NAICS 325611 Quarterly Industry Report
Soap and Other Detergent Manufacturing
Comprehensive industry research for valuation professionals, business owners, buyers, and lenders
NAICS Code: 325611Sector: 32Updated: Q1 2026
About This Report
This Fair Market Value industry report for NAICS 325611 delivers business owners, acquirers, and financial advisors data-driven valuation insights for the soap and detergent manufacturing sector, drawing on data from the U.S. Census Bureau[5] and EPA[8] cleaning product regulatory statistics. Additional data is drawn from Bureau of Labor Statistics[9].. The report aggregates transaction multiples, financial benchmarks, and market trends specific to NAICS 325611 establishments, supporting buy-sell agreements, succession planning, SBA-financed acquisitions, and litigation support engagements.
Industry Snapshot
Key metrics for the soap and other detergent manufacturing industry.
Industry Definition & Overview
Soap and Other Detergent Manufacturing (NAICS 325611) encompasses establishments primarily engaged in manufacturing and packaging soaps, detergents, hand sanitizers, toothpaste and tooth powders, and natural glycerin products. Product categories include bar soaps, liquid hand soaps, laundry detergents, dishwashing liquids and pods, automatic dishwasher detergents, hand sanitizer gels, and oral care preparations. According to the U.S. Census Bureau[5], the industry generated over $25 billion in annual revenue through approximately 912 companies employing over 34,000 workers in manufacturing and packaging facilities that produce consumer and institutional cleaning products distributed through retail, foodservice, and janitorial supply channels.
The industry has benefited from heightened hygiene awareness driving sustained demand growth for hand soaps, sanitizers, and surface cleaning products. Large consumer packaged goods companies dominate the market with nationally branded product lines, while hundreds of smaller manufacturers compete through private-label production, specialty formulations, and natural and organic product positioning. The Bureau of Labor Statistics[6] identifies production roles including chemical blending operators managing continuous and batch mixing processes, packaging line operators running high-speed filling and cartoning equipment, quality control technicians performing surfactant concentration and stability testing, formulation chemists developing new product formulations, and maintenance technicians servicing automated production equipment.
Per the SBA Office of Advocacy[7], the industry ranges from multinational consumer products corporations producing billions of dollars in branded soap and detergent products to smaller contract manufacturers, private-label producers, and specialty soap makers serving niche market segments including natural, organic, artisanal, and environmentally friendly product categories that continue gaining market share from conventional formulations.
What's Included in This Industry
- Valuation multiples benchmarked to soap and detergent manufacturing operations
- Revenue and EBITDA trends for domestic soap and detergent production
- SBA lending data and financing terms for NAICS 325611 businesses
- Comparable transaction data from recent soap and cleaning product company acquisitions
- Industry risk factors including raw material costs, private-label competition, and retail concentration
- Workforce composition and labor cost benchmarks for soap and detergent operations
- Regional market analysis covering major cleaning product manufacturing centers
- Capital expenditure benchmarks for blending, filling, and packaging equipment
- Growth projections tied to hygiene awareness and sustainable product demand
- Owner compensation and discretionary earnings benchmarks
NAICS Classification Hierarchy
| Level | Description | Code |
|---|---|---|
| Subsector | Chemical Manufacturing | 325 |
| Industry Group | Soap, Cleaning Compound, and Toilet Preparation Manufacturing | 3256 |
| NAICS Industry | Soap and Cleaning Compound Manufacturing | 32561 |
| National Industry | Soap and Other Detergent Manufacturing | 325611 |
Related NAICS Codes
| Code | Description | Relationship |
|---|---|---|
| 325613 | Surface Active Agent Manufacturing | Surface active agent manufacturers producing bulk surfactants consumed as primary functional ingredients in soap, detergent, and cleaning product formulation processes |
| 325612 | Polish and Other Sanitation Good Manufacturing | Polish and sanitation good manufacturers producing complementary cleaning and sanitation products distributed through overlapping retail and institutional supply channels |
| 325620 | Toilet Preparation Manufacturing | Toilet preparation manufacturers sharing consumer packaged goods distribution channels, packaging technologies, and retail shelf space with soap and detergent products |
| 424690 | Other Chemical and Allied Products Merchant Wholesalers | Chemical wholesalers distributing soap and detergent products through institutional, janitorial, and industrial cleaning supply distribution channels nationwide |
| 325199 | All Other Basic Organic Chemical Manufacturing | Basic organic chemical manufacturers producing fatty acids, glycerin, and organic intermediates consumed as raw materials in soap and detergent formulation processes |
| 322219 | Other Paperboard Container Manufacturing | Other paperboard container manufacturers producing packaging materials including folding cartons and corrugated displays consumed by soap and detergent product packaging operations |
Geographic Concentration
Top states by share of national establishments.
