Sanitary Product Manufacturing in the UK Industry Market Research Report Now Updated by IBISWorld

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The Sanitary Product Manufacturing industry is undergoing a period of decline as it faces a range of challenges such as lower sales and profit margins as consumers swap branded products for cheaper, generic brand goods. Imports of cheaper and generic products are a serious threat to the industry, and have led to downsizing of domestic operations. Companies are also taking advantage of cheaper production costs in developing nations and have been offshoring their operations for decades. Despite this, manufacturers are expected to have received a welcome boost in sales from the London 2012 Olympic Games. The demand created by an influx of visitors is expected to spur demand from the hospitality sector, lifting revenue by 4.3% for the year to total £2.85 billion in 2012-13. The industry will contract over the five years through 2017-18 in a continuation of the trends already established. A strengthening pound over the next several years will support a widening of the trade gap with imports growing while exports decline. For these reasons, industry research firm IBISWorld has updated its report on the Sanitary Product Manufacturing industry.

IBISWorld Market Research

IBISWorld Market Research

Revenue receives a welcome boost in sales from the Olympics

The Sanitary Product Manufacturing industry is undergoing a period of decline as it faces a range of challenges such as lower sales and profit margins as consumers swap branded products for cheaper, generic brand goods. According to IBISWorld industry analyst Angela Kidson, “imports of cheaper and generic products are a serious threat to the industry, and have led to downsizing of domestic operations.” Companies are also taking advantage of cheaper production costs in developing nations and have been offshoring their operations for decades.

Despite this, manufacturers were expected to have received a welcome boost in sales from the London 2012 Olympic Games. The demand created by an influx of visitors is expected to spur demand from the hospitality sector, lifting revenue by 4.3% for the year to total £2.85 billion in 2012-13.

Kidson adds, “the industry has tight margins as competition is strong, input prices are volatile and operators are largely unable to pass on cost increases”. Industry net profit has been narrowing as competition from imports has risen. Employment and enterprise figures have fallen as the industry has declined and the trend is unfortunately expected to continue.

The Sanitary Product Manufacturing industry will contract over the five years through 2017-18 in a continuation of the trends already established. A strengthening pound over the next several years will support a widening of the trade gap with imports growing while exports decline.

The Sanitary Product Manufacturing industry has a medium level of market share concentration with the two major players, Kimberly-Clark and SCA Hygiene, together earning close to 50% industry revenue.

For more information on the Sanitary Product Manufacturing industry, including latest industry trends, statistics, analysis and market share information, purchase the full report from IBISWorld, the nation’s largest publisher of industry research.

IBISWorld industry Report Key Topics

Industry operators convert sanitary paper stock or wadding, as well as pulp and paper, into sanitary paper products such as facial tissues and handkerchiefs, table napkins, towels, toilet paper, disposable diapers, sanitary napkins and tampons. Final products are sold to wholesalers for distribution, straight to retailers or directly to large customers.

Industry Performance
Executive Summary
Key External Drivers
Current Performance
Industry Outlook
Industry Life Cycle
Products & Markets
Supply Chain
Products & Services
Major Markets
Globalisation & 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
Recognised as the nation’s most trusted independent source of industry and market research, IBISWorld offers a comprehensive database of unique information and analysis on many UK industries. 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 London, IBISWorld serves a range of business, professional service and government organisations through more than 10 locations worldwide. For more information, visit http://www.ibisworld.co.uk or call (020) 3008 6568.

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