Nikola Matic, Kline & Company, 17 January 2013 17:14
Two Faced - Consumers Seeking Greener Personal Care Ingredients are Generally Not Shunning Less Environmentally Friendly Products
Today's youth-driven society, with its desire to see visible skin rejuvenating results combined with a growing awareness of potentially harmful ingredients, have raised consumers’ expectations regarding personal care products and their ingredients. These expectations and desires—and corresponding ingredient trends—often over communicated by society and media are not appearing to translate to great effect in final sales numbers.
For example, abetted by more and more consumers aware of the environmental impact of silicone and seeking out alternatives, silicone-free formulations are trending significantly across various personal care product categories and throughout regions worldwide. Yet despite this momentum, Kline’s findings show that the demand for silicone-formulated products has only been marginally affected.
This suggests that although new ingredient trends should be accommodated and are often driven by genuine concerns, formulators should be mindful of the conservative nature of the market. It takes time for a new ingredient to claim a significant share of an existing and well-anchored one.
Ostensibly, there are few notable dynamic macro trends within ingredient categories; however, there are significant changes being observed at the micro level as fast-paced changes are occurring concerning individual ingredients. With extensive research undertaken on over 100 ingredients and personal interviews with key industry participants and suppliers, Kline has subsequently been able to identify, understand, and assess nuances and assay market changes for given products on diverse levels. This includes new ingredients such as conditioning polymers, anti-microbials, and emulsifiers, all witnessing significant growth over the last five years.
Growth of the personal care ingredients market is concomitant with the personal care finished products market, which is auspiciously weathering the continuing general economic malaise with consumers indulging in simple, comparatively affordable, pleasures and investing in themselves. The North American and Western European markets saw some encouraging growth back in 2011, with the United States alone exceeding $38 billion in sales at the manufacturers’ level, surpassing pre-recession levels and representing a robust growth of 4.2%. While these markets in particular remain challenged by economic uncertainty, regions such as Asia continue to show great promise.
The worldwide consumption of personal care ingredients in 2012 exceeded 7 million tons with the Asia-Pacific region, accounting for a vigorous 36% share. This region is proving to be one of the fastest growing due to consumers’ increased product awareness, social factors, rising salaries, and better product access. However, abatement in the strength of Asian market is expected.
As the personal care ingredients market expands globally and seizes many regional opportunities, savvy ingredient manufacturers and formulators must draw on their ability to adapt to consumers’ various and often local needs, and carefully innovate in this dynamic environment. Moreover, they need to concurrently address ever-changing standards and regulations in regions such as North America and Europe, which are generally global precursors. 2013 is extrapolated to be both an active and competitive environment for personal care ingredients; however, suppliers should exercise prudence when judging the pace of market acceptance and consumer demand.
At in-cosmetics 2013 Nikola Matic will present 'Anti-ageing ingredients new trends' on 16 April at 14:00 as part of the educational workshops.
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