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Opportunities in Lubricants: Latin America and Caribbean Market Analysis

A number of small niche marketers looking for a white knight may cause increased M&A activity for the lubricants industry

With the state of the current economy it may come as a surprise that a number of firms are continuing to acquire other companies. However bankers are pointing to early signs of a pick-up in mergers and acquisitions (Source Reuters). This pickup in M&A activity may be due to the recession though not all cases can be definitively linked to it!Continue reading

Proposed regulations on Acetaminophen intended to keep consumers safe will result in substantial burden for manufacturers and could actually restrict consumer access to commonly used OTCs

An FDA advisory committee is weighing in on the safety of OTC acetaminophen, the key active ingredient found in many OTC pain relievers, sleeping aids, and cough and cold medications. The proposed regulations suggest either cutting down dosages of acetaminophen or completely pulling combination drugs that contain acetaminophen off the shelves.Continue reading

Natural/Organic Trend is on the Rise

Q2 sales boosted by profits in emerging markets for a number of beauty firms

Direct selling companies did relatively well in 2008. We often see direct sales do well during economic downturns as unemployment rises, which results in an increase in independent sales consultants for the direct companies. For example Swedish direct seller Oriflame experienced an increase in the average size of its sales force by 19% to 3.1 million consultants and closing sales force was up by 25% in the beginning of 2009, Oriflame’s Q1 report revealed.Continue reading

Seed Treatment Trends

Seed treatment trends

Seed costs increased in the U.S. by 12.3% in 2007 and have been increasing 3-8% annually for the major Midwest crops during the last few years.  Corn, cotton and soybeans have been benefiting from the application of biotechnology and seed has reflected the extra cost of the value-added traits. As a result seed has become an increasingly valuable investment so that protection of the developing seed and newly emerged seedling has made strong economic sense.Continue reading

Overall Personal Care Market

Despite the proliferation of natural claims, truly natural products account for just over 40% of the market. – Natural Personal Care 2009: Global Market Analysis and Competitive Brand Assessment

The natural personal care market in the U.S. jumped 19% to $2 billion in sales for 2008, Kline’s Natural Personal Care 2008 study revealed earlier this year. Major marketers are in an excellent position to leverage the naturals proposition that began with the smaller niche players. Manufacturing economies of scale, a stronger position for negotiating supplier agreements, and well-developed distribution channels will allow brands like Unilever’s Dove and Colgate-Palmolive’s Softsoap to ride the naturals wave even during lean times.Continue reading

Personal Care: U.S. Competitor Cost Structures 2009

How profitable are personal care products? – Personal Care: U.S. Competitor Cost Structures 2009

High oil prices during 2007 and much of 2008 drove production and distribution costs for personal care marketers up significantly. Since then, oil prices have decreased, which has helped to expand operating margins somewhat. However, declining consumer demand stemming from the global recession would likely offset any profitability gains from lower oil prices. This, combined with the perpetual need to spend significantly on advertising and promotions in order to drive consumer awareness and demand in highly competitive categories, continues to lead to margin pressures for personal care marketers, Kline & Company revealed in its 2008 report.Continue reading

Nutritional Health and Wellness Products

Innovation Continues Within Health and Nutrition as Strong Growth Drivers Help Protect the Industry

As the economic downturn continues, it appears that one sector of the chemical industry is weathering the storm: food ingredients. In particular the segment targeted towards health and nutrition remains buoyant with a theme of disease prevention rather than cure being promoted. Also, new segments in the industry are emerging with softer trends now being explored such as ‘beauty from within’ – with anti-wrinkle, anti-ageing and protection from sun damage being at the forefront of this boom. Since the late 1990s I’ve observed a move from general wellbeing to products addressing specific health issues such as bone health, and now with a more holistic approach to maintaining health and wellbeing the opportunities for the industry appear endless.Continue reading

market for pesticides and fertilizers

Kline Predicts Strong Market for Food Service Pest Control Despite Weak Economy

The market for pest control products and services in U.S. food-handling establishments remains quite strong despite one of the worst economic recessions in recent history. In this inaugural issue of Kline’s Agriculture practice newsletter, we’ll take a look at how the industry has fared during the past 12 months, as well as some strategies that suppliers and service providers may use to leverage the demand for pest control in restaurants, commercial and institutional kitchens, warehouses, and food processors. More…