The ever- growing demand for cosmetics and personal care products also drives sales growth of ingredients used in these products. The market value for specialty personal care ingredients in the key regions (including Europe, the United States, Brazil, China, Japan, Southeast Asia, and India) covered in Kline’s recently published Personal Care Ingredients Database reaches USD 9.0 billion in 2015. Based on our research findings, we identified several important trends from the end user’s experience, which in turn affect the personal care ingredients market going into 2016.

1. Multifunctional products are on the rise

With increasingly busy lifestyles, consumers tend to simplify their daily beauty routines. Multifunctional products are therefore growing in popularity as they offer several benefits at once, such as anti-aging, cleansing, moisturization, anti-oxidant, UV protection, etc. Consequently, this trend is leading to growth in the consumption of multifunctional ingredients. For example, consumers are expecting their skin care products and makeup to have sun care protection features, as they are aware about the harmful effects of UV radiation. This drives the demand for UV absorbers, making it the fastest growing ingredient group.

2. Efficient and mild – the winning recipe

Consumers are in search of efficient, but also gentle products. In hair care, they prefer to buy water-based products rather than solvent-based ones, since they are easy to use and less damaging for the hair over time. This pushes formulators towards the use of milder ingredients, and now sulfate-free anionic surfactants are preferred over traditional surfactants, such as sodium lauryl ether sulfates. This trend is also prominent within antimicrobials, where the usage of ingredients like parabens, triclosan, and formaldehyde-releasing preservatives is expected to decline in the future. As a result, alternative ingredients, such as organic acids (benzoic acids/benzoates or sorbic acids/sorbates) and preservative boosters, are being used more often.

3. The natural challenge

This desire for mild products, along with the growing consumer awareness of synthetic chemicals in cosmetics and toiletries, continue to propel the global natural personal care industry.This trend is also leading to the growing consumption of natural ingredients. For instance, the natural origins and SPF-boosting properties of cinnamon bark oil, oat extract, and soy bean oil allows formulators to market sun care products as containing natural ingredients to attract consumers. However, products with natural ingredients are more prone to microbial attacks and also face compatibility issues with other ingredients in various formulations. This creates challenges for manufacturers of surfactant-based systems, such as shampoos, as they are not compatible with other natural ingredient.

4.  Yes to plants, no to animals

While natural and plant-derived ingredients are on the rise, animal-derived ingredients are losing their popularity due to the growing negative attitude towards the production process of these products. Consumers are leaning towards the products manufactured by more eco-friendly, sustainable, ethical, and socially responsible brands, and products containing animal-derived ingredients fall into forbidden lists due to the ethical consolidations. As a result, consumption of lanolin and derivatives is expected to decline particularly in Europe and India.

5. Regional discrepancies for ingredients under scrutiny

Consumption of potentially harmful ingredients that are under scrutiny is expected to decline in the developed markets, but this varies from one region to another. For instance, the usage of parabens is expected to decline in the United States, but not in other regions even though growth will be slower. Ingredients like BNPD or triclosan are expected to decline in most of the regions, but will show some growth in a few developing regions, including India. The dividing line lays on the fact that the awareness about the adverse effects of these ingredients is very high in advanced economies, where the product composition is under constant surveillance of governmental and independent organizations. In these markets industry regulations play a great role in determining the future market structure. For example, the EU Commission has set a maximum concentration of 0.0015% of CIT/MIT and MIT in rinse-off skin care products and has banned its usage in leave-on products, such as body lotions and creams.

To learn more about the market for personal care ingredients, register for our complimentary and informative webinar, which will be based on Kline’s soon-to-be-published study Personal Care Ingredients: Global Market Analysis.

In the wake of many infectious diseases, growing awareness of hand hygiene has been driving the market for industrial and institutional (I&I) hand care products in the United States. Moreover, sales of professional use hand care products surpass other professional cleaning chemicals, such as floor care and hard surface cleaners, growing at 3.6% in 2015 to nearly $1.5 billion at the end-user level, finds the recently published Industrial and Institutional Hand Care: U.S. Market Analysis and Opportunities report by global market research and management consulting firm Kline. Hospitals are the largest end-use segment of hand care products, as well as the fastest growing segment, driven by the need to prevent the spread of germs.

Due to their popularity among consumers, foam hand soaps is the fastest growing product type. Instant hand sanitizers continue to gain market share and experience healthy growth of over 5% due to the convenience they offer consumers in maintaining hand hygiene on-the-go where there is no access to soap and water. Instant hand sanitizers were once synonymous with alcohol as being the go-to ingredient in the formulation; however, many companies have begun manufacturing alcohol-free sanitizers with antimicrobials that provide long-lasting protection without causing dryness to the hands.

Bar soaps are losing market share due to the growing popularity of other product forms. However, there is still high demand for premium-priced bar soaps for use at lodging establishments where bar soaps are the primary form of hand soaps used.

GOJO Industries is the leading supplier of hand care products to the I&I cleaning industry with a nearly 18% market share. The company continues to gain sales due to its key focus on hand care products, as opposed to other companies that offer hand care products in addition to other cleaning products. Ecolab, the second-largest supplier of I&I hand care products, is the leading supplier of hand care products to the food service cleaning products industry, as well as the second-leading supplier of hand care products in the janitorial cleaning products segment. Zep, the third-leading supplier of I&I hand care products, was acquired by New Mountain Capital in 2015.

Among the 10 leading suppliers of hand care products, Hillyard experiences the highest growth of 7.9% in 2015. Growth is driven by its good performance in the janitorial and housekeeping cleaning products industry segment in 2015.

