IBISWorld anticipates demand to peak and taper off, reducing the rate at which antifreeze prices grow
Los Angeles, CA (PRWEB) March 29, 2015
The market for antifreeze has a buyer power score of 3.5 out of 5. This score indicates that buyers have a moderate level of bargaining power in the negotiation process. Manufacturers are typically flexible with their prices due to the extreme homogeneity of antifreeze products. Nevertheless, buyers should not expect to find big-ticket discounts on these products due to the limited number of companies that manufacturer antifreeze. Production is highly concentrated, with only 22 manufacturers of the product operating in the United States. The top four companies control nearly half the market and have significant influence over the price. The limited number of suppliers restricts buyers' ability to shop around extensively for a good deal. Additionally, this market exhibits a low level of import penetration. “Consequently, domestic manufacturers are not concerned with being undercut by lower-price alternatives,” according to IBISWorld business research analyst Jeffrey Cohen. Suppliers' moderate profit margins also limit buyer negotiation power, because manufacturers are less likely to decrease prices as they strive to maintain their margins.
Antifreeze prices have grown over the three years to 2014 due to rising demand from the automotive industry. “New car sales have skyrocketed, resulting in higher demand from automakers, which purchase antifreeze drums in massive quantities,” says Cohen. Rising demand from key automotive buyers has placed upward pressure on the benchmark price. The rate of prices increases has reduced buyer power in the three years to 2014. However, IBISWorld projects that demand from the automotive industry will reach its peak during the next three years, which will eventually lead to slower price growth. Decreasing demand is projected to strengthen buyer negotiation power over time. For more information, visit IBISWorld’s Antifreeze procurement category market research report page.
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IBISWorld Procurement Report Key Topics
This report is intended to assist buyers of antifreeze. Antifreeze is a chemical additive that lowers the freezing point of water-based liquids. Antifreeze is an ideal cooling liquid for internal combustion engines.
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.