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The household products industry is viewed as defensive by many investors due to mounting international economic problems and uncertainty as to the growth prospects of the US economy. The larger companies in this industry are able to deal with mass merchants on an even-handed basis, but many smaller ones may need to merge or form joint ventures. Investors need to be selective when evaluating opportunities in this industry.

There has been a lack of interest in household products industry stocks as it is mainly a stable, mature industry in the US and market growth is not likely. However, acquisitions, foreign markets, and product innovation can lead to growth for this sector. Investors need to focus on individual stocks which are timely and participate within current industry trends.

Volume growth cannot be expected to outpace population growth in the US for the household products industry as the industry has matured. However, there is room for international growth for the industry, even with dislocations. Efficiency, acquisitions, and product innovation are the main issues in the industry during the 1990s. Investors need to evaluate these stocks on an individual basis before selection.

The domestic market for the household products industry in the US has matured in the 1990s, and the per-capita use of household products does not have much room for growth. The international market for these products, however, is better, and there has been a revolution in the market and distribution channels in the US. Investors need to seek only the most timely companies in this industry for commitment.