We all love to keep our cars clean and shiny, investing in car care products as we keep up with all the maintenance. But today we’re talking about investing in car care stocks, as now could be a great time to do it. Before jumping in I’ll preface that I’m not a stock trader nor a financial advisor, so if you choose to invest and this all blows up, don’t come crying to me. It’s your fault for listening to some guy on the internet.
The logic behind investing in car care products
People are buying new cars faster than ever before, with more options to finance and more loans being taken out. And with that comes a sense of pride in keeping that new car clean. Some people would just go to a car wash, but even if people don’t always wash their own cars, that car wash still has to buy cleaning products from somewhere.
And while this is focused more on car cleaning chemicals, to help improve that new car shine, new cars also need motor oils and coolants. So the term “car care chemicals” refers to pretty much any fluid you’re putting into the machine.
Now, let’s talk numbers: right now, the Global Car Care Product market is valued at $10.36 billion (with a B). And over the next eight years, it’s projected to grow 4.3% annually. Do the math, that means that by 2028, car care products will be worth over $14 billion dollars. And even that number could rise if cars are bought at a more exponential rate.
Now is also the better time to buy, as the stock prices aren’t as expensive as they were in 2019. Covid-19 drastically impacted demand, which caused stock values to stoop, but as everyone is getting out again, the companies making car care products are expected to grow back to where they were and beyond. But speaking of companies, who should you invest in?
Who should you invest in?
The information compiled has come from two different sources, MarketWatch and Grand View Research. For that reason, we’ll list the car care cleaning product manufacturers that overlap between these sources. The biggest name in car care products listed on both sites is 3M. Yes, the 3M that made the roll of duct tape sitting in your cabinet.
Their prices now sit around $200 (as of August 4th, 2021). Tetrosyl and Turtle Wax are also listed on both sites, though their stock prices aren’t available.
Other key contenders include gas stations, such as Shell, BP, Chevron, and ExxonMobil. Chevron is the most expensive, with $101 per share, and BP is the cheapest at around $20 per share. The only concern is that, with growing electric car popularity, big oil might be in big trouble. If they want to keep up, they’ll have to either go all-in on car cleaning products or begin providing electricity instead of gasoline at their pumps.
Where can you learn more about investing in car care products?
Not a question I ever thought I’d ask, as this isn’t a topic I ever thought I’d write about. But I prefaced at the beginning that I’m not an expert, just the messenger. If you’d like to learn more, purchase this Absolute Report about the Global Car Care Market… for over $3,000. That’s right, this is serious investing, so if you’re into detailed reports, and have $3,000 lying around, then by all means take a look.
If you’re just a casual investor or looking to learn more about how all this economic nonsense works, then you may want to keep digging and consult an expert. While the long-term growth is promising, there’s no telling where the market will be in the next 10 years.