene is important and essential for patients and personnel in the healthcare industry. Moreover,

hand hygiene products are increasing in importance in other industries, including food and beverages

and services and hospitality.

Hand hygiene protects the occupational well being and safety of workers. Using hand hygiene products

reduces diseases and infections and, consequently, limits the absence of workers because of illness.

Another advantage is that these products control the spread of communicable diseases.

IntroductionIndustry Overview

Source: World Health Organization, Center for Disease Control and Prevention, and Frost & Sullivan analysis.

9833-39 7

Cleansing Restoring Protecting Sanitizing Wipes, Towels,

and Gloves

Soap solutions

and other

washing solutions

for effective

cleaning

Alcoholic or non-

alcoholic sanitizers

used for

decontamination

Solutions to

protect skin from

occupational

hazards prior to

starting work

Solutions to

restore skin after

work

Wipes, paper,

and cloth

towels which

can be used for

cleansing or

other

applications

The study covers hand hygiene products used for cleansing, sanitizing, protecting, and restoring.

Wipes and towels (paper and cloth) are not covered.

Industrial Hand Hygiene Market: Product Segmentation, Global, 2011

Hand Hygiene Products

Product Segmentation


9833-39 8

Food and

Beverage

Services and

Hospitality Manufacturing and

Industry

Automotive Service and

Transportation

Includes

agriculture, food

manufacturing and

processing, and

food services

Includes automotive

after market service,

transportation, and

logistics

Includes all

manufacturing

industries such as

automotive

manufacturing,

electronics,

mining, and

engineering

Includes public

safety and

service,

janitorial

service, waste

disposal, and

emergency

medical staff

Industrial Hand Hygiene Market: Industry Segmentation, Global, 2011

Hand Hygiene Segments

Industrial Segmentation


9833-39 9

Hand Hygiene Product

Manufacturers

End User

Specialized

Distributors

General

Distributors

Direct Sales

Industrial Hand Hygiene Market: Distribution Channel Analysis, Global, 2011

Key Takeaway: Companies rely more on manufacturing representatives and distribution networks to

extend their geographical reach.

40.0%-45.0%

20.0%-25.0% 25.0%-35.0%

Market OverviewDistribution Channels


9833-39 10

Global Industry TrendsIndustry Outlook

9833-39 11

Industries

IntroductionIndustry Overview

Note: All figures are rounded. The base year is 2011. Source: Frost & Sullivan analysis.

The industries covered in this market insight are:

o Food and beverages

o Automotive Service and transportation

o Manufacturing and industry

o Services and hospitality

Estimated growth rate projections for the industries are shown in the chart.

The food and beverages industry is driven by the continuous growth in population.

The services and hospitality segment is the fastest growing sector and is fueled by the

increasing expendable income of growing

populations.

The automotive service and transportation segment is growing the fastest in Asian

countries. Automotive and other manufacturing

have shifted from developed nations to Asian

countries, which have become low-cost

manufacturing hubs.

The growth in the industry is expected to fuel the growth of hand hygiene used in each segment.

Food andBeverages

AutomotiveService and

Transportation

Manufacturingand Industrial

Services andHospitality

GrowthRate (%)

4.2 4.5 4.7 4.5

0

1.0

2.0

3.0

4.0

5.0

6.0

Gro

wth

Rate

(%

)

3.5-5.0 4.0-5.0 4.5-5.0 4.0-5.0

Industrial Hand Hygiene Market:

Industrial Growth Rate, Global, 2011

9833-39 12

Food and Beverage Industry


The cumulative value of all revenue derived from the global food and beverage value chain was more than $20.0 trillion dollars in 2011, representing nearly 30 percent of the entire world's economy.

The global market is growing at a rate of 3.5 to 4.0 percent. Rising food demand in the BRIC (Brazil, Russia, India and China) countries is the primary global growth factor. Growth in this industry implies higher employment and, therefore, increases the demand for hand hygiene products from this sector.

The food service industry is growing at high rates in North America and Western Europe, creating more employment opportunities.

A number of local and international regulations ensure food quality and safety throughout the complex global food network.

Personal hygiene rules for employees that place a primary importance on hand washing are characteristic of the regulatory environment.

Employees are exposed to skin irritants, allergens, temperature swings, and microbes.

Poor personal hygiene is the major cause of food-borne illnesses, and hand hygiene is essential for preventing them.

The sheer size and magnitude of the food and beverages industry, along with increasing awareness of hand hygiene, are expected to drive the market for hand hygiene products.

Hand hygiene is essential to maintain the quality and safety of food products and to prevent breakouts of food-borne infections.

9833-39 13

More than 110.0 million vehicles are expected to be sold in 2020, and by then, approximately 1.20 billion vehicles will be on the road

around the world.

The global automotive industry is growing globally at Compound Annual Growth Rate (CAGR) of 4.6 percent. Approximately 60.0

percent of sales are from Asian and Eastern European countries.

This demand also drives the growth of the after market and service segments.

China, India, Eastern Europe, and Russia are expected to witness high growth rates.

The global logistics industry is projected to create a large number of employment opportunities as the industry grows at around 7.0 percent to 8.0 percent globally.

The growth of employment in the automotive service and transportation industry, along with increasing awareness of industrial hygiene, is expected to drive the global growth of hand hygiene products.

Asian countries have become the manufacturing and sales hub for the automotive segment, which will increase the importance of hand hygiene in developing areas.

In the automotive service industry, workers are often exposed to soils, irritants, grease, temperature swings, and exposed working conditions. Vehicle maintenance, repair, painting, and services require

workers to practice hand hygiene.