| # | State | % Est. | Total Est. |
|---|---|---|---|
| 1 | California | 7.5% | 64 |
| 2 | Texas | 7.1% | 61 |
| 3 | Illinois | 5.9% | 51 |
| 4 | Florida | 5.2% | 45 |
| 5 | Ohio | 5.0% | 43 |
| 6 | New York | 5.0% | 43 |
| 7 | Tennessee | 4.3% | 37 |
| 8 | Missouri | 4.2% | 36 |
| 9 | North Carolina | 3.9% | 33 |
| 10 | Georgia | 3.7% | 32 |
% Of Establishments
0%
7%
Source: County Business Patterns, U.S. Census Bureau[3]
SBA Lending Summary
120
Total SBA Loans
$98.2M
Total Loan Volume
$819K
Average Loan Size
12 yrs
Average Loan Term
11.00%
Average Interest Rate
1,832
Jobs Supported
Source: SBA 7(a) Program Data, U.S. Small Business Administration — FY 2025[4]
Key Insight: Soap and detergent manufacturers evaluating SBA financing must consider qualification under the SBA size standards[10] for NAICS 325611, which set the threshold at 1,250 employees for small business classification. The SBA 7(a) loan program[11] supports smaller soap manufacturers, private-label producers, and specialty cleaning product companies acquiring operations or financing working capital, while the CDC/504 loan program[12] provides long-term fixed-rate financing for mixing equipment, high-speed packaging lines, warehouse facilities, and production capacity expansions. Lenders evaluate customer concentration among major retailers, brand strength or contract manufacturing agreement stability, and raw material supply arrangements when structuring soap manufacturing loans.
Top SBA Lenders
| # | Lender | Loans | Volume | Avg Loan |
|---|---|---|---|---|
| 1 | Fremont Bank | 8 | $32.8M | $4.1M |
| 2 | Cross River Bank | 8 | $31.7M | $4.0M |
| 3 | Leader Bank, National Association | 8 | $16.0M | $2.0M |
| 4 | Newtek Bank, National Association | 24 | $7.2M | $298K |
| 5 | KeyBank National Association | 8 | $2.6M | $325K |
Frequently Asked Questions
Common questions about this industry.
What is the typical valuation multiple for a soap manufacturer?
Soap and detergent manufacturers typically trade at 5x to 10x EBITDA, with branded consumer product companies commanding higher multiples than private-label or contract manufacturers. Per U.S. Census Bureau[5] data, valuations reflect brand equity, retail distribution relationships, and product mix between consumer and institutional channels.
What SBA loan options are available for soap manufacturing businesses?
The SBA[10] sets the small business threshold at 1,250 employees for NAICS 325611. Smaller soap manufacturers, private-label producers, and specialty product companies typically qualify for 7(a) loans for acquisitions and 504 loans for equipment investments.
How does retail concentration affect soap manufacturers?
Major retail chains and mass merchandisers control a large share of consumer cleaning product distribution, creating customer concentration risk and pricing pressure for manufacturers. Per the U.S. Census Bureau[5], private-label growth at major retailers further intensifies competition for branded soap and detergent manufacturers.
What raw materials drive soap manufacturing costs?
Palm oil derivatives, fatty acids, surfactants, and packaging materials represent the primary cost inputs. Per the International Trade Administration[13], palm oil and petrochemical-derived surfactant pricing volatility directly affects soap and detergent production margins and product pricing strategies.
How is the natural and organic segment growing?
Natural and organic soap products represent the fastest-growing category, driven by consumer demand for plant-based, chemical-free cleaning products. According to the EPA[8], Safer Choice certified products and eco-label programs support manufacturer investment in reformulated products meeting environmental and health safety standards.
What environmental regulations affect soap manufacturers?
The EPA[8] regulates soap and detergent manufacturing under Clean Water Act discharge standards, with increasing restrictions on phosphate content and antimicrobial ingredients. State-level ingredient disclosure requirements and packaging recycling mandates create additional compliance obligations.
What workforce challenges do soap manufacturers face?
The Bureau of Labor Statistics[6] reports that chemical blending operators, packaging line technicians, and formulation chemists are in demand across consumer products manufacturing. Competition from cosmetic, pharmaceutical, and food manufacturing employers creates ongoing recruitment challenges.
How has hand sanitizer demand affected the industry?
Hand sanitizer production surged during the pandemic period, with many soap and detergent manufacturers adding or expanding sanitizer production capacity. Per the FDA[14], hand sanitizer products require compliance with FDA OTC monograph standards, creating regulatory requirements for manufacturers entering or expanding in this product category.
Sources & References
Government datasets and editorial sources used in this report.
- [1]U.S. Bureau of Labor Statistics, Quarterly Census of Employment and Wages bls.gov
- [2]U.S. Census Bureau, Economic Census census.gov
- [3]U.S. Census Bureau, County Business Patterns census.gov
- [4]U.S. Small Business Administration, SBA 7(a) Loan Program Data data.sba.gov
- [5]U.S. Census Bureau census.gov
- [6]Bureau of Labor Statistics bls.gov
- [7]SBA Office of Advocacy advocacy.sba.gov
- [8]EPA epa.gov
- [9]Bureau of Labor Statistics bls.gov
- [10]SBA size standards sba.gov
- [11]SBA 7(a) loan program sba.gov
- [12]CDC/504 loan program sba.gov
- [13]International Trade Administration trade.gov
- [14]FDA fda.gov
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