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The Global Industrial Hand Hygiene Market

Outlook and Trends


Food Service and Hospitality Applications will Drive Market Growth

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October 2012

Contents

Section

Slide Numbers

Executive Summary

Hand HygieneIntroduction

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

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Executive Summary

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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.
Source: Frost & Sullivan analysis.

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Hand HygieneIntroduction

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IntroductionIndustry Overview

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.

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

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Product Segmentation
Industrial Hand Hygiene Market: Product Segmentation, Global, 2011

Hand Hygiene Products

Cleansing
Soap solutions
and other
washing solutions
for effective
cleaning

Sanitizing
Alcoholic or nonalcoholic sanitizers
used for
decontamination

Protecting

Restoring

Solutions to
protect skin from
occupational
hazards prior to
starting work

Solutions to
restore skin after
work

Wipes, Towels,
and Gloves
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.
Source: Frost & Sullivan analysis.

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Industrial Segmentation
Industrial Hand Hygiene Market: Industry Segmentation, Global, 2011

Hand Hygiene Segments

Food and
Beverage
Includes
agriculture, food
manufacturing and
processing, and
food services

Automotive Service and


Transportation

Manufacturing and
Industry

Includes automotive
after market service,
transportation, and
logistics

Includes all
manufacturing
industries such as
automotive
manufacturing,
electronics,
mining, and
engineering

Services and
Hospitality
Includes public
safety and
service,
janitorial
service, waste
disposal, and
emergency
medical staff

Source: Frost & Sullivan analysis.

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Market OverviewDistribution Channels


Key Takeaway: Companies rely more on manufacturing representatives and distribution networks to
extend their geographical reach.

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


Hand Hygiene Product
Manufacturers
General
Distributors
25.0%-35.0%

40.0%-45.0%

Direct Sales

Specialized
Distributors
20.0%-25.0%

End User

Source: Frost & Sullivan analysis.

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Global Industry TrendsIndustry Outlook

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10

IntroductionIndustry Overview
The industries covered in this market insight are:
o Food and beverages

o Automotive Service and transportation

Industrial Hand Hygiene Market:


Industrial Growth Rate, Global, 2011

o Manufacturing and industry


o Services and hospitality

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.
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5.0
Growth Rate (%)

Estimated growth rate projections for the


industries are shown in the chart.

6.0

4.0
3.0
2.0
1.0
0
Food and
Beverages

Growth
Rate (%)

4.2
3.5-5.0

Automotive
Service and
Transportation

Manufacturing
and Industrial

Services and
Hospitality

4.5
4.0-5.0

4.7
4.5-5.0

4.5
4.0-5.0

Industries

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

11

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.

Source: Frost & Sullivan analysis.

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Automotive Service and Transportation Industry

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.
Source: Frost & Sullivan analysis.

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13

Manufacturing and Industry

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.
Source: Frost & Sullivan analysis.

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14

Services and Hospitality

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.
Source: Frost & Sullivan analysis.

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15

Global Industry Scenario


Industrial Hand Hygiene Market: Industrial Opportunities, Global, 2011
North America
Industry

China
Growth

Industry

Growth

Services and
Hospitality

Services and
Hospitality

Food and
Beverage

Food and
Beverage

Manufacturing
and Industry

Manufacturing
and Industry

Automotive
Service and
Transportation

Automotive
Service and
Transportation

South America
Industry

Africa
Growth

Industry

Australia
Growth

Industry

Asia
Growth

Industry

Growth

Services and
Hospitality

Services and
Hospitality

Services and
Hospitality

Services and
Hospitality

Food and Beverage

Food and Beverage

Food and Beverage

Food and Beverage

Manufacturing and
Industry

Manufacturing and
Industry

Manufacturing and
Industry

Manufacturing and
Industry

Automotive Service
and Transportation

Automotive Service
and Transportation

Automotive Service
and Transportation

Automotive Service
and Transportation

L: Low, M: Medium, H:High


Source: Frost & Sullivan analysis.