Hand hygiene minimizes the risk of occupational dermatitis and skin problems, such as soreness, redness, and chapping, and reduces sickness through skin safety.

Automotive Service and Transportation Industry


9833-39 14

The manufacturing and industry segment is an important part of global industry, responsible for a large portion of employment and

investment. In 2010, global manufacturing production made up

57.0 percent of the global GDP.

The market fell by 12.0 percent during the global economic slowdown in 2008 to 2009, but 2010 saw a healthy recovery for

the manufacturing industry.

Manufacturing is controlled by the end applications to which it caters; however, positive growth is expected for the industry.

Hand hygiene has been gaining importance in manufacturing with as awareness of and concern for health increases.

Different types of hand hygiene products are used based on the type of industry. Certain industries prohibit the use of alcohol-based sanitizers for employees working in environments close to fire.

Employees working in a variety of industrial environments, including automotive manufacturing, electronics, mining, engineering and construction, public utilities, and warehousing, use hand hygiene

products on a daily basis.

They are exposed to soiling, potential irritants, temperature change, grease, paints, and chemicals.

Employee health and wellness are important to companies, so hand hygiene products have become essential.

Manufacturing and Industry


9833-39 15

The services and hospitality sector is an important part of global

industry. With the growing population and rising expendable

income, services and hospitality is growing at a fast pace.

The services and hospitality sector includes food and beverage

services and retail, waste disposal, emergency medical

technicians, janitorial services, correctional staff, public safety,

and public services in venues such as airports, banks, gyms,

schools, and offices.

The growing demand for services and increasing awareness of personal hygiene and disease prevention

is expected to drive the growth of the hand hygiene market.

Sanitizers are gaining market share because of their ease of use in the services industry.

Hands are the primary vehicle for the spread of germs and are responsible for a number of infections

and skin problems. Consequently, hand hygiene methods such as cleaning, sanitizing, and protecting the

hands are important.

People working in closed environments or in proximity with each other have a higher possibility of

carrying and passing on germs, which and can lead to localized outbreaks of diseases.

Services and Hospitality


9833-39 16

Industrial Hand Hygiene Market: Industrial Opportunities, Global, 2011

Industry Growth

Services and

Hospitality H

Food and

Beverage H

Manufacturing

and Industry M

Automotive

Service and

Transportation

M

Industry Growth

Services and

Hospitality L

Food and Beverage M

Manufacturing and

Industry H

Automotive Service

and Transportation H

Industry Growth

Services and

Hospitality L

Food and Beverage H

Manufacturing and

Industry M

Automotive Service

and Transportation L

Industry Growth

Services and

Hospitality H

Food and Beverage M

Manufacturing and

Industry H

Automotive Service

and Transportation M

Industry Growth

Services and

Hospitality M

Food and Beverage H

Manufacturing and

Industry H

Automotive Service

and Transportation H

Industry Growth

Services and

Hospitality H

Food and

Beverage M

Manufacturing

and Industry H

Automotive

Service and

Transportation

H

L: Low, M: Medium, H:High

North America

Africa South America Australia Asia

China

Global Industry Scenario


9833-39 17

Hand HygieneEmployment Characteristics

9833-39 18

2000 2001 2002 2003 2004 2005 2006 2007 2008

Employees('000s)

1,554 1,550 1,525 1,518 1,495 1,478 1,480 1,482 1,480

1,440

1,460

1,480

1,500

1,520

1,540

1,560

Em

plo

yees (

000s)

Employment CharacteristicsFood and Beverages

Note: All figures are rounded. The base year is 2011. Source: U.S. Bureau of Labor Statistics, Frost and Sullivan analysis.

Food and Beverage

Employment in food and beverage processing is declining as food manufacturing increases in

North America, Europe, and other developed

countries because:

o Food manufacturing is increasingly

outsourced.

o Automation of processes has decreased

the need for manpower for some tasks.

Employment is increasing in developing parts of the world such as Asia and Africa.

In the food service segment, employment is increasing in developed countries because of

increased spending. However, in developing

nations, growth is much lower.

The growth in employment drives the use of hand hygiene products, and the effect will be

more profound in developing nations where the

growth of food services will drive the increasing

use of hand hygiene products.

Industrial Hand Hygiene Market: Annual

Employment in the Food Processing

Industry, U.S., 2000-2008

9833-39 19

Industry Job Type Reasons for Hand Hygiene Hand Hygiene Products

Food and

beverages

Agriculture

Manufacturing

Processing

Food service

Food processing occupations such

as butchers, fish cutters or

trimmers, and tenders of baking,

roasting, drying machines

Food processing operators such as

food batch makers and food

cooking machine operators

Food preparation workers

Food and beverage servers

Chefs and head cooks

Bartenders and waiters

Prevent food poisoning

Control the spread of fecal

bacteria and enteric virus

Control transmission of food-

borne illnesses

Remove visible dirt and

disinfectant hands to increase

food safety

Presence of food proteins

and fatty materials on skin

Restoring skin properties for

workers working in contact

with water

Cleansing products are

used most frequently.

Sanitizing products can

be used as a

supplement.

Antibacterial hand

washing solutions are

gaining in importance.

Perfume- and dye-free

cleansing solutions are

used in food handling

areas.

Industrial Hand Hygiene Market: Overview of Occupations and Use of Hand Hygiene in the Food and

Beverages Industry, Global, 2011


Overview of Occupations: Food and Beverages

9833-39 20

Automotive Service and Transportation

Employment growth rates are growing at a

healthy rate globally.

Asian countries have become the major

manufacturing hub for the automotive

industry.

By 2020, 51.0 percent of global light-vehicle

production will be in Asia, and only 30.0

percent will be in North America and

Western Europe.