Sales of hand care products are projected to continue to increase at a compound annual growth rate of under 4% through 2020, driven by foam hand soaps and instant hand sanitizers, as well as the I&I wipes segment.

Hand care products are important growth drivers across the janitorial, food service, and cleaning wipes segments of the I&I market. For more information on the many facets of this market, click here Industrial and Institutional Hand Care: U.S. Market Analysis and Opportunities or contact us.

 To learn more about this high opportunity market, request a fact sheet describing the market HERE.

Once extremely resistant to change, food service distributors are joining the tech movement in response to the market’s maturity and competition from other sources. To increase brand loyalty and profitability, food service industry suppliers are also offering a wide selection of customized business solutions and cloud-based platforms. In this blog post, we take a closer look at some of the market leaders, as well as the value-added services they offer.

1. Gordon makes work easier

With its extensive selection of value-added services, Gordon helps its clients in full-service, fast-food, and fast-casual restaurants grow. It includes services such as online ordering by multiple users, management of stock sheets, assignment of inventory tags, and business profitability calculations. With its cleaning chemicals solution package, the company aims to be a one-stop provider of equipment, chemicals, and service. As U.S. regulations of food service are changing rapidly, there is a chance for small businesses to miss new laws. To address this problem, Gordon offers a food service regulatory compliance program, including online training modules, webinars, and nutrition resources. The company also provides marketing services, including brand management, online and mobile marketing, and support with limited time offers.

2. Sysco focuses on customization

Sysco is another example of successfully implementing technology into its business model. Aiming to connect restaurants with business partners, the company has established a set of value-added services called iCare. Its users can choose trusted strategic partners from marketing, operational, financial, and green sectors. In addition, it helps with recruitment, finds ways to improve employee retention, and improves business operations through training and consulting. The company also offers two platforms aimed at improving the quality provided by restaurants and their profitability. The first platform is Cake, a comprehensive technology, which provides online ordering through Facebook pages, cake.net, and its mobile app. It also allows users to edit menus and accept mobile orders and payments directly on the POS. “OnDemand” is another platform that helps businesses to create menus tailored to their unique brand identities and calculate profits based on menu assets. It also includes design services for marketing materials and campaigns.

3. Diversey/Sealed Air offers intelligent solutions

Diversey/Sealed Air owns one of the most comprehensive cloud-based platforms Internet of Clean, which connects all of its cleaning solutions and devices. This software tracks chemical usage, analyzes cleaning patterns, and allows process optimization in real time. It also sends notifications to various devices, monitors the fridge temperature in the trucks, tracks hygiene levels in kitchens, and more. The Internet of Clean is divided into several segments, making it possible for clients to improve the areas that are a primary concern. For example, Intellidish was developed to optimize the dishwashing process, and Intelliconsult provides food safety and temperature monitoring, laboratory analysis, and in-store tracebility. On top of that, Sealed Air’s packaging division Crayovac offers food science, graphic design, equipment automation and integration, and culinary support services.

With increased competition in the mature food service cleaning market, more companies are offering value-added services based on current technology advancements. Learn more about the most successful and innovative services in Kline’s upcoming 8th edition of the market research study Food Service Cleaning Products: U.S. Market Analysis and Opportunities.

Want to discuss the contents of this program or interested in a free DEMO session? Feel free to contact us.

The time when biofunctional active ingredients were only used in high-end products is a thing of the past. Now it is a key cosmetic component for the majority of manufacturers, with an estimated market size in Brazil, China, Europe, and the United States at about USD 1.1 billion. Even though the market has grown significantly over the last decade, it is still a highly desirable segment with an expected compound annual growth rate (CAGR) of over 6% during 2016-2021, according to Kline. While the market’s overall growth is evident, it is important to understand the actual game-changing forces that help the industry grow.

1. Anti-pollution protection claims

New extraction technologies and claims, such as anti-pollution, blue light pollution, and infrared pollution, are among the recent technological advancements that will drive the market. Originating in Asia, the anti-pollution trend is now moving to Europe and the United States and is expected to be the industry’s focus in the coming years, particularly for biotechnology and botanical actives.

2. Natural trends

Driven by consumers’ preference towards more natural products, botanicals and biotechnology are now the fastest growing categories. “Biotechnology actives are derived from natural sources, using bioprocesses that make them more effective for skin and hair care applications,” explains Kunal Mahajan, the project’s manager. “Their high efficacy is a key market driver for biotechnology products. Furthermore, another advantage is that these products can be customized according to the customer’s requirements.”

3. New product technologies

While consumers more often switch to natural or naturally-derived products, simultaneously, their expectations from products’ efficiency continue to rise, especially in the anti-aging segment, which accounts for 55% of the total market. To meet the demand, manufacturers develop advanced product technologies, such as probiotics, and the encapsulation of different ingredients, which help combine non-compatible ingredients, making it easy to formulate and increase efficacy of end-products. Formulators are also looking at neuro cosmetic applications for skin care, where the traditional anti-aging ingredients work at a neurological level and produce a soothing effect. This is expected to drive the demand for marine ingredients, as well as botanicals and biotechnology actives.

4. Obstacles to innovation

Among the key challenges restraining growth is sustainability of raw materials, increase in the cost of in-vitro, in-vivo, and clinical tests, as well as strict regulations regarding claims made for a particular active. Additionally, attaining global approval for new actives has turned into a more complex matter, mainly due to the regulations in China, that do not allow the use of new ingredients which are not registered with the local FDA. This restricts innovation as formulators want to use the same actives globally. As a result, suppliers focus on resubstantiation rather than on the development of new actives.

