Demand for bleach will be fueled by the growth of downstream commercial markets.
(PRWEB) December 31, 2014
The Bleach Manufacturing industry is comprised of a small number of domestic manufacturers that produce household bleach products that remove color, whiten and disinfect, typically through oxidation. During the past five years, the industry has weathered the recession and resumed more stable growth due to rising domestic and international demand for bleach products. With the onset of the recession, disposable income contracted for the first time in nearly two decades, limiting consumer spending on bleach products. Although bleach products are staple goods, consumers typically buy low-cost, generic products when economic conditions are poor. Moreover, the industry's downstream commercial markets, such as the accommodation, food and janitorial service sectors, reduced spending on bleach products in response to weak demand for their services. Nonetheless, with the beginning of the economic recovery, disposable income growth quickly revived demand for bleach products from household and commercial customers. Consequently, industry revenue is projected to increase during the five years to 2014.
According to IBISWorld Industry Analyst Dmitry Diment, “The industry's growth is ultimately constrained by the relatively slow growth of the domestic population. While population growth limited the extent of the industry's contraction during the recession, its slow rate of expansion also restricts the industry's prospects for growth.” Because most households and businesses already own bleach products, industry companies are dependent on revenue from repeat purchases. Consequently, manufacturers are expected to look to expand the market by attracting a new generation of customers. For example, the industry largest player, the Clorox Company, has sought to generate renewed interest in bleach among younger consumers and tailor new products toward environmentally conscious customers.
As the economic recovery strengthens, industry manufacturers are expected to benefit from rising per capita disposable income. “In addition to greater spending by households, demand for bleach products will be fueled by the growth of downstream commercial industries, such as the accommodation, food and janitorial service sectors, which depend on bleach for basic cleaning purposes,” says Diment. “Coupled with rising international demand for bleach products, growth in these downstream industries is expected to spur growth for bleach manufacturers in the coming five years.”
For more information, visit IBISWorld’s Bleach Manufacturing in the US industry report page.
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IBISWorld industry Report Key Topics
This industry develops and produces chemicals that remove color, whiten or disinfect, often through oxidation.
Key External Drivers
Industry Life Cycle
Products & Markets
Products & Services
Globalization & Trade
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Barriers to Entry
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