The State of Beauty: What Changes Will Outlast the Pandemic?

The State of Beauty: What Changes Will Outlast the Pandemic?

The cosmetics & toiletries market displayed outstanding resilience during an unprecedented year. Despite a marginal drop in 2020 sales, the market grew at a compound annual growth rate (CAGR) of 3%, registering increases, just as it had done since 2015, according to our Cosmetics & Toiletries USA report. 

Other toiletries and hair care were the only product classes to experience growth, while skin care and fragrances declined for the first time during the five-year historical period. Makeup was challenged even more as color cosmetics became a “can-wait” item. 

Brands leaned heavily on digital strategies and new marketing tools, like TikTok, to engage with consumers and provide them with opportunities to purchase products. This propelled growth for the e-commerce channel, which experienced booming sales in 2020.  

Key trends seen in previous years, like the move toward natural, clean, and sustainable products as well as wellness and self-care, have been amplified by consumers’ shifted values during the pandemic. What changes are likely to stay post-pandemic? How can beauty brands and retailers rejuvenate their strategy for continued growth?  

This highlights report dives into: 

  • The current and future state of the U.S. beauty industry 
  • Shifts in product classes and retail channels   
  • E-commerce performance and new developments in brick-and-mortar 
  • Key trends that are likely to grow in importance 

The insights and data in this highlights report represent select excerpts from our in-depth Cosmetics & Toiletries USA and Beauty Retailing USA reports, offering a 360-degree view of the industry’s performance, with forecasts to 2025. 

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Next in Naturals Greener: Formulations resonate with consumers

Next in Naturals: Greener Formulations Resonate with Consumers

“Clean” claims are resonating more than ever with consumers, as the level of awareness surrounding ingredient safety and toxicity continued to increase in 2020. Brands leaned on this, creating extensive “free-from” lists, to promote the idea of safety. These claims were especially prominent in key categories such as facial skin care, hand and body lotions, and personal cleansing, where consumers valued safer options for everyday or essential products.  

Sustainability also grew in terms of importance, as brands giving back to their communities and making an impact on the environment were key points of differentiation during the coronavirus pandemic. These big moves led to a substantial increase of the truly natural segment, which, by far, outpaced the nature-inspired segment in 2020 and is set to win over consumers. 

What’s included in this complimentary report: 

  • Evolution of the natural and clean beauty market over the years  
  • Shifts in product class shares and key trends to watch 
  • A look at the leading natural players with snapshots of fast-movers such as Hand in Hand, Hello Bello, Live Clean, among others
  • The role of sustainability and key initiatives for brands like Weleda, Alpyn Beauty, Native, Hello Products, and more
  • Spotlight on retail channels, highlighting wins and losses 
  • Market predictions up to 2025  

To get a full view of the dynamic market for naturally positioned, clean, and organic beauty and personal care products, refer to our Natural and Clean Beauty Global Series report. The study looks at key markets like Brazil, China, Europe, and the United States to assess brands’ true degrees of naturalness based on Kline’s proprietary rating scale. 

 

What Do People Expect from ‘Clean Label’ Foods & Beverages?

What Do People Expect from ‘Clean Label’ Foods & Beverages?

What Do People Expect from ‘Clean Label’ Foods & Beverages?

Within the growing phenomenon of “wellness” and “well-being,” an increasing number of consumers opt for food and beverage products that they perceive to be “clean” or “natural.” Given the absence of the specific definition of “clean,” consumers interpret it in their own way, defining it as products that have “no chemicals/no artificial additives” or “all-natural ingredients.”

 

Consumer Perception of “Clean” Products

Kline’s Clean Label in Food & Beverages: Perception vs. Reality study found that approximately half (48%) of the consumers surveyed purchase products that are labeled “clean” or “natural.” Out of those who state that buying clean or natural foods is important to them, more than half believe that such products have positive implications for their health; one-fifth are reluctant to ingest chemicals and artificial ingredients.

Buying clean or natural is more important in some categories than in others. For instance, baby food, meat and poultry, and milk from animals are categories where consumers lean toward cleaner and more natural products.

 Categories in which Clean and Natural Products are Most Important

Categories in which Clean and Natural Products are Most Important

Source: Kline’s Clean Label in Food & Beverages: Perception vs. Reality

“All-natural” was considered the most important element in selecting baby food, followed closely by “no added sugar” and “inspected by the USDA.” “Hormone-free” and “antibiotic-free” are key considerations of consumers when buying meat and poultry, while “preservative-free” and “minimally processed” are of top importance in cultured meats.

