05 February 2007 14:36 [Source: ICB Americas]
CONSUMERS TODAY demand much more from their cosmetics and toiletries (C&T) than ever before. It is not enough for their products to cleanse, smell good or moisturize—now they must do several things at once, and well. Fortunately consumers are willing to pay for results when it comes to satisfying their vanity, and the market for effective, new specialty raw materials is strong.
“This is a sector that is hungry for innovation,” Kline and Company analyst Gillian Morris observes. Trade shows such as In-Cosmetics are expanding, not declining, she points out, and they draw companies from industries as diverse as pharmaceuticals and industrial (e.g. polymers) attempting to leverage their technologies in personal care and cosmetics. Key drivers behind market growth and innovation include anti-aging, health and wellness, and convenience.
Kline estimates the US market for C&T specialty raw materials at $975 million in 2005, growing at about 2.5% (see graphs, page 20). Actives and delivery systems are expanding at a double-digit rate, driven by the popularity of anti-aging products. Ingredients that improve sensorial characteristics, such as emollients and conditioners with skin care applications, are showing high growth, as are some newer rheology control agents, such as the acrylics. Silicones, noted for their multifunctional and sensorial qualities, are also growing quickly.
“On the UV absorber side, there is some good growth, driven by the fact that people are still looking for broader-spectrum SPF products—not only for seasonal sunscreen, but also for daily wear—facial treatments, moisturizers,” she adds. “SPF is going up.”
Beauty is merging with health and wellness, says John Helfrick, vice president sales & marketing, home & personal care business line, Ciba Specialty Chemicals. For example, skin and lip care products are offering aromatherapy, as well, he notes. “Another trend is that more and more consumers are opting for in-home treatments rather than going to dermatologists. There is now a plethora of in-home microdermabrasion kits and chemical peels.” Spas continue to attract new customers as people increasingly pamper themselves to treat stress, he adds, which has also created demand for in-home products to replicate those used at spas.
Josef Koester, marketing director for care chemicals, Nafta, at Cognis, calls the wellness trend “the most important driver of the personal care market.” At the same time, he notes, interest in wellness and cosmetics is no longer limited to women aged between 25 and 45. “The personal care market has to cater to the needs of various groups—women, men, active retirees and senior citizens.” Pascal Juery, global vice president and general manager for home and personal care at Rhodia, agrees: “New products target well-defined benefits or features and aim for specific populations, hence there is a clear trend toward hyper-segmentation.”
A skin care market targeting the young is emerging, Koester says, and the market for male grooming products is growing rapidly as well, with the result that men are also paying attention to marketing claims.
“Male teenagers are no longer an ignored demographic,” adds Ciba’s Helfrick. So-called tweens and teens, with ample disposable income, account for about 10% of the C&T market’s value, he observes.
Looking at the other end of the life span, Helfrick notes that anti-aging effects continue to be an important market driver, both for ingredients that prevent skin damage and for ingredients that address existing damage. Ciba aims to introduce new sunscreen actives into the US market in mid-2007. “We are working with the FDA in order to gain approval for our photo-stable broad-spectrum sunscreens in the US. These ingredients will greatly enhance the protection of the consumer from harmful UVA radiation. These same products, Ciba Tinosorb M and Tinosorb S, will be used in daily wear to protect the skin from daily exposure, not just when sunbathing, in an effort to offer ‘better aging,’” he says.
“One of the most interesting trends is that consumers are seeking anti-aging products at a younger age, so multifunctional products that promote younger-looking skin while protecting against ultraviolet light (UV) rays are becoming increasingly popular,” observes Bernd Burkhart, director, cosmetic solutions for BASF in North America. BASF’s RetiSTAR stabilized retinol promotes anti-aging effects such as smoother, younger-looking skin, he notes, and the company has introduced a range of sunscreens that include T-Lite microfine titanium dioxide, a Category 1 sunscreen filter that offers broad-spectrum UV-A and UV-B protection in a single ingredient, and Z-COTE MAX, an improved microfine zinc oxide UV light absorber targeting the next generation of sunscreens.
