Russian Cleaning Services Market

2024: The number of cleaning companies is decreasing in Russia due to the outflow of labor migrants

The number of new companies and individual entrepreneurs in the field of cleaning for the period from January to October 2024 decreased by 14%, amounting to about 6 thousand organizations. Such data on December 6, 2024 was presented by the Kontur. Focus service, noting that this is the minimum indicator over the past four years.

According to Kommersant, the main reason for the reduction in the number of new cleaning companies was the outflow of labor migrants. According to the director of the Migrant-Service platform, Andrei Kladov, in 2024, 1 million migrants left Russia.

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Фото: Freepik

Natalya Afanasova, director of real estate management at CORE.XP, notes that until 2022, about 80% of the personnel in the cleaning sector were migrants from abroad. "In 2024, the labor deficit in the cleaning segment exceeded 20%, which led to an increase in wages by 35-40%," emphasizes Denis Trotsenko, CEO of CMWP management company.

Pavel Lyulin, vice president of the Union of Shopping Centers, points to tougher control by the tax service, which requires cleaning companies to whitewash their businesses, which makes entering the market of new operators more costly and difficult. For small companies, this becomes a serious obstacle due to the growth of administrative and financial costs.

At the beginning of November 2024, 38.6 thousand cleaning organizations worked in Russia, which is 2.8% more than in 2023. In the first ten months of 2024, 5 thousand companies were liquidated, which is 12% less than in the same period in 2023. According to Anton Yakovlev, an expert at Kontur. Focus, the cleaning segment is becoming more and more popular among the self-employed.

According to the Unified Register of SMEs, at the end of November 2024, 11.96 million self-employed were registered in Russia, which is 32% more than in 2023. On the Профи.ру platform in January-November 2024, the number of orders increased by 20%, and the number of specialists responding to such requests - by 15%.^[1]

2023

Sales of goods for cleaning premises in Russia for the year increased by 17% to 49 million units

The volume of sales of goods for cleaning premises in Russia reached 49 million units in 2023, which is 17% more than in 2022, the analytical company BusinessStat TAdviser got acquainted with such data in December 2024.

According to experts, over the period from 2021 to 2023, sales of cleaning equipment increased by 29%. The main growth drivers were active real estate purchases against the background of the expected completion of preferential mortgage programs, as well as an increase in the tariffs of cleaning companies.

The online hypermarket "ВсеИнструменты.ру" recorded an increase in demand for cleaning equipment by one and a half times in 2023. The largest growth was shown by Novosibirsk - 157%, Volgograd - 120%, Kazan - 115% and Omsk - 113%.

A significant increase in purchases was also observed in Nizhny Novgorod - 104%, Moscow - 92%, Yekaterinburg - 90%, Chelyabinsk - 75% and Samara - 64%. The demand for rags and napkins has grown especially - 78%, garbage containers - 76%, steam generators - 49%.

The most popular products included brushes, mops, dumpsters, vacuum cleaners, sewage and pipe cleaners, steamers, sponges and wipes, anti-inakipin, technical salt, anti-suction and high-pressure washers.

The increase in sales was also influenced by the activity of dedicated online DIY segment stores offering products for construction, renovation, home, garden and summer cottages.

Analysts predict that in the medium term, the growth in sales of cleaning equipment may slow down due to the expected decline in the volume of housing introduced and a decrease in the number of households.

Over the five-year period from 2019 to 2023, the volume of the Russian market for cleaning goods showed steady growth. In 2019, sales amounted to 37 million units, in 2020 - 40 million units, in 2021 - 38 million units, in 2022 - 42 million units, reaching a maximum of 49 million units in 2023.^[2]

Increase in spending on cleaning services by 10.2% to 552.8 billion rubles

In 2023, the turnover of the cleaning market Russia reached 552.8 billion. rubles This is 10.2% more compared to 2022, when the costs in this area were estimated at 501.7 billion rubles. The growth is due to an increase in the volume of construction of residential and non-residential buildings, an increase in the popularity of cleaning services in the private sector and the transfer of auxiliary services (in particular cleaning) to large companies. outsourcing This is stated in a study by BusinesStat, the results of which were released in mid-October 2024.

According to estimates, in 2019, the cost of cleaning services in the Russian Federation amounted to 394.3 billion rubles. In 2020, expenses decreased by 2% - to 386.3 billion rubles. The reason for the fall was the restrictions imposed against the backdrop of the COVID-19 pandemic: many organizations suspended their activities, and therefore the need for cleaning the premises decreased. Months of quarantine were not easy for many enterprises engaged in professional cleaning, due to the departure of offices and industries for forced vacations and remote work. But already in the second half of 2020, the situation began to improve: the volume of cleaning and decontamination of premises and transport increased.