As the East has become the manufacturing

hub for the West, employment in logistics

has increased dramatically all over the

world.

In after-sales servicing, North America and

Europe will have still have high employment

growth rates, because the high number of

vehicles will drive an increase in the use of

hand hygiene products.

1998 2008 2018

Employees('000s)

4,168.10 4,504.90 4,950.40

3,600.0

3,800.0

4,000.0

4,200.0

4,400.0

4,600.0

4,800.0

5,000.0

5,200.0

Em

plo

yees (

000s)

Year

Note: All figures are rounded. The base year is 2011. Source: U.S. Bureau of Labor Statistics, Frost & Sullivan analysis.

Employment CharacteristicsAutomotive Service and Transportation

Industrial Hand Hygiene Market:

Transportation Industry Employment

Forecast, U.S., 1998, 2008, 2018

9833-39 21


Servicing

Logistics

Maintenance and repair

Industrial operators

handling manufacturing

machinery and other

heavy and light

machines

Vehicle servicing

Painting and coating

workers

Aviation maintenance

Removal of tough, sticky

soils and adhesives

Removal of chemical-

based paints and coatings

Removal of grease and

grime such as tar, oil, and

asphalt

Personnel safety and

hygiene

Skin conditioners to restore

skin health

Powerful cleansing

products remove heavy

and light soils

Cleansing solutions

remove chemicals from

paints, oils, and

adhesives. Sanitizing

foam and gels ensure

personnel hygiene.

Protecting hand hygiene

products prevent contact

with skin irritants

Moisturizers promote skin

healing

Industrial Hand Hygiene Market: Overview of Occupations and Use of Hand Hygiene in the Automotive

Service and Transportation Industry, Global, 2011


Overview of Occupations

9833-39 22

Manufacturing and Industry

Growth is highest in southeast Asian,

especially China, Japan, India, and Korea,

which have become the low-cost

manufacturing countries for developed

nations.

This position has significantly increased

employment growth rates and will make

manufacturing a prominent industry.

Automation is a major restraint for

employment growth in the manufacturing

sector in North America and Europe.

However, durable goods manufacturing in

these countries will keep the growth rate

positive.

As the manufacturing industry grows,

employee health will be of more interest,

driving the hand hygiene industry.

1985 1990 1995 2000 2005 2010

U.S. 22.0 20.0 23.0 22.0 21.0 20.0

China 2.5 3.0 6.0 9.0 12.0 18.0

Germany 11.0 11.0 8.0 7.0 6.5 6.0

India 1.0 1.0 1.5 1.8 2.0 2.5

0

5.0

10.0

15.0

20.0

25.0

Man

ufa

ctu

rin

g S

hare

(%

)

Year

Industrial Hand Hygiene Market: Manufacturing Trends for Select Countries, Global, 1985, 1990, 1995, 2000, 2005, 2010


Employment CharacteristicsManufacturing and Industry

9833-39 23


Manufacturing and industry

Manufacturing

Assembling

Automotive and parts manufacturing

Metal and plastic machine workers

Chemical manufacturing workers

Workers in mining, engineering, construction,

painting, coating, and printing

Semiconductor processors

Stationary engineers and boiler operators

Water and wastewater treatment plant and system

operators

Welders, cutters, solderers, and brazers

Removal of grease, paint, dye, and coatings

Removal of and protection from chemicals

Removal of heavy dirt, soil, and grime

Antimicrobial solutions for personnel hygiene

Removal of adhesives

Personnel hygiene

Skin restoration and conditioning

Skin conditioners to increase dexterity even while wearing

gloves

Cleansing products remove heavy and light

soils, chemicals, paints,

and adhesives

Protection creams prevent contact with contaminants

and skin irritants

Restoring moisturizers and pH-balance products help

hands. Sanitizing foam and

gels are used for

personnel hygiene

Industrial Hand Hygiene Market: Overview of Occupations and Use of Hand Hygiene in Manufacturing

and Industry, Global, 2011



9833-39 24

Services and Hospitality

The services and hospitality segments

employment rate has grown the most in

North America and Europe, because these

regions have higher spending power, which

drives the growth of the hospitality and

leisure industries.

The services and hospitality employment

growth rate is lower in Asia and Africa

because of limited development in these

industries.

The growth in employment and governments

increasing focus on public health and well

being will boost the growth of the industrial

hand hygiene field.

Region Employment Growth

North America

Europe

China

India

Low High

Low High

Low High

Low High

Industrial Hand Hygiene Market: Employment

Growth in Services and Hospitality Industry,

Global, 2011

Source: U.S. Bureau of Labor Statistics, Frost & Sullivan analysis.

Employment CharacteristicsServices and Hospitality

9833-39 25


Services and hospitality

Food service

Janitorial services

Waste disposal

Community and social

work

Other services

Contract cleaners

Hotel service staff

Firefighters

Waste disposal and

handling staff

Janitors

Emergency medical

staff (paramedics)

Removal of microbial

contamination

Removal of soil, dust, and

grime

Controlling spread of

waterborne diseases

Prevent food poisoning

Removal of cleansing liquids or

chemicals from the skin

Cleansing products

remove soil and dirt

Antibacterial products

reduce microbial spread

Sanitizing foam and gels

aid personnel hygiene

Moisturizers promote

skin healing

Industrial Hand Hygiene Market: Overview of Occupations and Use of Hand Hygiene in the Services

and Hospitality Industry, Global, 2011



9833-39 26

Occupational Health and Safety

9833-39 27

Improper Holding

Temperature 37.0%

Poor Personal Hygiene 22.0%

Contaminated Equipment

15.0%

Inadequate Cooking 11.0%

Food from Unsafe Source 5.0%

Others* 10.0%

Industrial Hand Hygiene Market: Percent of Confirmed Food Borne Outbreaks by Contributing Factors, U.S., 1993-1997

The CDC reports that occupational skin diseases are the second most common type of occupational disease.