In packaged foods, “no preservatives” and “no artificial flavors” are neck-and-neck for the most important element. “No artificial flavors,” “preservative-free,” and “no added sugar” all rated highest in importance to those shopping for hot beverages.

When choosing a product, most consumers pay attention to price and nutrition information, and more than half of them avoid certain ingredients. Sugar, corn/corn syrup, artificial additives and artificial sweeteners, and fructose are the top ingredients that consumers avoid.

Top 20 Ingredients Avoided by ConsumersTop 20 Ingredients Avoided by Consumers

Source: Kline’s Clean Label in Food & Beverages: Perception vs. Reality

Ingredient listing and labeling is another important factor of consideration. While consumers generally trust the brands and their labeling, they do believe that the fewer ingredients a product has, the cleaner and more natural the product. There are no current scientific, legal, or regulatory definitions for clean-label ingredients. However, generally, three main criteria are followed to recognize an ingredient as clean label: Ingredients should be naturally derived, non-GMO, and easily recognizable or do not have a chemical-sounding name. To get a quick snapshot of key consumer research findings, download Kline’s Navigating How U.S. Consumers Perceive “Clean” in Food and Beverages infographic.

Key Retailer Initiatives to Attract Consumers Looking for “Clean” Products

Retailers play a vital role in establishing labeling standards and requirements for clean and natural products. Specialty stores such as Whole Foods and Trader Joe’s have stricter requirements for clean products and their labels. In fact, Whole Foods is the most notable national grocery chain catering specifically to this movement. Not only must brands adhere to a strict list of banned ingredients, but they must also offer proof of humane animal husbandry practices.

Conventional grocers, such as Target, are also establishing banned ingredient lists or creating clean or natural seals identifying brands that offer clean products. However, other grocers, such as Kroger and Wegmans, do not require products or suppliers to follow rigorous guidelines due to a large number of conventional product offerings.

Labels also vary significantly by product category and retailer. In the baby food, hot and cold beverages, cereal, and sweet and salty snacks categories, product offerings from more conventional retailers, such as Kroger, Target, and Wegmans, do not feature clean or natural labels.  In contrast, Whole Foods highlights the naturalness of a product through a percentage, such as “100% whole wheat” or “made from 100% fruit.”

Prevalence of Clean Labels in Key U.S. Retailers by Category

Prevalence of Clean Labels in Key U.S. Retailers by Category

Source: Kline’s Clean Label in Food & Beverages: Perception vs. Reality

The most common label across all retailers focuses on animal welfare standards for meats, such as how the animal was raised or that it has no added antibiotics or hormones. Other common labels include “organic,” “non-GMO,” “100% whole wheat,” and “gluten-free.”

Interesting to note is that organic products are a common private-label line. If a retailer does not have a separate line for these products—as is the case with Whole Foods—organic products are identified through labels on packaging.

Rising Market Opportunities to 2024

As consumers become increasingly ingredient-conscious, clean and healthy eating will remain a vital part of the consumer lifestyle. According to Kline’s Clean Label in Food & Beverages: Perception vs. Reality, the U.S. clean-label food ingredient market is expected to grow at a CAGR of 9.3% by 2024. Consumers will largely continue to be responsible for determining what it means to be clean or natural and what the standards will be. This will continue to vary drastically by person, as a common definition establishing the requirements for clean or natural food and beverage products is not expected to occur within a five-year forecast period.

Retailers will also take more initiatives in establishing clean and natural food standards. Conventional grocers such as Walmart may establish seals that signify healthier options. More naturally positioned grocers will also be on the rise, especially on a national level, to compete with Whole Foods.

Some labels are expected to remain popular on product packaging, while others will fall off in favor of trendier labels. The exclusion of artificial additives is expected to remain one of the most prominent labels on packaging. Organic and natural labels will also remain a prominent product label. As new diets and fads rise in popularity, marketers may use labels that call out compatibility with particular diets. For example, as the keto diet continues to rise in popularity, more labels are beginning to indicate whether they adhere to keto standards.

The market will continue to witness a rise in more truly natural or clean food and beverage products, as consumers prefer to seek products that are healthier. Greenwashing and clean-washing are expected to diminish as consumers have more access to resources to better educate themselves. Retailers may also enforce stricter standards, preventing these marketers from misleading consumers.

