Squeaky clean: Higher disposable income will enable customers to purchase more high-cost products

The Soap and Cleaning Compound Manufacturing industry in Canada has expanded over the past five years, despite increased import competition from foreign manufacturers and declining crude oil prices, which forced many operators to reduce their selling prices to remain competitive. Instead, industry operators have benefited from growth in the Canadian population, which increased demand for industry products from everyday households. This development was bolstered by overall growth in the Canadian economy, which resulted in rising levels of disposable income, among other improving consumer conditions. In turn, these trends enabled consumers to purchase relatively expensive, high-margin soaps and cleaning compounds, supporting revenue growth and boosting industry profit margins...read more.

Industry Statistics & Market Size
Revenue
$2bn
Annual Growth 13-18
8.0%
Forecast Growth 18-23
Profit
Employment
5,215
Businesses
346

Industry Threats & Opportunities

  • Industry operators have benefited from growth in the Canadian population
  • Despite declining oil prices, industry purchase costs have increased
  • Remaining competitive in a mature market will be a key issue for industry operators
  • Industry Report - Industry Investment Chapter

    The Soap and Cleaning Compound Manufacturing industry in Canada is characterized by a low level of capital intensity, since operators rely primarily on human capital, rather than capital investments, to manufacture industry products. In 2018, industry operators are expected to spend just $0.10 on capital investments for every $1.00 spent on labour inputs. While many manufacturing processes within the industry are automated, the industry still relies on specialized employees to conduct research and development for product development. Furthermore, the industry is typified by a high level of fragmentation. As ...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

  • Ensuring pricing policy is appropriate
  • Economies of scale
  • Generate brand loyalty
  • IBISWorld analysts also discuss how external factors such as Per capita disposable income and Demand from full-service restaurants 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?

    Operators in this industry produce substances that loosen and remove soil from a surface to maintain personal hygiene, sanitization, clean clothes, linens and furnishings. This industry does not include manufacturers of synthetic glycerin, industrial bleaches or shampoos.

    Industry Products
  • Commercial and industrial soaps and detergents
  • Household detergents
  • Household soaps, excluding specialty cleaners
  • Toothpaste and related products
  • 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 full-service restaurants
  • Demand from hotels and motels
  • Demand from janitorial services
  • Canadian effective exchange rate index
  • Population

  • Current Performance
  • Revenue drivers
  • Industry profit
  • International trade
  • Industry structure
  • Chart: Revenue Growth

  • Industry Outlook
  • Revenue gains
  • International trade
  • Profit and participation
  • 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 in Canada
  • Convenience Stores in Canada
  • Janitorial Services in Canada
  • Accommodation and Food Services In Canada
  • Dry Cleaners in Canada

  • Key Selling Industries
  • Inorganic Chemical Manufacturing in Canada
  • Organic Chemical Manufacturing in Canada
  • Petrochemical Manufacturing in Canada
  • Plastic Bottle Manufacturing in Canada

  • Products & Services
  • Commercial and industrial soaps and detergents
  • Household detergents
  • Household soaps, excluding specialty cleaners
  • Toothpaste and related products
  • Other
  • Chart: Soap & Cleaning Compound Manufacturing Industry Products and Services Segmentation

  • Demand Determinants
  • Population growth
  • Developing new products
  • Consumer purchasing behaviour

  • Major Markets
  • Exports to the United States
  • Supermarkets and mass merchants
  • Independent retailers
  • Food service establishments
  • Healthcare providers
  • Lodging establishments
  • Other exports
  • 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
    ProfitPurchasesWagesRent and utilitiesOther
  • Chart: Cost Structure Benchmarking – Sector vs Soap & Cleaning Compound Manufacturing

  • Basis of Competition
    Internal competitionExternal competition
    Barriers to Entry
  • Table: Barrier to Entry Checklist for the Soap & Cleaning Compound Manufacturing Industry

  • Industry Globalization
    The Procter & Gamble Company, Ecolab Inc.,
  • Table: The Procter & Gamble Company - financial performance
  • Table: Ecolab Inc. - 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 (2009-2023)
  • Industry Gross Product (2009-2023)
  • Establishments (2009-2023)
  • Businesses (2009-2023)
  • Employment (2009-2023)
  • Exports (2009-2023)
  • Imports (2009-2023)
  • Wages (2009-2023)
  • Per Capita Disposable Income (2009-2023)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    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.
  • Surfactant
  • A wetting agent that lowers the surface tension of a liquid, thereby enabling easier spreading; the actual word is a blend of surface active agent.
  • What Our Customers Say

    Why buy this report?

    The Soap & Cleaning Compound Manufacturing market research report provides key industry analysis and industry statistics, measures market size, analyzes current and future industry trends and shows market share for the industry’s largest companies. IBISWorld publishes the largest collection of industry reports so you can see an industry’s supply chain, economic drivers and key buyers and markets.

    IBISWorld industry market research reports enable you to:
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    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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