Occupational skin diseases include:

o Irritant contact dermatitis

o Allergic contact dermatitis

o Skin cancer

o Skin infections

o Other skin diseases

Poor personal hygiene has been a major cause of outbreaks in the food industry, and hand hygiene can

reduce outbreaks, effectively controlling healthcare

costs. Cross-contamination and food poisoning often

result from a lack of hand hygiene.

High healthcare costs, a lack of effective hygiene, hospital-acquired infections have prompted regulators to

enforce a greater rate of compliance with hand hygiene

rules.

The same efforts can be expected in the food service, manufacturing, and services and hospitality segments,

because public health is at stake. Note: *Others include toxins from food, cross contamination.

Source: Centers for Disease Control and Prevention, Frost & Sullivan analysis.

Occupational Health and Safety

9833-39 28

Back Injuries 35.0%

Mental ill Health 29.0%

Upper Limb Disorders

23.0%

Occupational Asthma

6.0%

Occupational Dermatitis

4.0%

Rhinitis 2.0%

Hearing Loss 1.0%

Industrial Hand Hygiene Market: Causes of Occupational Health Hazards in Food

and Beverages Manufacturing, U.K., 2011

Occupational dermatitis often results from a lack of effective hand hygiene.

Skin disorders account for more than 13.0 percent of occupational illnesses, and 75.0 percent of

occupational dermatitis patients develop chronic skin

diseases. Working hours lost because of occupational

dermatitis are high.

Hand washing exposes a person to a number of cleansing agents which may contain skin irritants or

allergens that cause occupational dermatitis. Dryness,

fissure, inflammation, and pain are common symptoms.

Dermatitis can be of two types:

o Allergic contact dermatitis (substances cause

allergic reactions or sensitize skin)

o Contact irritant dermatitis (substances cause skin

irritation)

Wet cement, solvents, degreasers, cutting oils, and acids and alkalis used as cleaning agents can act as

skin irritants.

Latex, adhesives, printing plate chemicals, nickel, and formaldehyde can make skin sensitive. Source: Health and Safety Executive, and Frost & Sullivan analysis.

Occupational Skin Diseases

9833-39 29

Employee absence caused by dermatitis is a serious concern. It causes an average absence of two months, and if not treated

quickly, more serious long-term problems might develop.

Effective steps for employers to prevent occupational dermatitis are:

o Risk assessment: Evaluate employees exposure to skin irritants and allergens and the duration and concentration of

exposure.

o Control exposure by removing, substituting, or limiting contact

with skin irritants and allergens and provide good hand hygiene

facilities such as barrier creams and washing stations.

o Inform and educate employees.

The CDC estimates that around 13.0 million people in the United States are exposed to chemicals which may cause occupational

skin diseases such as dermatitis, skin cancer, and infections.

The CDC emphasizes that contact dermatitis is one of the most common types of occupational illness, with estimated annual costs

exceeding $1.00 billion.

Occupational skin diseases can be effectively countered by hand hygiene, so the potential for industrial hand hygiene products is

immense. Education and awareness will effectively drive the

market growth for hand hygiene products.

Skin Hazards Examples

Biological Parasites,

microorganisms

Chemical Solvents, acids

Physical Extreme temperature,

UV and solar radiation

Mechanical Friction, pressure,

laceration

Industrial Hand Hygiene Market: Skin

Hazards, Global, 2011

Biological Chemical

Physical

Mechanical

Skin

Hazards

Source: Centers for Disease Control and Prevention (CDC), Frost & Sullivan analysis.

Occupational Skin Diseases (continued)

9833-39 30

Hand HygieneRegulatory Environment

9833-39 31

Industrial hand hygiene is not required, but it is good to have for occupational safety.

No regulations enforce hand hygiene in industry. Hand hygiene compliance is regulated only in the

healthcare industry, which is a major segment in the hand hygiene market.

The CDC guidelines for hand hygiene in healthcare settings recommend alcohol-based hand gel as a

suitable alternative to hand washing for health care workers. However, the same recommendation is

not applicable to Food and Beverages workers.

The Food and Drug Administration (FDA) Food Code contains effective hand hygiene guidance for food

service and retail workers. Food employees are expected to clean their hands for at least 20 seconds

using a cleaning compound in a hand washing sink. The code also bans bare-hand contact with ready-

to-eat foods.

Hand hygiene laws are limited, but hand hygiene compliance ensures the safety and health of

employees. It is also a measure of the care and concern that an organization shows toward its

employees.

The regulatory situation is not expected to change in the near future, but increasing attention to health

and hygiene will drive the growth for hand hygiene products globally.


Hand HygieneLegislations and Regulations

9833-39 32

Region Regulation

North America Occupational Safety and Health Administration (OSHA) requires employers to make hand washing

facilities available to employees who are in contact with potential blood-borne pathogens. These rules

apply to healthcare personnel, firefighters, law enforcement, and public safety workers. There are also

hand hygiene guidelines for hurricane-affected areas.

CDC has guidelines for hand hygiene in healthcare settings to prevent seasonal flu, during and after

disasters, and aboard ships.

The FDAs Food Code contains the federal recommendations for preventing food-borne illness in the food

service industry. The code is used by local, state, and federal regulators to develop and update their food

safety regulations.