For a deeper dive into the importance of clean label in key product categories as well as an in-depth analysis of the ingredients used within these categories, along with brand offerings and their ratings, refer to Kline’s Clean Label in Food & Beverages: Perception vs. Reality study. To receive timely insights on the food nutrition industry, sign up for our newsletter here.  

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New Concepts to Drive Demand for Active Ingredients in Asia

New Concepts to Drive Demand for Active Ingredients in Asia

specialty actives personal care outlook

Demand for ingredients for the personal care industry can be divided into three segments. First is the commodities segment, where ingredients are sold to specification. This segment has significant market but grows slowly. The second segment is specialties, where ingredients are sold on performance. This segment is the largest in the industry and is expected to grow faster than the commodities segment. The third is the active ingredients or specialty actives segment, where suppliers are focusing on selling a concept i.e. a claim is made for a personal care product based on the active ingredient present in it . This segment involves very high degree of research and development and is the fastest-growing segment in the industry. 

Globally, the active ingredients market is more than USD 2 billion and the smallest segment in the industry. The segment is broadly divided into seven segments: botanical actives (botanicals), biotechnology actives, proteins, synthetic peptides, enzymes and coenzymes, marine ingredients, and synthetic actives (mainly including vitamins). Three segmentsbotanicals, biotechnology actives, and synthetic activesaccount for more than three-fourths of the total active ingredients market.  

Regional Variations 

The United States and Europe, together accounting for close to 60% of the total market, are the leading regions for active ingredients. Asia accounts for around one-third of the active ingredients market. Within Asia, China is the leading market, with an approximate 60% share. It is followed by Japan and South Korea. Biotechnology actives is the largest product category in terms of sales for the Asian market and has much higher share in Asia compared to the global market. This is mainly due to the easy availability of hyaluronic acid, especially in China, as the largest suppliers for hyaluronic acid are based in China. Botanicals is the leading segment in Japan and South Korea, and synthetic actives lead in Asia overall. 

There are similarities and differences between the Asian, European, and U.S. markets for applications of active ingredients. Anti-aging is the largest application in all markets. Even the share of anti-aging in the total market is similar between the Asian, European, and U.S. markets. Japan and South Korea have a higher share of anti-aging than Chinasimilar to Europe and the United States due to higher share of older people in the population.  

There are also differences between the three markets. Glowing or fair skin is considered important in Asia, leading to higher share for skin whitening applications. Consequentlythere is almost no market for tanning in Asia, while it has a significant market in Europe and the United States. These and other variations are important to understand as they decide the usage of active ingredients in a market 

Asia: The Cosmetics and Personal Care Trends Driver 

Asia is a smaller market compared to the United States and Europe but the fastest growing, due to consumer rising incomes and purchasing power as well as desire to buy more effective personal care productsFurther, there is a trend reversal as new concepts, claims, ingredients, etc., for the personal care industry are emerging from the Asian markets rather than the European or U.S. markets. As a result, the Asian market has become important not only due to its growth outlook but also due to the emergence of new trends that could drive the industry in the future.  

Among new trends that emerged in the Asian market are the increased usage of ingredients from local sourcesmore effective and customized products, and personal care products for microbiome balance or circadian rhythm. Other trends include sustainable ingredient sourcing, growth in products for anti-agingskin whitening, and multi-functional products.  

Impact of Emerging Trends on the Asian Actives Market 

The demand for ingredients from local sources is growing in Asia. This is due to greater awareness, proven efficacy, opportunity to expand portfolios for local suppliers, and growing appeal to use local ingredients. For example, in South Korea, the demand for ingredients sourced from Jeju Island have grown in the past few years and are expected to grow in the next five to 10 years. 

Consumers in Asia are also looking for more effective personal care products. This trend is both a driver, as well as an inhibitor, to the growth of active ingredients demand in Asia. For example, consumers in Japan and South Korea are known to follow multi-step beauty regimens. However, in the last few years, some consumers are realizing that the multi-step beauty regimen may not be suitable for them due to their skin type or condition, as well as due to lack of time (in South Korea, consumers call this “Skip Care). As a result, consumers are looking to use fewer but more effective personal care products. On the one hand, this is leading to the use of fewer personal care products and, thus, acts as an inhibitor to the growth of active ingredients demand. On the other hand, this is driving the demand for multifunctional personal care products, leading to increasing demand for botanicals. There are a large number of botanicals available that can provide different benefits and can be used in multifunctional personal care products. This trend is also leading to the growth of hybrid products. For example, a new product called Cream Skin,” a hybrid of a toner and a moisturizer, has been developed. 

