During the recession, companies focused on product pricing to gain an advantage
Los Angeles, CA (PRWEB) November 30, 2012
Despite a struggling economy, the Teeth Whitening Product Manufacturing industry has been able to achieve low growth over the past five years. A steep decline in per capita disposable income from 2008 to 2010 negatively affected industry growth as consumers were no longer able to spend as much on discretionary items like teeth whitening products. Furthermore, lower consumer demand combined with an increasingly saturated market caused demand from the industry's top downstream retailers (e.g. pharmacies and drug stores) to slow. As a result, IBISWorld expects industry revenue to grow at an annualized rate of only 0.9% in the five years to 2012. However, as the economy turns the corner, revenue is estimated to increase 3.7% in 2012, totaling $382.7 million, according to IBISWorld industry analyst Eben Jose.
Manufacturers faced several challenges over the past five years, including pressure from external competitors like dentists and beauty salons that offer teeth whitening procedures. Additionally, internal competition accelerated as companies focused on product pricing to gain an advantage in the Teeth Whitening Product Manufacturing industry. “This competitive pressure forced companies to increase spending on the automation of production processes to lower costs and maintain profit margins,” Jose says. As a result, the number of employees decreased at an average annual rate of 1.1% to 913 employees in the five years to 2012. Private-label brands have put even more pressure on manufacturers as downstream retailers use the brands to prop up their own margins. The presence of private-label brands is expected to play a key role in the industry's evolution over the next five years as industry firms invest more in research and development and expand their distribution networks to include emerging markets to make up for lost revenue.
Over the next five years, industry growth is expected to pick up momentum as improvements in the economy encourage consumers to return to their pre-recession spending habits. With more disposable income, consumers will purchase more teeth whitening products and downstream retailers will order more volume from domestic manufacturers to satisfy consumers. As a result, IBISWorld projects industry revenue will increase in the five years to 2017. Market acceptance of private-label brands will hinder industry revenue and profit margins along with persistent competition from dentists. Nevertheless, strong name-brand recognition among consumers will keep the industry afloat over the period. IBISWorld estimates that the industry's top three players generate more than half of industry revenue in 2012, exhibiting a medium level of market share concentration. For more information, visit IBISWorld’s Teeth Whitening Product Manufacturing in the US industry report page.
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IBISWorld industry Report Key Topics
This industry includes companies that manufacture tooth whitening or tooth bleaching treatments by chemical or mechanical action. These products use bleach or other materials to make teeth look whiter, primarily for cosmetic and aesthetic purposes. Products used in teeth whitening procedures performed by dentists and beauty salons are not included in this industry.
Key External Drivers
Industry Life Cycle
Products & Markets
Products & Services
Globalization & Trade
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Barriers to Entry
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.