Raw Material Suppliers Face Demand For Multifunctionality and Performance

12 May 2003 00:00  [Source: ICB Americas]

Consumer demand for more highly functionalized, value-priced personal care products is leading suppliers of raw materials to develop more advanced ingredients for sun, skin and hair care formulations. Increasing raw material and energy costs and industry consolidation are also combining to increase pricing pressures on ingredient manufacturers. The major players are targeting areas of the market with significant unmet needs as keys to growth in the future.

The combined North American and Western European market for specialty raw materials for cosmetics and toiletries is estimated at $2 billion, says Gillian Morris, manager, chemicals, at Kline & Com-pany, a Little Falls, N.J.-based consultancy. Conditioning polymers account for roughly 23 percent of the total, followed by specialty surfactants (16 percent) and specialty emollients (12 percent).

Consolidation of the personal care industry and accompanying brand and product rationalization are major concerns for raw material suppliers. Rising costs and stiff competition have placed pressure on them to differentiate through gains in efficiency or technology, says Jack Fallon, vice president, Huntsman Surface Sciences Americas. "The need to become truly global to meet the needs of our multinational customers and their global supply chains is also critical," he adds.

From a consumer perspective, the trends in today's marketplace are an extension of last year's themes, says Joan Hoffmeier, market manager for consumer products at Rohm and Haas Company. "Consumers want products that enhance intrinsic performance, last longer, are gentle, safe and easy to use and are visually appealing on the store shelves."

Overall, there is an increasing focus on science and technology to improve performance and functionality. "The personal care market in North America has had real success in recent years in bringing milder, safer and more efficacious products to market," says Huntsman's Mr. Fallon. He points to novel visual effects, the increased benefits of fragrance, and multi-functional products as significant trends.

"Raw material suppliers are now expected to develop new ingredients and technologies that will meet these demands," says Kristen Scheibert-Mizell, North American marketing manager for life sciences at Dow Corning Corp. Customers also expect suppliers to provide complete testing on ingredients, she says. "It is a challenge for suppliers to provide all the information on each ingredient because we also need to know what other ingredients customers are using and how the new raw materials will interact with them."

Throughout the personal care industry, there has been a pronounced trend toward the use of natural ingredients and natural technologies in developing products for consumers, observes Penny Vanemon, global hair care marketing manager for National Starch and Chemical Company. "There is no doubt that consumers perceive a product that can make an all-natural claim as more desirable. At the same time, however, in the broad market, performance is what counts."

Rich Callahan, global marketing director with Crompton Crop.'s Witco refined products business, says that use of the term "natural" has subsided somewhat, to be replaced by "organics," another ambiguous term. "Under the umbrella of organic comes a multitude of predominantly plant-based cosmetic/personal care raw materials calling themselves botanicals," he says. "These tend to be high-end products that appeal to consumers who are looking for the same benefits that they thought were offered by 'natural' products." There is a stigma associated with the use of petroleum-based ingredients in many personal care products, but it ebbs and flows over time, he notes.

Skin Care

In skin care, customers are becoming more demanding of results and more savvy when it comes to technology, says Beatriz Blanco, marketing director for skincare with International Specialty Products Inc. (ISP). "They also expect value-added products, more benefits and faster results. When it comes to skin care, their principal goal is to have healthy, young-looking skin," she observes. Consumers also look for products that restore and protect the skin barrier and replenish moisture. Other important claims include anti-wrinkle, firming, skin tone lightening and anti-stress, says Lisa Lods, director of technical marketing for Arch Personal Care.

Suppliers have introduced a host of new products to address these trends. For example, Arch Personal Care's Biodynes EMPP stimulates the production of elastin in skin, a key to youthfulness. The company also recently patented and launched a plant extract based on root nodules (symbiosomes) found in various legumes. "These unique active ingredients, known under the tradename Zymbiozomes, are offering an entirely new mechanism in controlling oxidative free radicals generated in the skin, such as nitric oxide and superoxide radicals," says Vince Gru-ber, director of research & market development at Arch.

Arch Personal Care has been collaborating for over a year with GeneLink, which has patented methods for assessing an individual's resistance to oxidative stress through the analysis of single nucleotide polymorphisms (SNPs). Arch is developing a line of raw material formulations, SNP-Derms, tailored to address the results (see Technology Watch, p. FR8).

