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Hair care market trends in France, Italy, Spain, the UK and Russia
FOCUS construction sector. Located in Mumbai, the new centre will develop innovative solutions and strengthen customer orientation, the company says. The Centre will be engaged in the development and testing of applications for concrete admixtures, cement additives, precision grouting and protective products. The centre will cater to the needs of the South Asia region. It reflects BASF’s desire to expand its presence in emerging markets. Original Source: Chimie Pharma Hebdo, 10 Sep 2012, (604), 9 (Website: http://www.industrie.com/chimie/) (in French) © ETAI Information 2012. Original Source: Business Line, 1 Sep 2012, 19 (245), 3 (Website: http://www.thehindubusinessline.com/) © The Hindu Business Line 2012
LEGISLATION Didecyl dimethyl ammonium carbonate and didecyl dimethyl ammonium bicarbonate; exemption from the requirement of a tolerance This regulation, issued by the US Environmental Protection Agency (EPA), amends the exemption from the requirement of a tolerance for residues of the biocidal quaternaries didecyl dimethyl ammonium carbonate and didecyl dimethyl ammonium bicarbonate, jointly referred to as DDACB, on food contact surfaces when applied or used in public eating places, dairy processing equipment, and/or food processing equipment and utensils. Lonza Inc submitted a petition to the EPA under the Federal Food, Drug, and Cosmetic Act (FFDCA), requesting an amendment that would provide for an increase in the finaluse concentration of DDACB in products eligible for the exemption from the requirement of a tolerance. As amended, the regulation will exempt solutions from the requirement of tolerance residues resulting from contact with surfaces treated with solutions where the enduse concentration of the DDACB does not exceed 400 ppm. This regulation is effective 22 Aug 2012. Objections and requests for hearings were required by 22 Oct 2012. Original Source: Federal Register, 22 Aug 2012, 77 (163), 50613-50617 (Website: http://www.gpo.gov/fdsys)
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MARKET REVIEWS Cleaning green: sustainable lifestyles expand reach of eco-friendly cleaning products Slowly but steadily gaining momentum as a trend, the consumer quest for more-sustainable lifestyles has fuelled growth in the US market for green products. Among the beneficiaries of continued consumer interest in going green is the market for eco-friendly cleaning products, including household surface cleaners and laundry products. Green Cleaning Products in the US, a justreleased report from Packaged Facts, reveals that retail sales of green cleaning products totalled $640 M in 2011, up from $303 M in 2007. Once concentrated on the shelves of health and natural product stores, green cleaners are now staples at massmarket outlets - a shift that has met with consumer approval as general merchandise stores such as Walmart and Target now lead all retail channels in total sales of green cleaners. The future for green cleaning products is solid, even if the growth trajectory will be moderate, according to Packaged Facts editor David Sprinkle. Green cleaners will outperform conventional non-green cleaners due to higher price points and loyal usage by core and converted consumers, and the longawaited upturn in the US economy will accelerate growth when consumer spending regains steam. Green cleaners clearly have their advocates. Packaged Facts’ 2012 survey data reveal that more consumers have purchased or used natural, organic or eco-friendly household cleaning/laundry products within the previous 12 months before Sep 2012 then they did three years ago. Purchase or use of green products increased from 38% in 2009 to 41% in 2012. Nevertheless, this is a segment that faces challenges going forward, with consumer scepticism a chief cause of concern. Packaged Facts’ survey data reveal that 33% of consumers think green household cleaning/laundry products are less effective than regular products,
a percentage that has increased since 2010. If manufacturers and marketers want to expand the green market’s share of the total household and laundry cleaner retail market beyond the 3% it currently claims, they must convince consumers that they are not only paying more money for environmentally safe products, but also for products that are superior to traditional non-green products. This effort includes transparency and the educating of consumers about not only what green cleaners can do, but also about what ingredients they contain. Marketwire, 10 Sep 2012, (Website: http://www.marketwire.com)