This trend is also leading to customization or personalization of personal care products in Asia, as consumers look for personal care products that are more suitable for their skin. There is a growing number of personal care companies providing subscription-based skin care products. For example, in South Korea, formulators are offering customized anti-pollution products marketed as climate-proof skin care. These personal care products are developed as per the consumer’s age, gender, lifestyle, skin condition, and other factors. At the same time, formulators such as LaneigeIope, and LG Household & Health Care are allowing consumers to develop their own personal care products such as lip masksThis trend is expected to drive the demand for botanicals and synthetic peptides. Synthetic peptides can be customized to provide specific benefits, while the availability of large number of botanicals helps in choosing a particular ingredient for a specific benefit. 

Sustainability is also becoming important in Asia as consumers look for products based on ingredients sourced sustainably; this is also leading to growth in the concept of clean beauty. Consumers in Asia are looking for products based on safe ingredients, leading some formulators, such as KLAIRS, to reformulate their personal care products and shift to vegan formulas. 

Skin whitening is an important and growing application in Asia. Consumers look for products that can help them achieve glowing skin (known as luminous skin in China or glass skin in South Korea). In Japan, consumers look for mochi skin, which is also known as rice-cake skin (meaning flexible and smooth). Synthetic peptides are key ingredients for achieving glass skin, while vitamins such as niacinamide and vitamin C help achieve luminous skin. Hyaluronic acid, due to its hydrating benefits, is a key ingredient for achieving mochi skin. This trend is expected to drive the demand for synthetic peptides, synthetic actives, and biotechnology actives. 

Microbiome balance and circadian rhythm are the new applications that are growing in Asia. Many formulators in Asia have introduced or are looking to introduce personal care products based on these concepts. This is expected to drive the demand for botanicals and biotechnology actives in Asia. 

Conclusion 

These factors are expected to drive demand for active ingredients in Asia by 4% from through to 2024. China is expected to be the fastest-growing market, followed by South Korea and Japan. China is expected to grow faster as economic growth leads to higher income, leading to a portion of consumers shifting to premium personal care products based on active ingredients. However, the growth rates are lower due to COVID-19 as consumers reduce their discretionary expenses.  

Skin whitening and anti-pollution (anti-inflammatory and anti-acne) are expected to be the fastest-growing applications in Asia. Synthetic peptides and biotechnology actives are expected to be the fastest-growing product categories in the region. 

To learn more about specialty actives market in Asia or other regions, gain access to our Specialty Actives in Personal Care: Global Market Analysis, which offers a detailed, independent appraisal of the key regional markets assesses current and forecast demand by major ingredients and functionality, product trends and prices, distribution channels, supplier sales, and technical and market trends.

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Base oil, base oil everywhere, nor any drop to buy

Base oil, base oil everywhere, nor any drop to buy

*With apologies to Samuel Taylor Coleridge, and his epic poem “The Rime of the Ancient Mariner”

base oils supply demand outlookSince the onset of coronavirus in early 2020, the base oil business has been thrown into disarray. While crude oil prices have increased modestly, with Brent around $55/Bbl in February 2020 and now in the low $60 range, base oil prices have mushroomed. In February 2020, European Group I export spot prices were in the low-mid $600/ton range between SN150 and brightstock. Today, solvent neutral cash market prices are double, and brightstocks almost triple, their levels of just a year ago. The causes of such an explosion in base oil prices are not obvious and go beyond the confines of the base oil business itself. This paper is an attempt to rationalize the complexities.

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ON DEMAND WEBINAR ( Episode 1)
In Conversation with a Base Oils Market Authority, Ian Moncrieff

base oils market changesJoin us for a live session with Kline’s VP of Energy, Ian Moncrieff, who explores lubricant suppliers’ questions related to current challenges in the base oils market.  Annie Jarquin, Director, at Kline’s Energy Management Consulting will select the most pressing and interesting questions asked during the webinar and, in a Q&A platform, discuss them with Ian.

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Three Key Drivers of the Global Plant-Based Meat Boom

Three Key Drivers of the Global Plant-Based Meat Boom

Three Key Drivers of the Global PBM Boom

A considerable number of U.S. consumers are adopting a flexitarian diet, and this change is projected to drive the growth of the global plant-based meat market in the coming years. Furthermore, a notable number of consumers, especially in North America and Europe, are following a vegan diet. Thus, a growing flexitarian, vegan, and vegetarian population is projected to positively impact the global plant-based food industry. 