Driven by new market claims, consumers’ preference for natural but highly effective products, and new product technologies, the market for specialty actives will show impressive growth in the next five years. However, the regional growth rates will vary widely based on different economic conditions. Learn more about the similarities and differences of the markets in Brazil, China, Europe, and the United States, and how you can take advantage of them from our upcoming, free webinar Enhance Your Specialty Actives Business. Register now to reserve your spot.

The industrial and institutional cleaning wipes market presents opportunities for companies to tap into this growing segment. All major end-use segments are expected to increase consumption of wipes, reflecting the need for superior cleaning products and to maintain clean and healthy facilities. The ease of use and convenience that wipes offer end users will contribute to future growth across all end-use segments, largely for general-purpose wipes. End-use segments, such as healthcare facilities, food service, and schools and universities, will continue to emphasize the importance of clean surfaces and hands in order to minimize germs and illness at their facilities. Wipes are expected to play a key role in this goal.

Suppliers may target a specific product class or have broader market capabilities. Clorox is the market leader in all the end-use segments, and the company is expected to remain the leader through expansion of its end users and by offering innovative new wipes. Companies like Reckitt Benckiser Professional and Kimberly-Clark Professional will seek to take some market share from Clorox by offering products specific to various end users, although small and marginal players hope to gain significant share of the wipes market. Acquisitions and mergers could influence the market dynamics and category sales. Some of the leading suppliers, notably weak in key product groups, may look at avenues to acquire companies with strong positions in those areas.

Warehouse clubs are significant channel intermediaries, undercutting distributors’ pricing on many products, but still selling primarily to smaller customers. The channel will not transform channel dynamics, but might alter the platforms of delivery, credit, and service. Industrial facilities, small businesses, retail outlets, and recreational facilities tend to buy wipes more often from warehouse clubs than any other distribution channel. Some of these facilities would likely replace industrial cleaning wipes for consumer brand wipes, which would not only serve their immediate cleaning needs but also cost less.

Other than products being effective and efficient, safety is a preoccupying concern to end users for their own staff, as well as for their guests and visitors. Suppliers can help customers to address the onerous cost of liability insurance.

Environmental awareness remains a preoccupying theme in the industry, along with the marketing of environmental lines. Many end users want green products, but at a cost-neutral price. The sustainability and feasibility of the disposal of wastes are also of concern.

Learn about the latest developments in this growing market segment from Kline’s upcoming second edition of our Industrial and Institutional Wipes USA: Market Analysis and Opportunities study. Based on over 500 end user surveys and over 40 in-depth interviews of suppliers and distributors, this study provides comprehensive market insights, data, and analysis of the market for disposable industrial and institutional cleaning wipes. The study addresses both wet wets and dry wipers used to clean, disinfect, sanitize, dust, and maintain the overall appearance of commercial, industrial, and institutional facilities. Contact us for more information.

Questions and Answers:

Our soon to be released Cosmetics & Toiletries USA and Beauty Retailing USA reports are full of insights and relevant data that takes an in-depth look at the dynamics of the ever-changing market and how products are sold.

The comprehensive analysis offered in our Cosmetics & Toiletries USA report encompasses six product classes and 25 product categories from trends and drivers, to assessment of the competitive playing field, to marketing activity and outlook through 2021. The report is complimented by another report, Beauty Retailing USA: Channel Analysis and Opportunities, which focuses on the dynamics of the retailing market and how they support each other to best reach out to new and existing beauty consumers.

Kline’s experts answer your questions:

What questions will these reports help answer about the beauty industry in 2016?

We are proud to bring our readers a robust report that answers a plethora of questions, some of which include:

• Does the impact of social media and its importance vary from category to category?
• Is there really anything new in the market, or is it a continuation of trends from the prior year?
• How about indie brands? Are there any left? What are some of the ones to keep an eye on?
• How important are specialty stores?
• Which brands have become the largest market-movers in the various categories?

Any category-specific beauty trends that you can point out?

In makeup, we are seeing contrasting trends, from the no-make, take-me-as-I-am movement pioneered by Alicia Keys to glittery and shimmery eyes and bold, statement lips, promoted by social media influencers.

Skin care, particularly facial skin care, witnesses products that are considered transformative as they help achieve results at home, such as firming masks and filler masks, that would otherwise be achieved at skin care professionals, are in the spotlight in 2016.

The male grooming trend plays a key role in some categories, with brands like Dollar Shave Club driving the shaving category with double-digit growth and Dove Men + Care becoming one of the dominant players in personal cleansing.

Even the quieter categories, like toothpastes, see some excitement through the introduction of Black is White Toothpaste, a toothpaste that is black in color and uses activated charcoal to remove stains without being abrasive to tooth enamel or using chemical bleaching agents.

Fragrance primer is another exciting innovative product in the fragrances category as it helps the fragrance last longer.

Any surprises that we can expect?

• Beauty is dynamic, and there is always something exciting to talk about. My favorite part is the “Eye on a Newcomer Section” in each of the categories – that’s where we put the spotlight on a newcomer that has an exciting proposition and is making a dent in the market.

Let’s talk about beauty retailing:

How is the beauty industry changing? Is channel diversification still the name of the game?

The dynamics of the industry are totally changing. Department stores as a whole are suffering, as they continue to lose significant share of beauty dollars while specialty stores and e-commerce continue to boom. However, an important channel to watch out for is the person-to-person channel, which is morphing into social commerce, with a host of new brands with the lure of providing a flexible social selling business either full- or part-time. While Rodan+Fields and Nerium International have made solid contributions to the channel growth, newer entrants include Younique, which announced its partnership with Coty in early 2017. Unlike traditional person-to-person sales, this new breed of social commerce utilizes social media, with most sales made online.

