Low levels of per capita disposable income hindered demand from the household market.
Los Angeles, CA (PRWEB) June 24, 2013
Over the past five years, the performance of the Disinfectant Manufacturing industry has been volatile. "The industry is affected by the performance of downstream consumers, including households, hospitals, accommodation companies, janitorial service providers and restaurants," IBISWorld industry analyst Deonta Smith says.
The suppressed levels of per capita disposable income hindered demand from the household market. The recession negatively impacted this segment, leading to a significant reduction in individual expenditures. Fortunately for the industry, recent health concerns have increased the importance of using disinfectant products for cleaning surfaces. There was a rapid rebound in revenue driven by the outbreaks of influenza H1N1 (swine flu), avian influenza, and severe acute respiratory syndrome (SARS). "In 2013, household expenditure on disinfectant products will account for the majority of the industry's revenue," Smith says. Over the past five years, exports have also helped boost demand for disinfectant products. As a result, industry revenue has risen at an annualized rate of 1.3% to $679.2 million over the five years to 2013, including a 2.1% jump in 2013.
The Disinfectant Manufacturing industry exhibits a medium level of market share concentration. IBISWorld estimates that the industry's top two players, The Clorox Company and Lysol, account for less than 25.0% of industry revenue in 2013. Sales in the Disinfectant manufacturing are reliant on replacement purchases because most households and commercial establishments already use disinfectant products. As a result, major companies have increasingly focused on acquiring other players to achieve growth. Furthermore, industry operators have consolidated in response to consolidation within downstream markets, such as supermarkets and mass merchants. This allows the industry to have greater bargaining power over prices. In addition, while there are a number of small- and medium-size companies that serve niche markets, the major players make up a dominant portion of industry revenue. In the five years to 2018, the number of industry operators is expected to contract.
Sustained growth in most downstream service markets will boost demand for the industry's services, resulting in a forecast increase in revenue in the five years to 2018. Demand for disinfectant products is also set to get a boost from increased household expenditure as disposable income levels continue to increase. Over the next five years, the number of firms is forecast to decrease as the growing popularity of well-known disinfectant brands leads to lower consumption of lesser-known items. Also, increased consolidation in downstream markets will spur consolidation among disinfectant manufacturers in order to maintain negotiating power with buyers. Therefore, IBISWorld anticipates that enterprise numbers will slightly decrease in the next five years. For more information, visit IBISWorld’s Disinfectant Manufacturing in the US industry report page.
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IBISWorld industry Report Key Topics
This industry manufactures disinfectants for household and industrial uses. Disinfectants are substances that kill or inhibit growth of harmful microorganisms. Products used for the disinfection of human hygiene, veterinary hygiene and drinking water are excluded from 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
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