 

Growing Environmental Concerns 

Environmental concerns associated with livestock farming are some of the key reasons behind the development of plant-based meat alternatives. Raising livestock contributes to approximately 14.5% of overall greenhouse gas (GHG) emissions. As per the Down to Earth Organization, “Livestock production is the most prominent methane contributor in the world and is responsible for the emission of more greenhouse gases than all the world’s transportation systems combined.” Furthermore, the majority of global agricultural land (70%) is used for livestock production; that land could be utilized for the production of plant-based agricultural commodities to feed the constantly growing population without emitting greenhouse gases.

ENVIRONMENTAL CONCERNS ASSOCIATED WITH LIVESTOCK AGRICULTURE

environmental concerns

Source: Down to Earth Organization; Kline’s Plant-Based Meat: Processing Alternatives and Ingredients Assessment report

Government bodies across the world, from the United Nations to the Honolulu City Council, acknowledged the negative impact of livestock production and therefore began to support the development of alternative proteins, including plant-based meat analog. They are encouraging people to adopt a vegetarian diet for the benefit of their health and the overall environment.

Population Growth

There are over seven billion people in the world; that number is projected to reach 9.7 billion by 2050. A growing population means more mouths to feed and greater demand for food resources. In fact, global demand for meat is projected to reach 557 million tonnes by 2050; this is not sustainable, as it negatively impacts the environment. Thus, to fulfill the food requirement of such an immense population while protecting the environment, it is most likely that there will be a huge shift toward plant-based food sources in the future.  

GLOBAL DEMAND FOR MEAT, 2005 VS. 2050

global demand for meat

Source: Good Food Institute; Kline’s Plant-Based Meat: Processing Alternatives and Ingredients Assessment report

Rapid Expansion of Key Players

Plant-based meat market leaders, such as Beyond Meat and Impossible Foods, have successfully established their businesses in North America and Europe and are now expanding their presence in Asian economies. This is due to the growing inclination of Asian consumers toward plant-based meat and because new plant-based meat players such as Zhenmeat and Starfield are receiving a positive response from Asian consumers. Moreover, Omnipork, which is a plant-based meat company, has successfully presented its products in Hong Kong and are gaining positive responses from consumers.

Beyond Meat first set foot in China in 2019 when it worked in conjunction with the service industry player Marriot, which added Beyond Meat’s products into its menu. Impossible Foods also entered the Asian market in 2019, and its products have been introduced in several restaurants such as Little Bao, Happy Paradise, Beef & Liberty in China, and Gordon Ramsay’s restaurant in Singapore.

Despite the accelerated growth of the global plant-based meat market, taste remains the primary barrier that prevents more consumers from purchasing such products. However, with constant innovations in terms of product development and advancement in processing technologies, plant-based meat manufacturers are expected to curb the challenges associated with the texture and taste of plant-based meat analog.

For a detailed assessment of existing and new processing techniques used for plant-based meat products, refer to Kline’s Plant-Based Meat: Processing Alternatives and Ingredients Assessment study, developed in collaboration with the Wageningen Food & Biobased Research. The report’s focus is on the science and technology of plant-based meat, coupled with an overview of market dynamics and an ingredients assessment, as well as an analysis of current market participants. To receive timely insights on the food & nutrition industry, sign up for our newsletter here.

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Forecast to 2024: The Global Plant-Based Meat Market

Forecast to 2024: The Global Plant-Based Meat Market

Forecast to 2024: The Global Plant-Based Meat Market

The rising trend of adopting nutritious and healthy food products due to factors such as rapid urbanization and lifestyle changes has been driving the growth of the plant-based meat industry globally. Plant-based meat analogs are attractive options for consumers who are willing to change their diet and consume less meat but only if proper alternatives are proposed. In the last decade, the range of plant-based meat analogs in the market, developed by the food industry, has been significantly increased, offering products ranging from burgers and chicken to pork, meatballs, and more. 

Breaking Down the Global Industry by Region 

The plant-based meat analog industry has shown remarkable successes in North America and Europe, with the former being the largest region in the global plant-based meat analog market. The presence of established plant-based meat companies such as Beyond Meat, Gardein, Field Roast, and Impossible Foods and their constant product innovations have been the key driving factors of the North American plant-based meat market. Moreover, the government bodies supporting the development and growth of this industry also contributed significantly to its expansion. 

