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F O C US
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S U R FAC TA N T S
EU detergents legislation challenged
Making waves: shower and bath products
The European Committee of Surfactants and their Organic Intermediates says legislation proposed by the European Commission to limit the use of surfactants based on their biodegradability is not the most effective way to improve environmental performance. Better-performing surfactants would be of greater benefit to the environment, as they would lower energy and water consumption.
Shower gels and bath products have evolved to offer not only general cleansing benefits but also moisturizing, toning, exfoliating and relaxing perquisites. With 64% of the Big 5 European countries using a shower gel in an average week, the shower gel market is expanding and has grown by 18.7% between 1997 and 2001. In the UK, the shower market has expanded by 14% to £156 M, and France indicates more and more shower gel users than bath product patrons. There are also signs that Italy would pay higher prices for premium products while the US market for body wash and shower products grew by 3.2%. Multinationals Colgate Palmolive, Henkel, Beiersdorf, Sara Lee, Cussons and Unilever/Elida Faberge are the top players in the European and US markets. New variants are forecast to launch in the market in 2003 after a year of numerous new products, including the growing number of shower products that offer emotional and invigorating benefits via aromatherapy. In Europe, one in five people use bath products, which wield a 40% penetration rate in Italy and 26% in the UK, with Italians and the British emerging as the most frequent bathers. Also growing in number are gastro-cosmetic formulations in the belief that certain food ingredients render moisturizing, relaxing as well as protective advantages to the skin. In the face of growing patronage for shower and bath soaps, bar soaps are seeing a constant weakening in penetration in recent years, experiencing a 5% decrease in all European countries since Sep 2000.
Chemical Week, 19 Feb 2003, 165 (7), 8
MARKET REVIEWS Soaps and detergents: R&D and customer collaboration key to boosting margins According to those attending the Soaps and Detergents Association’s annual convention in Jan 2003, suppliers of chemicals are focusing on closer cooperation with customers and targeting growth niches by adding value to existing products with new technologies. Such measures, plus streamlining, are needed to increase profits at a time of pressure on margins, which shows no sign of easing in 2003. Completion of some projects and products co-developed with customers drove sales in BASF’s detergent and formulators unit in 2002. BASF’s R&D spending here is expected to rise 10% in 2003. Meanwhile, detergent alcohols makers are still struggling with new capacity. Shell is focusing on increasing supply efficiency and developing new products. Dow Chemical has set up an applications centre to develop solutions with and for customers in the cleaning industry. Ciba Specialty Chemicals is developing new optical whiteners based on oxidation catalysts. The first products will be launched in 3Q 2003. Flavours and fragrances companies are also focused on R&D efforts. Chemical Week, 19 Feb 2003, 165 (7), 55
APRIL 2003
SPC, Soap Perfumery and Cosmetics, Feb 2003, 76 (2), 21-24,26
Global demand for textile chemicals to grow 4%/y The demand for textile processing and finishing chemicals in the global market is projected to record a growth of just over 4%/y through 2006, which shows a considerable improvement from its sluggish growth since 1998. The increased growth is predicted to come from improvement in the North American market, as the US textile industry has reached a turning point
after its poor growth in 2001. Mexico also recorded enhanced regional growth due to the improvement in the textile industry. Further, the industry is expecting reduction in the high prices of dyes, which was one of the reasons hindering the growth in recent past. However, volumes of chemical consumption will reduce through recycling and use of more concentrated dyes or effective chemical formulations. Colorants and related auxiliaries will remain the largest segment in the market, accounting for 50% of overall sales. The countries recording fastest growth in demand for textile chemicals include China, India, Indonesia, Thailand, Turkey, and the smaller countries of Asia, Latin America and Africa. Chemical Engineering World, Jan 2003, 38 (1), 44
India’s budget looks positive for FMCGs India’s Budget 2003-2004 looks likely to boost fast moving consumer goods (FMCGs), with reductions in customs duty on FMCGs inputs, excise duty cuts on some toilet preparations and solid steps towards value added tax. The decrease in customs duty on major inputs like linear alkylbenzene (from 30% to 25%), surfactants (from 30% to 25%) and fatty acids (from 30% to 25%) is likely to benefit many of the soaps, detergents, personal and household products marketers. Also, the sharp reduction in excise duty on alcohol-based toilet preparations to 16% from 50% could benefit the companies like Gillette India, Hindustan Lever and Henkel SPIC. Business Line, 1 Mar 2003, 10 (59), 9
COMPANY RESULTS 2002 results: Rhodia raises the bar in difficult climate Although Rhodia ended 2002 in the red, it managed to limit its net losses to €4 M (compared with €213 M losses in 2001). Turnover was down by 9% to €6.617 bn following a series of asset sales. Rhodia’s operating profits showed a 400% increase to €351 M. The improvement was mainly due to restructuring. Rhodia’s 5
O N
S U R FAC TA N T S
EU detergents legislation challenged
Making waves: shower and bath products
The European Committee of Surfactants and their Organic Intermediates says legislation proposed by the European Commission to limit the use of surfactants based on their biodegradability is not the most effective way to improve environmental performance. Better-performing surfactants would be of greater benefit to the environment, as they would lower energy and water consumption.