Hair care market trends in France, Italy, Spain, the UK and Russia The French mass market for hair care and styling reported a minor gain of just below 0.8% to €1.19 bn in the year to May 2012 versus a 2.2% decline in the previous year. SymphonyIRI France revealed that adult shampoos stagnated at €339.9 M, while family shampoos performed better with a 7.2% gain to €90.5 M. Colorants were also stagnant at €259.3 M. Conditioning products were on the up, rising 5% to €202.7 M. The overall hair styling market, on the other hand, stood at €276.7 M, down 3.9% with major styling categories registering unfavourable results. New product launches in the period include three limited edition shampoos under Procter and Gamble’s Head and Shoulders brand for the London 2012 Olympic Games. L’Oreal has also rolled out four new strong hold styling products under its Studio Line. In Italy, hair care products snatched a 14% share of the country’s overall C&T market in 2011, ranking third place behind body care and facial skin care products. According to Unipro, the overall value of the category slid 1% from 2010 to €1.17 bn. Hairdressing channels declined 1.5% to €686 M. Mass distribution, particularly via supermarkets and hypermarkets, continued to be the preferred purchasing channel in the country for hair care and styling products. Shampoos led the entire category with €500.2 M, although still down 0.3% from 2010. Dyes and coloured 5
FOCUS mousses followed with €249.2 M, down 0.4%. The liquid gels category posted the biggest decline of 5.8% to €67.5 M, while the fixers and mousses category eroded 5.1% to €41.1 M. The top three brands were L’Oreal Italia Saipo with its Elvive, L’Oreal Studio line and Exellence Colour among others; Procter and Gamble Italia with Pantene; and Schwarzkopf and Henkel with its Gliss range. Data from SymphonyIRI Spain revealed that the Spanish hair care market achieved sales growth of 0.6% to €757.4 M in the 52 weeks to 29 Apr 2012, with sales volumes up 1.9% to 105.9 M units. Hair treatment lotions accounted for the biggest growth, with sales rising 10.6% to €14.7 M as volumes increased by more than a fifth to 537,487 units. In contrast, sales of hair fixing products slid 5.5% to €133.5 M as volumes dropped by 4.5%. Shampoos and conditioners were fairly consistent, taking almost three-fifths of the hair care market sales, growing to €294.8 M and €141.8 M, respectively. Hair dyes and other colouring products saw a 4% increase in sales to €172.4 M, with volumes reaching 29.9 M units, up 6.3%. Procter and Gamble’s Head & Shoulders range of shampoos dominated the market with almost 40% of sales. Kantar Worldpanel revealed that the UK hair care market continues to thrive, with a 6% growth from £1.19 bn to £1.26 bn from 15 May 2011 to 13 May 2012. Volume reached 525.73 M units, up 0.5% from 523.26 M units. Shampoos and conditioners accounted for the largest sales, representing a 33.1% and a 22% share respectively, alongside a growth of 8.4% and 7.9%. In contrast, perming products made up only 0.1% of the market and slumped on the previous year with a decline of 8.7%. 2-in-1 shampoos and conditioners experienced an 8.8% rise. Meanwhile, Unilever UK’s Tresemme is valued at more than £43.3 M and is continuing to grow both in value and volume within the £619.8 M wash and care category. Additionally, permanent colour products dominated the colour sub-sector with an 85.4% share, while hairspray products enjoyed a 5.6% growth. The Russian hair care market continues to grow with a 7.3% gain in
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2011 to almost €68 M. Hair dyes and styling products showed the most robust growth, with roughly 11% and 10% respectively, according to Euromonitor 2010. Based on Synovate Comcon data, shampoos are the most popular products used by 93% of Russians, followed by balms utilized by 39%, and hair masks 16%. Supermarkets/ hypermarkets are the leading sales channels for hair care products in Russia with 46% of consumers, followed by specialized stores with 22%, small service shops with 18%, department stores 11%, individual distributors 7% and drug stores 6%. Market leaders include Procter and Gamble with a market share of 24%, Schwarzkopf and Henkel with 18%, L’Oreal with 16% and Unilever 13%. Original Source: ECM, European Cosmetic Markets, Aug 2012, 29 (8), 264-267, 270-273, 273-275, 275278, 279-280 (Website: http://www.cosmeticsbusiness.com) © HPCi Media Limited 2012
