Industry invests in the production of liquid soap for clothes

Sao Paulo-the manufacture of liquid soap to wash clothes comes as a solution to increase revenue and reduce costs on industry, in addition to look like a promising segment for small and medium-sized enterprises, say industry executives.
The expectation of obtaining a larger gain margin led the goiana Soap Geo to invest exclusively in a production line of the liquid version, company director, Márcio Brito. According to him, the liquid soap for clothes manufacturing started in 2009 with the objective to optimize cost.
"Making laundry detergent would bring income too low to very high investments in equipment, process and cleaning," says he. "The inputs to production are liquids and the transformation to the powdered version ends up being man. To make the liquid version, we optimize the entire industrial process, "he adds.
According to the analyst of American Consumer Edge Research consultancy, Javier Escalante, besides lower cost of production, the industry gains in volume and sales value to prioritize liquid detergent.
The consultancy Euromonitor International estimates that this thread will move $ 2 billion in 2020, an increase of 29.5% in comparison with last year.
This perception led to expansion Audax Co prioritize making liquid soap from 2012, according to the company''s marketing manager, Diego Velasquez. At the time, he explains, the powdered version was outsourced to reduce costs.
"It doesn''t pay to do laundry detergent, something which requires at least one more step in production. Currently, were only doing washing powder with a very high demand, that''s not going to happen. Our focus is on what you get, "says Velasquez.
According to the Executive, even in a year of weak economic activity, the company must obtain a prescription 18% higher compared to 2015. Part of the expansion is attributed to the advancement in this segment.
Recently, the giant Procter Gamble & (P&G) also announced the closure of its plant in the city of Louveira (SP). From December, the company ceases to operate the washing powder with Ariel, Ace and Pop. In a statement, the P&G strengthens its focus on liquid detergents and the existence of "60% expansion potential to accommodate this new production in Louveira".
Euromonitor analyst, Elton Morimitsu, see the measure as "smart", given the potential for business growth. "The P&G is betting on something that is already working for them in international markets. Is a business in which already have know-how and should succeed to replicate it in Brazil ".
Sought, the P&G didn''t answer to the DCL. Unilever-owned global brand OMO-and Ypê also refused to comment.
Crisis
The expansion of the segment could be greater if the economic crisis had worsened so much in the country, according to the marketing manager of Audax. "The liquid soap in a constant rise, but felt that gave a parade and we know that is related to the price, which is a little higher. This opened space for the powdered product ", ponders viriathus.
In five years, from 2010 to 2015, liquid detergent sales rose 544.7%, while in the powdered version was decrease of 1.6% in the period.
In the view of analysts, the growth rate of sales of the product with greater added value will be smaller in 2016, considering the advancement of unemployment and inflation while the Brazilian''s income shrinks.
The President of Rainbow, Gerson Perussi, confirms the worsening of the scenario. According to him, after registering 20 percent retraction in net revenues last year about 2015, laundry detergent sales performed better in the first half of 2016. The Brazilian manufacturer of cleaning products work only with the powder version and do not plan to change the niche of expertise. "It''s too early to talk about it. We noticed some recovery in recent months, a result of the crisis. "
Even so, the Director of Geo, Márcio Brito, see increased competition in the segment. "The manufacture of liquid soap is so cheap and simple that we will soon have a larger number of manufacturers."
This increased competition will cause a change in the level of prices of that product, benefiting consumers, says Euromonitor analyst. "With the emergence of new players in the product tends to be more accessible and have greater consumer acceptance," says Morimitsu.
In General, executives expect the cleaning products industry has a better performance in 2017. "Next year should be better for the market as a whole. With more disposable income, it is natural that there is a greater awareness of the advantages of using liquid soap and, consequently, increased demand. We should set a goal of at least 12% growth for 2017 ", calculates viriathus.
Despite the optimistic Outlook, Morimitsu doesn''t believe in the disappearance of the laundry detergent. "It is a product very present in the life of the consumer and used with a variety of purposes. Change a habit of consumption takes time, "he says.
He uses the example of the North American market, where per capita spending with liquid detergent, in 2015, was $ 24, against $ 11 in Brazil. "Outside the numbers were not as good at the beginning, is part of the process. In the United States, the liquid soap already represents more than half the market. In Brazil, there''s still plenty of room to grow, "he predicts.
Ever the analyst Javier Escalante, believing in a growing space for the liquid versions, makes a bold bet to the national market: soaps in single-use capsules that dissolve in water. "They represent an even smaller use of plastic in the industry and to consumers. In the same way that the Brazilian market is evolving to the liquid, might evolve into the pods. "
Sustainability
Morimitsu also believes that the concern with the conscious consumption of water can benefit manufacturers. "The appeal of good use of water is increasing. Liquid detergent requires a lower water consumption when compared to powdered product, both in the process of production and in use. Trading is good for both sides, "he says.
In the evaluation of the Executive President of the Brazilian Association of industries of cleanser and related (Abipla), Maria Eugenia Saldanha, in addition to the reduction of water consumption, manufacturing of liquid soap also reduces other environmental impacts. "Make liquid soap ensures less emission of carbon in the environment and less use of plastic resin to make packaging", says she.