Demand for ecofriendly disinfectants will strengthen and compel growth in disinfectant prices
Los Angeles, CA (PRWEB) October 25, 2014
In the disinfectants market, demand for more environmentally product will prompt higher prices, but buyer power will be aided by increasing competition from low-cost imports. For these reasons and to help procurement professionals make better buying decisions faster, business intelligence firm IBISWorld has added a report on the procurement of Disinfectants to its growing collection of procurement category market research reports.
Disinfectants have a buyer power score of 3.3 out of 5. According to IBISWorld procurement analyst Anna Son, “this score reflects a mix of favorable and detrimental conditions that have been influencing buyer negotiation power over the three years to 2014.” During the period, expanding business activity among major downstream industries and rising input costs have underpinned price growth. Consumers have been spending more on purchasing goods, eating out at restaurants and traveling. As a result, businesses like food service and lodging establishments have demanded more disinfectants. Over the three years to 2017, the price of disinfectants will continue to rise on the back of steadily growing demand. As consumers and businesses become more health conscious, demand for more environmentally products will rise. Still, increasing competition from low-cost imported disinfectants will continue to yield competitive prices, thus buoying buyer power.
“Low product specialization and switching costs further support buyer negotiation power,” says Son. There are many disinfecting products on the market, ranging from low-end disinfectants used in offices to high-end disinfectants used in hospitals. With the exception of some specialized products, most disinfectants are commoditized, and thus, can be easily compared among suppliers. Therefore, low product specialization and an abundance of suppliers that can easily meet buyer needs boost buyer power and make it easier to switch suppliers without fear of significant financial losses.
On the other hand, a medium total cost of ownership undermines buyer power. When procuring disinfectants, buyers should consider the stability and storage conditions of disinfectants that can directly impact the products' effectiveness. In most instances, buyers are required to purchase additional cleaning products for greater effectiveness and equip their workers with adequate protective equipment to prevent any health-related risks, thereby raising the cost for buyers. Additionally, rising regulatory scrutiny over the impact of hazardous disinfectants is compelling buyers to purchase more environmentally friendly products that are typically more expensive.
For more information, visit IBISWorld’s Disinfectants procurement category market research report page.
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IBISWorld Procurement Report Key Topics
This report is intended to assist buyers of disinfectants, including bleaches, floor cleaners, hospital-grade disinfectants, furniture polish and general purpose disinfectants. These products are intended to destroy microorganisms and other potentially harmful organic materials from a surface to prevent the spread of pathogens and subsequent infection of individuals. This report excludes household disinfecting solutions and non-disinfecting cleaners.
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.