Europe Health and Safety Executive (HSE) has recommendations to avoid the spread of occupational dermatitis.

European Commission Regulation (EC) No 852/2004 on the hygiene of food stuff lays down certain rules

for hand hygiene, including providing hand washing areas.

Australia Regulations for hand hygiene are in place only in the healthcare industry. However, local regulatory

bodies enforce hygiene standards in Food and Beverages manufacturing and services.

Asia-Pacific There are no regulations for industrial hand hygiene in this region, but regulations or recommendations

can be expected in the future, depending on governmental attention to industrial safety and the well being

of workers.

Industrial Hand Hygiene Market: Legislations and Regulations, Global, 2011


Hand HygieneLegislations and Regulations (continued)

9833-39 33

Ma

rke

t G

row

th

Degree of Regulatory Push

High

High Low

Industrial Hand Hygiene Market: Regulatory Scenario, Global, 2011

North America

Australia

Europe

Asia-Pacific

The push for regulations

in the Industrial Hand

Hygiene is strongest in

developed parts of the

globe, including North

America and Europe.

In Asia and Africa, the

push for regulations is

negligible, and industrial

hand hygiene is not an

area of focus. The time

required for governments

to understand the

importance of hand

hygiene for public health

is long, so the market

can be expected to be

regulated in 10 to 15

years.


Regulatory Scenario

9833-39 34

Hand HygieneProduct Types

9833-39 35

These products are used to ensure hands are physically clean and

free of visible dirt.

They are usually sodium or potassium salts of fatty acids with

surfactant properties.

The detergent properties result in the removal of lipids and adhering

dirt and soil. They also remove various organic substances from

hands.

Cleansing products can remove loosely adherent microbial flora. They can also be improvised to have

antimicrobial properties.

Continuous use of cleansing solutions can cause skin irritation and dryness.

The need for running water and washing stations decreases the convenience factor of these products.

They are increasingly being replaced by sanitizing hand hygiene products.

Cleansing products find applications in all industries and are used as primary cleansing products.


Hand HygieneCleansing Products

9833-39 36

These products are used as skin disinfectants to prevent microbial

contamination.

They are mostly alcohol based and contain ethanol, isopropanol, or a

combination of these two products.

Sanitizers strip away the outer layer of oil on the skin and destroy

microorganisms on the surface of the hands. After use, re-growth of

bacteria on the skin tends to occur slowly.

Hand sanitizers are more convenient to use and, consequently, are used more.

The action of sanitizers is affected by the dirt and soil content on hands and is as effective as cleansing

products only in certain conditions, usually only in healthcare industry.

In food service settings, workers have wet hands contaminated with proteinaceous and fatty materials,

which can significantly reduce the effectiveness of alcohol-based sanitizers. According to the FDA,

sanitizers cannot be used in place of cleansing solutions but only as a supplement.

Alcohol-based sanitizers are not used in industries where workers work closely with fire.


Hand HygieneSanitizing Products

9833-39 37

Protecting hand hygiene products are pre-work solutions that protect the

skin from contaminants in the working environment.

They protect hands and skin from water- or non-water-based contaminants,

paints, dyes, skin irritants, and sunlight.

Protecting hand hygiene products control and reduce damage to skin in the

work environment.

Skin protection creams are also used in addition to gloves to protect the

skin from irritation caused by latex in rubber gloves and to increase

efficiency.

Protection creams usually adhere to the skin and form an invisible shield

against skin irritants such as chemicals and high temperatures. They must

be non-greasy to allow industry personnel to work without difficulty.


Hand HygieneProtecting Products

9833-39 38

Restoring hand hygiene products are usually used after work and help

maintain and restore healthy skin.

These products can condition dry, sore, or chapped skin and promote

healing.

They replenish natural oils in the skin.

Frequently washing hands with soap dries the skin and causes

itchiness. These creams restore moisture and pH and balance the skin.

These products should be non-greasy and mild, so they do not affect

dexterity with tools.

Restoring hand hygiene products are used in food services, catering,

heavy and light industries, offices, and public places.


Hand HygieneRestoring Products

9833-39 39

Time

Ma

rket

Sta

ge

Development Growth Maturity Decline

Sanitizing

Protecting

Cleansing

Restoring

Industrial Hand Hygiene Market: Life Cycle Analysis by

Product Type, Global, 2011

Cleansing hand hygiene products

have been in the market longer than

other products. These products find

applications across all industry

verticals and are essential for the well

being of employees.

Usage of sanitizing products is

attributable to their ease of use and

increasing awareness of them through

media. However, their applications are

limited to certain industries.

Protecting and restoring products are

in the development stage. The

products are beneficial to most

industries, but a lack of awareness of

them restricts their use.

Growth can be expected in the near

future only if there is an increase in

awareness, and regulations mandate

their use. Source: Frost & Sullivan analysis.

Life Cycle Analysis by Product Type

9833-39 40

Hand hygiene product dispensing systems or product dispensers are used for their ease of use and are essential for storage of hand hygiene products.

The dispensers come in different formats. The simple ones are equivalent to bottles which have spouts for dispensing the product.

Industrial dispensers contain large amounts of hand hygiene products and are often wall mounted.

Touch-free or no-touch dispensers are gaining in popularity. They bring the advantage of not having a common touch point.

According to the American Journal of Infection Control, microorganisms, such as the influenza virus, can survive on surfaces for up to 72 hours. Therefore, touch-free

dispenser are safe and effective hand hygiene products.

