As healthcare reform is implemented, demand for bandages and dressings is projected to rise, driving a slight acceleration in price growth
Los Angeles, CA (PRWEB) November 06, 2014
The bandages and dressings market has a buyer power score of 3.7 out of 5, reflecting a significant degree of buyer power to negotiate lower prices. Market prices have been increasing since 2011; however, IBISWorld expects prices to accelerate slightly over the next three years. This slow growth is good for buyers. In addition, the large number of suppliers and prevalence of bandage and dressing products boosts buyer power through lower switching costs. “Consequently, buyers are able to negotiate with different suppliers and access a wide variety of products,” according to IBISWorld business research analyst Keiko Cadby.
Due to the high number of suppliers in the market, vendors have been increasingly customizing their products and boosting specialization to stand apart from competition. As a result, the market has become more specialized, detracting from buyer power and forcing average prices up. However, highly standardized bandage and dressing products exist in the market, and import penetration has contributed to the high level of competition among mass-produced bandages and dressings. “Vendors in this market use a market-based pricing model; as such, high competition benefits buyers by encouraging price wars among similar products,” says Cadby.
Demand for medical supplies has been increasing during the past three years, and is expected to continue rising in the three years to 2017. Input costs are projected to rise as well, and price spikes may occur with the medium level of volatility. Price growth is projected to accelerate, and volatility in prices may lead to unexpected price spikes. Buyers are therefore encouraged to draw up multiyear agreements to secure prices and purchase bandages and dressings from the same supplier over the long term. Major vendors include 3M Company, Baxter International and Cardinal Health Inc. For more information, visit IBISWorld’s Bandages & Dressings procurement category market research report page.
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IBISWorld Procurement Report Key Topics
This report is intended to assist buyers of bandages and dressings. These products are used for medical, surgical, dental or veterinary purposes and are sold through manufacturers, retailers and wholesalers. This report does not include surgical healing products or practices, such as stitching or pins. Specialized topical ointments, wraps, bandages and protective pads (e.g. gauze) are included in this market.
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.