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MARKET REVIEWS European bathroom products report The overall bathroom products sector in Europe's Big 6 has been on an upswing except for the German and Italian segments. The French market expanded by 1.5% to €790.22 M in terms of value and 2.5% to 135.26 M units in terms of volume for the year ended 26 Oct 2014, according to IRI France. Sales gains were reported for shower gels (2.1%), with large formats (>500 ml) gaining 14.9%. Sales suffered for bath foams (S18.1%) and bath oils/pearls/pebbles (S0.2%). Soaps gained 1.3% overall to total €194.48 M in 2014, boosted by liquid soaps which grew 5.3% to €108.65 M. Bar soaps fell by 3.2% to €81.41 M. Emerging trends in France include shower balms, 100% natural formulations, multi-variant products and liquid soaps. German sales grew 0.7% in volume to 117.528 M L and 0.3% in value to €474.238 M during Jan-Jul 2014 as the market endured rough sales, according to IRI Germany. Shower products grew 2.8% but soaps fell 1.4% and bath additives declined by 5.1%. New releases from cosmetics companies include fruit-based shower gels, in-shower moisturizing lotions, vitamin formulations, extended releases, liquid soaps and bath additives. Italy's market for bathroom products contracted by 2% to €1.0659 bn in terms of value in 2013, according to Cosmetica Italia. Sales fell 4% (to €439.8 M) for bath/shower products and 2.5% (to €113 M) for soaps and syndets. Liquid soap sales fell 1.7% to €154.1 M. The Spanish market grew by 5% to €285.8 M in terms of value and 3% to 109.8 M units in terms of volume for the year ended 26 Oct 2014, according to IRI Spain. As the largest segment, shower gels achieved a 6% sales growth to €234.9 M, while sales of bar soaps fell 5% to €18.3 M. New products from cosmetics companies include bath gels, fragrances and natural soaps. UK sales expanded by 1.7% to £596 M (c €800 M) in value and 2.6% to 474.2 M units in volume in 2014, according to Kantar Worldpanel. Body wash overtook all segments with a 9.8% gain (to £88.206 M) while liquid soaps grew 4.1% (to £138.865 M).
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Volume gains were likewise noted. Recent trending innovations developed by cosmetics companies include premium and multi-beneficial body wash, as well as gift sets. According to Canadean, Russian sales grew by 0.6% in 2013 to $1.082 bn (Roubles 70.7 bn/€0.916 bn) in terms of value and 2.6% to 921.92 M units in terms of volume. In 2014, the market further grew to $1088.41 M in value and 946.11 M units in volume. Market share by major multinational brands are: Colgate-Palmolive's Palmolive 22%, Beiersdorf's Nivea 19% and Avon 19%. Of all bathroom products categories, the shower market recorded the highest growth in 2013, up 2.9% to $294.60 M. Novel national trends include multifunctional products, premium and environmentally friendly releases. Dove is the leading bathroom product brand overall in Europe, followed by Radox and Nivea. Original Source: CBM, Cosmetics Business Markets, Jan 2015, 8-11, 12-16, 16-19, 19-21, 21-25, 25-28 (Website: http://www. cosmeticsbusiness.com) © HPCi Media Limited 2015
Men’s lines report: Global round-up Canadean has reported that the US men's grooming market expanded by 5.3% to $10.9 bn in 2013, while Mintel shows a 20% growth from 2007 to 2012. In 2013, sales increased among major segments: toiletries (5.2% to $4.5 bn), skin care (5.4% to $3.9 bn) and fragrances (6.7% to $2.5 bn). The men's shaving category has incurred a sales decline of 1% according to Euromonitor and 2% (to $3.7 bn) according to P&G. The Brazilian market grew 77.8% from 2009 levels to R$9.9 bn (nearly $3.5 bn) in 2014 and is set to expand at 11.8% CAGR to R$17.3 bn by 2019, according to Mintel. The market is dominated by fragrances with a 43.5% share (R$3042.8 M), as well as by deodorants with a 33.2% share. The Chinese market grew 8.4% from $283.86 M in 2013 to $309.73 M in 2014 and is set to expand at 9.2% CAGR to $440.41 M by 2018, according to Canadean. Kantar Worldpanel has identified three fastest-growing segments, namely shampoo (46%), bar soap (36%) and liquid soap/shower gel (34%). The facial skin care segment grew at 20.1% CAGR during 2009–2014 and is set to expand further at 9.4%