Shower gels and bath products have evolved to offer not only general cleansing benefits but also moisturizing, toning, exfoliating and relaxing perquisites. With 64% of the Big 5 European countries using a shower gel in an average week, the shower gel market is expanding and has grown by 18.7% between 1997 and 2001. In the UK, the shower market has expanded by 14% to £156 M, and France indicates more and more shower gel users than bath product patrons. There are also signs that Italy would pay higher prices for premium products while the US market for body wash and shower products grew by 3.2%. Multinationals Colgate Palmolive, Henkel, Beiersdorf, Sara Lee, Cussons and Unilever/Elida Faberge are the top players in the European and US markets. New variants are forecast to launch in the market in 2003 after a year of numerous new products, including the growing number of shower products that offer emotional and invigorating benefits via aromatherapy. In Europe, one in five people use bath products, which wield a 40% penetration rate in Italy and 26% in the UK, with Italians and the British emerging as the most frequent bathers. Also growing in number are gastro-cosmetic formulations in the belief that certain food ingredients render moisturizing, relaxing as well as protective advantages to the skin. In the face of growing patronage for shower and bath soaps, bar soaps are seeing a constant weakening in penetration in recent years, experiencing a 5% decrease in all European countries since Sep 2000.
Chemical Week, 19 Feb 2003, 165 (7), 8
MARKET REVIEWS Soaps and detergents: R&D and customer collaboration key to boosting margins According to those attending the Soaps and Detergents Association’s annual convention in Jan 2003, suppliers of chemicals are focusing on closer cooperation with customers and targeting growth niches by adding value to existing products with new technologies. Such measures, plus streamlining, are needed to increase profits at a time of pressure on margins, which shows no sign of easing in 2003. Completion of some projects and products co-developed with customers drove sales in BASF’s detergent and formulators unit in 2002. BASF’s R&D spending here is expected to rise 10% in 2003. Meanwhile, detergent alcohols makers are still struggling with new capacity. Shell is focusing on increasing supply efficiency and developing new products. Dow Chemical has set up an applications centre to develop solutions with and for customers in the cleaning industry. Ciba Specialty Chemicals is developing new optical whiteners based on oxidation catalysts. The first products will be launched in 3Q 2003. Flavours and fragrances companies are also focused on R&D efforts. Chemical Week, 19 Feb 2003, 165 (7), 55
APRIL 2003
SPC, Soap Perfumery and Cosmetics, Feb 2003, 76 (2), 21-24,26
Global demand for textile chemicals to grow 4%/y The demand for textile processing and finishing chemicals in the global market is projected to record a growth of just over 4%/y through 2006, which shows a considerable improvement from its sluggish growth since 1998. The increased growth is predicted to come from improvement in the North American market, as the US textile industry has reached a turning point
after its poor growth in 2001. Mexico also recorded enhanced regional growth due to the improvement in the textile industry. Further, the industry is expecting reduction in the high prices of dyes, which was one of the reasons hindering the growth in recent past. However, volumes of chemical consumption will reduce through recycling and use of more concentrated dyes or effective chemical formulations. Colorants and related auxiliaries will remain the largest segment in the market, accounting for 50% of overall sales. The countries recording fastest growth in demand for textile chemicals include China, India, Indonesia, Thailand, Turkey, and the smaller countries of Asia, Latin America and Africa. Chemical Engineering World, Jan 2003, 38 (1), 44
India’s budget looks positive for FMCGs India’s Budget 2003-2004 looks likely to boost fast moving consumer goods (FMCGs), with reductions in customs duty on FMCGs inputs, excise duty cuts on some toilet preparations and solid steps towards value added tax. The decrease in customs duty on major inputs like linear alkylbenzene (from 30% to 25%), surfactants (from 30% to 25%) and fatty acids (from 30% to 25%) is likely to benefit many of the soaps, detergents, personal and household products marketers. Also, the sharp reduction in excise duty on alcohol-based toilet preparations to 16% from 50% could benefit the companies like Gillette India, Hindustan Lever and Henkel SPIC. Business Line, 1 Mar 2003, 10 (59), 9
COMPANY RESULTS 2002 results: Rhodia raises the bar in difficult climate Although Rhodia ended 2002 in the red, it managed to limit its net losses to €4 M (compared with €213 M losses in 2001). Turnover was down by 9% to €6.617 bn following a series of asset sales. Rhodia’s operating profits showed a 400% increase to €351 M. The improvement was mainly due to restructuring. Rhodia’s 5