Important, essential attributes of dispensers are:

o Product visibility

o Controlled speed and volume of products dispensed

o Reduced dripping

o Easy mounting systems

o Easy clean-up and refill systems

Use of touch-free dispensers is growing the most in the food and beverages industry, along with the services and hospitality industry. This growth is attributable to increasing awareness of the importance of hand hygiene

in controlling the spread of infections and to regulatory reform aimed at improving public health. Source: Frost & Sullivan analysis.

Dispensers: Overview

9833-39 41

Market MetricsDrivers and Restraints

9833-39 42

Healthcare is the dominant end-user industry;

food and beverage manufacturing, processing,

and services are also key industries using hand

hygiene products. Healthcare is the largest end-user

application for hand hygiene products. The healthcare

market for hand hygiene is regulated, and demand is

extremely high. The driving forces are the growing

medical industry, increased healthcare spending, and

awareness of the importance of hand hygiene in

reducing hospital-acquired infections.

The non-healthcare segment is comparatively smaller

and unregulated. The products are essential to

maintain and improve occupational health and safety,

but no laws mandate their use, which is limited to

developed countries.

Healthcare 70.0%

Industrial 30.0%

Industrial Hand Hygiene Market: Percent of Revenue by End User, Global, 2011


Industry Segmentation

9833-39 43

Increasing focus on health and well being in developed parts of the globe

and awareness of the role of hand

hygiene in them.

Increasing demand for hygiene in the growing food services and hospitality

industries.

Outbreak of infectious diseases.

Lack of regulations to control and enforce the use of hand hygiene

products in industries.

Lack of awareness of the importance of hand hygiene in industries outside

healthcare.

Slow growth of specialized products such as protecting and restoring hand

hygiene products.

Drivers

Restraints

Hand Hygiene Hotspots

Emerging Economies

Least-developed Economies

Legend

Industrial Hand Hygiene Market: Industry Dynamics,

Global, 2011


Industrial Hand Hygiene MarketIndustry Dynamics

9833-39 44

Increasing focus on health

and well-being

Growing food services and

hospitality industries

Outbreak of infectious

diseases

Lack of laws in

non-healthcare

industries

Lack of awareness and

education about hand

hygiene

Low Return on Investment (ROI)

restraining investment in new

technology and market growth

Industrial Hand Hygiene Market: Key Market Drivers and Restraints, Global, 2012-2018

Denotes long-term impact

Denotes current impact

Mark

et

Dri

vers

M

ark

et

Restr

ain

ts

Mark

et D

rivers

M

ark

et R

estra

ints


Drivers and Restraints

9833-39 45

Increasing Focus on Health and Well-being: In almost all parts of the world, healthcare is gaining in

importance, and governments are closely working to improve healthcare and the public health sector.

Accordingly, there is an increasing focus on improving health in the services and food sectors.

Growing Food Services and Hospitality Industries: The growing food and beverages industry, along

with the leisure and hospitality industry, in developed parts of the globe presents numerous opportunities

for hand hygiene products.

Food and beverage processing, manufacturing, and servicing are the largest applications of hand hygiene

products, after healthcare. These industries are also regulated by the FDAs Food Code, making the market opportunity for hand hygiene products higher.

Outbreak of Infectious Diseases: Outbreaks of infectious diseases, such as the H1N1 outbreak in 2009

and the cholera outbreak in Haiti in 2010, have increased awareness of and stressed the importance of

hand hygiene at work. These outbreaks have substantially increased hand hygiene products sales.

Drivers 1-2 Years 3-4 Years 5-7 Years

Increasing focus on health and well-being H H H

Growing food services and hospitality industries H H H

Outbreak of infectious diseases M M M


Industrial Hand Hygiene: Drivers

9833-39 46

Lack of Laws in Non-healthcare Industries: Food and beverages is the only non-healthcare industry

which has regulations (Food Code) for hand hygiene. Since hand hygiene is not mandated in other

industries, it is often not implemented or removed as part of cost cutting. This is a high impact restraint and

will limit the growth of industrial hand hygiene products.

Lack of Awareness and Education about Hand Hygiene: A lack of awareness of the use of hand hygiene

products is an equally important restraint. However, awareness and education are expected to increase in

the future and lower the impact of this restraint. A lack of knowledge limits the capabilities of employees to

demand better hygiene products.

Low Return on Investment (ROI) Restraining Investment in New Technology and Market Growth:

Specialized products in the hand hygiene industry are limited, and most products are commoditized, so price

competition is intense and profit margins limited. The low ROI also holds back market participants from

investing in HH products.

Restraints 1-2 Years 3-4 Years 5-7 Years

Lack of laws in non-healthcare industries H H M

Lack of awareness and education about hand

hygiene H M M

Low Return on Investment (ROI) restraining

investment in new technology and market growth M M M


Industrial Hand Hygiene: Restraints

9833-39 47

Threat of SubstitutesHand hygiene products cannot be replaced by personal protective equipment such as gloves and aprons. With the increasing awareness of employers and employees about improving personal

hygiene, these products are not replaceable.

Bargaining Power of CustomersCustomers prefer products that balance quality and cost and meet certain specifications. Customized and specialized products prevent customers from bargaining. As a majority

of products used are commoditized, though, bargaining power becomes medium.

Threat of New EntrantsA few multinational companies have a strong foothold in the market and control it. However, new entrants are targeting niche applications with specialized products. The investment required for

commoditized hand hygiene products is low, helping new entrants.

Bargaining Power of SuppliersBargaining power is high when products are specialized and targeted to certain industries, such as the protecting and restoring hand hygiene products. For cleansing products such as soap, which are commoditized, the bargaining power is low.

