All clean: High disposable income will push consumers toward high-cost, brand-name soaps

During the past five years, the Soap and Cleaning Compound Manufacturing industry contended with steep competition from foreign-based soap manufacturers. Foreign-based manufacturers have inundated the market with low-cost soap products, pressuring demand for domestically manufactured products. In the coming years, as per capita disposable income rises, many consumers will slowly shift to relatively high-cost, brand-name soaps and cleaning products. Additionally, downstream markets, such as restaurants, will require more cleaning products to comply with regulations and maintain cleanliness in line with the rise in consumer foot traffic...purchase to read more.

Industry Statistics & Market Size
Revenue
$45bn
Annual Growth 12-17
-2.1%
Forecast Growth 17-22
Profit
Employment
50,368
Businesses
7,988

Industry Threats & Opportunities

  • Foreign-based manufacturers have inundated the market with low-cost soap products
  • Many industry operators have shifted toward emerging economies
  • As per capita disposable income grows, consumers will purchase high-cost green cleaning products
  • Industry Report - Industry Locations Chapter

    The Soap and Cleaning Compound Manufacturing industry is moderately geographically concentrated, with key regions being the Southeast, Great Lakes, West and Mid-Atlantic. Key states include California (11.0% of all establishments are located in the state), Texas (7.5%), Illinois (5.7%) and Ohio (5.2%). The Great Lakes, West and Mid-Atlantic account for the 19.8%, 15.3% and 14.6% of total establishments, respectively. This geographic pattern reflects the general spread of the chemicals industry. For example, Illinois is home to large producers of various organic and inorganic chemicals, which are key inputs in the production of soaps and detergents...purchase to read more.

    Additional Insights for the Soap & Cleaning Compound Manufacturing Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Soap & Cleaning Compound Manufacturing Industry are

  • Having marketing expertise
  • Ensuring pricing policy is appropriate
  • Economies of scale
  • IBISWorld analysts also discuss how external factors such as Per capita disposable income and Demand from accommodation and food services in the Soap & Cleaning Compound Manufacturing industry impact industry performance..

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    What's in this report

    What is the Soap & Cleaning Compound Manufacturing Industry?

    This industry produces substances that loosen and remove soil from a surface for personal hygiene, sanitization or cleaning clothes, linens and furnishings. The industry does not include manufacturers of synthetic glycerin, industrial bleaches or shampoos.

    Industry Products
  • Household soaps and detergents
  • Commercial soaps and detergents
  • Polishes and other sanitation goods
  • Surface active agents
  • Industry Activities
  • Preparing, and packaging cleaning compounds
  • Manufacturing and packaging soap
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Per capita disposable income
  • Demand from accommodation and food services
  • Trade-weighted index
  • World price of crude oil
  • Demand from janitorial services
  • Population

  • Current Performance
  • New products support demand
  • Retailers heighten competition
  • Industry landscape
  • Chart: Revenue Growth

  • Industry Outlook
  • New product development
  • Industry challenges
  • Global demand
  • Table: Soap & Cleaning Compound Manufacturing Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Soap & Cleaning Compound Manufacturing Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Supermarkets & Grocery Stores
  • Convenience Stores
  • Janitorial Services
  • Accommodation and Food Services
  • Dry Cleaners

  • Key Selling Industries
  • Inorganic Chemical Manufacturing
  • Laminated Plastics Manufacturing
  • Organic Chemical Manufacturing
  • Petrochemical Manufacturing
  • Plastic Bottle Manufacturing

  • Products & Services
  • Household soaps and detergents
  • Commercial soaps and detergents
  • Surface active agents
  • Polishes and other sanitation goods
  • Chart: Soap & Cleaning Compound Manufacturing Industry Products and Services Segmentation

  • Demand Determinants
  • New products on the same shelves
  • Consumers cut back

