Soap & Other Detergent Manufacturing
Description
Companies in this industry manufacture soap and detergent products. Major companies include Church & Dwight, Colgate-Palmolive, Ecolab, and Procter & Gamble (all based in the US), along with Henkel (Germany), Nice Group (China), and Unilever (UK).
In 2023, the world's leading soap exporters include Germany, China, the US, Indonesia, and France, according to Worlds Top Exports. While the top soap importers are the US, Ukraine, and Peru, according to Volza.
The US soap and detergent manufacturing industry includes about 670 establishments (single-location companies and units of multi-location companies) with combined annual revenue of about $25 billion.
COMPETITIVE LANDSCAPE
Population growth, particularly among households with children, drives demand in the consumer sector, and economic growth drives demand in the commercial sector. The profitability of individual companies depends on efficient operations and effective sales and marketing. Large companies have scale advantages in purchasing, manufacturing, distribution, and marketing. Small companies can compete effectively by offering specialized products, providing superior customer service, or serving a local market. The US industry is highly concentrated: the top 50 companies generate about 90% of revenue.
Both the consumer and the commercial segments of the soap and detergent manufacturing industry are highly competitive, and large companies spend millions to maintain market share.
PRODUCTS, OPERATIONS & TECHNOLOGY
Bath, facial, and hand soaps account for about 10% of US industry revenue, while dishwashing detergents account for about 20%. Dentifrices were about 5%.
Detergent production starts by combining liquid and dry ingredients. Spray drying produces powder detergents by spraying the liquid mixture through nozzles under high pressure to create small droplets. The droplets fall through hot air and dry into hollow granules. Heat-sensitive ingredients, such as bleach or fragrance, are added after spray drying. Agglomeration produces higher density detergent powders by using a liquid binder and a different mixing process known as "rolling" or "shear mixing." Dry blending mixes dry raw materials with small quantities of liquids. Detergents are packaged in cartons, bottles, pouches, or bags.
Soap production starts by heating fatty acids or fats and oils, and combining them with alkali, such as sodium or potassium. The process, known as saponification or neutralization, produces a combination of soap and water (known as neat soap) plus glycerin, which can be resold. Neat soap is converted into dry soap pellets through vacuum drying. An amalgamator mixes pellets with fragrances and colors. Rolling mills and refining plodders refine the mixture to achieve uniform texture. The final mixture is extruded, cut into bars, and stamped into shapes in a soap press. Soap bars are wrapped and packaged into single or multiple packs.
Soaps and detergents are made of surfactants or surface-active agents, chemicals that help water soak and clean surfaces. Many surfactants are petroleum-based. Oleochemicals are surfactants derived from natural fats and oils. Soap reacts with minerals in hard water, diminishing cleaning properties. Builders boost the efficiency of surfactants by counteracting hard water, emulsifying oil and grease, and preventing soil from redepositing. Phosphates, an environmentally controversial chemical, are a commonly used builder.
Raw materials include surfactants, solvents, phosphates, silicates, alkalis, salts, and perfumes. Suppliers include major chemical manufacturers like Shell Chemicals (a division of Royal Dutch Shell) and Dow. P&G has a separate business unit that manufactures key chemicals as part of a global supply network.
Companies may rely on or provide third-party contract manufacturing services. Large companies may own multiple plants, including many facilities outside the US. Companies in the commercial sector may also sell dispensing equipment and provide related training.
In 2023, the world's leading soap exporters include Germany, China, the US, Indonesia, and France, according to Worlds Top Exports. While the top soap importers are the US, Ukraine, and Peru, according to Volza.
The US soap and detergent manufacturing industry includes about 670 establishments (single-location companies and units of multi-location companies) with combined annual revenue of about $25 billion.
COMPETITIVE LANDSCAPE
Population growth, particularly among households with children, drives demand in the consumer sector, and economic growth drives demand in the commercial sector. The profitability of individual companies depends on efficient operations and effective sales and marketing. Large companies have scale advantages in purchasing, manufacturing, distribution, and marketing. Small companies can compete effectively by offering specialized products, providing superior customer service, or serving a local market. The US industry is highly concentrated: the top 50 companies generate about 90% of revenue.
Both the consumer and the commercial segments of the soap and detergent manufacturing industry are highly competitive, and large companies spend millions to maintain market share.
PRODUCTS, OPERATIONS & TECHNOLOGY
Bath, facial, and hand soaps account for about 10% of US industry revenue, while dishwashing detergents account for about 20%. Dentifrices were about 5%.
Detergent production starts by combining liquid and dry ingredients. Spray drying produces powder detergents by spraying the liquid mixture through nozzles under high pressure to create small droplets. The droplets fall through hot air and dry into hollow granules. Heat-sensitive ingredients, such as bleach or fragrance, are added after spray drying. Agglomeration produces higher density detergent powders by using a liquid binder and a different mixing process known as "rolling" or "shear mixing." Dry blending mixes dry raw materials with small quantities of liquids. Detergents are packaged in cartons, bottles, pouches, or bags.
Soap production starts by heating fatty acids or fats and oils, and combining them with alkali, such as sodium or potassium. The process, known as saponification or neutralization, produces a combination of soap and water (known as neat soap) plus glycerin, which can be resold. Neat soap is converted into dry soap pellets through vacuum drying. An amalgamator mixes pellets with fragrances and colors. Rolling mills and refining plodders refine the mixture to achieve uniform texture. The final mixture is extruded, cut into bars, and stamped into shapes in a soap press. Soap bars are wrapped and packaged into single or multiple packs.
Soaps and detergents are made of surfactants or surface-active agents, chemicals that help water soak and clean surfaces. Many surfactants are petroleum-based. Oleochemicals are surfactants derived from natural fats and oils. Soap reacts with minerals in hard water, diminishing cleaning properties. Builders boost the efficiency of surfactants by counteracting hard water, emulsifying oil and grease, and preventing soil from redepositing. Phosphates, an environmentally controversial chemical, are a commonly used builder.
Raw materials include surfactants, solvents, phosphates, silicates, alkalis, salts, and perfumes. Suppliers include major chemical manufacturers like Shell Chemicals (a division of Royal Dutch Shell) and Dow. P&G has a separate business unit that manufactures key chemicals as part of a global supply network.
Companies may rely on or provide third-party contract manufacturing services. Large companies may own multiple plants, including many facilities outside the US. Companies in the commercial sector may also sell dispensing equipment and provide related training.
Table of Contents
- Industry Overview
- Quarterly Industry Update
- Business Challenges
- Business Trends
- Industry Opportunities
- Call Preparation Questions
- Financial Information
- Industry Forecast
- Web Links and Acronyms
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