Paper Towels Procurement Category Market Research Report from IBISWorld has Been Updated
Los Angeles, CA (PRWEB) November 09, 2014 -- Paper towels have a buyer power score of 2.7 out of 5. “This score indicates moderate price negotiation power for buyers due largely to a high number of paper towel suppliers as well as standardization within the market,” according to IBISWorld business research analyst Jordan Weinstein. Alternatively, demand growth and price increases for key inputs during the past three years have been slightly reducing buyer-negotiation power.
In the three years to 2014, paper towel prices have been increasing due to a rise in demand stemming from growth in per capita disposable income and the number of US businesses. The recovering economy has been leading to increased demand from all sectors for goods and services, including paper towels. Additionally, suppliers have been experiencing rising input costs for plastic and chemicals, which are passed to the buyer in the form of higher paper towel prices. Additionally, the price of wood pulp (the main raw material used in paper towels) has been extremely volatile. Suppliers have also been increasing paper towel prices in order to protect their profit margins.
Unfortunately for buyers, moderate price growth is projected in the three years to 2017. “However, this growth will be limited as a result of heavy competition among suppliers in the market, which will boost buyer power,” Weinstein says. Suppliers face significant pressure to price their products competitively, and suppliers that raise prices too drastically risk losing clients to vendors that offer lower prices. The top paper towel companies are large, publicly traded companies such as Koch, Kimberly-Clark and Uline; however, the majority of suppliers are privately owned small- to medium-size companies.
Buyer power is also aided by the widespread availability of paper towels and subsequent low switching costs. The commoditized nature of paper towels has led to a wide variety of suppliers capable of satisfying specific buyer requirements. These conditions benefit buyers and will remain relatively unchanged in the next three years. For more information, visit IBISWorld’s Paper Towels procurement category market research report page.
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IBISWorld Procurement Report Key Topics
This report is intended to assist buyers of paper towels, which are used to sanitize hands and clean spills or dirt from a variety of surfaces. Businesses in all sectors of the economy use paper towels. This report does not include toilet paper or facial tissue.
Executive Summary
Pricing Environment
Price Fundamentals
Benchmark Price
Pricing Model
Price Drivers
Recent Price Trend
Price Forecast
Product Characteristics
Product Life Cycle
Total Cost of Ownership
Product Specialization
Substitute Goods
Regulation
Quality Control
Supply Chain & Vendors
Supply Chain Dynamics
Supply Chain Risk
Imports
Competitive Environment
Market Share Concentration
Market Profitability
Switching Costs
Purchasing Process
Buying Basics
Buying Lead Time
Selection Process
Key RFP Elements
Negotiation Questions
Buyer Power Factors
Key Statistics
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.
Gavin Smith, IBISWorld Inc., +1 (310) 866-5042, [email protected]
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