New York, NY (PRWEB) May 26, 2014
The Grease Trap Cleaning industry has expanded over the past five years as demand for the markets it serves, including restaurants and other food service establishments, have benefited from increased consumer spending. Demand for grease trap cleaning is relatively stable due to strict local and state regulations that prohibit the discharge of greasy sewerage into the main sewer systems. 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. For this reason, industry demand remains closely linked with demand for food service establishments, including fast-food restaurants, school and corporate cafeterias and hotel restaurants. As a result of growth in these segments, Grease Trap Cleaning industry revenue is expected to grow 1.4% per year on average to $417.9 million over the five years to 2014, including growth of 2.4% in 2014.
According to IBISWorld Industry Analyst Andy Brennan, “The industry has been helped by the high price of yellow grease over the past five years, which has created an incentive for restaurants to properly maintain and clean their grease traps.” The pursuit of alternative fuels has intensified, helped by government incentives for biofuel. Yellow grease can be recycled into biodiesel and be used in a growing number of products, including soap, makeup, detergents, livestock feed and rubber.
“The industry is forecast to grow steadily over the five years to 2019,” says Brennan. 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. 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. Technology that allows brown grease to be transformed into a variety of products, including oil and organic solids is currently in its infancy, but will likely become more efficient over the next five years. 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 in the US industry report page.
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IBISWorld industry Report Key Topics
The Grease Trap Cleaning 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.
Key External Drivers
Industry Life Cycle
Products & Markets
Products & Services
Globalization & Trade
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Barriers to Entry
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