At In-Cosmetics last month, Uniqema launched Solaveil CZ-100 and CZ- 300 zinc oxide dispersions, which provide “true transparency and desirable sensory attributes” across both UVA and UVB spectrums.
Degussa has been exploiting the synergies of its Goldschmidt acquisition for several years, in the area of sun care developing a range of titanium dioxide and zinc oxide UV filtering products based on Degussa’s leadership position in the field of fumed metal oxides. The company already has an aqueous dispersion of titanium dioxide on the global market. At Suppliers’ Day this week, Degussa will be launching a titanium dioxide powder manufactured to GMP guidelines. A mixed oxide of titanium dioxide and silicon oxide, which offers certain advantages in terms of UV protection and compatibility, is only available in Europe and Asia for now. “This is not GMP so far, so we cannot market it in the US, but if demand on the market is high enough, we would certainly consider making the investment,” says Wolfgang Goertz, marketing manager for personal care NAFTA.
As consumer interest in the label claims associated with anti-aging grows, so does the importance of actives delivery. “Formulators designing products for specific effects require assurance that actives will be delivered to the right areas of skin, for the right amount of time, in a concentration that is appropriate,” says Mary Clarke, sales development director at Uniqema. She points to Uniqema’s Arlasolve DMI as a well established, safe skin adjuvant finding growing acceptance. Helfrick notes that Ciba recently reintroduced new versions of its Tinoderm Nanotopes delivery systems, which help transport vitamins A and E and d-Panthenol into skin where they have the most effect.
Wellness and the continued emphasis on “natural” ingredients go hand in hand. Consumers “still perceive natural as good,” says Helfrick. Actives often coincide with naturals. For instance, Arch’s new Kudzu Zymbiozome Fermentum, a kudzu extract, lightens skin and offers anti-aging properties by promoting procollagen synthesis, says Eva-Maria Harthaus, senior technical marketing specialist at Arch Personal Care Products.
“Green” chemistry is a ready extension of the natural theme. One consequence is that the use of certain preservatives such as formaldehyde donors, parabens and isothiazolones traditional to C&T is declining, says Arch’s Harthaus. Many formulators are “looking with a new eye at the levels of traditional preservatives required to achieve a suitably preserved system,” adds Uniqema’s Clarke. Synergism is one answer. For example, Uniqema’s coconut oil-based Arlasilk Phospholipid PTM can be used in wipe emulsions for its mild cleansing and conditioning properties, but it also enhances the effect of preservatives. Formulators are likewise turning to biodegradable chelants such as Dow’s HEIDA-based chelating agents, says a Dow official. “Customers are testing and evaluating its performance,” she adds. “Dow expects some of the readily biodegradable chelants to replace some existing applications in the future.”
The emergence of wellness and green chemistry have not diminished the importance of traditional benefits. For example, Clarke identifies the inclusion of conditioning in rinse-off formulas as a notable trend. “Body washes and regular shampoo products with some conditioning built in can be formulated well with vegetable-based phospholipids and mild specialty surfactants,” she says, suggesting Uniqema’s Arlasilk Phospholipid and Promidium series.
Conditioning polymers are continually improved. Rhodia, for instance, is introducing new grades of Jaguar conditioning polymers designed for specific applications: Jaguar Excel for conditioning shampoos, Jaguar C-17 for damaged hair, Jaguar C-162 for moderate hair and skin conditioning.
Over the past year and a half, Rhodia has also launched its Miracare range of patented surfactant systems for use in most body wash products and some shampoos. An effective active delivery system, they stabilize high levels of oils, Juery says. “They provide end-consumer performance and sensory benefits (24-hour moisturizing effect, efficient delivery on skin), allowing attractive presentations and packaging of products.”
Dow Amerchol plans to introduce a new family of lubricating emollients in the fourth quarter, says Denise Elias, global marketing manager. “These products were developed to meet the need for enhanced conditioning performance in hair and skin care products to overcome the damaging effects of repeated coloring, heat styling, and sun exposure,” she explains. The product family also provides the sleek hair look desirable in some regions.
