Soap and Cleaning Compound Manufacturing in the US Industry Market Research Report from IBISWorld Has Been Updated

Though competition was stiff, the industry grew over the past five years; going forward, continually growing downstream industries will drive growth. For these reasons, industry research firm IBISWorld has updated a report on the Health Stores industry in its growing industry report collection.

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Companies are developing ecofriendly processes, generating new demand

New York, NY (PRWEB) March 20, 2014

During the past five years, the Soap and Cleaning Compound Manufacturing industry contended with steep competition. According to IBISWorld Industry Analyst Sarah Turk, “Globally based soap manufacturers inundated the market with low-cost soap products as less stringent environmental regulations translated to low operational costs.” Nevertheless, soap and cleaning compound manufacturers used ecofriendly chemicals and products to appeal to environmentally conscious consumers, stimulating revenue. However, as per capita disposable income declined in 2009, many consumers demanded low-cost, privately labeled soap and cleaning products, constraining revenue growth. Despite this trend, revenue is anticipated to grow at an annualized rate of 3.0% to $57.1 billion during the five years to 2014, including a 1.5% increase in 2014, propped up by strong, need-based demand for cleaning products from downstream markets, such as janitorial services.

As population growth slows, domestic demand for cleaning products stagnates, inciting industry operators to expand in emerging economies. Furthermore, although the dollar appreciated during the past five years, which curbed global consumer demand for US exports, the dollar still remained low compared with prerecession exchange rates. As a result, industry operators benefited from global consumer demand as high population growth translated to more households requiring industry products, bolstering industry revenue. Meanwhile, raw material prices were volatile (e.g. the price of oil, which produces petrochemical feedstock, a vital input commodity for soap manufacturers). While operators can markup soap prices to pass high input commodity costs to consumers, strong competition prevented operators from raising prices. Nevertheless, industry revenue is anticipated to grow at an annualized rate of 3.0% to $57.1 billion during the five years to 2014 due to consolidation, which lowers operational costs. Profit is expected to rise as well, driven by demand for cleaning products in bulk from downstream markets, such as janitorial services.

As per capita disposable income rises, consumers will slowly shift to relatively high-cost, brand-name soaps and cleaning products. “As a result, downstream markets, such as restaurants, will require more cleaning products due to a rise in foot traffic,” says Turk. Over the five years to 2019, industry revenue is forecast to grow.

The Soap and Cleaning Compound Manufacturing exhibits a low level of market share concentration; however, the industry is approaching moderate concentration. This trend is consistent with the industry's maturity. Soap manufacturing is a long-standing industry, and sales rely on replacement purchases because most households and commercial establishments already use soap. As a result, major companies have increasingly focused on acquiring other players to achieve growth.

For more information, visit IBISWorld’s Soap and Cleaning Compound Manufacturing in the US industry report page.

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The Soap and Cleaning Compound Manufacturing industry produces substances that loosen and remove soil from a surface for personal hygiene, sanitization or cleaning clothes, linens and furnishings. The industry does not include manufacturers of synthetic glycerin, industrial bleaches or shampoos.

IBISWorld industry Report Key Topics

Industry Performance
Executive Summary
Key External Drivers
Current Performance
Industry Outlook
Industry Life Cycle
Products & Markets
Supply Chain
Products & Services
Major Markets
Globalization & 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 Inc.
Recognized 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 US 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 Los Angeles, IBISWorld 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.


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    IBISWorld
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