Meanwhile, plant-based meat analog producers are gradually establishing their roots in Asian markets, where they are projected to achieve notable performances in terms of revenue. However, there are obstacles. Several conventional soy-based meat alternatives, such as tofu and tempeh, have been widely consumed by the Asian population for decades.

Choosing the Right Protein Source

Plant-based meat analogs are derived from plant sources such as soy, wheat, pea, and quinoa; hence, they are becoming the preference of millions of flexitarians and vegetarians around the world. The soy segment dominates the global industry, and it is the most conventional and widely used plant-based source adopted by meat analog producers for its high nutritional value. Demand is expected to rise in the coming years.  

Pea proteins are increasingly used as an alternative to soy protein since pea plants can be grown in more moderate climates than soy. In addition, pea proteins are less connected to GMO concerns and are not listed as allergenic. Peas are projected to become one of the key sources of plant-based meat production and are projected to acquire a significant share of the overall plant-based meat market in the coming years, although the shortage of pea protein could be an issue in the near future.  

Major Product Categories and Analog Types 

Burgers are the most popular and easily available plant-based meat analogs. Several major plant-based meat analog players developed their business with burgers as the first and only plant-based meat product in their portfolio. For instance, Beyond Meat (U.S.) and Impossible Foods (U.S.) initially started their plant-based meat business with burger products; this segment is projected to grow at a considerable growth rate in the coming years, as these players are consistently developing and introducing an innovative range of burger products. Nowthe majority of plant-based meat manufacturers are focusing on producing a variety of plant-based chicken analog products. 

PLANT-BASED MEAT ANALOG MARKET SHARE BY PRODUCT CATEGORY, 2019 

pbm product categories

Source: Kline’s Plant-Based Meat: Processing Alternatives and Ingredients Assessment report

 

PLANT-BASED MEAT ANALOG MARKET SHARE BY ANALOG TYPE, 2019 

pbm analogs

Source: Kline’s Plant-Based Meat: Processing Alternatives and Ingredients Assessment report

 

The Future of the Plant-Based Meat Global Industry with Scenario Forecasts

The global plant-based meat market is forecast based on three different scenarios: conservative, moderate, and optimistic. 

The conservative scenario is based on the retail sales growth trends of plant-based meat analog products. The market is projected to grow at a CAGR of 20% during the forecast period to reach a market value of USD 5.60 billion by 2024. The rising demand for analogs free of GMOs, allergens, and gluten, combined with the limited supply of some protein ingredients, might impact market growth. Consumers’ negative perception toward highly processed food might also restrict the outlooks in the near future. 

The moderate scenario of plant-based meat analogs is based on sales growth trends, consumer trends, and insights from key industry experts who predict market growth to be around 30% in the next few years. Sourcing challenges could also be mitigated by ongoing actions from suppliers. At this CAGR, the market is projected to reach a value of USD 8.35 billion by 2024. The market growth is driven by an increasing global flexitarian population and current companies’ market expansions in terms of geographical footprints, sales channels, and expanding their product portfolios according to regional taste demands. 

The optimistic market forecast is based on the plant-based meat revenue performances of leading market players such as Beyond Meat, Tyson Foods, and the Vegetarian Butcher. For instance, the net revenue of Beyond Meat increased by 250% compared to that of previous years due to wide consumer acceptance of plant-based meat analog products based on their benefits, taste improvements, nutritional profile, and high accessibility.  

Moreover, enormous investments in the plant-based meat analog market in recent years are also considered while forecasting the accelerated plant-based meat analog market scenario. Considering the significant number of investments taking place, industry experts’ insights, and the revenue growth of the players, the plant-based meat market is projected to grow at a rate of 50% during the forecast period to reach a market value of USD 17.08 billion by 2024. 

To deep-dive into the market dynamics and ingredients behind plant-based meat from a global perspectiveread Kline’s Plant-Based Meat Global report, and watch out for our next article covering market dynamics with drivers and challenges. To receive timely insights on the food nutrition industry, sign up for our newsletter here.  

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The Indian Two-Wheeler Market Charges to Sustainability

The Indian Two-Wheeler Market Charges to Sustainability

Market developments in India point to rapid electrification of the two-wheeler vehicle parc. In this article, we explain why this is occurring and what it means for the motorcycle oil (MCO) market, in addition to providing additional insights and data about the market.