CAGR from $1.2 bn in 2014 to $2.5 bn by 2019, according to Companies and Markets. Original Source: CBM, Cosmetics Business Markets, Mar 2015, 30-32 (Website: http:// www.cosmeticsbusiness.com) © HPCi Media Limited 2015
India’s I&I cleaning chemicals market grew at 14.5% to 2014 According to the recently published TechSci Research report, 'India Industrial & Institutional Cleaning Chemicals Market Forecast & Opportunities, 2020', the industrial and institutional (I&I) cleaning chemicals market in India exhibited a CAGR of 14.5% during 2010–2014. Original Source: TechSci Research, 2015. Found on PR Newswire, 22 Apr 2015 (Website: http://www.prnewswire.com)
COMPANY RESULTS Emerging countries put Unilever on growth course Unilever is again making good ground in emerging countries. Thanks to better business and good sales at Easter, 1Q 2015 sales rose 12% to around €13 bn. With currency effects, acquisitions and sell-offs excluded, growth was 2.8%. Unilever generates more than half of its sales in emerging countries. The slowdown in growth in China, the recession in Brazil and the West's sanctions against Russia thus hit the company particularly hard. In Jan, Unilever had forecast sales growth of 2–4%. The company now says the rise will be more in the upper half of the range. Original Source: Handelsblatt Wirtschafts- und Finanzzeitung, 16 Apr 2015 (Website: http:// www.handelsblatt.com) (in German) © Verlagsgruppe Handelsblatt GmbH & Co KG 2015
Kao reports 1Q 2015 business results For 1Q 2015, Kao Corp reported net sales down by 3.6% to Yen 328,777 M ($2737.1 M) from Yen 341,200 M in 1Q 2014. Operating income decreased by June 2015
FOCUS 40.99% to Yen 23,409 M ($194.9 M) from Yen 39,642 M. Ordinary income amounted to Yen 24,991 M ($208.1 M), down 39.2% from Yen 41,100 M. Net income dropped by 52.3% to Yen 12,016 M ($100 M) from Yen 25,195 M. The company's 1Q 2015 net sales from its Beauty Care segment amounted to Yen 134 bn with operating loss of Yen 2.8 bn. Net sales from the Fabric and Home Care segment were at Yen 67.7 bn with operating income of Yen 11.2 bn. Net sales from the Chemical segment amounted to Yen 266.8 bn with operating income of Yen 7.1 bn. By geographic area, Kao's net sales from Japan amounted to Yen 219 bn for 1Q 2015 at an operating income of Yen 14.9 bn. Net sales from Asia were at Yen 69.7 bn at an operating income of Yen 7.0 bn. Net sales from the Americas amounted to Yen 33.9 bn at an operating income of Yen 0.2 bn. Net sales from the Europe reached Yen 36.6 M at an operating income of Yen 1.3 bn. Original Source: Kao, 23 Apr 2015 (Website: http://www.kao.com/jp/en/) © Kao Corporation 2015
P&G posts fall in sales because of strong dollar Procter & Gamble (P&G) continues to battle with the strong dollar and tough competition, posting a fall in sales in its 3Q (ends Mar 2015) to $18.4 bn. Sales had been $20.56 bn a year earlier. Net profits fell 17% to $2.15 bn from $2.61 bn the previous year. The company does a large part of its business outside the USA. The cosmetics sector posted the biggest fall in sales. Net sales are expected to be down 5-6% in 2015 but there will be organic growth in the low singledigit percentage range. Original Source: Chemie Aktuell, 23 Apr 2015 (Website: http://www.maerkte-weltweit.de) (in German) © MBM Martin Brueckner Medien GmbH 2015. Original Source: Handelsblatt Wirtschafts- und Finanzzeitung, 23 Apr 2015 (Website: http://www.handelsblatt.com) (in German) © Verlagsgruppe Handelsblatt GmbH & Co KG 2015
Reckitt Benckiser makes good start in 1Q 2015 Reckitt Benckiser recorded £2216 M (c €3100 M) total revenue for 1Q 2015, up 5% after adjusting for currency fluctuations and the effects of June 2015
