Iberian Personal Protective Equipment Market, Forecast to 2023

A recovering economy, coupled with increasing foreign direct investment, is expected to positively influence industrial growth in the Iberian region in the coming years. Rising greenfield projects in sectors such as automotive, industrial machinery, real estate, and consumer products is likely to support the adoption of PPE. Improving labor markets in Portugal and Spain will act as a catalyst to propel the adoption rates of PPE in Iberia. Developing a robust regulatory framework will help to raise awareness regarding work safety procedures and also guide end users to choose the appropriate safety equipment. Collaborating with multinational companies will help regional market participants achieve the first-mover advantage and also gain a competitive edge over other manufacturers in the region. Focus on product development with well-defined end-user training programs will further help market participants to expand their business potential. Iberia is highly price sensitive, with good value for money featuring among the top 3 customer requirements when selecting a PPE product. End users in the region value comfort and aesthetics as much as functional protection. Customers are increasingly expecting distributors to satisfy their needs for not just all PPE types, but also other industrial consumables. The region’s customer base is spread over countries with different industries and enterprises of different sizes. Thus, customers prefer to have a wide variety of options to choose from based on their needs and budgets. Competitive price, stock availability, short lead times, and the ability to provide adequate guidance regarding PPE selection are some of the key requirements of end users. Majority of PPE sales in Iberia is carried out by distributors. Bunzl plc has established itself as a key industrial distributor by acquiring Juba and MARCA. Local distributors have partnered with major industry participants such as 3M, Ansell, Honeywell, Juba, and Showa Best to market and distribute their products in the region. Most distributors also offer local as well as international brands in order to serve customers with varying safety budgets. Competitive prices, extensive product offering, and the ability to serve as a one-stop shop for customers are the key unique selling propositions (USP) for a distributor and often result in strengthening customers’ trust and the vendor’s brand reputation. Given the high barriers to entry, not many international distributors are active in the Iberian PPE market. General industrial, construction, and automotive are the key industries which are likely to support the revenue growth for the PPE market during the forecast period. Furthermore, declining unemployment rates across the region are expected to play a pivotal role in increasing PPE adoption rates.

Industrial growth rate, coupled with employment growth, is the key factor that is expected to influence the growth of the PPE market in Iberia. A stringent work safety regulatory framework which is in line with what is followed in other major countries in Europe will also be vital for market growth in the region. Both Spain and Portugal have recovered from harder economic times. After economic and political reforms implemented by the government under the guidance of the International Monetary Fund (IMF) and the European Union (EU), Portugal freed itself from international funding assistance in 2014. Since then, its economy has shown strong recovery. In Spain, the labor market has improved supported by wage moderation. Industrial sector continues to account for the largest share of the labor force. Both Spain and Portugal have witnessed strong economic recovery. A highly accommodative euro area monetary policy, coupled with an effective fiscal policy, has played a key role in reducing unemployment rates and supporting domestic industrial demand. Meanwhile, increasing dwelling prices have played a key role in supporting investments into the real estate sector. Rapid growth in the tourism sector, together with increasing export demand across various manufacturing sectors, has supported economic growth across the region. Despite this strong economic recovery witnessed in the region, sustaining an inclusive growth remains a key challenge.