The Indian lubricants market is the third-largest in the world. MCOs, the third-largest product category following process oils and heavy-duty motor oils (HDMOs), account for 9% of total demand. The MCO lubricants product category was one of the least impacted by the COVID-19 pandemic and was also one of the fastest to recover. According to estimates, the MCO market is growing at a 3.7% rate per year, making it one of the most attractive product segments for lubricants marketers. Increasing electrification will create new challenges for market participants.

To read the full article, click below.

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The Effects of the Pandemic on Professional Skin Care

The Effects of the Pandemic on Professional Skin Care

Despite a challenging year, the professional skin care market continued to register slight increases in established regions, with the United States growing by 0.7%. Telemedicine, curbside pickup, doorship programs, e-commerce solutions, and social media have all helped marketers and skin care professionals keep consumers engaged while providing new avenues for them to replenish their professional skin care products.

Masks and peels were a bright spot for professional skin care marketers as office closures forced marketers to create at-home solutions as an alternative to in-office chemical peels and facials. Products targeting signs of aging continued to command the market; however, acne treatments had a standout year due to skin irritation and breakouts caused by wearing protective facial masks.

Download this highlights report to learn about:

  • The latest trends and key shifts in professional skin care
  • The growth behind the e-commerce and medical care providers channels
  • Market expectations for 2021 and beyond

The insights and data in this report are sourced from Kline's in-depth Professional Skin Care Global Series report. The series investigates the market size and growth, new product launches, and key changes in the competitive landscape in key markets such as Europe, Canada, and the United States. It also shines a spotlight on the medical care providers channel in China and France.

Passenger Cars and Passenger Car Motor Oils in the Post-COVID-19 World

Passenger Cars and Passenger Car Motor Oils in the Post-COVID-19 World

Passenger Car Motor Oils in the Post-COVID-19 World

How the COVID-19 pandemic has changed us! We do not go out as much, (mostly) work from home, live off food deliveries, and have a slightly better appreciation of Mother Nature. Personal mobility in 2021 and beyond will be very different. In this article, we take a brief look at how COVID-19 has impacted electric vehicles, ridesharing, and autonomous vehicles, and what it means for the passenger car motor oils (PCMO) market.  

Electric vehicles have proven to be immune to COVID-19

The global electric vehicles (EV) market is getting closer to the highly anticipated tipping point when EV sales exceed ICE sales. This is expected to happen despite the unprecedented market contraction caused by the outbreak of the global COVID-19 pandemic. Sales of EVs topped approximately three million units, which represents a growth of 40% as compared to 2019, in contrast to a 15% decline in global sales in the internal combustion engine (ICE) vehicle segment. EV sales growth is high, partly because growth is on a small-scale basis but the divergent path for EV and ICE sales is telling.

The unexpectedly high resilience of EVs may be attributed to existing and new government stimulus, greater consumer focus on sustainability, and accelerated technological advancements, particularly in the field of battery technology. The last factor is a Gordian knot for the EV industry, a key element in determining the pace in the transition to electric mobility.

The road ahead

According to Kline’s analysis, the population of EVs including battery electric vehicles (BEV), plug-in hybrid vehicles (PHEV), and hybrid electric vehicles (HEV) is expected to post double-digit growth over the next 20 years, accounting for 35% of the total passenger vehicle population in select countries (see figure below) in 2040, from under 3% in 2020. The speed of transition is varied within the regions under consideration, with Europe and China exhibiting the fastest adoption of EVs. Moreover, sustainability has become the cornerstone of future technological and economic development in Europe. In the aftermath of the first wave of the COVID-19 pandemic in the first half of 2020, several European countries including Germany, France, and the United Kingdom, reinforced their determination to move toward a carbon-neutral future by offering purchase incentives targeting electric vehicles. Similarly, governmental support has been crucial in the development of China’s New Energy Vehicle industry. All in all, the motivation to adopt EVs and the pace of diffusion will be based on a mix of considerations, each with a different weight for individual countries. These considerations include a focus on sustainability and policy support, securing the competitiveness of national automotive sectors, and availability of energy resources.