How about boutique beauty retailing stores? We’ve been hearing a lot about them.

Boutique beauty retailers are analyzed in our Boutique Beauty Retailing report, where we take a close look at free-standing beauties, such as Lush, Rituals, and Bath & Body Works, who, instead of relying on a specific retailer, take their destinies into their own hands by creating an ambience and in-store experience to keep customers coming back.

As these companies record a solid 7% growth in 2016, we take a deep dive into what makes these retailers succeed through store count expansion, value proposition, and marketing and promotional activities.

The education segment is not the largest in the jansan market, but is expected to grow due to increased penetration of contract cleaners at schools that were primarily self-maintained in the past. To identify the key purchase factors in K-12 education, Kline has conducted a survey among jansan professionals serving this segment.

Product attributes

Child and worker safety is a cornerstone of the schools purchasing decisions when choosing a cleaning chemical brand. Several manufacturers have stated that their green products are in most demand in schools. The findings from our recent surveys are unexpected. For example, “Low price,” which would be thought to be one of the highest rated product attributes, as schools are operating under tight budgets, is down on the list in terms of both ratings and rankings. The most important and highest ranked attributes to end users in the education sector are safety, product performance, and vendor relationships.

Advanced features in dilution systems

From our research with K-12 schools, we know that over 75% of schools report the use of dilution and dispensing systems. However, only about one-fourth of respondents (27%) would prefer advanced functionality in their dilution control systems. Among this group, the most popular potential features are monitoring chemicals levels, automatically re-ordering when the product level is low, and automatic maintenance notification, as these options offer great convenience and cost reduction opportunities. The remaining 73% of respondents are not interested in advanced technology because of the high initial cost, higher maintenance costs, and, if damaged by students, higher replacement costs.

Customer loyalty

Over 54% of the schools surveyed placed more importance on loyalty to a cleaning brand than loyalty to a distributor, meaning that this group would seek out the same brand wherever they could get it if their current distributor/supplier relationship changed. Loyalty to a specific distributor ranked a distant second among education respondents, accounting for 43%.

What are the other market trends and key buying factors for end users of jansan products? Kline’s largest I&I market study is underway with over 1,000 end-user surveys being completed. Kline is examining critical success factors and buying dimensions in the market channel for jansan cleaning products in all the key end-use segments in the new edition of our Janitorial and Housekeeping Cleaning Products: U.S. Market Analysis and Opportunities report.

Globally, the personal care active ingredients market is one of the most innovation-driven ingredients marketplaces after pharmaceuticals. The ever-increasing quest for natural products with high efficacy and visible results by consumers drives the industry towards a dynamic environment of research and technological competence. This dynamic marketplace, offering viable growth opportunities, is drawing investments within the personal care active ingredients market.

The key markets of Brazil, China, Europe, and the United States are estimated at USD 1.1 billion. It is a highly desirable segment with a forecast compound annual growth rate (CAGR) of over 6% during the 2016 to 2021 timeframe. Driven by consumers’ preference towards more natural products, botanicals and biotechnology are now the fastest growing categories. Marine ingredients is another rapidly growing segment, drawing the attention of some important M&As.

Among the goals of many M&A activities in this sector is the sustainability of sourcing, and hence, strong focus on biotechnology and natural ingredients. In the last few years, the industry witnessed some major activities. Large, well-positioned and established ingredient suppliers continue to seek growth through acquisitions to expand their product and technology portfolio into actives. Similarly, suppliers of flavors and fragrances, such as IFF, Givaudan, and Takasago, have expanded their footprint in personal care initially with the acquisitions of such active suppliers like Lucas Meyer, Induchem and Soliance, and Centre Ingredient Technology, respectively.

Furthermore, only a few weeks ago, Croda announced its takeover of the marine biotechnology specialist, Nautilus, to further expand its expertise in biotechnology. Croda, already having worked with Nautilus for the past six years in developing specific applications for skin care and hair care, now intends to establish Nautilus as the Croda Centre of Innovation for Marine Biotechnology. The company aims to bring new patented green- and white-biotechnology ingredients to market resulting from this acquisition.

In December 2017, the Dutch multinational DSM and the renowned renewable cosmetic ingredients supplier Amyris finalized their cosmetics and fragrance manufacturing partnership in Brazil. Acquiring Amyris’ biotech production facilities in Brazil, DSM aims to further enhance its fermentation-based ingredients production capabilities in the personal care sector.

Givaudan, the Swiss specialist in flavors, fragrances, and active beauty, announced its collaboration with Draco Natural Products, offering research and development capabilities in creating nutricosmetic topical products. The collaboration, which was announced in October 2017, aims at developing a new anti-aging and moisturizing range of products with bioactive botanical ingredients derived from traditional Chinese medicine. Givaudan had completed its acquisition Vika B.V. to strengthen its portfolio of natural dairy solutions in 2017 and announced the acquisition of the nutrition division of Centraflora Group (Centraflora Nutra) to strengthen its global offering of natural extracts, particularly from the biodiversity of Brazil. Givaudan also acquired Activ International in early 2017 to add a range of natural and organic flavors, marine extracts, and seafood- and vegetable-based ingredients to its portfolio.

German chemical giant Evonik announced its acquisition of Hamburg-based Dr. Straetmans GmbH, a cosmetic ingredients producer in March 2017. This move particularly brings Dr. Straetmans’ expertise in alternate preservation systems, allowing Evonik’s Personal Care Business Line to offer a more complete range of formulation solutions. In late 2016, Evonik acquired J.M. Huber’s silica business, raising its position as a supplier of silica in many industries, including cosmetics.