Bargaining Power

of CustomersMedium Bargaining Power

of SuppliersMedium

Threat of New EntrantsLow/Medium

Threat of SubstitutesLow

Intensity of Rivalry

Medium

Industrial Hand Hygiene Market: Porters 5 Forces Model, Global, 2011


Competitive Forces (Porter's 5 Forces Model) for Industrial

Hand Hygiene Market

9833-39 48

Product Type Application Opportunity Size

Cleansing Used for cleansing and removal of visible

soils and dirt from the skin

Sanitizing Used for sanitizing and removal of

microorganisms from the skin surface

Protecting Protects skin from contaminants and harsh

working conditions

Restoring Restores skin properties such as moisture

and softness

Low

Low

Low

Low High

High

High

High

Industrial Hand Hygiene Market: Product opportunities, Global, 2011


Product Opportunities

9833-39 49

Low High

Low

High

Ma

rke

t S

ize

Cleansing

products

Sanitizing

products

Protecting

products

Restoring

products

Growth Rate

Industrial Hand Hygiene Market: Opportunity Matrix, Global, 2011

Key Takeaway: Cleansing products are the largest segment in the hand hygiene industry and are

expected to remain ahead of sanitizing products.


Product Opportunity Matrix

9833-39 50

Market and Industry Trends

9833-39 51

Product Type Industry Trend

Impact

Cleansing

Steady growth is expected. Innovation and effective

product differentiation will add many properties and

value additions to traditional cleansing solutions.

The focus will be on antimicrobial cleansing.

Sanitizing

At present, growth rates are high. However, growth

is expected to remain constant or dwindle in the long

run because of sanitizers lower effectiveness in comparison to other cleansing solutions in industrial

scenarios. Sanitizers claim to destroy 99.9 percent of germs by is limited to inanimate objects, and

these products do not have the same effect on

hands.

Protecting

Protecting hand hygiene products are expected to

be combined with other types of products, mostly

through mixing in dispensers.

2011-2012 2015-2016 2013-2014

Impact: High Medium Low

Industrial Hand Hygiene Market: Industry Trends, Global, 2011-2016


Industry Trends

9833-39 52


Impact

Restoring Restoring hand hygiene products will gain

importance as employees become more aware of

occupational skin diseases. Substantial growth can

be expected.

Dispensers Fine sprays of two or more types of products are mixed for value addition and increase in

compliance.

Touch-free dispensers control the spread of infections.

They have no-drip pump mechanisms.

Hand hygiene dispensers are suitable for all product types including liquids, gels, foam, and

sprays.

They can be adapted to all kinds of decor.

They are made from environmental friendly materials.

2011-2012 2015-2016 2013-2014

Impact: High Medium Low



Industry Trends (continued)

9833-39 53


Impact

Solids, liquids,

gels, or foams

Because of ease of use, hand hygiene products moved from the solid (soap bar) form to liquids and gels during

the late 1900s.

Foams have been in the market since the early 2000s, and companies believe that foams will soon replace

other types of products.

The advantages of foam are:

o Easy to spread

o Non-stick faster application

o Non-clogging

o Minimized dripping

Compliance

monitoring

products

Compliance monitoring products have gained acceptance in healthcare settings and are entering

industries including food and beverages, manufacturing,

and services and hospitality.

Compliance tracking and electronic compliance monitoring systems are gaining in importance.

2011-2012 2015-2016 2013-2014


Industry Trends (continued)


9833-39 54

Competitive Scenario

9833-39 55

A healthy mix of large- and medium-sized

companies are targeting the industrial hand

hygiene market. The number of competitors in the

healthcare hand hygiene market has increased

and will continue to do so until future laws

regulate the industrial hand hygiene market.

Some companies such as Kimberly Clark

concentrate on all personal protective equipment,

including hand hygiene products. Companies

such as GOJO industries and the Deb Group

focus only on skin-care products.

Commoditized products such as cleansing and

liquid soaps have a high level of competition

because of low market entry barriers. Specialized

products such as restoring and protecting creams

face a low level of competition.

Industry Rank

Food and beverages I

Services and hospitality II

Manufacturing and industry III

Automotive Service and

transportation IV

Product Rank

Cleansing I

Sanitizing II

Restoring III

Protecting IV

Industrial Hand Hygiene Market: Company

Focus on Products, Global, 2011

Industrial Hand Hygiene Market: Company

Focus on Industries, Global, 2011


Current Competitive Scenario

9833-39 56

Company Industry Focus Products

Deb Group Automotive

Food manufacturing and service

Industry (manufacturing, mining and

construction, engineering,

transportation, and warehousing)

Commercial (educational

establishments, leisure environments,

and public facilities)

Sanitizers, pre-work creams

(protection from sun and skin irritants)

and fragrant conditioning creams

Dispensers

Diversey (Sealed-Air

Corporation)

Food service

Transportation

Retail

Hand sanitizers

Cleansing soaps

Dispensers

Ecolab Food processing, service, and retail

Automotive

Commercial (hotels, care facilities,

and educational institutions)

Manual and touch-free dispensers,

restoring creams, and general and

antimicrobial soap

Industrial Hand Hygiene Market: Company Profiles, Global, 2011


Company Product Portfolio

9833-39 57

Company Industry Segment Product Segment

Georgia Pacific

Corporation

Food service

Manufacturing

Commercial (retail, lodging, and convenience stores)

Dispensers (soaps, sanitizers, wipes, and towels)

Cleansing solutions (antimicrobial and moisturizing) and fragrant and

fragrance-free products

Hand sanitizers

GOJO Industries Food processing and service

Manufacturing

Automotive

Commercial (offices, educational institutions, public facilities, and

convenience stores)

Sanitizers (foam, gel, wipes, and skin nourishing)

