Specialty chems to profit from ethnic cosmetics

12 July 2007 21:56 [Source: ICIS news]

By Doris de Guzman

NEW YORK (ICIS news)--The growing ethnic cosmetic market is providing profitable innovation opportunities for specialty chemical companies, industry sources said on Thursday.

“The demand for specialty chemicals is expected to grow steadily in response to the demand for more quality ethnic health and beauty care [HBC] products,” said Patrick Obukowho, president and principal consulting chemist for Advantage Research Lab.

“Specialty chemical companies should consider investing in research and development, which is the starting point of good products,” added Obukowho.

Specialty chemicals will be at the epicentre of the growth anticipated in ethnic cosmetic market, said Dwayne Gavin, account manager for polymer sales at Cognis.

“The demand for formulations, which exhibit distinguishable sensory properties, multifunctional performance effects and proven substantial benefits within this growth category will increase,” he added.

Most of the growth in ethnic cosmetics has been in the US although it is also coming to Europe, according to consulting and market research firm Mintel.

Another market research company, Packaged Facts, forecasted US retail sales of ethnic-specific HBC products to surpass $2.5bn (€1.8bn) by 2012, at an annual growth rate of 5.4% from 2006 to 2012.

US sales of ethnic HBC products last year was estimated by Packaged Facts at $1.9bn.

($1 = €0.73)

(Look for the ethnic cosmetic market story in the debut 16 July issue of the new ICIS Chemical Business)

By: Doris de Guzman
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