In early 2017, Air Liquide’s subsidiary, Seppic, finalized the acquisition of the Serdex division of Bayer, strengthening its footprint in natural active ingredients for cosmetics. Serdex’s acquisition further adds a range of botanical active ingredients for dermo-cosmetics and skin treatments to Seppic’s portfolio, building upon its 2013 acquisition of BiotechMarine that brought a range of marine derived active ingredients.

In late 2016, France-based plant biotechnology major, Greentech, acquired Brazilian company, Mapric, a provider of active ingredients for cosmetic, pharmaceutical, and nutraceutical industries. Mapric’s capabilities complement that of Greentech in development and production of high-tech active ingredients from the plant, marine, and microbial worlds, and strengthens Greentech’s position in Brazil.

The year 2016 also saw the acquisition of France-based, Algues & Mer by another French cosmetic active ingredient major, Solabia. This acquisition brought Solabia access to the biosphere reserve of the Iroise Sea in the Island of Ouessant (Brittany, France), where the company is currently applying its expertise to develop new molecules in the rapidly growing world of algae-based actives.

Ingredients suppliers also seek collaborative opportunities to expand their geographical reach. In April 2016, the global specialty chemical company, Clariant, purchased a 17% stake in natural active ingredients supplier BioSpectrum. South Korea-based BioSpectrum offers many specialty active ingredients based on Asia’s native flora and is an important supplier in the Korean natural beauty market. The partnership aims at leveraging Clariant’s global sales and innovation network to market BioSpectrum’s active ingredients worldwide.

The personal care ingredients industry also continues to witness new entrants. A new Canadian supplier of natural biomaterials, Mirexus Biotechnologies, is in the process of commercializing a nanotechnology facility to use its new filtration process to extract glycogen from locally-grown sweet corn; the new bio-nano-ingredient, called PhytoSpherix, has a unique profile of safe, biodegradable, and non-toxic, and is aimed for use in personal care and cosmetics.

Birkenstock, a German manufacturer of cork sandals, is entering the skin care segment, primarily with cork oak as an ingredient targeted at anti-aging. Birkenstock’s expansion into skin care is set to use its “natural” brand image to venture into the lucrative natural cosmetic ingredients market.

Active ingredients for personal care will not cease to be an interesting and attractive marketplace anytime soon. It will continue to offer opportunities of different types of acquisitions and collaborations resulting in strategic growth through market or segment entry, better and more product offerings, and greater reach in the market, though the overall number of opportunities will lessen and the EBITDA multiples paid will remain, as the competition to expand portfolios and/or enter new/adjacent markets, products and technologies remains high. For a comprehensive knowledge of this market’s dynamics, trends, sizes, competition, and outlook in different regional markets, Kline offers a series of in-depth reports in its program Specialty Actives in Personal Care: Multi-regional Market Analysis and Opportunities.

Kline’s Specialty Actives in Personal Care: Multi-regional Market Analysis provides a detailed appraisal of the key regional markets, including Europe and the United States, but also the developing China and Brazil. The study covers botanical actives, biotechnology products, marine ingredients, proteins and, enzymes and coenzymes, as well as synthetic active ingredients. To gain additional insights, request our factsheet.

Understanding the needs of professional end users, such as commercial laundry processors, hospitals, lodging establishments, restaurants, extended care facilities, prisons/jails, and other on-premise laundries, are key for laundry chemical suppliers. Trends in product usage, channels of distribution, penetration of textile rental firms, the role of machinery/equipment, such as extractors, continuous batch washers or tunnels, and dispensing systems, and cost structures for processing laundry are key variables that have a direct impact on the demand for laundry chemicals.

As part of Kline’s commitment to the industrial and institutional cleaning industry, we are currently conducting research with hundreds of professional laundry end users to understand how these important trends impact their businesses and what the related impacts are on laundry chemical demand. In addition to these end user surveys, Kline’s professional staff is also in the process of conducting in-depth interviews with suppliers and distributors in the industry to understand the trends from the supply side. The report, due to be published this summer, will provide subscribers with a complete analysis of the +$1 billion market. For more information, view brochure or contact us.

laundry requires specialized knowledge and service. Chemical suppliers often serve as trusted business partners for commercial end users because they provide expert service, especially for large accounts in the healthcare, hospitality, and commercial laundry segments. Kline’s research for our Laundry Chemicals study is underway and, so far, these three end-use segments appear to be contributing to market gains.

Green cleaning trends impacting professional laundry include water recycling/reuse systems, effluent management systems, ozone or electrolyzed water systems, and cold water washing. Water recycling and effluent management systems are expensive and difficult to engineer so only cleaning operations who want to promote a “sustainability/corporate responsibility” image or adhere to government regulations are likely to implement. Ozone water systems have been on the market for 20+ years, and some end users use them as part of their green cleaning initiatives while others are not sold on the usefulness of such systems. Cold water washing, where water temperatures are anywhere from 90-120 °F, use less energy than hot water washing; however, some end users that are particularly concerned with eliminating bacteria, viruses, and other germs from laundry, such as hospitals and long-term care facilities, may not be willing to use cold water washing systems. 

Laundry chemicals are actually a very small portion of overall laundry costs, with labor, linen replacement, and utilities making up much larger cost components for end users. Chemical suppliers offering expert service and advice on how to manage these costs and educate end users on how to optimize laundry performance are viewed as strategic partners. Indeed, the types of laundry being done and the predominant composition of stains and soil in the laundry can mean very different chemicals, water temperatures, and washing machines used. For example, foodservice linens are likely to contain oily stains and food residue whereas linens being laundered from hospitals or long-term care facilities are more likely to contain bodily fluids and must be cleaned using very different approaches.

