07 April 2009 18:04 [Source: ICIS news]
NEW YORK (ICIS news)--Chemical suppliers are optimistic that the slight drop in demand within the cosmetics and toiletries market will be short-lived, several company officials said on Tuesday.
Although demand for cosmetic and toiletry chemicals was down in recent months because of the economic downturn, several chemical companies noted that the decline was far less when compared with other industries such as coatings and construction.
“The current economic climate has been a challenge for most suppliers into personal care, and Univar is no exception,” said Matthew Ottaway, European industry personal care manager at Univar, a US-based chemical distributor.
Univar said it also expects growth from the sales of its specialty and commodity products this year.
US-based Ashland Distribution noted that while consumers are cutting back on large purchases, they continue to purchase products that make them feel better, such as cosmetics and personal care items.
“While we need to meet the challenges of today, we are firmly focused on positioning ourselves for the future and the economic recovery to come,” said Dow Corning global beauty care industry director Stephen Gosney.
There have been slight reductions in research and development activity, mostly from cosmetic manufacturers, said US-based silicone producer Gelest.
“Funding for innovation, however, is still available,” said Gelest silicone business manager Matt Edison.
“It seems the world is expecting the downturn to be short-lived - one to three years. Companies must therefore prepare for the time when demand returns or get left behind by those that continued to invest in innovation,” he added.
Specialty chemical companies Rhodia of France and the US-based Evonik Goldschmidt both emphasised the need for continued investment and innovation despite the current tight financial budgets for most chemical companies.
“Investment and innovation are imperative to riding the trends to success in the cosmetic and personal care market,” said Evonik Goldschmidt
“Evonik Goldschmidt actively works toward mega-trends and staying ahead of the curve. Our scientists continually work on new products and technologies to meet changing consumer demand,” she added.
Sebastien Meric, global vice president of Rhodia Novecare’s home and personal care, said he expects steady growth this year.
“We continue to invest in research and development, aligning it with market trends with a strong focus on delivering rheology solutions that provide cost-effective formulations and unique textures to end products,” he said.
For the latest chemical news, data and analysis that directly impacts your business sign up for a free trial to ICIS news - the breaking online news service for the global chemical industry.
Get the facts and analysis behind the headlines from our market leading weekly magazine: sign up to a free trial to ICIS Chemical Business.
|ICIS news FREE TRIAL|
|Get access to breaking chemical news as it happens.|
|ICIS Global Petrochemical Index (IPEX)|
|ICIS Global Petrochemical Index (IPEX). Download the free tabular data and a chart of the historical index|