Prices are forecast to decelerate even further through 2017 due to declining raw material costs, although demand remains stable
Los Angeles, CA (PRWEB) October 08, 2014
Buyers of detergent have a buyer power score of 3.4 out of 5, which indicates favorable market conditions for buyers. Although detergent prices have displayed steady growth during the three years to 2014, buyer power has been predominantly supported by a high level of market fragmentation and rising import penetration, which has contributed to intense competition among suppliers. “Low price volatility has also aided buyers in forecasting their budgets and has protected them from sudden, unforeseen price increases,” according to IBISWorld business research analyst, Kiera Outlaw.
In 2014, market share concentration among detergent suppliers is expected to be low. As a result, buyers are exposed to considerable price-based competition, which increases their leverage during negotiation. Unfortunately for buyers, average low profit margins somewhat offset the benefits of a fragmented market. Although suppliers compete based on price, tight profitability indicates that buyers will not experience significant variation in prices among suppliers. The low availability of substitutes further hinder buyer power. There are no viable substitutes for detergents, especially within the laundering sector. Thus, buyers do not have access to substitute goods that they can use as leverage during negotiations.
“Despite a handful of negative market characteristics, buyers have experienced considerable negotiation power during the past three years,” says Outlaw. The rise in import penetration has been paramount in subduing price growth during the period and is projected to continue to do so through 2017. Buyers have also benefited from low price volatility during the period despite significant volatility in input costs. Low price volatility has allowed buyers, assured that sudden price shocks are unlikely to occur, to procure their detergent needs with greater confidence. Major vendors include The Clorox Company, Ecolab Inc. and The Dow Chemical Company. For more information, visit IBISWorld’s Detergent procurement category market research report page.
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IBISWorld Procurement Report Key Topics
This report is intended to assist buyers of detergent. According to the electrical charge of the surfactant, detergents can be chemically classified into three categories: anionic, cationic, and nonionic and zwitterionic detergents. Detergents are used for a variety of applications including laundering, floor care maintenance and as additives in fuel; they are also available in powder or concentrated solutions. Detergents are available through manufacturers and wholesalers while detergents sold through retailers are typically for consumer use. This report excludes other surfactants such as anti-foaming, foaming, dispersing and wetting agents.
Recent Price Trend
Product Life Cycle
Total Cost of Ownership
Supply Chain & Vendors
Supply Chain Dynamics
Supply Chain Risk
Market Share Concentration
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.