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16

Hand HygieneEmployment Characteristics

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17

Employment CharacteristicsFood and Beverages


Food and Beverage

Industrial Hand Hygiene Market: Annual


Employment in the Food Processing
Industry, U.S., 2000-2008

Employment in food and beverage processing


is declining as food manufacturing increases in
North America, Europe, and other developed
countries because:
is

1,540

increasingly

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.

Employees (000s)

o Food manufacturing
outsourced.

1,560

1,520

1,500

1,480

1,460

1,440

2000 2001 2002 2003 2004 2005 2006 2007 2008


Employees
1,554 1,550 1,525 1,518 1,495 1,478 1,480 1,482 1,480
('000s)

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

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Overview of Occupations: Food and Beverages


Industrial Hand Hygiene Market: Overview of Occupations and Use of Hand Hygiene in the Food and
Beverages Industry, Global, 2011
Industry

Job Type

Reasons for Hand Hygiene

Hand Hygiene Products

Food and
beverages

Food processing occupations such


as butchers, fish cutters or
trimmers, and tenders of baking,
roasting, drying machines

Prevent food poisoning

Food processing operators such as


food batch makers and food
cooking machine operators

Control transmission of foodborne illnesses

Cleansing products are


used most frequently.
Sanitizing products can
be used as a
supplement.
Antibacterial hand
washing solutions are
gaining in importance.

Agriculture
Manufacturing
Processing
Food service

Food preparation workers


Food and beverage servers

Chefs and head cooks


Bartenders and waiters

Control the spread of fecal


bacteria and enteric virus

Remove visible dirt and


disinfectant hands to increase
food safety
Presence of food proteins
and fatty materials on skin

Perfume- and dye-free


cleansing solutions are
used in food handling
areas.

Restoring skin properties for


workers working in contact
with water
Source: Frost & Sullivan analysis.

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Employment CharacteristicsAutomotive Service and


Transportation
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.

5,200.0
5,000.0
Employees (000s)

Industrial Hand Hygiene Market:


Transportation Industry Employment
Forecast, U.S., 1998, 2008, 2018

4,800.0
4,600.0
4,400.0
4,200.0
4,000.0

3,800.0
3,600.0
Employees
('000s)

1998

2008

2018

4,168.10

4,504.90

4,950.40

Year

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

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Overview of Occupations
Industrial Hand Hygiene Market: Overview of Occupations and Use of Hand Hygiene in the Automotive
Service and Transportation Industry, Global, 2011
Industry

Job Type

Reasons for Hand Hygiene

Hand Hygiene Products

Servicing

Industrial operators
handling manufacturing
machinery and other
heavy and light
machines

Removal of tough, sticky


soils and adhesives

Powerful cleansing
products remove heavy
and light soils

Vehicle servicing

Removal of grease and


grime such as tar, oil, and
asphalt

Logistics
Maintenance and repair

Painting and coating


workers
Aviation maintenance

Removal of chemicalbased paints and coatings

Personnel safety and


hygiene
Skin conditioners to restore
skin health

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

Source: Frost & Sullivan analysis.

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Employment CharacteristicsManufacturing and Industry


Manufacturing and Industry

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.

25.0
Manufacturing Share (%)

Growth is highest in southeast Asian,


especially China, Japan, India, and Korea,
which
have
become
the
low-cost
manufacturing countries for developed
nations.

Industrial Hand Hygiene Market:


Manufacturing Trends for Select Countries,
Global, 1985, 1990, 1995, 2000, 2005, 2010

20.0

15.0

10.0

5.0

0
U.S.
China
Germany
India

1985
22.0
2.5
11.0
1.0

1990
20.0
3.0
11.0
1.0

1995
23.0
6.0
8.0
1.5

2000
22.0
9.0
7.0
1.8

2005
21.0
12.0
6.5
2.0

2010
20.0
18.0
6.0
2.5

Year

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

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Overview of Occupations
Industrial Hand Hygiene Market: Overview of Occupations and Use of Hand Hygiene in Manufacturing
and Industry, Global, 2011
Industry

Job Type

Reasons for Hand Hygiene

Hand Hygiene Products

Manufacturing
and industry

Automotive and parts


manufacturing

Removal of grease, paint,


dye, and coatings

Manufacturing

Metal and plastic machine


workers

Removal of and protection


from chemicals

Cleansing products
remove heavy and light
soils, chemicals, paints,
and adhesives

Chemical manufacturing
workers

Removal of heavy dirt, soil,


and grime

Workers in mining,
engineering, construction,
painting, coating, and printing

Antimicrobial solutions for


personnel hygiene

Assembling

Semiconductor processors
Stationary engineers and
boiler operators
Water and wastewater
treatment plant and system
operators

Removal of adhesives
Personnel hygiene

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

Skin restoration and


conditioning

Skin conditioners to increase


dexterity even while wearing
gloves

Welders, cutters, solderers,


and brazers
Source: Frost & Sullivan analysis.

