The gradual move towards green and eco-ethical products currently characterising the industry.
Melbourne, Australia (PRWEB) January 18, 2015
Representing roughly 5.5% of Australia's overall chemical production industry by revenue, operators in the Soap and Cleaning Compound Manufacturing industry in Australia have a long and varied history. According to IBISWorld industry analyst Arna Richardson, “the industry forms part of Australia's formulated hygiene, cosmetic and specialty products sector”, which has an economic footprint worth $10.0 billion in annual retail sales (according to industry body Accord Australasia Ltd).
Industry products are designed and formulated using simple chemistry, but the industry itself is dynamic and characterised by strong product innovation as manufacturers compete to retain consumer interest. “A continued stream of new, enhanced, repackaged, reformulated and eco-ethical products have been introduced over the past five years,” says Richardson. This trend has helped partially offset falling sales volumes in older product categories. Overall sales, however, have trended downwards, falling at an annualised 10.0% over the five years through 2014-15, as former key players shut up shop in favour of cheaper manufacturing facilities in nearby Asian countries. For 2014-15, the industry is forecast to post sales of $1.63 billion, representing a contraction of 4.0% on the previous year. As in the previous four years, industry participants will continue to contend with ongoing changes in its operating environment. The industry exhibits medium levels of market share concentration. Major players include Colgate-Palmolive Pty Ltd and Unilever Australia (Holdings) Proprietary Limited.
Having contracted in size by over one-third over the past five years, IBISWorld expects conditions to now stabilise. While the rate of technological change in the industry is not expected to be high over the next five years, intense competitive pressures among the major players will lead to the continuous introduction of innovative new products, along with the constant repositioning of existing brands. This will encourage the continued divestment of less profitable product ranges and a growing focus on the manufacture of private-label product lines. One of the predominant themes currently characterising the industry is the gradual move towards green and eco-ethical products. Regulatory pressures are aiding this development, as the Soap and Cleaning Compound Manufacturing industry seeks to address sustainability concerns and become more environmentally conscious and responsible. This trend is expected to shape the industry over the next five years.
For more information, visit IBISWorld’s Soap and Cleaning Compound Manufacturing industry in Australia report page.
This industry manufactures various cleaning products including soap products and other detergents, surface-active agents, polishes and specialty cleaning preparations. It is involved in the manufacture of products such as disinfectants, toothpaste, denture cleaners, glycerine and candles. The products are then sold to downstream industrial users, and to the household and commercial market segments.
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IBISWorld industry Report Key Topics
Key External Drivers
Industry Life Cycle
Products & Markets
Products & Services
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Basis of Competition
Barriers to Entry
Technology & Systems
Regulation & Policy
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