Small towns driving FMCG growth in India A report by market research agency Nielsen states that consumption of fast moving consumer goods (FMCG) in small towns, with a population of less than 100,000, in India has increased since Jul/Aug 2011. FMCG growth in small towns has been about 19% in small towns as against 11% in metros and 12-13% in towns with a population of 100,000 to 1 M (middle India). India has an estimated 400 towns with a population of 100,000-1 M and more than 2000 small towns. Hair conditioners, air fresheners, after shave lotions and liquid toilet soaps are the growth drivers in small towns. Original Source: Business Standard, 28 Aug 2012, 15 (50), I.2 (Website: http://www.businessstandard.com/) © Business Standard Ltd 2012
COMPANY RESULTS Huntsman reports strong results for 2Q 2012 Huntsman has reported revenues for 2Q 2012 of $2.91 bn ($2.93 bn in 2Q 2011). For 1H 2012 revenues were
$5.83 bn ($5.61 bn in 1H 2011). The company reported adjusted EBITDA of $365 M in 2Q 2012 (adjusted EBITDA of $321 M in 2Q 2011) and adjusted EBITDA of $762 M in 1H 2012 (adjusted EBITDA of $625 M in 1H 2011). Huntsman’s net income for 2Q 2012 was $128 M (net income of $124 M in 2Q 2011). For 1H 2012 the company’s net income was $291 M (net income of $191 M in 1H 2011). On a segment-wise basis, revenues from the Polyurethanes segment were $1.2 bn for 2Q 2012 (+12% over $1.14 bn in 2Q 2011) and $2.5 bn in 1H 2012 (+14% over $2.18 bn in 1H 2011). The Performance Products segment recorded revenues for 2Q 2012 of $770 M (-14% from $896 M in 2Q 2011) and $1.58 bn in 1H 2012 (-7% from $1.7 bn in 1H 2011). Huntsman says that this year-on-year decrease in the segment’s revenues was due to lower average selling prices – as a result of lower raw material costs and the strength of the US dollar – and lower sales volumes. Volumes decreased primarily due to lower demand across most markets and a greater shift to tolling arrangements. The segment’s adjusted EBITDA also fell in 2Q 2012 due to the lower sales volumes combined with lower contribution margins and the impact of an unplanned outage at Huntsman’s ethylene oxide facility. For 2Q 2012 the Advanced Materials segment recorded revenues of $346 M (-4% from $360 M in 2Q 2011) and $686 M in 1H 2012 (-3% from $710 M in 1H 2011). Original Source: Huntsman Corp, 10003 Woodloch Forest Drive, The Woodlands, TX 77380, USA, tel: +1 281 719 6000, website: http://www.huntsman.com (30 Jul 2012) © Huntsman International LLC 2012
Unilever turnover grows in emerging markets in 1H 2012, no major effect from slowdown in China Unilever’s turnover in emerging economies rose by the annual equivalent of 11.4% in 1H 2012 and accounted for more than 50% of its total turnover. Unilever’s target in 2010 was a quintupling of its turnover in China within 10 years, equivalent to a growth of 15-20%/y. The research bureau Euromonitor predicts that the Chinese market for cosmetics and
NOVEMBER 2012
LEGISLATION Didecyl dimethyl ammonium carbonate and didecyl dimethyl ammonium bicarbonate; exemption from the requirement of a tolerance This regulation, issued by the US Environmental Protection Agency (EPA), amends the exemption from the requirement of a tolerance for residues of the biocidal quaternaries didecyl dimethyl ammonium carbonate and didecyl dimethyl ammonium bicarbonate, jointly referred to as DDACB, on food contact surfaces when applied or used in public eating places, dairy processing equipment, and/or food processing equipment and utensils. Lonza Inc submitted a petition to the EPA under the Federal Food, Drug, and Cosmetic Act (FFDCA), requesting an amendment that would provide for an increase in the finaluse concentration of DDACB in products eligible for the exemption from the requirement of a tolerance. As amended, the regulation will exempt solutions from the requirement of tolerance residues resulting from contact with surfaces treated with solutions where the enduse concentration of the DDACB does not exceed 400 ppm. This regulation is effective 22 Aug 2012. Objections and requests for hearings were required by 22 Oct 2012. Original Source: Federal Register, 22 Aug 2012, 77 (163), 50613-50617 (Website: http://www.gpo.gov/fdsys)
NOVEMBER 2012
ON
S U R FA C TA N T S