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Employment CharacteristicsServices and Hospitality

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.

Industrial Hand Hygiene Market: Employment


Growth in Services and Hospitality Industry,
Global, 2011
Region

Employment Growth

North America

Low

High

Europe

Low

High

China

Low

High

India

Low

High

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

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Overview of Occupations
Industrial Hand Hygiene Market: Overview of Occupations and Use of Hand Hygiene in the Services
and Hospitality Industry, Global, 2011

Industry

Job Type

Reasons for Hand Hygiene

Hand Hygiene Products

Services and hospitality

Contract cleaners

Food service

Hotel service staff

Removal of microbial
contamination

Cleansing products
remove soil and dirt
Antibacterial products
reduce microbial spread

Janitorial services

Firefighters

Removal of soil, dust, and


grime

Waste disposal

Waste disposal and


handling staff

Controlling spread of
waterborne diseases

Sanitizing foam and gels


aid personnel hygiene

Janitors

Prevent food poisoning

Emergency medical
staff (paramedics)

Removal of cleansing liquids or


chemicals from the skin

Moisturizers promote
skin healing

Community and social


work
Other services

Source: Frost & Sullivan analysis.

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Occupational Health and Safety

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26

Occupational Health and Safety


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

Industrial Hand Hygiene Market: Percent


of Confirmed Food Borne Outbreaks by
Contributing Factors, U.S., 1993-1997
Others*
10.0%

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.

Improper
Holding
Temperature
37.0%

Food from
Unsafe
Source
5.0%

Inadequate
Cooking
11.0%
Contaminated
Equipment
15.0%

Poor Personal
Hygiene
22.0%

Note: *Others include toxins from food, cross contamination.


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

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Occupational Skin Diseases

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.

Industrial Hand Hygiene Market: Causes


of Occupational Health Hazards in Food
and Beverages Manufacturing, U.K.,
2011
Upper Limb
Disorders
23.0%

Mental ill
Health
29.0%

Occupational
Asthma
6.0%

Dermatitis can be of two types:


Occupational
Dermatitis
4.0%

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.
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Back Injuries
35.0%

Rhinitis
2.0%
Hearing Loss
1.0%

Source: Health and Safety Executive, and Frost & Sullivan analysis.

28

Occupational Skin Diseases (continued)


Employee absence caused by dermatitis is a serious concern. It Industrial Hand Hygiene Market: Skin
Hazards, Global, 2011
causes an average absence of two months, and if not treated
quickly, more serious long-term problems might develop.
Mechanical
Effective steps for employers to prevent occupational dermatitis
are:
Biological
Chemical
o Risk assessment: Evaluate employees exposure to skin
Skin
irritants and allergens and the duration and concentration of
Hazards
exposure.
o Control exposure by removing, substituting, or limiting contact
with skin irritants and allergens and provide good hand hygiene
Physical
facilities such as barrier creams and washing stations.
o Inform and educate employees.
Skin Hazards Examples
The CDC estimates that around 13.0 million people in the United
Biological
Parasites,
States are exposed to chemicals which may cause occupational
microorganisms
skin diseases such as dermatitis, skin cancer, and infections.
Chemical
Solvents, acids
The CDC emphasizes that contact dermatitis is one of the most
common types of occupational illness, with estimated annual costs
Physical
Extreme temperature,
exceeding $1.00 billion.
UV and solar radiation
Occupational skin diseases can be effectively countered by hand
Mechanical
Friction, pressure,
hygiene, so the potential for industrial hand hygiene products is
laceration
immense. Education and awareness will effectively drive the
market growth for hand hygiene products.
Source: Centers for Disease Control and Prevention (CDC), Frost & Sullivan analysis.
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Hand HygieneRegulatory Environment

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Hand HygieneLegislations and Regulations


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 readyto-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.
Source: Frost & Sullivan analysis.

