The European personal care ingredients market experienced continued growth in the last few years despite the negative effects of the slow economy, reveals a recently published study by consulting and research firmKline & Company [1].

Quick recover

According to Kline, during the economic downturn, 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% until 2014,” says the company.

Return of innovation

While price was the key purchasing criteria during the latest years, innovation is now returning as a key buying factor for formulators. This should “create an opportunity for suppliers to develop more added values and take market shares from established products,” comments Anna Ibbotson, industry manager at Kline’s Chemicals & Materials.

Traditional ingredients will take advantage of this upturn, but the largest growth expected is in the “green” product area.

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.

Trend towards concentration

As far as the industrial structure is concerned, Kline notes that the personal care ingredients supplier basis is continuously concentrating, the recent acquisition of Cognis by BASF confirming this trend. “Key suppliers are trying to be present in most market segments to represent a one-stop-shop for cosmetics and toiletries formulators.

However, while most of the personal care ingredient segments are dominated by a few large companies, such as in the case of hair fixative polymers, where the top three competitors hold 87% of the total market volume, segments which cover a broader range of applications, such as skin and hair care, remain more fragmented as the ingredients are widely varied.