The global prominence of the Personal and Homecare industry cannot come as much of a surprise. Almost everyone uses products manufactured from this industry, which encompasses everything from home cleaning products to soap and toothpaste to cosmetics, and countless other items in between. Because of this, it should also be no surprise that the industry is growing at exciting levels, and industry insiders expect it to reach levels not originally expected. Even with the unexpected arrival of the COVID-19 pandemic, the industry is still showing trends in positive directions while other industries suffer, but why?
In 2019, the Personal and Homecare industry was worth an estimated $173.32 billion, and over the next five years, it is expected to grow by 4.58% to a staggering $233.58 billion. But, what factors into this expected growth? Studies show that consumers favor shopping at supermarkets and other large-scale retail stores for personal care items, given their wide selection and their attention to organization and presentation. Coupling that with the large number of these types of stores across the United States alone, as well as the fact that this industry offers items that almost everyone needs in one form or another, and the growth is easily understood.
The unexpected outbreak of COVID-19 also will play a role in the industry’s expansion. Two major players in the industry, Clorox and Procter & Gamble, who both own familiar brands that are trusted by customers, suddenly found themselves in a market demanding their services at an even greater rate. The pandemic itself has changed how the public sees the world around them and changed people’s opinions of home sanitization, increasing demand for these products in both the short term and long term. Not only will demand increase for the duration of the pandemic, but people will like increase their cleaning processes and frequencies afterwards.
The rise of online shopping also contributes to the growth of the Personal and Homecare industry, for it allows people shop more conveniently. 2019 recorded over 312 million Internet users in the United States alone, and that number is forecasted to increase. Online shoppers tend to focus on
beauty products and cosmetics, which is great news for the industry. Cosmetic sales, which amassed over $81 billion in 2019, is set to grow to almost $130 billion over the next ten years, and beauty product sales play a significant part in the Personal and Homecare industry as a whole. Though some of these companies have seen slight impacts related to COVID-19, often because of reduced demand leading to reduced manufacturing, many have turned to contribute to the increased demands of other items, such as toiletries.
An increase in globalization and industrialization is also contributing to the industry’s growth. As companies expand nationally and internationally, consumers find themselves with more options. The United States and the Asia Pacific region together make up 65% of the global Personal and Homecare industry alone, with the United States being the leader in global sales in the industry. People worldwide are becoming increasingly more aware of the health benefits of these products, and are willing to spend more money for quality products. Skin diseases are becoming more common, as is an interest in organic and chemical-free products. Meanwhile, other countries are developing their industries further, often due to growing populations and stabilizing economies. Though these countries are seen as smaller players in the industry now, their growth will create even more avenues for in-demand products.
With so many companies ramping up production on Personal and Homecare items to meet demands both due to increased interest and the current pandemic, there is an increased need for high-quality equipment to help these company fulfill their needs. Expansion requires space, and expansion also requires obtaining new equipment. Too often, companies encounter issues with finding the best ways to buy or sell assets, but EquipNet is here to help. If you have a surplus of unused or unneeded equipment, consider utilizing one of our Asset Management Programs, which provides you with many options to redeploy assets, whether from one of your facilities to another with our help, or by simply selling your equipment outright to another company. These transactions benefit both your company and whoever purchases your equipment, for you are able to offload unneeded equipment while making some extra money, and the buyer receives a high-quality piece of equipment at a lower price. Not only does this benefit the buyer’s budget, but it helps the environment, for it diverts equipment from landfills and puts them to use. Check out our dedicated Personal and Homecare Industry asset management programs webpage today to find the best ways to make use of your surplus assets to allow your company’s manufacturing expansion to continue smoothly. Perhaps you are looking for a high-quality piece of equipment to help your expansion? Head to our MarketPlace today to see what if available. With our help, your company will see itself playing a part in the exciting growth of the Personal and Homecare Industry!
Categorias: Consumer Packaged Goods