Learn more about these and other important trends, including the prevalence of Internet of Things and smart technology, market size, growth, and shares by suppliers, end-use segment, and product category, five-year market forecasts, the use of commercial laundries and laundry outsourcing, and textile rental trends from Kline’s upcoming Laundry Chemical Products USA: Market Analysis and Opportunities, which is expected to be published this summer.

While natural foods and beverages are the predominant focus at the Natural Products Expo West by New Hope Network each year, there were several trends Kline noted that are pertinent to natural OTCs and supplements.

The blurring of lines on health claims where foods and beverages are making claims of boosting health and immunity continues.  Claims that were once reserved mainly for nutritional supplements, vitamins, minerals, and probiotic supplements are now found on natural foods and beverages.  For example, waters infused with alkaline benefits and vitamins and minerals, dairy-free yogurt drinks infused with probiotic cultures, and cold brewed teas and tonics infused with ingredients like ashwagandha which is said to promote stress relief, promote relaxation, and improve sleep were on display at the show.  Other teas and extracts made from mushrooms were on display and also claim to boost overall health and immunity.

Common claims and ingredients being touted on new products at the show include non-GMO, vegan or plant-based, gluten-free, grain-free, meat and dairy alternatives, organic, and products that are “alive” including kombucha, fermented vegetables, kefir, and yogurts which all made probiotic claims.  Hot ingredients include cauliflower which seems to be substituted for grains in many products, turmeric, protein, coconut, and bone broth/bone broth protein.  “Upcycling” of normally discarded food byproducts such as rescued fruit or discarded coffee bean shells into chips and other snack foods was featured in several new products aiming to appeal to consumers who are environmentally conscious.  Probiotic ingredients are added to many products with forms including drinks, shakes, chocolates, hot and cold foods, and gummies touting the benefits of boosting immunity and overall health.

Kline’s Digestive Health, Immunity, and Probiotics study published in June 2017 provides an extensive market assessment of these brands and companies.  Kline’s upcoming 3^rd edition of Natural OTCs: Impact of Non-drug Products on the U.S. OTC Market will be published September 2018 and provides market assessment and a large scale consumer attitudes and usage survey of this disruptive and rapidly growing market segment.

The market for digestive health products has undergone massive changes over the past several years. Once only known for the benefits of digestive health, these products now claim benefits of immune support, women’s health benefits (Ph benefits and vaginal health), nutrient absorption improvement, and even products that help with brain and cardiovascular health. Moreover, there is a wide variety of probiotic supplement forms available, such as drinks, sodas, chews, cubes, gummies, and prefilled straws. Furthermore, whole food sources of probiotics, as well as new snack foods, such as chips, chocolates, and others, are all becoming popular with today’s increasingly demanding consumers. Even topically applied skin care products are making waves in the market. Skin care brands such as Tula have introduced probiotic-based skin care.

Kline defines the digestive health market to include the following types of products:

• Probiotic supplements (refrigerated and shelf-stable supplements including those that combine prebiotics and/or digestive enzymes, with probiotics)
• Probiotic beverages (including select kombucha and kefir brands)
• Digestive enzymes

While the U.S. OTC market has struggled to find real growth in recent years, digestive health brands have grown rapidly, by double digits year over year in the recent past; as a result, it is important for marketers of traditional OTC brands to understand the impact of these products on their business.

Probiotic supplements are available in shelf-stable forms or forms that require refrigeration, which allows more bacteria to remain alive. Refrigerated probiotic supplements typically contain more strains of live bacteria than most shelf-stable products and are significantly more expensive, retailing between $25.00-$50.00, almost double the price of shelf-stable probiotic brands. Both shelf-stable and refrigerated probiotics contain live bacteria which introduce good bacteria into the digestive system.

Probiotic beverages are the second-largest digestive health market segment, behind probiotic supplements, but beverages are the fastest-growing segment. These include kombucha and kefir brands. Kombucha are fermented teas that contain yeast and bacterial cultures, while kefir is made from the milk of cows, goats, or sheep, coconut, rice, or soy, and is fermented at low temperatures with bacteria cultures. Probiotic beverages require refrigeration and tend to be sold through more traditional mass channels of distribution, such as food stores and mass merchandisers. Digestive enzymes are a small but familiar segment of the digestive health market, known to help with the digestion of food by aiding in the breakdown of nutrients.  While additional health benefits of digestive enzymes are being studied, research indicates that enzymes such as lactase help digestion, reduce gut inflammation, reduce gas, and boost immunity.

Want to learn more? DOWNLOAD a complimentary white paper Digestive Health Products Far Outpacing OTC Market Growth: Probiotics Lead the Way.

 This blog post and a white paper are based on Kline’s Digestive Health, Immunity, and Probiotics study published in June 2017. This report provides an extensive market assessment of the brands and companies and analyses the future trends in the market for digestive health products.

Preliminary results from Kline’s Laundry Chemical Products USA: Market Analysis and Opportunities research uncover trends impacting the market. Kline is in the process of conducting hundreds of structured interviews with end users of laundry chemicals, as well as in-depth interviews with suppliers, distributors, and others knowledgeable about the market for commercial laundry chemicals. The research for the report due to be published this summer has uncovered some interesting trends. For example, long-term care and assisted living facilities rather than hospitals are driving sales growth of laundry chemicals for healthcare. Growth in hospitality laundry is being restrained by the increasing popularity of AirBnB and other short-term rental options. Laundry from some of these properties is done on site in a home-style machine. However, a large portion of short-term rentals are operated by property management companies who either do the laundry elsewhere in a home-style machine or at a commercial laundry.

