Baird Report: Consumer, Commercial Cleaning Markets Will Be a Long-Term Focus Following COVID-19
Industry likely to see significant growth given heightened enterprise and consumer focus on hygiene
CHICAGO – May 5, 2020 – Amid the uncertainty of the COVID-19 pandemic, consumers and companies across industries have intensified their focus on proper cleanliness. According to a report released today by Baird Global Investment Banking, this trend is likely to have a profound and lasting impact on the hygiene sector. Baird’s report, which is based on a national survey of more than 1,000 consumers and feedback from company leaders, outlines key factors that companies in the hygiene and commercial cleaning sectors should consider as the industry evolves following COVID-19.
According to the report, history shows that significant pandemics and outbreaks arise about every ten years, supporting long-term growth in the hygiene market and an upward trend toward greater consumer and commercial hygiene needs. Since 2010, there has been a $4.8 billion increase globally on spending for household cleaners and nearly 60% of consumers anticipate spending more on cleaning and hygiene products following this pandemic.
While consumer demand for sustainable and environmentally friendly cleaning products has driven growth in the sector over the last five years, there is a renewed focus on a product efficacy. More than 95% of survey respondents were more or just as likely to purchase a cleaning product that can disinfect and sanitize as well as clean.
Similarly, nearly 70% of respondents identify hygiene as much more important today compared to 12 months ago, indicating that proper hygiene practices will play a significant factor in the venues they choose to patronize such as restaurants, hotels, airlines, retailers and even office environments. Most employees will also expect more resources from their employers to maintain proper hygiene at work. As offices open following COVID-19, employers will work to mitigate an estimated $225 billion annual cost of employee sick days by ensuring a sanitary workplace environment.
As a result, Baird believes there will be ongoing growth in the overall hygiene sector, especially for strong brands with existing global capabilities, effective products and an established distribution network. Specifically, companies involved in foodservice supply chain and those that develop modern cleaning technologies and solutions, or that tailor their products to specific surfaces or end markets could thrive as demand continues following COVID-19.
For more information about Baird’s hygiene report and banking team, visit our website.
About Baird Global Investment Banking
Baird is a leading global investment bank focused on the middle market with approximately 400 banking professionals in the U.S., Europe and Asia. We provide corporations, entrepreneurs, private equity and venture capital firms with in-depth market knowledge and extensive experience in merger and acquisition, debt advisory and equity financing transactions. Since 2015, Baird has completed almost 580 advisory transactions, representing more than $167 billion in transaction value, and nearly 360 financings, raising more than $112 billion. Committed to being a great place to work, Baird ranked No. 13 on FORTUNE’s 100 Best Companies to Work For in 2020 – its 17th consecutive year on the list.
Putting clients first since 1919, Baird is an employee-owned, international wealth management, asset management, investment banking/capital markets, and private equity firm with offices in the United States, Europe and Asia. Baird has approximately 4,600 associates serving the needs of individual, corporate, institutional and municipal clients and more than $305 billion in client assets as of December 31, 2019. Committed to being a great workplace, Baird ranked No. 13 on the 2020 Fortune 100 Best Companies to Work For® list. Baird is the marketing name of Baird Financial Group. Baird’s principal operating subsidiaries are Robert W. Baird & Co. Incorporated in the United States and Robert W. Baird Group Ltd. in Europe. Baird also has an operating subsidiary in Asia supporting Baird’s investment banking and private equity operations. For more information, please visit Baird’s website at www.rwbaird.com.
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