MARKET REVIEWS Cleaning green: sustainable lifestyles expand reach of eco-friendly cleaning products Slowly but steadily gaining momentum as a trend, the consumer quest for more-sustainable lifestyles has fuelled growth in the US market for green products. Among the beneficiaries of continued consumer interest in going green is the market for eco-friendly cleaning products, including household surface cleaners and laundry products. Green Cleaning Products in the US, a justreleased report from Packaged Facts, reveals that retail sales of green cleaning products totalled $640 M in 2011, up from $303 M in 2007. Once concentrated on the shelves of health and natural product stores, green cleaners are now staples at massmarket outlets - a shift that has met with consumer approval as general merchandise stores such as Walmart and Target now lead all retail channels in total sales of green cleaners. The future for green cleaning products is solid, even if the growth trajectory will be moderate, according to Packaged Facts editor David Sprinkle. Green cleaners will outperform conventional non-green cleaners due to higher price points and loyal usage by core and converted consumers, and the longawaited upturn in the US economy will accelerate growth when consumer spending regains steam. Green cleaners clearly have their advocates. Packaged Facts’ 2012 survey data reveal that more consumers have purchased or used natural, organic or eco-friendly household cleaning/laundry products within the previous 12 months before Sep 2012 then they did three years ago. Purchase or use of green products increased from 38% in 2009 to 41% in 2012. Nevertheless, this is a segment that faces challenges going forward, with consumer scepticism a chief cause of concern. Packaged Facts’ survey data reveal that 33% of consumers think green household cleaning/laundry products are less effective than regular products,
a percentage that has increased since 2010. If manufacturers and marketers want to expand the green market’s share of the total household and laundry cleaner retail market beyond the 3% it currently claims, they must convince consumers that they are not only paying more money for environmentally safe products, but also for products that are superior to traditional non-green products. This effort includes transparency and the educating of consumers about not only what green cleaners can do, but also about what ingredients they contain. Marketwire, 10 Sep 2012, (Website: http://www.marketwire.com)
Hair care market trends in France, Italy, Spain, the UK and Russia The French mass market for hair care and styling reported a minor gain of just below 0.8% to €1.19 bn in the year to May 2012 versus a 2.2% decline in the previous year. SymphonyIRI France revealed that adult shampoos stagnated at €339.9 M, while family shampoos performed better with a 7.2% gain to €90.5 M. Colorants were also stagnant at €259.3 M. Conditioning products were on the up, rising 5% to €202.7 M. The overall hair styling market, on the other hand, stood at €276.7 M, down 3.9% with major styling categories registering unfavourable results. New product launches in the period include three limited edition shampoos under Procter and Gamble’s Head and Shoulders brand for the London 2012 Olympic Games. L’Oreal has also rolled out four new strong hold styling products under its Studio Line. In Italy, hair care products snatched a 14% share of the country’s overall C&T market in 2011, ranking third place behind body care and facial skin care products. According to Unipro, the overall value of the category slid 1% from 2010 to €1.17 bn. Hairdressing channels declined 1.5% to €686 M. Mass distribution, particularly via supermarkets and hypermarkets, continued to be the preferred purchasing channel in the country for hair care and styling products. Shampoos led the entire category with €500.2 M, although still down 0.3% from 2010. Dyes and coloured 5
FOCUS mousses followed with €249.2 M, down 0.4%. The liquid gels category posted the biggest decline of 5.8% to €67.5 M, while the fixers and mousses category eroded 5.1% to €41.1 M. The top three brands were L’Oreal Italia Saipo with its Elvive, L’Oreal Studio line and Exellence Colour among others; Procter and Gamble Italia with Pantene; and Schwarzkopf and Henkel with its Gliss range. Data from SymphonyIRI Spain revealed that the Spanish hair care market achieved sales growth of 0.6% to €757.4 M in the 52 weeks to 29 Apr 2012, with sales volumes up 1.9% to 105.9 M units. Hair treatment lotions accounted for the biggest growth, with sales rising 10.6% to €14.7 M as volumes increased by more than a fifth to 537,487 units. In contrast, sales of hair fixing products slid 5.5% to €133.5 M as volumes dropped by 4.5%. Shampoos and conditioners were fairly consistent, taking almost three-fifths of the hair care market sales, growing to €294.8 M and €141.8 M, respectively. Hair dyes and other colouring products saw a 4% increase in sales to €172.4 M, with volumes reaching 29.9 M units, up 6.3%. Procter and Gamble’s Head & Shoulders range of shampoos dominated the market with almost 40% of sales. Kantar Worldpanel revealed that the UK hair care market continues to thrive, with a 6% growth from £1.19 bn to £1.26 bn from 15 May 2011 to 13 May 2012. Volume reached 525.73 M units, up 0.5% from 523.26 M units. Shampoos and conditioners accounted for the largest sales, representing a 33.1% and a 22% share respectively, alongside a growth of 8.4% and 7.9%. In contrast, perming products made up only 0.1% of the market and slumped on the previous year with a decline of 8.7%. 