The Benelux personal protection equipment (PPE) market generated a revenue of € 595.3 million in 2018 and is expected to expand at a compound annual growth rate (CAGR) of 2.9% to reach € 686.2 million in 2023. The market is analyzed in terms of 8 product categories: Above-the-neck protection, protective apparel, respiratory protection, disposable hand protection, non-disposable hand protection, protective footwear, fall protection, and gas detection. It currently depicts moderate growth owing to continuing industrial development, especially in sectors such as chemicals, pharmaceuticals, food processing, oil & gas, machinery, electrical engineering, and metal (MEM), automotive, and steel.

The Benelux market has a mix of both local and global PPE manufacturers. Global brands still dominate the market; however, local manufacturers present a tough competition to these global players. The region has a large number of market participants ranging from small companies that focus on a single type of equipment to a few large multinational corporations that manufacture and supply a wide range of sophisticated safety products. Manufacturers are looking to become a one-stop shop for end users; hence multiple M&A activities are taking place in the wider Western European region. Market segments such as gas detection, respiratory protection, industrial protective clothing, and fall protection are far along the maturity curve, driving the need for further consolidation.

Both direct sales (about 30% to 40%) and distribution channels are the prominent modes of product distribution in the Benelux PPE market. Direct sales is favored for big projects and is undertaken by the manufacturers themselves; however, the remaining 60% to 70% of the sales is done through distribution channels. The Benelux market has a strong distribution structure due to the presence of both local and global manufacturers. Apart from distributors, the market also has end-to-end consulting companies who advice end users on the types of products to be used based on the available facilities at their respective workplaces.

Benelux has a safety conscious end-user base. Commoditization is inversely proportional to the degree of technology associated with it. Protective apparel, hand protection, (both disposable and non-disposable) and respiratory protection markets are likely to contribute the largest revenues during the forecast period.

Market growth will be driven by replacement cycles, product upgrades, and increased spending on infrastructure. Efforts are underway to increase compliance rates, by exerting pressure on end users to adhere to regulations and avoid penalties. These moves are set to create increased demand for PPE products in the region. Favorable policies such as shifting the tax burden from the labor force and removal of inefficient tax expenditures by the local governments help improve the employment rates. Such developments also help to boost revenues for the PPE market in the region.

Author: Arun Ramesh