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Hand HygieneLegislations and Regulations (continued)


Industrial Hand Hygiene Market: Legislations and Regulations, Global, 2011
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.
Source: Frost & Sullivan analysis.

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Regulatory Scenario
Industrial Hand Hygiene Market: Regulatory Scenario, Global, 2011
High
The push for regulations
in the Industrial Hand
Hygiene is strongest in
developed parts of the
globe, including North
America and Europe.

Market Growth

Europe

North America

Australia
Asia-Pacific

Low
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Degree of Regulatory Push

High

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.

Source: Frost & Sullivan analysis.

33

Hand HygieneProduct Types

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Hand HygieneCleansing Products

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.
Source: Frost & Sullivan analysis.

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Hand HygieneSanitizing Products


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.
Source: Frost & Sullivan analysis.

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Hand HygieneProtecting Products

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.

Source: Frost & Sullivan analysis.

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37

Hand HygieneRestoring Products

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.

Source: Frost & Sullivan analysis.

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38

Life Cycle Analysis by Product Type


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.

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.
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Market Stage

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.

Industrial Hand Hygiene Market: Life Cycle Analysis by


Product Type, Global, 2011

Cleansing

Sanitizing

Restoring
Protecting

Development

Growth

Maturity

Decline

Time
Source: Frost & Sullivan analysis.

39

Dispensers: Overview
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

Controlled speed and volume of products dispensed

Reduced dripping

Easy mounting systems

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.
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40

Market MetricsDrivers and Restraints

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41

Industry Segmentation
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.

Industrial Hand Hygiene Market: Percent


of Revenue by End User, Global, 2011

Industrial
30.0%

Healthcare
70.0%

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

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42

Industrial Hand Hygiene MarketIndustry Dynamics


Drivers

Industrial Hand Hygiene Market: Industry Dynamics,


Global, 2011

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.
Restraints
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.
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Legend
Hand Hygiene Hotspots
Emerging Economies
Least-developed Economies
Source: Frost & Sullivan analysis.

43

Drivers and Restraints

Outbreak of infectious
diseases

Lack of laws in
non-healthcare
industries
Denotes current impact
Denotes long-term impact

9833-39

Growing food services and


hospitality industries

Lack of awareness and


education about hand
hygiene

Low Return on Investment (ROI)


restraining investment in new
technology and market growth

Market Restraints

Market Restraints

Increasing focus on health


and well-being

Market Drivers

Market Drivers

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

Source: Frost & Sullivan analysis.

44

Industrial Hand Hygiene: Drivers


Drivers

1-2 Years

3-4 Years

5-7 Years

Increasing focus on health and well-being

Growing food services and hospitality industries

Outbreak of infectious diseases

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.
Source: Frost & Sullivan analysis.

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45

Industrial Hand Hygiene: Restraints


Restraints

1-2 Years

3-4 Years

5-7 Years

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

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.
Source: Frost & Sullivan analysis.

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46

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


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

Bargaining Power
of SuppliersMedium

Intensity of Rivalry

Bargaining Power
of CustomersMedium

Medium

Threat of New EntrantsLow/Medium

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.
Source: Frost & Sullivan analysis.
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47

Product Opportunities
Industrial Hand Hygiene Market: Product opportunities, Global, 2011

Product Type

Application

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

Opportunity Size

Low

High

Low

High

Low

High

Low

High

Source: Frost & Sullivan analysis.

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48

Product Opportunity Matrix


Key Takeaway: Cleansing products are the largest segment in the hand hygiene industry and are
expected to remain ahead of sanitizing products.
Industrial Hand Hygiene Market: Opportunity Matrix, Global, 2011
High

Cleansing
products

Market Size

Sanitizing
products

Protecting
products
Restoring
products

Low
Low

High
Growth Rate

9833-39

Source: Frost & Sullivan analysis.

49

Market and Industry Trends

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50

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

Industry Trend

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.