EV POPULATION IN SELECT COUNTRIES BY EV TYPE

Source: Kline’s PCMO 2040 report

Ridesharing was hit hard because we were homebound, but food deliveries prospered as we were ordering food online

Although the popularity of ridesharing, ride-hailing, and pooling services witnessed rapid growth in the past, their popularity has been severely dampened by the pandemic. Due to COVID-19, ride-hailing and ridesharing services were hit hard in 2020. In general, the COVID-19 pandemic has damaged revenues of ridesharing providers in 2020 due to an aggressive lockdown imposed by governments around the world. In some countries like India, shared mobility services were banned by the government with an exception for emergency services. In other countries, consumers were afraid of using these services due to concerns of contagion even when mobility restrictions were lifted. In the short to medium term, a negative impact of COVID-19 is likely for the ridesharing industry. But it is not all bad news for this industry. With most consumers being stuck at home, ordering food online has seen robust growth. Food delivery has partially compensated for the decline in passenger vehicles. So much so that some companies have set up “ghost restaurants” to promote food delivery. If the pandemic and its attendant restrictions last longer, there may be a permanent shift in consumer behavior.

Autonomous vehicles are a dream for a later day

At the current state of development, it is difficult to quantify the impact of autonomous vehicles (AVs) on personal mobility and their synergetic effect with the deployment of electric vehicles, and more importantly, the impact of the pandemic on AVs. While the pandemic could have resulted in further momentum for driverless rides due to social distancing guidelines and mobility restrictions, the industry has also observed reduced willingness to invest in AV technologies. Investors are shifting their focus to other opportunities that may pay off in the short term. With the looming employment crisis, will the government support this technology? Will the emergence of driverless cars always be five years into the future? Only time will tell.

Electric mobility is reviving technological innovation and the need for differentiation

Inevitably, the growth in EVs has the potential to greatly reduce PCMO consumption, especially for engineless BEVs as they do not need engine oil at all. Kline estimates that a decline of PCMO demand at a CAGR of 1.0% is purely due to the reduction in the effect of EV penetration in the passenger vehicle population in the select countries covered in the study. Conversely, EV growth will create a new market for EV fluids. This new generation of fluids will address key challenges presented by new electric powertrain, which are sustainability (carbon footprint reduction), tribological, and thermal features. Electric powertrains will require the development of new fluids for thermal management. Some lubricants products such as transmission fluids and greases will continue to be used but will have to be reformulated to meet new performance requirements such as thermal conductivity, electrical resistance, material compatibility, and enhanced wear protection.

PCMO DEMAND GROWTH TREND IN SELECT COUNTRIES

Passenger car motor oils are becoming a key component of an emerging mobility solutions toolbox

Irrespective of the negative implications for the volumetric lubricant demand, the penetration of EVs has a vast potential to redefine the finished lubricants market.

From a regional perspective, it is expected that the increase of EVs will exacerbate the stagnant PCMO demand in mature markets, notably in Europe and North America. Conversely, emerging economies in Asia-Pacific and Latin America will most likely continue to grow even at projected high EV penetration levels, primarily fuelled by robust new vehicle sales and strong economic performance in the case of the former, and due to projected low EV penetration in the case of the latter.

The automotive aftermarket business is also embracing a new era of electric and shared mobility. OEM-franchised workshops are the biggest beneficiary of increasing EV penetration. EV servicing will be a purely do-it-for-me (DIFM) market. Most likely, customers are not going to change EV fluids on their own but will seek these services at OEM-authorized workshops.

Digital technology has also been boosted by the pandemic. The adoption of digital car dealerships gained significant traction during the pandemic. Predictive, smart, and connected maintenance services offered with EVs provided with onboard diagnostic sensors and algorithms to alert the car owner on when to change the PCMO is becoming the standard.

Given the inherent uncertainty of the longer-term outlook, it is important to look beyond the pure market numbers, and pay attention to broader shifts in the marketplace and understand the implications for the value chain under different scenarios. Agile players, operating under a balanced set of product differentiation strategies articulated for the growing need for a greener, smarter, connected future, will gain an unbeatable competitive edge.

The PCMO Market in 2040: A Long-term Outlook assists lubricant marketers in identifying opportunities and challenges within the PCMO industry.

Kline's Electric Vehicles Fluids: Market Analysis and Opportunities helps to understand the evolving EV fluids market in the context of emerging EV technologies, their penetration in the overall market, and their fluid requirements.

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ON-DEMAND WEBINAR

In this webinar, Sharbel Luzuriaga introduces the implications of penetration of electric vehicles and other forces for PCMO industry participants.

learn about:

☞ How the electric vehicle market has thrived during the COVID-19 pandemic
☞ The implications of a faster transition to electric mobility on the PCMO market
☞ The synergetic impact of other disrupting forces such as ride-sharing and autonomous vehicles

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