Industry Analysis & Industry Trends
The Soap and Cleaning Compound Manufacturing industry forms part of Australia's formulated hygiene, cosmetic and specialty products sector, worth nearly $10.0 billion in annual retail sales. The industry is dynamic and characterised by strong product innovation, as manufacturers compete to retain consumer interest. A stream of enhanced, repackaged, reformulated and eco-ethical products have been introduced over the past five years. These introductions have helped offset falling revenue in older product categories. The industry contracted significantly between 2010-11 and 2013-14, as former key players moved manufacturing facilities offshore to cheaper Asian countries. However, the industry is now recovering as conditions stabilise... purchase to read more
Industry Report - Starting a New Business Chapter
Barriers to entry in the industry are moderate, although they can vary considerably between segments. For example, the barriers to entry in the household soap segment could differ from those in the detergent segment. The existence of niche segments (such as eco-friendly household products) can also result in differences to entry barriers.
Many of the existing industry manufacturers are subsidiaries of large-scale multinational organisations, and are entrenched in the marketplace with well-known brand names and established relations with downstream retailers. These factors give existing manufacturers a significant advantage when competing for shelf space. The mature and saturated nature of the market tends to act as a further barrier, limiting the growth potential for new entrants... purchase to read more