PARSIPPANY, NJ, October 14, 2010 – In 2009, the market size for specialty personal care ingredients in India was estimated at over 33,000 tonnes. Price sensitivity of the Indian personal care consumers contributed to the slow industry growth in the past; however, thriving demand for products with better functional benefits is expected to bring about a significant change. The personal care ingredients volume growth rate between 2010 and 2014 is expected to reach 9.6% over the four-year period, according to the research Personal Care Ingredients 2010: India Market Analysis and Opportunities, by worldwide consulting and research firm Kline & Company.
As steadily increasing disposable income levels continue to change the spending habits of the country’s sizable population, and awareness for new formulations grows, India has the potential to become one of the major consumption markets for personal care ingredients. The highest volume growth is expected for emollients, with a projected 11.3% increase by 2014. The addition of UV protection to skin products has also seen a popularity boost, establishing UV absorbers among the most rapidly expanding product categories.
India’s personal care industry is characterized by high volumes and low prices of cosmetic products. Many traditional commodity chemicals, including sodium lauryl sulfate and sodium lauryl ether sulfate, are used in formulations. There has been less demand for specialty chemicals and the majority of existing demand remains satisfied through imports. However, an increasing number of personal care products now incorporate specialty ingredients in their formulations. Among specialty ingredients, specialty surfactants are the leading product category, followed by conditioning polymers, accounting for a combined volume market share of over 40%.
Most of the personal care ingredients segments in India are dominated by few companies. In the case of surfactants, the top three competitors hold nearly three-quarters of the total market volume. In contrast, segments which focus on applications in skin and hair care are fragmented because of the required expertise and different compositions pertaining to the chemicals.
Galaxy Surfactants emerged as a key player in the Indian personal care ingredients industry. The overall market is divided among six main players accounting for about 44% of the market. The remainder comprises smaller regional players and imports from other countries.
A series of mergers and acquisitions have been shaping the market. In June 2010, BASF announced the acquisition of German cosmetics ingredients major Cognis. While Cognis does not operate manufacturing plants in India, the company contributes an appreciable customer base, particularly for emollients and surfactants. Furthermore, Galaxy Surfactants has acquired Tri-K Industries and its subsidiary Maybrook in the United States.
“The impact of the recession on Indian personal care ingredients companies has been minimal,” says Anna Ibbotson, Industry Manager of the Chemicals & Material practice at Kline. “This is because domestic suppliers have been focusing on the Indian market and did not have significant exposure to U.S. and EU markets,” she explains. The competitiveness factor has, nevertheless, increased, as several global players including ISP, Clariant, DSM, Croda, and BASF have tapped in on the market.
Complementing our Global Personal Care Ingredients Database, Personal Care Ingredients 2010: India Market Analysis and Opportunities focuses on the Indian market and is designed to assist suppliers to understand key dynamics operating within each key product segment. The base year for this program is 2010 and it also includes forecasts to the year 2015.
Kline is a worldwide consulting and research firm dedicated to providing the kind of insight and knowledge that helps companies find a clear path to success. The firm has served the management consulting and market research needs of organizations in the chemicals, materials, energy, life sciences, and consumer products industries for over 50 years. For more information, visit www.KlineGroup.com.