In 2021, there was an increase of 9.8% with a result of 424.1 billion rubles, and in 2022 the increase was another 18.3%. The turnover of operators increased as a result of an increase in tariffs for services and an increase in the area served.

The list of the largest enterprises in the industry includes RTK LLC, Partners Krasnoyarsk LLC, OMS-Center LLC, Top Service LLC and Modern Technologies LLC. As a rule, the range of cleaning companies includes such services as one-time and regular cleaning, general cleaning, cleaning after construction and repair, washing windows and facades of buildings, dry cleaning of furniture and carpets, cleaning of territories and public areas.^[3]

The volume of the Russian market for cleaning services for the year increased by 11.5% and exceeded 400 billion rubles

In 2023, the volume of the Russian cleaning services market exceeded 400 billion rubles. Growth compared to the previous year was recorded at 11.5%, as stated in a study by NeoAnalytics, the results of which were published at the end of February 2024.

The cleaning segment in Russia demonstrates stable positive dynamics. The active development of the market began in the late 90s, and was associated with the arrival of representative offices of foreign companies in the Russian Federation, which formed a culture of cleaning in non-residential premises. Since 2000, the industry has expanded independently due to the increase in the number of shopping centers, offices, restaurants, production sites. A certain slowdown in growth rates was recorded after 2013, which was due to a decrease in the number of new non-residential areas commissioned.

The study says that in 2017, the cost of cleaning in Russia amounted to approximately 137.7 billion rubles. Thus, by 2023, the indicator increased more than 3 times, reaching a maximum. In the total amount of costs, large, medium and small organizations accounted for about 68%. From a regional point of view, in 2023, the top three included the Central Federal District (CFD) with a share of approximately 35.9%, the North-Western Federal District (NWFD) with 18.9% and the Ural Federal District (UFO) with 11.4%.

As of the end of 2023, due to increased competition and a slowdown in growth, cleaning companies are looking to diversify their business, often offering customers additional services that are not directly related to cleaning. These can be catering (catering), waste management, landscaping, etc. Cooperation with organizations offering a comprehensive set of services allows owners of commercial space not to maintain staff in their staff, which is responsible for administrative and economic work and performs engineering functions.^[4]

2015

In November 2016, the DISCOVERY Research Group marketing agency completed a study of the cleaning services market in Moscow and the Moscow Region.

The volume of the cleaning services market in Moscow and Moscow Region in 2015 amounted to 15.4 billion rubles, which is 10% more than in 2014. The main market share is the cleaning market Moscow - 9.4 billion rubles. The share of the Moscow and MO cleaning market in the total volume of the Central Federal District market amounted to 69% in 2015. In 2014, the share of Moscow and MO was 65%.

The main share of clients of cleaning firms in Moscow and Moscow Region is retail and wholesale enterprises. Due to the impact of the crisis, many retail premises in Moscow continue to be empty. This leads to the fact that cleaning companies lose their potential customers and are forced to change the strategy of the business in order to remain in the market. However, many cleaning companies have practically no chance of remaining on the market.

Some companies try to reduce their costs, including through dishonest methods (purchasing cheaper cleaning products). However, the authority of the cleaning company comes out on top, so only competitive firms will remain in the cleaning market in Moscow and the Moscow region.

2014

The market for cleaning services in 2014 amounted to 81.2 billion rubles, which is 2.9% less than in 2013. The volume of the cleaning services market in Russia in 2015 amounted to 80.4 billion rubles, which is 1% less than in 2014. For the period from 2007 to 2015. The cleaning market in Russia is developing ^[5].

In 2015, the largest share of the cleaning services market belongs to the Central Federal District - 28%. This is followed by the North-West Federal District - 24%. The Volga Federal District closes the top three - 17%.

The cleaning market in Russia is determined by the development of several federal districts where cleaning services are most in demand (Central Federal District, North-Western Federal District, Volga Federal District, Siberian Federal District). Accordingly, it is possible to talk about the development of the cleaning services market, starting from realities in each specific region.

Despite the fact that it is quite easy for new companies to come to the Russian cleaning market, the development of the industry is hampered by many factors.

As a result of the crisis of 2014-2015, the share of vacant retail and office premises reached its maximum values ​ ​ in 2016 due to a significant increase in rental rates. As a result, the area of ​ ​ premises requiring cleaning is reduced.

Notes