Soaps (foam and lotion)

Dispensers

Degreasers and hand cleaners with scrubbing particles

Kimberly Clark

Corporation

Aviation and automotive

Food service and processing

Manufacturing

Commercial (offices, hotels, and educational institutions)

Dispensers (soaps, sanitizers, wipes, and towels)

Hand cleansers (with moisturizers, perfume free, dye free, and with

scrubber beads)

Water-less sanitizers and antimicrobial soaps


Company Product Portfolio (continued)


9833-39 58

Company Industry Segment Product Segment

Kutol Food and beverage processing and service

Industrial and manufacturing Commercial

Heavy-duty cleaners with pumice, sanitizers, protective creams, and

cleansing soap

Laboratoires Anios Food processing Cosmetic manufacturing

Cleansing solutions, antiseptic soap, sanitizers, dispensers, and wash

basins

Ophardt Hygiene Food service Industrial Commercial

Soap and disinfectant dispensers (manual and touch-less)

STOKO Skin Care

(Evonik)

Food handling Industries (chemical, construction,

agricultural, print and paint,

maintenance, and plastic)

Skin protection (water-insoluble and water-based substances)

Dispensers Skin repair and regeneration Mild and hard cleansers Antibacterial hand wash

Whiteley Corporation Food service and manufacturing Janitorial and public services Commercial

Hand sanitizers (foam and gel) Dispensers Cleansing soaps


Company Product Portfolio (continued)


9833-39 59

Strategic Recommendations

9833-39 60

Total Market

Success Factors:

Environmentally-friendly and

sustainability are excellent

value additions.

One-Stop solution for all hand

hygiene needs through a wide

product portfolio is important.

Multifunctional products,

like cleansing solutions

with restoring properties

are gaining market share.

Product customization and

working closely with end-users. Innovation for effective

product differentiation is

essential.

Widespread distribution

network and global reach.

Industrial Hand Hygiene Market: Strategic Recommendations, Global, 2011

Key Takeaway: Innovation, proximity to end users and being a one-stop solution are the key factors

to succeed in the market.


Strategic Recommendations

9833-39 61

Frost & Sullivan takes no responsibility for any incorrect information supplied to us by

manufacturers or users. Quantitative market information is based primarily on interviews and

therefore, is subject to fluctuation. Frost & Sullivan research services are limited publications

containing valuable market information provided to a select group of customers. Our

customers acknowledge, when ordering or downloading, that Frost & Sullivan research

services are for customers' internal use and not for general publication or disclosure to third

parties. No part of this research service may be given, lent, resold, or disclosed to

noncustomers without written permission. Furthermore, no part may be reproduced, stored

in a retrieval system, or transmitted in any form or by any means, electronic, mechanical,

photocopying, recording or otherwise, without the permission of the publisher.

For information regarding permission, write to:

Frost & Sullivan

331 E. Evelyn Ave. Suite 100

Mountain View, CA 94041

2012 Frost & Sullivan. All rights reserved. This document contains highly confidential information and is the sole property of Frost & Sullivan. No part of it may be circulated, quoted, copied or otherwise reproduced without the written approval of Frost & Sullivan.

Legal Disclaimer

9833-39 62

The Frost & Sullivan Story

9833-39 63

Frost & Sullivan, the Growth Partnership Company, enables clients to accelerate growth and

achieve best-in-class positions in growth, innovation, and leadership. The company's Growth

Partnership Service provides the CEO and the CEO's Growth Team with disciplined research

and best-practice models to drive the generation, evaluation, and implementation of powerful

growth strategies. Frost & Sullivan leverages 50 years of experience in partnering with

Global 1000 companies, emerging businesses, and the investment community from more

than 40 offices on six continents.

To join our Growth Partnership, please visit http://www.frost.com.

Who is Frost & Sullivan

9833-39 64

All services aligned on growth to help clients develop and implement

innovative growth strategies

Continuous monitoring of industries and their convergence, giving clients first

mover advantage in emerging opportunities

More than 40 global offices ensure that clients gain global perspective to

mitigate risk and sustain long term growth

Proprietary TEAM Methodology integrates 7 critical research perspectives to

optimize growth investments

Career research and case studies for the CEOs' Growth Team to ensure

growth strategy implementation at best practice levels

Close collaboration with clients in developing their research-based visionary

perspective to drive GIL

Focused on Growth

Industry Coverage

Global Footprint

Career Best Practices

360 Degree Perspective

Visionary Innovation Partner

What Makes Us Unique

9833-39 65

Frost & Sullivan's proprietary TEAM Methodology ensures that clients have a complete 360 Degree

PerspectiveTM from which to drive decision making. Technical, Econometric, Application, and Market

information ensures that clients have a comprehensive view of industries, markets, and technology.

Technical Real-time intelligence on technology, including emerging technologies, new R&D

breakthroughs, technology forecasting, impact analysis, groundbreaking

research, and licensing opportunities.

Econometric In-depth qualitative and quantitative research focused on timely and critical

global, regional, and country-specific trends, including the political, demographic,

and socioeconomic landscapes.

Application

Insightful strategies, networking opportunities, and best practices that can be

applied for enhanced market growth; interactions between the client, peers, and

Frost & Sullivan representatives that result in added value and effectiveness.

Market Global and regional market analysis, including drivers and restraints, market

trends, regulatory changes, competitive insights, growth forecasts, industry

challenges, strategic recommendations, and end-user perspectives.

TEAM Methodology

9833-39 66

Our Global Footprint 40+ Offices Scanning the Globe for Opportunities and Innovation

Global Hand Hygiene market

Documents

Transcript of Global Hand Hygiene market