Dow soaps segment to weather tough times in '09

20 November 2008 15:51  [Source: ICIS news]

LONDON (ICIS news)--US major Dow Chemical’s soaps and detergents business is not expecting demand in its key household market to suffer significantly despite what could be a tough year ahead as the global financial crisis continues, a company executive said on Thursday.

The economic downturn is likely to impact the commercial use of detergents while domestic demand will remain strong, said Carlos Silva Lopes, global marketing director of Dow Fabric & Surface Care.

“We’re being told by our customers – particularly in the institutional sector – that they will eventually see a slowdown,” said Lopes.

“People are travelling less, and are not using planes and hotels as much; we’re also seeing factories and offices closing, so all of that cleaning that was going on is reduced.

“But it’s different in households, where business is holding up well – people are maybe buying less of the premium labels, but we haven’t really seen a slowdown in overall demand,” said Lopes.

Despite consumers’ money worries, the trend towards smaller pack sizes and concentrated formulations in most countries appears “irreversible”, with producers focusing on economic savings and reducing their carbon footprints.

Lopes said Dow has continued to invest heavily in innovation and product performance, and is building a robust pipeline of products. A new formulation is being prepared for launch in early 2009.

“I believe the conscience about the environment remains despite the economic circumstances,” he said.

“We’re still investing in research and development on sustainable products that are biodegradable and functionally effective.

“We will continue to maintain the same pace – it’s an investment for the future.

“Our department took the decision that if we had to prioritise we would not reduce our efforts on projects related to sustainability.”

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By: Andy Brice
+44 20 8652 3214

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