Growing amount of private equity funding for contract manufacturing will help household cleaners contract manufacturing companies across the globe to increase their operational & functional capabilities

Household Cleaners Contract Manufacturing Category - Procurement Intelligence

The household cleaners contract manufacturing category is anticipated to witness growth at a CAGR of 11.0% from 2023 to 2030. In 2022, Asia Pacific held a substantial share of the global category, followed by North America and Europe. This dominance is mainly attributed to the rising disposable income and emphasis on cleanliness and hygiene, which has raised demand for household cleaners. The growth is further fueled by an increase in the number of local manufacturers. Key players based out of Asia Pacific are focusing on developing multi-purpose and organic products with an objective to increase their market share. In addition, the North America region is home to cutting-edge facilities and technologies. These technologies are used by the household cleaner contract manufacturing service providers to produce better goods and services and gain a competitive advantage.

Based on service type, the category is dominated by the manufacturing segment. The services offered in this category enable the businesses (band owners) to reduce equipment & machinery costs. The cost of buying massive machinery and keeping it maintained, repaired, or replaced requires fewer resources. It also eliminates the need to pay personnel to manufacture goods internally. It can be expensive to hire whole teams of experts, researchers, and manufacturers, paying them full wages and perks. Service providers may not charge a client for the personnel or equipment they own. They simply have to pay the total agreed upon in the contract, plus any other applicable fees or costs. In addition, a business can put all of the money and resources it saves to fund other endeavors, such as supporting sales initiatives, expanding its marketing plans, and/or adding personnel for other divisions.

Technologies such as Artificial intelligence (AI) have gained significant popularity in the industry. The ability of AI to evaluate enormous volumes of data in real time is one of the most important advantages for manufacturing. Artificial intelligence (AI) systems can quickly investigate the data to find patterns and trends, helping firms understand how their manufacturing processes are working. This is made possible by Industrial Internet of Things (IIoT) devices and sensors that gather data from machines, equipment, and production lines. The technology supports the service providers in finding abnormalities and equipment flaws. For example, they (service providers) can use machine learning algorithms, that are equipped to notice patterns in the data and suggest the next steps based on those patterns while identifying any defects in the initial stages of the manufacturing process itself.

The outbreak of the COVID-19 pandemic significantly impacted the demand for household cleaners as it was being increasingly utilized in commercial as well as residential properties to disinfect the surroundings. As a result, due to the unanticipated increase in demand, there was a shortage of supply, prompting some manufacturers to increase their production capacity to meet the customer demand. Leading producers, such as Henkel, P&G, and Reckitt Benckiser, witnessed a spike in demand for cleaning products which led them to outsource their manufacturing operations to the service providers in the category with an objective to increase their supply. The demand for household cleaners is expected to increase in the next years due to growing disposable income and increased urbanization, which will result in significant infrastructure investments. Consequently, it will support the growth of the global category.

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Household Cleaners Contract Manufacturing Sourcing Intelligence Highlights

• The household cleaners contract manufacturing category exhibits a fragmented landscape with intense competition among the players in the industry.

• Buyers in the category possess high negotiating capability due to the intense competition among the suppliers, enabling the buyers with flexibility to switch to a better alternative.

• India is the preferred low-cost/best cost country for sourcing household cleaners contract manufacturing service providers. The nation is a cost-effective destination for contract manufacturing due to its relatively cheap raw material costs, energy costs, and labor costs, which result in significant cost savings.

• Raw materials, labor, equipment & machinery, rent & utilities, packaging & transportation, and other costs are the key cost components in the household cleaners contract manufacturing category. Other costs can be further bifurcated into research & development (R&D), administrative expenses, taxes & insurance, maintenance & repairs, depreciation, and interests.

Household Cleaners Contract Manufacturing Procurement Intelligence Report Coverage

Grand View Research will cover the following aspects in the report:

• Category intelligence along with emerging technology and regulatory landscape

• Category estimates and forecasts from 2022 to 2030

• Growth opportunities, trends, and driver analysis

• Supply chain analysis, supplier analysis with supplier ranking and positioning matrix, supplier’s recent developments

• Porter’s 5 forces

• Pricing and cost analysis, price trends, commodity price forecasting, cost structures, pricing model analysis, supply and demand analysis

• Engagement and operating models, KPI, and SLA elements

• LCC/BCC analysis and negotiation strategies

• Peer benchmarking and product analysis

• Category report in PDF, Excel, and PPT and online dashboard versions 

Cost Intelligence Highlights

Grand View Research has identified the following key cost components for the household cleaners contract manufacturing category:

• Raw Materials

• Labor

• Equipment & Machinery

• Rent & Utilities

• Packaging & Transportation

• Others

  • Research & Development (R&D)

  • Administrative Expenses

  • Taxes & Insurance

  • Maintenance & Repairs

  • Depreciation

  • Interests

Raw Materials forms the largest key cost component of the household cleaners contract manufacturing category.

List of Key Suppliers in the Household Cleaners Contract Manufacturing Category

• Abdos

• Advance Research Chemicals, Inc.

• CleanPak Products, LLC

• Colep Consumer Products

• Formula Corp.

• Guy & O'Neill, Inc.

• McBride plc

• Megamorph Marketing Pvt. Ltd.

• Nicols S.A

• PLZ Corp.

• Premier Care Industries

• Rockline Industries