Dow Corning is planning three launches in 2003 that will address delivery of actives, fragrances and the texture of products. "Silicones are well known for the aesthetics they provide, so with this campaign we are demonstrating the ability that silicones have to help with fragrance retention, delivery of actives, and other benefits that they provide to skin care formulations," says Ms. Scheibert-Mizell.

New products from ISP include the Bio-Functional Ingredients platform, a range of products offering biologically-proven, consumer-perceivable benefits to skin care formulations. Vital ET and USP Allantoin, a well-known skin protectant, are the first of several new ingredients in the platform. Vital ET is a new form of vitamin E that delivers anti-erythemal and anti-inflammatory benefits for the prevention and remediation of redness from UV exposure, says Mark Rerek, director, research & development for skin care at ISP. It provides the same benefits for reducing acne redness and swelling. "These properties of Vital ET can be used to advantage in the formulation of products targeting the effects of aging and environmental stress," says Mr. Rerek. "It is the perfect choice for shaving and antiperspirant applications, where its anti-inflammatory benefits are complemented by its excellent skin lubricity."

ISP has also introduced Lubrajel II XD, a thickener based on glyceryl polyacrylate and glycerin that can be used in almost any type of skin care formulation, according to the company.

Delivery systems have also benefited from the innovations of raw material suppliers. For example, technological advances have spurred the launch of numerous facial cleansing wipes in 2001 and 2002, says ISP's Ms. Blanco. Some of the products claim to exfoliate, tone and condition the skin in addition to cleaning the skin. Others claim deposition of anti-aging ingredients.

Jocelyne Milliere, global marketing manager of skin care at National Starch, says the company's Structure XL emulsion stabilizer technology is a "genuine match" for low-viscosity wet wipe solutions that contain active ingredients. "Formulators can count on Structure XL to provide long-term stability to water-thin emulsions as well as ideal fusion with the wipe substrate," she says. "There is virtually no limit to the wet wipe product form. Formulators have the freedom to prepare wet wipes for self-tanner and sun-protection products in addition to the traditional cleansing and baby care products."

Other novel delivery systems are in the works. "In the years ahead, look for more starch-based technologies that open the door to skin care applications designed to change the way we apply and use finished products," says Jim Mish, director for National Starch's personal care business. "The next generation of starch-based technology may serve as a delivery system in its own right," he adds. "For example, a dissolvable film technology now being tested in our labs may serve as a method for the delivery of actives and other important ingredients directly to target areas on skin."

Body FresheningAlso Key in Skin Care

There have been other developments in personal care. In addition to the growing number of male grooming products, invisible or clear solid ant-iperspirants/deodorants are making notable inroads in North America, says Denise Elias, global marketing manager for Amerchol Corp. "In Europe, antiperspirant and deodorant product launches have been significant, primarily new deodorant towlettes and sprays that are used in addition to underarm antiperspirants/deodorants for body freshening," she says.

The evolution of body wash and shower gel technology also continues, as marketers look to differentiate their products in a growing North American market, says Huntsman's Mr. Fallon. The newer, milder liquid products are able to take advantage of sophisticated raw materials, which has resulted in increased mildness and lower irritation, he says. Among these ingredients are mild surfactants such as ether sulfates, sulfosuccinates, betaines, am-phoacetates, ether carboxylates and even alkyl polysaccharides, and novel surfactants based on is-ethionate chemistry, all of which have lower skin irritation characteristics and im-proved feel versus conventional fatty acid-based soaps. Rinse-off solubilizers such as glycerol cocoate ethoxylates allow these oil extracts to be formulated into liquid bath products, which can lead to not only marketing claims but also improve senso-rial asthetics, says Mr. Fallon. Structured surfactant systems are being used in-creasingly to al-low the incorporation of emollients.

Uniqema is also launching new products for rinse-off applications. Last month Uniqema an-nounced that its Promi-dium 2 surfactants are available for developmental work in the European Union. Promidium 2 was launched in the US in 2001. The new entry joins Promidium CO, which is approved and sold in Europe, and is part of the Promidium product platform that will soon be available globally. Uni-qema received a patent on Promidium platform technology earlier in 2003.

"True multifunctionality makes the formulating task significantly simpler. You can reduce the number of ingredients used in a formulation, lowering manufacturing costs and reducing irritancy potential," says Mary Clarke, global stra-tegic marketing manager, for Uni-qema. "You can make globally ac-ceptable formulations based on a platform technology.

