Foodservice Cleaning Products in Europe

Key takeaways from Kline’s soon-to-be-published Foodservice Cleaning Products in Europe market study

The markets for foodservice cleaning products in France, Germany, and the United Kingdom are growing moderately. Over the past two years, restaurants and lodging establishments have emerged as powerhouses of industry growth.

Key market trends including control of foodborne illness, food safety, and strict sanitation regulations are all drivers propelling growth of foodservice cleaning products.

Regulations increase cleaning frequency for end users but also push manufacturers to develop new products that protect human health and the environment. Food safety and prevention of foodborne illness are concerns for all end users but particularly those serving the public. This has led to improved sanitation practices and includes higher cleaning standards, sanitizing of hands, sanitizing of dishes and other kitchen wares, and hygiene programs and training for employees.

Manufacturers are constantly under pressure to increase margins and find other ways to remain profitable. One of the means to do that is offering more ultra-concentrated products, as this format has lower packaging costs, uses less water consumption, and has lower distribution costs than liquid RTU or other formats. There is also growing usage among end users of concentrated formats, because these ultra-concentrated formats are perceived to be more powerful and require fewer quantities which also help reduce storage space needed.

Intense competition and low brand loyalty within the market has caused leading manufacturers to become solution-oriented and try to provide higher customer value proposition. In fact, some manufacturers use other ways to overcome the risk of churn by partnering with equipment manufacturers, which gives leverage because customers source only from the chemical manufacturer that is compatible with the equipment.

The market is witnessing significant consolidation to cope with pressure and tightening regulations, which encourages M&A activity and forces smaller players off the market. Consolidation among both chemical manufacturers and distributors is happening in the region in order to widen the customer base, capitalize on local or regional know-how, better cope with the demands of increased regulations, and garner larger market shares.

The trend toward ecological, greener, and more sustainable products is growing in the region. There is a slow shift in the needs of end users for environmentally conscious cleaning, which is strengthened by EU authorities and regulations that seek eco-sustainability and development of greener products. Eco-friendly features that resonate with end users in the region include sustainability, reducing energy consumption, and packaging with lower waste, along with products that are effective and safe for employees to use. It is important to keep in mind that for end users, ecological products are still relatively expensive, and most customers cannot afford them or do not necessarily include the environmental footprint as a priority in their purchasing process.

Foodservice Cleaning Products in Europe: Market Analysis and Opportunities will be published in September 2019 and is based on hundreds of interviews with end-use decision makers to gauge usage, perceptions, and satisfaction with foodservice cleaning products. Channels of distribution including online searching and purchasing are also topics explored. Business critical issues including food safety compliance, customer ratings, and reviews such as “Scores on the Doors,” employee safety, waste reduction programs, dishwashing machine servicing and leasing programs, and technology-enabled appliances with smart features are also examined.

In addition to structured surveys of end users, which deliver a bottom-up view of the market, Kline’s seasoned staff also conducted in-depth interviews with suppliers and distributors in each country in the native language to understand the market at a more macro level. These discussions provide critical insights on key issues impacting the market including sales, reasons for growth and declines, competition, regulations, general economic indicators, cleaning trends, and knowledgeable forecasts. This two-pronged approach means that subscribers are provided a comprehensive, objective market assessment with actionable recommendations and forecasts grounded in reality. For more information on how this research can help your company with strategic planning, please contact us.

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