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acquisitions and sell-offs. For Europe and North America (ENA), the company reported revenues of £1430 M, where North America represented £517 M and the rest of ENA £913 M. Developing markets recorded £704 revenue, as an improving trend in India was offset by weaker performance in Latin America. Of the total revenue, the health, hygiene, home and portfolio segments contributed £709 M, £943 M, £414 M and £150 M, respectively. Reckitt Benckiser sees itself as well equipped for 2015, with a 4% rise in adjusted sales forecast for the year. It also expects an improvement in margins at the operative level. Original Source: Reckitt Benckiser, 24 Apr 2015 (Website: http://www.rb.com/) © Reckitt Benckiser Group plc 2015. Original Source: Chemie Aktuell, 24 Apr 2015 (Website: http:// www.maerkte-weltweit.de) (in German) © MBM Martin Brueckner Medien GmbH 2015
COMPANY NEWS Evonik plans to invest more than €4 bn in R&D Germany-based chemical firm Evonik plans to invest >€4 bn in R&D over the next decade as part of its efforts to drive sustained value creation through innovation. In FY 2014, Evonik's R&D spending amounted to €413 M, an increase of 5% over €394 M in 2013. The R&D investment ratio was 3.2% of sales, against 3.1% in 2013. 80% of R&D spending is allocated to existing operations with 10% for the development of new activities at existing units and 10% for Creavis, Evonik's high tech centre for activities not currently part of the group's portfolio. The Evonik R&D pipeline is well-filled with some 500 projects, with even greater focus to come from strategic innovation management. Promising innovation areas for Evonik include ingredients for the cosmetics industry, membranes, speciality materials for medical technology, food supplements and animal feed additives as well as composite materials. Evonik is opening up to external partners and cooperating with scientists and startups (Open Innovation). This also includes corporate venture capital activities, for which a budget of some
€100 M has been set aside. The company held over 25,000 patents and patent applications in 2014. Some 250 new patents were filed in 2014. With some 2600 Evonik employees working in research at 35 sites, the company has continuously increased the value of its patent portfolio over the past years. Original Source: Evonik, 2015. Found on SpecialChem Cosmetics and Personal Care Innovation and Solutions, 27 Mar 2015 (Website: http://www.specialchem4cosmetics. com). Original Source: ICIS Chemical Business, 6-12 Apr 2015, 287 (13), 7 (Website: http://www.icis.com) © Reed Business Information Limited 2015
Henkel tempting Wella According to insiders, Henkel has its eye on Procter & Gamble's Wella hair care business. The sources say Henkel, like Revlon and Coty, is preparing an offer for parts of Procter & Gamble's cosmetics business. Henkel is said to be interested in the Wella and Clairol hair care brands. The segment could be worth around $7 bn. Henkel wants to improve its position in consumer goods still further. Procter & Gamble is said to be looking for a buyer for its cosmetic brands, such as Wella and Oil of Olaz (Olay). The company has reportedly already spoken with several potential buyers. The cosmetic and perfume brands will be sold individually or together for a total of up to $19 bn. Original Source: Handelsblatt Wirtschafts- und Finanzzeitung, 16 Apr 2015 (Website: http:// www.handelsblatt.com) (in German) © Verlagsgruppe Handelsblatt GmbH & Co KG 2015. Original Source: Nachrichten fuer Aussenhandel, 10 Apr 2015, (Website: http:// www.maerkte-weltweit.de) (in German) © MBM Martin Brueckner Medien GmbH 2015
Unilever buys UK cosmetics company REN Unilever is taking over US cosmetics company REN for an unnamed sum. The deal will be completed in May 2015, provided the regulators approve. Unilever is increasingly shifting its portfolio towards toiletries. Food accounted for 35% of sales in 2008; it now accounts for less than 25%. Original Source: Chemie Aktuell, 2 Mar 2015 (Website: http://www.maerkte-weltweit.de) (in German) © MBM Martin Brueckner Medien GmbH 2015
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