Commercial laundries with high-volume tunnel washing machines often require a higher level of service from laundry chemical manufacturers because, as several complain, blame for low-quality outcomes fall on the chemicals being used rather than the tunnel operations, dispenser adjustments, or improper sorting/pretreating by the facility’s staff. Some chemical manufacturers avoid selling to commercial laundries with tunnel washers because of this time- and resource-intensive customer group and given that tunnel washers use far less laundry chemicals than conventional washers/extractors and cannot always be compensated for by higher sales volumes.

Green cleaning is a modest trend in laundry chemicals. Water reuse/recycling systems are slowly being mandated by more municipalities. Ozone systems still are not widely accepted or deployed, with many pros cited by system manufacturers and cons cited by chemical manufacturers. However, there is increasing interest in efficacious cold or warm water chemicals to save energy costs.

The condition of a region’s water will also affect sales of laundry chemicals. For example, locations with soft water or that need to use water softeners will often spend less on laundry chemicals whereas regions with untreated hard water need more laundry chemicals to ensure good quality outcomes.

For a full analysis of the commercial laundry market focusing on key challenges, changes, and business opportunities, learn more here.

While a lot of events are being held around the world for cosmetic ingredients suppliers, it is in-cosmetics global that everybody is looking at as an industry compass. This trade show is a popular place for suppliers to introduce their newest products and technologies, and based on the industry’s reaction and interest, we can define where the market will be headed in the next year.

Looking into the list of award winners, the industry is still to be driven by green, skin protection, and skin microbiome-related ingredients. Most of these areas are not new; for example, the green mega trend has been driving the industry for over two decades, but is still a focal point for ingredients development in 2018.
Green, greener, greenest

If one was thinking the natural trends was slowing down in the personal care industry, a quick look at the winners list of the Best Ingredient Awards 2018 should be sufficient to prove the contrary. In the active ingredients category, all three Winners (Gold, Silver, and Bronze awards for respectively Mibelle’s MossCellTec No. 1, Rahn’s Seboclear-MP, and Silab’s Ecobiotys) are from natural origins. The same situation happens with functional ingredients with Evonik’s RHEANCE Glycolipids, Nikko Chemicals’ AUROVISCO CS, and Vantage’s Desert Milk. The “green ingredients award” category is obviously not enough anymore for green products and they are winning across all categories.

While their natural source is often a major claim, many new green ingredients also claim to be fully capable replacements for traditional synthetic ingredients. This is most notably true for the functional ingredients category where natural alternatives are being developed in all functional groups. From surfactants to emulsifiers, through rheology modifiers, ingredients suppliers are focusing on giving R&D scientists natural options for their formulations.

Decades of monitoring the ingredients market have shown us, that for a given function, the switch from usually preferred synthetic ingredients to their natural alternatives is never a fast-paced process unless regulations got in the way. It would be therefore unwise to predict a rapid and unambiguous switch to natural ingredients. However, it is now obvious that formulators have more choices than ever when it comes to their ingredients. While first iterations of some natural alternatives had some drawbacks, such as odor, color, stability, or cost, compared to synthetic ingredients, this gap is now closed.

The protectionist temptation

The green trend has a lot to do with one of the most important societal topics—environment protection. Interestingly, another major trend that showed continuous development at in-cosmetics this year has been protection from the environment.

Whether it is sun protection, blue-light protection, urban stress protection, or pollution protection, many newly-developed ingredients are including in their claims some kind of skin or hair protection. The gold award winner in the trend-defining category of active ingredients is a good example. MossCellTec No. 1 from Mibelle Biochemistry not only claims that it “supports the skin’s adaptation to climatic stresses,” but also “strengthens skin against urban aggressors and climatic changes” through an innovative mode of action involving gene activation.

In the last few years, we have seen many active ingredients promoting skin protection against various aging factors and it has become a long-living trend in the industry. At first, skin protection actives were often “rebranded” film formers or anti-oxidants, but suppliers are now trying to find an innovative action path to answer what seems to be a here-to-stay expectation for consumers.

Bringing back the balance in the skin microbiota

Next to protection claims, ingredients claiming activity at the skin microbiota level are another group of ingredients to see their importance strengthening throughout the last few years. The Bronze-awarded Ecobiotys from Silab is such an example. Many other examples were presented at the show, such as Corum’s Apobac claiming to harmonize skin microorganisms and showing that research in the area of skin microbiome is still a focus for ingredients suppliers.

As an innovation-driven market, it is essential for ingredients marketers to be able to identify “the next big thing.” Coming out of the 2018 edition of the global in-cosmetics tradeshow, it seems the next big things are focused on product innovation within already existing trends.
Kline conducts in-depth market research in the market for Personal Care Ingredients. Designed to serve as a one-stop solution for ingredient suppliers in competitor analysis and benchmarking, and acquisition screening due diligence, this study uncovers the market potential of over 200 ingredients and provides supplier sales by ingredient type, application, and region. VIEW BROCHURE >

We also cover the market for Specialty Actives in Personal Care. This study analyzes market size and potential of the botanical actives, biotechnology products, marine ingredients, proteins and peptides, enzymes and coenzymes, and synthetic actives in Brazil, China, Europe, and the United States. VIEW BROCHURE >

Europe’s largest commercial cleaning trade show was held last week in Amsterdam, and Kline was in attendance, meeting with our clients in the industrial and institutional cleaning industry. The overall focus was a holistic approach to cleaning and making use of green innovation that keeps the environment and end users safe. All cleaning product and tool components are being evaluated from chemical formulations to packaging and batteries for their impact on the environment. Innovation was the focus ranging from green cleaning to sustainability to waste management and environmentally friendly packaging. There were hundreds of exhibitor companies demonstrating their new products, including cleaning tools that make use of robotics and offer end users smart cleaning options by employing Internet of Things (IoT) technology. Green cleaning and efficient cleaning tools were also on display at Interclean.