Sun Care

Preventing sun damage creates yet another set of formulation challenges and opportunities. "Sunscreen manufacturers are looking for materials that offer multiple advantages in sun care formulations," notes Rohm and Haas's Ms. Hoffmeier. "This theme plays out in the sun care market with products that offer greater durability with more water- and sweat-resistance for an active lifestyle, longer term UVA protection, and not exposing consumers to high levels of organic sunscreen actives."

Last month, Uniqema introduced Solaveil CT-10W, a 40 percent water-based dispersion of titanium dioxide based on Uniqema's Solaveil Clarus technology. The new product is de-signed to allow formulators to add a specific carrier oil or ester into a sunscreen product. The company says the product allows formulators to add titanium dioxide dispersions to any oil-in-water sunscreen formulation with a carrier of their choice.

"Formulators have expressed a great deal of interest in using the Solaveil Clarus technology for its ability to provide high SPF ratings at a low percentage of active and for its ability to provide protection with the aesthetic elegance of an organic product," says Julian Hewitt, sun care applications team leader for Uniqema. "The water- based form of Solaveil Clarus opens the door for formulators to use virtually transparent titanium dioxide technology in any personal care product formulated for sunscreen protection."

Low-viscosity (sprayable) oil-in-water emulsions and nonionic emulsification systems are very popular today, says Lisa Elton, senior director of applications and technical services with ISP. Another key trend in the North Ameri-can sun care market is the use of antioxidant, anti-inflammatory and anti-erythemal ingredients, she notes.

Rohm and Haas is developing a new solid version of its SunSpheres UVB/ UVA performance boosters that "renders the product even easier to use and enables use of the product in reverse emulsions, namely water-in-oil emulsions, especially popular in Europe," says Charles Jones, personal care technical service manager and developer of the technology. Aculyn rheology modifiers also have found increased use in the sun care market as polymeric emulsifiers. "This feature allows the formulator to minimize the amount of traditional surfactants used in emulsifying the oil phase," says Mr. Jones. "Con-sequently, the dried sunscreen film is harder to rewet, and hence more water-resistant, not to mention more gentle to the skin."

BASF AG, a leading provider of both inorganic and organic sun care ingredients, has also been active in new product development. Last year BASF introduced a newly developed organic UVA filter, Uvinul A Plus, which the company notes is also completely photostable when exposed to the sun. The company says this innovation offers many advantages over the current organic UVA filter avobenzone. Specifically, the company notes that Uvinul A Plus does not require a photostabilizer, is readily compatible with OMC and zinc oxide, and its use in combination with other common UV filters is part of BASF's broad patent portfolio.

In 2001, BASF scored a key victory when the US Patent Office confirmed BASF's patent rights for UV protecting beach, daily wear and cosmetic products formulated with Z-COTE and Z-COTE HP1 zinc oxide products. BASF obtained this patent, along with the acquisition of the Z-COTE technology in 1999 from sunSmart Inc. Z-COTE microfine zinc oxide is a completely photostable, broad-spectrum UV ab-sorber, enabling long-lasting UVA/ UVB sun protection products .

Another inorganic UV absorber from BASF, launched in 2001, is Uvinul TiO2. A UVB absorber, it is a combination of trimethoxycaprylsilane and titanium dioxide, which can be used to boost SPF formulations of organic UV filters. The company also makes organic sun care ingredients. In 2001 BASF more than tripled production capacity for Uvinul MC 80 (ethylhexyl methoxycinnamate) with the commissioning of a new 4,500 metric ton-per-year plant in Ludwigshafen, Germany. The product, another of BASF's UVB and UVA absorbers, is used in both sunscreen and daily skin care products. BASF's strengthening of its sunscreen ingredients portfolio is consistent with the overall global trend of broad-spectrum UV protection across all segments.

Multifunctional, higher SPF products for skin care have become a major new product focus in the sun care area, says Cheryl Budzinski, market manager for Penreco. "Kid care products with safe but effective insect repellent and adult cosmetic products incorporating sun protection are lining shelves this year in advance of the summer season," she says, adding that self-tanning segment is an emerging area. The company's new Versagel MP and ML gels, provides a pleasant feel and good suspension without affecting the product's SPF factor. It can also be used for thickening tanning oils.

Hair Care

Hair care has seen an explosion in the use of gels and other non-spray styling products, driven by new technology that has not sacrificed performance. "Ultimately, consumers don't just seek product forms, they seek styling solutions that meet their individual needs, while delivering superior end benefits," notes Julie Shlepr, marketing manager of hair care with Noveon. "Today's products must provide longer-lasting style retention than ever before, enable versatility in the styling technique employed or in the appearance and feel of the finished style, and they should allow for easy restylability."

