In the three years to 2016, prices in the absorbents market are forecast grow due to increased stability in the market, which will allow suppliers to compete more on price.
Los Angeles, CA (PRWEB) February 03, 2014
The absorbents market has a buyer power score of 4.3 out 5.0, meaning that buyers will likely be able to negotiate for a lower price. This negotiation power is due to three primary components: price trend, market structure and market risk. “The component of buyer power that is the largest contributor to this buyer power score is the price trend,” says IBISWorld procurement analyst Jonathon Noury-Elliard. In the three years to 2013, the absorbents market is estimated to decline at an annualized rate of 2.5%, while maintaining a moderate level of volatility. The moderate level of volatility is expected to be a result of volatile inputs and cost drivers, which have been the primary cause for the market's price growth. The price of absorbents is forecast to grow in three years to 2016. This is largely due to more stable input and cost drivers, which will allow suppliers to compete more heavily on price in coming years. Ultimately, this will cause other suppliers to lower their prices, increasing buyer power.
The market structure for absorbents also contributes greatly to the buyer power score.
“Because there are a large number of suppliers, competition to win market share percentage is fierce, which naturally pushes the price of absorbent products down,” says Noury-Elliard. Also suppliers in this market generate a larger profit percentage than generally associated with the industry, so there is greater opportunity for continued negotiations to lower prices further.
The final component to buyer power is the risk associated with the absorbents market. The market is estimated to have a z-score of 4.08, which is indicative of low risk of failure; however, the lowest Z-score associated with the top absorbent suppliers is 2.02, which is still indicative of low risk. This limited risk lends itself to increased market confidence, which also helps to lower prices, increasing buyer power. Major suppliers include Ecolab Inc., LyondellBasell Industries and PPG Industries Inc.
For more information, visit IBISWorld’s absorbents procurement category market research report page.
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IBISWorld Procurement Report Key Topics
This report is intended to aid buyers in the procurement of absorbents. This report includes industrial absorbents such as chemical absorbents used in oil spills and in manufacturing plants. This report excludes surgical absorbents and household absorbents, such as cotton swabs and towels.
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
About IBISWorld Inc.
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.