Kline is a global consulting firm with a rich history of serving the industrial and institutional cleaning market. With a well-respected portfolio of syndicated studies on Janitorial, Foodservice, I&I Cleaning Wipes, and I&I Hand Care studies, the firm helps our clients understand the market and grow their businesses. All of Kline’s research for this industry combines research with manufacturers, distributors, and trade associations with large-scale surveys of commercial cleaning end users to provide an accurate and comprehensive view of the market.

Kline’s newest offering, Foodservice Cleaning Products in Europe study, is expected to be published by the end of the year and offers a full assessment of warewash chemicals, surface-cleaning, and hand care used in commercial kitchens and foodservice areas in France, Germany, Italy, Spain, and the United Kingdom. Sample sizes of 750-1,000 end users are typical and provide our clients with a solid basis to understand why end users use the products they do, what they are looking for in the products they clean with, where they buy these products, and what their perceptions and satisfaction are. Emerging trends, online purchasing habits, and the use of concentrates, dilution, and dispensing systems, or ready-to-use products are addressed with end users.

“Our clients rely on the direct feedback from a large number of commercial end users in facilities such as hospitals, long-term care facilities, restaurants, hospitality, retailers, and education to help inform product development and marketing strategies for their professional brands,” says Laura Mahecha, Industry Manager of Kline’s I&I Cleaning Practice.

To learn more about Kline’s market studies for this industry, contact us.

The U.S. OTC market overall experienced 2.0% growth in 2017 with upper respiratory and topical products classes posting higher than average gains, according to Kline’s Nonprescription Drugs USA 2017 annual market study. “A strong cold and flu season in both Q1 and Q4 of 2017 drove the OTC cold and sinus market up 4.5% from 2016 levels,” says Laura Mahecha, Industry Manager for Kline’s Healthcare Practice. The topical products class posted 3.6% growth in 2017, driven by strong gains for OTC topical analgesics. “Lidocane line extensions have propelled strong double-digit growth for the second year in a row in the topical analgesics category,” adds Mahecha. The OTC eye care and diaper rash categories also had solid growth in 2017. However, many other stalwart OTC categories experienced very low or no growth in 2017. Nutritionals, digestives, and sleep aids all had flat or no growth while OTC pain relievers were up only 1.5% in 2017.

“Various factors are simultaneously converging on the industry leading to stagnant growth,” says Mahecha. “First, consumers are seeking a more holistic and natural approach to health from organic foods, to exercise, and use of more natural, less synthetic products. Second, e-commerce is a growing channel for OTC sales, and this channel has placed negative price pressure on brands with transparency and comparison shopping easier than ever. Third, new and seemingly endless sources of competition for OTC brands continue to impact the market from whole foods, to herbal and nutritional supplements, to devices, to natural OTCs, to probiotics. All of these factors makes driving dollar growth for traditional OTC brands challenging and unpredictable.” Limited Rx-to-OTC switch activity, new OTC launches, and advertising for OTCs have also curbed sales gains for the industry.

Being informed about market trends, competitors, and market adjacencies that may disrupt the market are even more crucial during lean growth periods. Kline’s Nonprescription Drugs USA study offers comprehensive analysis of the OTC market with five-year historical sales and trends, sales and share for hundreds of OTC brands and private-label products, analysis of marketing activity and new products, regulatory developments, and a five-year sales forecast complete with assumptions and reasoning. This well-regarded study keeps you informed with an interactive database that allows you to export data to Excel in addition to an insightful written report on 22 OTC categories, 11 major companies, and an executive summary rich with insights and actionable recommendations. Kline’s other Healthcare offerings, including Natural OTCs, Digestive Health, Immunity and Probiotics, Amalgam OTCs, Rx-to-OTC Switch: Next Frontier, Amalgam Nutritional Products, and Sleep Aids, offer a 360 degree view of the OTC market and adjacent products that can disrupt or impact traditional OTC growth. For more information please, contact us.

Kline is actively conducting research with end users of laundry chemicals to assess their usage, perceptions, and perspectives on emerging trends. The extended care segment, including nursing homes, assisted living, and independent living facilities, are part of this research. The most commonly used laundry chemicals among extended care facilities are detergent, bleach, and fabric softeners although unscented softeners are preferred due to the fragile patient populations at these facilities. Extended care facilities are most concerned with sanitizing and disinfecting their laundry, resulting in a majority preferring to process laundry on the premises rather than sending it out. Other important laundry chemical attributes for this end-user group include chemical performance and stain removal. 

Nursing homes are providing more medical, rehabilitative, and physical therapy services as a result of changes in Medicare reimbursement that have encouraged more rehabilitation services at home to reduce costs. This has had an impact on occupancy rates, facility size, and the number of patient days at nursing homes. All of these trends impact spending by these facilities on laundry chemicals.

Learn about these trends and their impact on laundry chemical spending now and in the future from Kline’s Laundry Chemical Products USA: Market Analysis and Opportunities, which covers commercial laundries, extended care facilities, hospitals, lodging establishments, prisons and jails, small on-premise laundries, shirt laundries, and major on-premise laundries such as colleges, building service contractors, and military bases. This report will be published this summer and provides a full assessment of this $1 billion market with sales provided by end-use segment, product category, and supplier. By combining results from structured surveys of over 500 commercial end users with market size and trend insights captured from our in-depth interviews with suppliers and distributors, Kline’s study provides a comprehensive market assessment grounded in reality. To learn more, contact us.