Formulators of hair-styling products are looking for materials and formulations that offer improvements in hold and durability to meet the needs of the busy, active consumer, adds Rohm and Haas's Ms. Hoffmeier. Addition-ally, formulators of hair coloring products want to maintain dyed hair color under the variety of conditions to which the hair is exposed over time. In the hair gel sector, Ms. Hofmeier notes that consumers want firm hold, non-flaking, and visually appealing products that are easy to use.

Rohm and Haas's hair fixative program has developed three new product offerings: Acudyne 180, launched in December of 2002, Acudyne SCP, which will be launched later in 2003, and Acudyne DHR, which is targeted for launch early in 2004. "We are very pleased with the market's response to Acudyne 180," says Ms. Hoffmeier. A firm-hold fixative and styling polymer that is economical and easy to use, Acudyne 180 eliminates the negative trade-offs associated with commercially available low-VOC and conventional resins, she says. It also includes anti-corrosion technology. "Now formulators don't have to compromise tack and dry times when formulating low-VOC hair care products," says Curtis Schwartz, tech- nology manager, consumer care. He notes that Acudyne 180 has been successfully incorporated into a number of new hair styling formulations that will be launched in the coming months.

A major manufacturer has just launched a leading brand hair gel containing Aculyn 28, one of Rohm and Haas' newer rheology modifiers. "Add to the formulation a little Neolone 950, a new preservative for leave on products, and formulators have a great styling product that is clear, well preserved and provides a good, firm hold," says Ms. Hoffmeier.

National Starch announced in April 2003 that its hair styling technology DynamX is now available for use in aerosol hair spray applications. The DynamX styling technology offers formulators the ability to combine excellent, long-lasting hold and flexible, natural motion in consumer styling products while providing an elasticity to styles that enable shape memory. The DynamX styling technology is particularly suited to aerosol hairsprays. "The physical properties of DynamX provide a number of benefits that are important to hairspray formulators, including outstanding hold in both low- and high-VOC formulas, fast drying time, compatibility with other hair fixative polymers, excellent sprayability and a pronounced reduction in perceivable tack," says Ms. Vanemon.

DynamX is based on a low molecular weight polymer technology that creates a flexible yet strong film on hair. Low molecular weight is critical to achieving low-viscosity formulations for optimal spray aesthetics and proper flow and wetting of hair. Until recently, however, low molecular weight polymers have not been available to provide the film toughness required for durable, long-lasting hold, particularly in low-VOC formulations, which are plagued by performance issues such as large particle size, poor spray atomization, longer setting and drying times, and reduced holding power. A patented composition based on polyurethane and polyacrylate chemistry (polyure-thane-14 AMP-acrylates copolymer) the DynamX styling technology res-ponds to all of these low-VOC challenges, says Ms. Vanemon.

National Starch has also addressed gel products with its AMAZE XT hair fixative, an all-natural technology that offers at least a 40 percent improvement in the longevity of a style and the virtual elimination of flaking that is common with many hair gels, says the company.

The introduction of formulations based on materials such as AMP-acrylates/allyl methacrylate systems are a major development in hair fixatives, says Steve Semenczuk, business director of personal care with Noveon. These new chemistries overcome such deficiencies as excessive flaking, poor humidity resistance and poor feel. Noveon's contribution to this technology has been its Fixate G-100 hair fixative, a patented, anionic, acrylic co-polymer. Tests demonstrate that curls styled with Fixate G-100 polymer gels retain greater than 80 percent of original curl after 24 hours in 90 percent relative humidity at 25ûC, according to Mr. Semenczuk. The product also pro-motes excellent curl snap and resilience. In repeat comb-through tests, tresses curled with Fixate G-100 polymer gels maintained 70 percent of the initial curl, even after comb through repetitions on each side.

Noveon recently made several im-provements in its Ultrasil Specialty Silicone line including advancements that allow manufactures of hair conditioners to produce clear materials for daily conditioning, according to the company. Its new Novemer EC-1 polymer offers the formulator a multifunctional ingredient with improved sensory aspects. Noveon has also introduced Carbopol Aqua SF-1, which allows manufacturers more freedom in formulating surfactant based systems. "Carbopol Aqua SF-1 provides formulations with systems that possess a higher degree of clarity, more compatibility with various functional additives, and enhanced yield value (for pearlized or suspended systems), says Mr. Semenczuk.

