For whatever it's worth, I was just at the summer festival in Big Fork, MT, and I counted THREE handmade soap booths. They all seemed to have lots of people stopping by.
When I was a copywriter (I guess I still
am a copywriter but not doing it for clients at the moment, lol) I actually made a POINT of getting to know my competition. I even made friends with a few of my competitors. We not only passed business back and forth (referrals) but we shared a special camaraderie that was very valuable. We learned so much from each other and validated each other in a way others could not.
Of course, some competitors make poor allies so you choose wisely
Karri