Industry participants will continue to contend with challenging trading conditions and a volatile cost base.
Melbourne, Australia (PRWEB) January 26, 2014
Representing roughly 6.0% of the country's overall chemical production industry (by revenue), the Soap and Cleaning Compound Manufacturing industry in Australia has a long and varied history. The industry forms part of Australia's formulated hygiene, cosmetic and specialty products industry, which has an economic footprint worth $10 billion in annual retail sales (according to industry body Accord Australasia Ltd). According to IBISWorld industry analyst Arna Richardson, “industry products are designed and formulated using simple chemistry, but the industry itself is dynamic and characterised by strong product innovation as manufacturers compete to retain consumer interest.” A continued stream of new, enhanced, repackaged, reformulated and eco-ethical products have been introduced over the past five years. This trend has helped partially offset falling sales volumes in older product categories. However, overall sales have still trended downwards over the period. Over the five years through 2013-14, industry sales have fallen by 4.8% annualised as the industry contracted. For 2013-14, the industry is expected to post sales of $2.0 billion representing a contraction of 1.9% on the previous year. As in the previous three years, industry participants will continue to contend with challenging trading conditions and a volatile cost base. The industry exhibits a low level of concentration. The only two major players are Colgate-Palmolive Pty Ltd and Unilever Australia (Holdings) Proprietary Limited.
One of the predominant themes currently characterising the industry is the gradual move towards green cleaning and the production of eco-ethical products. Regulatory pressures (including those relating to detergent phosphate ingredients) are aiding this development, as the industry seeks to address sustainability concerns and become more environmentally conscious and responsible. “This trend is expected to shape the industry in the years to come and drive some growth in an otherwise stagnant industry,” says Richardson.
While the rate of technological change in the Soap and Cleaning Compound Manufacturing industry is set to post a modest recovery after a difficult period characterised by falling sales volumes. For this reason, industry research firm IBISWorld has updated its report on the Soap and Cleaning Compound Manufacturing industry in Australia. industry is not expected to be high over the next five years, intense competitive pressures among the major players will lead to the continuous introduction of innovative new products, along with the constant repositioning of existing brands. This will encourage the continued divestment of less profitable product ranges and a growing focus on the manufacture of private-label product lines.
For more information, visit IBISWorld’s Soap and Cleaning Compound Manufacturing in Australia report industry page.
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IBISWorld industry Report Key Topics
This industry manufactures various cleaning products including soap products and other detergents, surface-active agents, polishes and specialty cleaning preparations. It is involved in the manufacture of products such as disinfectants, toothpaste, denture cleaners, glycerine and candles. The products are then sold to downstream industrial users, and to the household and commercial market segments.
Key External Drivers
Industry Life Cycle
Products & Markets
Products & Services
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Basis of Competition
Barriers to Entry
Technology & Systems
Regulation & Policy
About IBISWorld Inc.
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 every Australian 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 Melbourne, IBISWorld serves a range of business, professional service and government organisations through more than 10 locations worldwide. For more information, visit http://www.ibisworld.com.au or call (03) 9655 3886.