Condom Manufacturing in the US Industry Market Research Report Now Available from IBISWorld

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The Condom Manufacturing industry is experiencing a slow yet steady decline in revenue as foreign producers outcompete local firms. Foreign firms are able to replicate the manufacturing process abroad and benefit from lower input costs, like labor and energy. Additionally, some firms benefit from lower rubber prices by locating condom manufacturing plants near rubber producers in Southeast Asia. Despite condom manufacturers' innovations with variety and value-added products, demand is projected to continue declining in the next five years. Consumers are expected to shift toward using more alternative birth control like pills, IUDs or patches. For these reasons, industry research firm IBISWorld has added a report on the Condom Manufacturing industry to its growing industry report collection

IBISWorld Market Research

IBISWorld Market Research

Despite falling incomes, manufacturers were forced to raise prices as input costs grew

The Condom Manufacturing industry is experiencing a slow yet steady decline in revenue as foreign producers outcompete local firms. Foreign firms are able to replicate the manufacturing process abroad and benefit from lower input costs, like labor and energy. Additionally, some firms benefit from lower rubber prices by locating condom manufacturing plants near rubber producers in Southeast Asia, says IBISWorld industry analyst Agata Kaczanowska. As such, IBISWorld estimates that the number of condom manufacturers has decreased at a 4.1% annualized rate to just 31 in 2012.

The Great Recession made markets unstable and resulted in high rubber price volatility, which forced condom manufacturers to increase prices per unit just as disposable income dropped in 2008 and 2009. “Although condoms are a relatively inexpensive form of birth control, the simultaneous yet opposing shifts in price and disposable income resulted in fewer purchases,” Kaczanowska says. As such, IBISWorld estimates that Condom Manufacturing industry revenue declined at a 3.7% annualized rate to $372.9 million in the five years to 2012. As disposable income rebounds in 2012, consumers are expected to shift toward using more expensive forms of birth control.

Birth-control methods are constantly being researched and developed. Newer alternatives pose a competitive threat to condom producers. In order to compete, condom manufacturers are also innovating improved product designs and formulas. For example, in 2011 US industry leader Church & Dwight released condoms with dual-action lubricant inside and out and condoms that are 25.0% thinner. The company also offers latex alternatives like lambskin condoms for people who prefer an all-natural product or people who are allergic to latex. Despite innovations like these, demand is projected to decline in the next five years. Consumers are expected to shift toward using more expensive alternatives of birth control like pills, intrauterine devices or patches. Furthermore, cheaper imports are projected to result in domestic industry declines. For more information, visit IBISWorld’s Condom Manufacturing report in the US industry page.

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IBISWorld industry Report Key Topics

This industry manufactures condoms, which are prophylactic devices for men and women. Usually made of latex rubber, condoms are designed to prevent the spread of sexually transmitted diseases and also guard against unwanted pregnancies. Diaphragms, sponges, intravenous and other forms of birth control are excluded from this industry.

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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