Grease Trap Cleaning in the US Industry Market Research Report Now Available from IBISWorld

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Industry revenue suffered during the recession. Despite the necessary nature of grease trap cleaning, restaurants, cafeterias and hotels postponed services and took on some grease trap cleaning themselves in order to cut costs. As the economy recovers, downstream industries will increase their demand for industry services. In addition, new technology will increase the recyclability and commoditization of greases and oils. As the emphasis on recycling increases, stricter regulations and financial penalties on food services establishments that do not properly dispose of fats, oils and greases will continue to push up demand for grease trap cleaning services. These factors will boost revenue and profit. For these reasons, industry research firm IBISWorld has added a report on the Grease Trap Cleaning industry to its growing industry report collection.

IBISWorld Market Research

IBISWorld Market Research

A recovery for downstream clients is driving demand growth for grease trap cleaning services

Revenue for the Grease Trap Cleaning industry has declined at an annualized rate of 0.6% to $389.8 million in the five years to 2012. In spite of this decline, the demand for grease trap cleaning is relatively stable. Most municipalities require grease traps for commercial establishments to be cleaned regularly to prevent the buildup of fats, oils and grease (FOG), which can cause raw sewage leaks and otherwise costly maintenance of sewer systems. Nevertheless, industry demand remains closely linked with the demand for food service establishments, including fast-food restaurants and chain restaurants.

Unfortunately for industry operators, a decline in per capita disposable income during the recession caused many consumers to eat at home rather than choose a night on the town. Similarly, a decline in profit at many food service establishments caused restaurants to forgo scheduled cleaning more often. These factors reduced demand for grease trap cleaning during the recession, causing industry profit margins to decline and the number of industry enterprises to decline to 456 in the five years to 2012. However, recent economic recovery is helping drive industry growth once again, and industry revenue is expected to increase in 2012. According to IBISWorld industry analyst Kevin Culbert, the Grease Trap Cleaning industry has a low level of market share concentration. This is largely due to the fact that the majority of the industry's operators services local restaurants, hotels, schools and businesses within a limited geographic scope to contain transportation expenses. Consequently, industry operators typically confine their operations on a local or regional basis, limiting the overall market share concentration of the industry. The majority of companies in the industry operates from a single facility and employs fewer than nine full-time employees.

In the five years to 2017, industry revenue is forecast to increase. Rising disposable income will lead more consumers to visit restaurants, which will ultimately cause food service establishments to invest in regular maintenance and cleaning of grease traps. Furthermore, stricter financial penalties are expected against businesses that do not properly dispose of FOGs, especially as more emphasis is placed on recycling, says Culbert. Over the next five years, more research will be put into capturing and separating FOGs from liquid waste. This will particularly be the case for brown grease, the majority of which currently ends up in landfills. However, new technology is being explored that allows brown grease to be transformed into a variety of products, including oil and organic solids. As such, grease is expected to become more commoditized, helping to boost industry profit margins in the process. For more information, visit IBISWorld’s Grease Trap Cleaning report in the US industry page.

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IBISWorld industry Report Key Topics

This industry cleans and maintains grease traps to avoid unnecessary backup in sewage systems. Grease traps are plumbing tools that are used to intercept greases before they enter a wastewater system.

Industry Performance
Executive Summary
Key External Drivers
Current Performance
Industry Outlook
Industry Life Cycle
Products & Markets
Supply Chain
Products & Services
Major Markets
Globalization & Trade
Business Locations
Competitive Landscape
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Barriers to Entry
Major Companies
Operating Conditions
Capital Intensity
Key Statistics
Industry Data
Annual Change
Key Ratios

About IBISWorld Inc.
Recognized as the nation’s most trusted independent source of industry and market research, IBISWorld offers a comprehensive database of unique information and analysis on every US industry. With an extensive online portfolio, valued for its depth and scope, the company equips clients with the insight necessary to make better business decisions. Headquartered in Los Angeles, IBISWorld serves a range of business, professional service and government organizations through more than 10 locations worldwide. For more information, visit http://www.ibisworld.com or call 1-800-330-3772.

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Gavin Smith
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