As a greater percentage of the population acquires health insurance, demand, and potential prices, for antiseptics will rise.
Los Angeles, CA (PRWEB) September 26, 2013
Antiseptics have a buyer power score of 3.7 out of 5; scores closer to 5 represent better negotiating conditions for buyers. Prices of antiseptics increased over the past three years due to steady demand from buyers and the essential nature of antiseptics in the medical field. “As the US population lives longer and the number of seniors grows, patient visit numbers are expected to increase in the coming years,” says IBISWorld procurement analyst Andrew Rebhan, “increasing the use of and need for antiseptics.” Additional demand is expected to come as a result of more people being covered by health insurance through the Affordable Care Act. These increases in demand are expected to cause the average price of antiseptics to increase over the next three years.
Despite the forecast increase in prices, buyers will maintain strong buyer power. For many buyers, antiseptics are a necessary purchase, but one in which the risks involved are not very high due to their widespread use and the standardized composition of their ingredients. “Price volatility for antiseptics has remained low and is not expected to heavily influence buyer power over the next three years,” says Rebhan. While contracts for higher-volume purchases will help to combat rising prices, buyers are not at risk of steep changes in cost if they purchase antiseptics without contracts.
The majority of sales of antiseptics to hospitals and clinics are through wholesalers. The market is moderately concentrated, with three large distributors holding a significant share. As external cost pressures have mounted, a trend of consolidation has started to take place, reducing the range of supplier choices for buyers. Buyers benefit in negotiations with wholesalers due to the fact that antiseptics have strong generic offerings, which are priced lower than brand-name products. Low switching costs and low specialization of antiseptics also strengthen buyer bargaining power. For more information, visit IBISWorld’s Antiseptics procurement research report page.
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IBISWorld Procurement Report Key Topics
This report is intended to assist buyers of antiseptics, which encompass a variety of antimicrobial chemical substances that are used to prevent and treat infections on bodily tissue or mucous membranes by killing germs and weakening bacteria. Common antiseptics include alcohol, iodine compounds and hydrogen peroxide, which are available in ointments, solutions or powders. This report focuses on antiseptics intended for medical use, but excludes antibiotics, hand sanitizers and antibacterial soap. Suppliers discussed in this report are primarily wholesale distributors, with some discussion regarding how manufacturers influence operations. Antiseptics are distributed to different groups, including hospitals, surgical centers, clinics and other health facilities.
Recent Price Trend
Product Life Cycle
Total Cost of Ownership
Supply Chain & Vendors
Supply Chain Dynamics
Supply Chain Risk
Market Share Concentration
Vendor Financial Benchmarks
Buying Lead Time
Key RFP Elements
Buyer Power Factors
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IBISWorld is one of the world's leading publishers of business intelligence, specializing in Industry research and Procurement research. Since 1971, IBISWorld has provided thoroughly researched, accurate and current business information. With an extensive online portfolio, valued for its depth and scope, IBISWorld’s procurement research reports equip clients with the insight necessary to make better purchasing decisions, faster. Headquartered in Los Angeles, IBISWorld Procurement 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.