  • Major Markets
  • Supermarkets and mass merchants
  • Independent retailers
  • Food service establishments
  • Healthcare providers
  • Lodging establishments
  • Convenience stores
  • Chart: Major Market Segmentation for the Soap & Cleaning Compound Manufacturing Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
    ProfitPurchasesMarketingWagesOther
  • Chart: Cost Structure Benchmarking – Sector vs Soap & Cleaning Compound Manufacturing

  • Basis of Competition
  • Internal competition
  • External competition

  • Barriers to Entry
  • Table: Barrier to Entry Checklist for the Soap & Cleaning Compound Manufacturing Industry

  • Industry Globalization
    SC Johnson & Son Inc., The Procter & Gamble Company,
  • Table: SC Johnson & Son Inc. - financial performance
  • Table: The Procter & Gamble Company - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Soap & Cleaning Compound Manufacturing Industry
  • Chart: Tools of the Trade: Growth Strategies for Success

  • Technology & Systems
    Revenue Volatility
  • Chart: Volatility vs Industry Growth

  • Regulation & Policy
    Industry Assistance
    Table: Industry Data for the Soap & Cleaning Compound Manufacturing Industry
    Includes:
  • Industry Revenue (2008-2022)
  • Industry Gross Product (2008-2022)
  • Establishments (2008-2022)
  • Businesses (2008-2022)
  • Employment (2008-2022)
  • Exports (2008-2022)
  • Imports (2008-2022)
  • Wages (2008-2022)
  • Per Capita Disposable Income (2008-2022)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Table: Industry Financial Ratios
    Bleach
  • A combination of chlorine and oxygen that whitens fabrics and helps remove stains. Bleaches convert soils into colorless, soluble particles that can be removed by detergents.
  • Detergent
  • A synthetic cleaning agent containing surfactants that do not precipitate in hard water and have the ability to emulsify oil and suspend dirt.
  • Private Label
  • A brand owned by a retailer or supplier whose goods are produced by a contract manufacturer, but sold under the retailer or supplier's label.
  • Soap
  • An anionic surfactant used in conjunction with water for washing and cleaning. Soaps are produced from the hydrolysis of fats in a chemical reaction called saponification.
  • Sulfonated Oil
  • Mineral or vegetable oil treated with sulfuric acid to make a water-soluble form and used as lubricants, emulsifiers, defoamers and softeners.
  • Surfactant
  • A wetting agent that lowers the surface tension of a liquid, thereby allowing easier spreading; the actual word is a blend of surface active agent.
  • What Our Customers Say

    Why buy this report?

    IBISWorld’s industry research report on Soap & Cleaning Compound Manufacturing can be used to help you understand the industry’s market size, growth potential and major companies. Five-year forecasts provide insight into the industry’s prospects, so you can make decisions with confidence. This information is perfectly suited to informing your business plans, pitch books, benchmarking and SWOT analysis.

    IBISWorld industry market research reports enable you to:
    • Find out about key industry trends
    • Identify threats and opportunities
    • Inform your decisions for marketing, strategy and planning
    • Quickly build competitive intelligence
    This report on Soap & Cleaning Compound Manufacturing:
    • Provides Market Size information to assist with planning and strategic decisions.
    • Includes the necessary information to perform SWOT, PEST and STEER analysis.
    • Helps you understand market dynamics to give you a deeper understanding of industry competition and the supply chain.
    • Analyses key performance and operational metrics so that you can benchmark against your own business, that of your customers’ businesses, or your competitors’ businesses.
    The Soap & Cleaning Compound Manufacturing market research report includes:
    • Historical data and analysis for the key drivers of this industry
    • A five-year forecast of the market and noted trends
    • Detailed research and segmentation for the main products and markets
    • An assessment of the competitive landscape and market shares for major companies
    • And of course, much more

    IBISWorld reports on thousands of industries around the world. Our clients rely on our information and data to stay up-to-date on industry trends across all industries. With this IBISWorld Industry Research Report on Soap & Cleaning Compound Manufacturing, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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