Impact:

High

Medium

2011-2012

2013-2014

2015-2016

Low
Source: Frost & Sullivan analysis.

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Industry Trends (continued)


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

Industry Trend

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.

2011-2012

2013-2014

2015-2016

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.

Impact:

High

Medium

Low
Source: Frost & Sullivan analysis.

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Industry Trends (continued)


Industrial Hand Hygiene Market: Industry Trends, Global, 2011-2016
Impact
Product Type
Solids, liquids,
gels, or foams

Industry Trend

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:

2011-2012

2013-2014

2015-2016

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.
Source: Frost & Sullivan analysis.

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53

Competitive Scenario

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54

Current Competitive Scenario


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.

Industrial Hand Hygiene Market: Company


Focus on Industries, Global, 2011

Industry

Rank

Food and beverages

Services and hospitality

II

Manufacturing and industry

III

Automotive Service and


transportation

IV

Industrial Hand Hygiene Market: Company


Focus on Products, Global, 2011
Product

Rank

Cleansing

Sanitizing

II

Restoring

III

Protecting

IV
Source: Frost & Sullivan analysis.

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55

Company Product Portfolio


Industrial Hand Hygiene Market: Company Profiles, Global, 2011
Company

Industry Focus

Products

Deb Group

Automotive

Food manufacturing and service

Sanitizers, pre-work creams


(protection from sun and skin irritants)
and fragrant conditioning creams

Industry (manufacturing, mining and


construction, engineering,
transportation, and warehousing)

Dispensers

Commercial (educational
establishments, leisure environments,
and public facilities)

Food service

Hand sanitizers

Transportation

Cleansing soaps

Retail

Dispensers

Food processing, service, and retail

Automotive

Manual and touch-free dispensers,


restoring creams, and general and
antimicrobial soap

Commercial (hotels, care facilities,


and educational institutions)

Diversey (Sealed-Air
Corporation)

Ecolab

Source: Frost & Sullivan analysis.

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56

Company Product Portfolio (continued)


Industrial Hand Hygiene Market: Company Profiles, Global, 2011
Company

Industry Segment

Product Segment

Georgia Pacific
Corporation

Food service
Manufacturing
Commercial (retail, lodging, and
convenience stores)

GOJO Industries

Kimberly Clark
Corporation

Food processing and service


Manufacturing
Automotive
Commercial (offices, educational
institutions, public facilities, and
convenience stores)

Aviation and automotive


Food service and processing
Manufacturing
Commercial (offices, hotels, and
educational institutions)

Dispensers (soaps, sanitizers, wipes,


and towels)
Cleansing solutions (antimicrobial and
moisturizing) and fragrant and
fragrance-free products
Hand sanitizers
Sanitizers (foam, gel, wipes, and skin
nourishing)
Soaps (foam and lotion)
Dispensers
Degreasers and hand cleaners with
scrubbing particles
Dispensers (soaps, sanitizers, wipes,
and towels)
Hand cleansers (with moisturizers,
perfume free, dye free, and with
scrubber beads)
Water-less sanitizers and
antimicrobial soaps
Source: Frost & Sullivan analysis.

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57

Company Product Portfolio (continued)


Industrial Hand Hygiene Market: Company Profiles, Global, 2011
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

Food service and manufacturing


Janitorial and public services
Commercial

Hand sanitizers (foam and gel)


Dispensers
Cleansing soaps

Whiteley Corporation

Source: Frost & Sullivan analysis.

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Strategic Recommendations

9833-39

59

Strategic Recommendations
Key Takeaway: Innovation, proximity to end users and being a one-stop solution are the key factors
to succeed in the market.
Industrial Hand Hygiene Market: Strategic Recommendations, Global, 2011

Widespread distribution
network and global reach.
Environmentally-friendly and
sustainability are excellent
value additions.

One-Stop solution for all hand


hygiene needs through a wide
product portfolio is important.
Total Market
Success Factors:
Multifunctional products,
like cleansing solutions
with restoring properties
are gaining market share.

Innovation for effective


product differentiation is
essential.

Product customization and


working closely with end-users.

Source: Frost & Sullivan analysis.

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60

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9833-39

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