2-in-1 shampoos and conditioners experienced an 8.8% rise. Meanwhile, Unilever UK’s Tresemme is valued at more than £43.3 M and is continuing to grow both in value and volume within the £619.8 M wash and care category. Additionally, permanent colour products dominated the colour sub-sector with an 85.4% share, while hairspray products enjoyed a 5.6% growth. The Russian hair care market continues to grow with a 7.3% gain in
6
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2011 to almost €68 M. Hair dyes and styling products showed the most robust growth, with roughly 11% and 10% respectively, according to Euromonitor 2010. Based on Synovate Comcon data, shampoos are the most popular products used by 93% of Russians, followed by balms utilized by 39%, and hair masks 16%. Supermarkets/ hypermarkets are the leading sales channels for hair care products in Russia with 46% of consumers, followed by specialized stores with 22%, small service shops with 18%, department stores 11%, individual distributors 7% and drug stores 6%. Market leaders include Procter and Gamble with a market share of 24%, Schwarzkopf and Henkel with 18%, L’Oreal with 16% and Unilever 13%. Original Source: ECM, European Cosmetic Markets, Aug 2012, 29 (8), 264-267, 270-273, 273-275, 275278, 279-280 (Website: http://www.cosmeticsbusiness.com) © HPCi Media Limited 2012
Small towns driving FMCG growth in India A report by market research agency Nielsen states that consumption of fast moving consumer goods (FMCG) in small towns, with a population of less than 100,000, in India has increased since Jul/Aug 2011. FMCG growth in small towns has been about 19% in small towns as against 11% in metros and 12-13% in towns with a population of 100,000 to 1 M (middle India). India has an estimated 400 towns with a population of 100,000-1 M and more than 2000 small towns. Hair conditioners, air fresheners, after shave lotions and liquid toilet soaps are the growth drivers in small towns. Original Source: Business Standard, 28 Aug 2012, 15 (50), I.2 (Website: http://www.businessstandard.com/) © Business Standard Ltd 2012
COMPANY RESULTS Huntsman reports strong results for 2Q 2012 Huntsman has reported revenues for 2Q 2012 of $2.91 bn ($2.93 bn in 2Q 2011). For 1H 2012 revenues were
$5.83 bn ($5.61 bn in 1H 2011). The company reported adjusted EBITDA of $365 M in 2Q 2012 (adjusted EBITDA of $321 M in 2Q 2011) and adjusted EBITDA of $762 M in 1H 2012 (adjusted EBITDA of $625 M in 1H 2011). Huntsman’s net income for 2Q 2012 was $128 M (net income of $124 M in 2Q 2011). For 1H 2012 the company’s net income was $291 M (net income of $191 M in 1H 2011). On a segment-wise basis, revenues from the Polyurethanes segment were $1.2 bn for 2Q 2012 (+12% over $1.14 bn in 2Q 2011) and $2.5 bn in 1H 2012 (+14% over $2.18 bn in 1H 2011). The Performance Products segment recorded revenues for 2Q 2012 of $770 M (-14% from $896 M in 2Q 2011) and $1.58 bn in 1H 2012 (-7% from $1.7 bn in 1H 2011). Huntsman says that this year-on-year decrease in the segment’s revenues was due to lower average selling prices – as a result of lower raw material costs and the strength of the US dollar – and lower sales volumes. Volumes decreased primarily due to lower demand across most markets and a greater shift to tolling arrangements. The segment’s adjusted EBITDA also fell in 2Q 2012 due to the lower sales volumes combined with lower contribution margins and the impact of an unplanned outage at Huntsman’s ethylene oxide facility. For 2Q 2012 the Advanced Materials segment recorded revenues of $346 M (-4% from $360 M in 2Q 2011) and $686 M in 1H 2012 (-3% from $710 M in 1H 2011). Original Source: Huntsman Corp, 10003 Woodloch Forest Drive, The Woodlands, TX 77380, USA, tel: +1 281 719 6000, website: http://www.huntsman.com (30 Jul 2012) © Huntsman International LLC 2012
Unilever turnover grows in emerging markets in 1H 2012, no major effect from slowdown in China Unilever’s turnover in emerging economies rose by the annual equivalent of 11.4% in 1H 2012 and accounted for more than 50% of its total turnover. Unilever’s target in 2010 was a quintupling of its turnover in China within 10 years, equivalent to a growth of 15-20%/y. The research bureau Euromonitor predicts that the Chinese market for cosmetics and
NOVEMBER 2012