LITTLE FALLS, N.J.—A recently published study by consulting and research firm Kline & Co. reported the European personal care ingredients market experienced continued growth in the last few years despite the negative effects of the slow economy in its Global Personal Care Ingredients 2010: Market Analysis and Opportunities.
The personal care ingredients market outperformed most other end-use industries in which specialty chemicals suppliers are active. Fueled by a relatively stable consumption of cosmetics and toiletries during the crisis, the market is expected to recover quickly, as indicated by a sharp rebound in sales in the first half of 2010, and is anticipated to continue to increase at an annual volume growth rate of 2.6 percent until 2014. While traditional ingredients will take advantage of this upturn, the largest growth expected is in the "green" product area.
"After a difficult period when price was the key purchasing criteria, the return of innovation as a key buying factor for formulators will create an opportunity for suppliers to develop more added values and take market shares from established products," commented Anna Ibbotson, industry manager at Kline's Chemicals & Materials practice.
Specialty surfactants, conditioning polymers and emollients are the leading product categories in the market, representing 23 percent, 18 percent and 16 percent, respectively, of a $1.74 billion total. Furthermore, boosted by increased consumer awareness about sun exposure side effects, the use of UV absorbers has extended to an increasing number of skin care products, and they now rank among the most rapidly growing markets.
Most of the personal care ingredient segments are dominated by a few large companies. This is particularly evident in the case of hair fixative polymers, where the top three competitors hold 87 percent of the total market volume. In contrast, in segments which cover a broader range of applications, such as skin and hair care, the supplier base is more fragmented as the ingredients are widely varied.
The personal care ingredients supplier basis is continuously concentrating, and the recent acquisition of Cognis by BASF confirms this trend of convergence in the industry. Key suppliers are trying to be present in most market segments to represent a one-stop-shop for cosmetics and toiletries formulators.