Increased emphasis is being placed on multifunctional products for hair care, notes Nancy Clements, marketing director for hair care with ISP. "Consumers expect that a styling gel, for example, will not only hold the hair but will also offer some measure of conditioning and that conditioners will not only soften the hair and make it more manageable but also offer some measure of moisturization." ISP's Styleze W Polymer is a new fixative styling polymer that offers firm hold, high flexibility, excellent conditioning benefits, and low tack on drying and water exposure. Easy to dilute in water and compatible with most surfactants, it has application in mousses, styling gels, and straight styling shampoos and provides protection from thermal damage of flattening irons.

In 2002 Ondeo Nalco launched its Fixomer product line (copolymers of methacrylic acid and sodium acrylamidomethyl propane sulfonate) with an emphasis on hair styling benefits. "The benefits are strong hair hold with a soft, natural feel, even under conditions of high humidity," says Patrick Marek, business manager of performance products. Ondeo Nalco recently found that the Fixomer product line also offers advantages in skin care applications. "The benefits in skin care formulations include reducing tackiness and improving skin smoothness in creams and lotions and increasing slipperiness and lather thickness of liquid cleansing products," he says.

Ondeo Nalco is about to launch another polymer that greatly improves moisture absorption, according to Mr. Marek. He says that the product demonstrates moisture absorption properties higher than those of any ingredient that the company has compared.

The growing ethnic segment has also sparked innovation. Dow Corning, for example, has a line of fifteen different silicone products targeting the ethnic market. Marketing for two new products began last month. Separately, Dow Corning is also working with the new Dow Dispersion Sciences (DDS) business of the Dow Chemical Com-pany to develop six new emulsion products that will be branded with the Dow Corning name and manufactured by Dow Chemical (see sidebar, p. FR8). In addition, the company has launched a new cationic conditioning agent based on quaternized sugarbeet oligosaccharides that appears to have a particularly good ability to adhere to and improve damaged hair fibers.

Regulatory Issues

The cosmetics industry has traditionally regulated itself, but that may change. "The cosmetics industry is going to be confronted by an increasing number of regulatory issues in the coming months with many of these arising from individual state regulation and legislation," says ISP's Mr. Elton.

In California, proposed legislation would require consumer products manufacturers to pay permit fees on cosmetics containing certain volatile organic compound (VOCs). National Starch's Ms. Vanemon adds that the 55 percent VOC regulations already mandated in California will go into effect for 12 states in the northeastern US beginning in January 2005. Europe too may be moving toward lower-VOC aerosol hairspray formulas later on in the decade.

"The industry is also facing challenges in the area of international globalization, led by a widening gap between Europe and the US on issues such as ph thalates, fragrance labeling, and animal rights," says Mr. Elton. Europe's Seventh Amendment to the Cosmetics Directive, which bans testing of cosmetics and ingredients on animals after 2009, should no longer be viewed only as a European issue, adds Amerchol's Ms. Elias. Although the directive is a European initiative, she says it will likely affect all geographic regions, for the marketplace is increasingly global. The EU's Biocidal Product Directive is another key issue.

Approaching from a different direction are regulations governing the increasing number of pharmaceutical and cosmeceutical-type claims being made by personal care companies. For example, sun care ingredients are already regulated as actives, but anti-aging ingredients are not. "However, there will be more regulation in the future as personal care and health care become more alike," says Dow Corning's Ms. Scheibert-Mizell.

For example, Eastman has com-mercialized hydroquinone, European Pharma Grade, in response to the EU regulation of hydroquinone skin-lightening products as drugs rather than cosmetics, says Terry Oldfield, technical service associate with Eastman Cosmetics Lab. Upon request, Eastman can provide applicable drug master file information to the agency in the respective EU country in support of marketing authorization applications for products using Eastman hydroquinone European Pharma Grade.

One outcome is more costly R&D. "Traditionally, the personal care industry has addressed the need for new product innovation by incorporating new raw materials through formulation knowledge," says Dave Hatfield, business director with Dow Dispersion Sciences. "This method is becoming more difficult, especially considering the cost and time it takes to introduce new actives-in particular UV absor-bers-due in large part to increased regulatory requirements," he adds.

The measurement of SPF, the certification of organic raw materials, hair growth claims, the standardization of active ingredients to key functional molecules and entry of actives into the blood stream are other areas that may see regulation, say suppliers. "Meeting the various regulatory require- ments that exist in different regions of the world is a major challenge for raw material suppliers to the personal care industry," Dow Corning's Ms. Scheibert-Mizell observes.

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