New raw materials are also enabling more convenient product forms, with wide-ranging consequences. “Sun care formulators have helped to boost the acceptance of sun care products by making mass-market formulas easier to use, with significantly improved sensory properties,” says Maria Tolchinsky, marketing manager, National Starch Personal Care. She points to aerosol continuous-spray products. “Virtually nonexistent only a few years ago, this form has rapidly become one of the most accepted delivery forms in the beach wear category today.” She says National Starch’s Dermacryl 79 film-forming polymer and Dermacryl AQF film-forming polymer are well suited for the application.
Clarke points to products once based on traditional emulsions that are now made as thin emulsions for wet wipes, or as sprayable emulsions designed for pump-form products. Uniqema’s new Arlatone V-150 emulsifier system, for example, a new product, enables thin oil-in-water emulsions containing various oils and oil-soluble actives, she says.
Wet wipes have become a hot item. In April at In-Cosmetics, Degussa introduced Tego Wipe DE, a PEG-free, easy-to-use liquid emulsifier system for wet wipes. Comprised of a blend of EO-free emulsifiers, a caring cosmetic emollient and significant amounts of preservatives, it has an extremely fine particle size. “We look at the market and ask: To what trends do we have related technologies?” says Goertz. “We are especially looking at anti-aging, health and convenience as major trends where we have complementary products or technologies. For anti-aging, of course our range of active ingredients—the well-known ceramides, creatine, are examples. For convenience, Tego Wipe DE is the perfect example.”
Wet wipes have provided an opportunity to Dow Corning’s silicones, as well, says Eriko Sakurai, life sciences industry marketing director. “In addition to facial cleansing, wipes have emerged in the underarm, sun care, and moisturizing segments. They also show utility in hair care and in the delivery of active ingredients.” Wipe formulations are becoming more and more sophisticated, she says. “Value-added wipes are becoming increasingly attractive to manufacturers attempting to differentiate their products in a competitive marketplace, and to consumers looking for innovative, multifunctional products to meet their needs.”
More than 50 percent of new cosmetic products launched each year contain silicones, primarily because of the distinctive sensory properties they provide, Sakurai points out. Recently, hair colorants have provided the versatile materials with another growth market. “In the 1950s, about 7% of women colored their hair. These days, about half of all women in America and in Europe already color their hair regularly. This percentage continues to increase as baby boomers head toward retirement,” she says. “Silicones are often used in hair colorant products, since they are easy to incorporate and do not affect critical formulation parameters, such as pH and viscosity.” Silicones can also improve ease of application by helping to spread the colorant formulation in hair.
Cognis has developed a new product for hair care specifically as an alternative to silicones. “Triple Conditioning Concept enables cosmetic manufacturers to develop shampoo formulations that are silicone-free, yet still deliver excellent performance,” says Koester. “It consists of a cationic polymer, an emollient and a fine wax dispersion based on glycol distearate. As the name suggests, the Triple Conditioning Concept offers threefold care benefits—it improves the softness, glossiness and manageability of the hair, and as such is a viable alternative to silicone-based branded shampoos.”
Several of the suppliers serving the US market have been investing to meet demand. Earlier this year, Degussa opened its Competence Center for Conditioning in Hopewell, Va., the company’s first competence center outside Germany. “We see this as an official investment in the future and in the partnership we have with some of the key players in hair care and some other applications,” says Goertz. Degussa is also expanding its US sales force to meet continued double-digit growth, while facilities are being upgraded in terms both of capacity and quality of output.
Toward the end of 2005, Cognis launched a comprehensive efficiency program in the US that has included the modernization of production facilities as well as improvements to the marketing, sales and distribution structures, says Koester. In November a new facility for the production of high-quality raw materials was opened at the Mauldin, S.C., facility, the first step in a comprehensive, long-term plan for the site. “We have also invested in our sulfation operations in the region, and new capacity came on stream in the first quarter of 2006,” says Nancy Vincent, business director care surfactants and alcohols.
In January, Uniqema announced the start up of new specialty surfactant production lines at its New Castle, Del., facility. Rhodia recently invested in its Bristol, Pa., and Shanghai R&D centers, and its Wuxi, China, and Blue Island, Ill., manufacturing plants. Dow Corning recently completed the development of new customer application centers in China, Russia and Germany.
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