The “Plex” Movement Revolutionizes the Global Salon Hair Care Industry
The global market for hair coloring services in salons increases every year, driven by the aging population paired with the desire to look younger, as well as the increasing consumer base and spending in developing markets. According to Salon Hair Care Global Series, the segment grew by a healthy 2.5% in 2014, increasing above the overall salon hair industry’s growth. This continued upward trend has not only incited sales in the colorants category, but has also boosted sales of hair treatments that target colored hair. Between 2009 and 2014, the hair treatments category has globally increased at a compound annual growth (CAGR) of almost 6.5%.
Global Sales of Professional Hair Treatments, 2009 to 2014
SOURCE: Kline’s Salon Hair Care Global Series.
Sanofi/Boehringer-Ingelheim Swap is the Latest in a Series of Deals in 2015
The most recent merger impacting the OTC market was announced yesterday and involves Sanofi acquiring the consumer health unit of Boehringer-Ingelheim Pharmaceuticals in exchange for Sanofi’s Merial Animal Health business. This swap is still in negotiations; however, the addition of Boehringer-Ingelheim’s consumer health business will serve to broaden Sanofi’s global OTC portfolio in cough/cold, digestives, analgesics, and vitamins, as well as expand the company’s reach in key markets, such as Germany, Japan, and China. In 2014, Sanofi and Boehringer-Ingelheim had combined OTC sales of $942 million in the United States, ranking sixth in the market.
This deal follows several that have taken place over the past 14 months where major competitors in the OTC industry have merged or created joint-venture companies in an effort to expand their global reach, widen brand portfolios, achieve higher revenue growth, and seek cost synergies. Beyond strategic bolt-on acquisitions, such as Reckitt Benckiser’s acquisition of the Schiff vitamin and supplement business in October 2012, these recent mergers have made large competitors into global giants with portfolios that span nearly every consumer health category.Continue reading
Eye on Professional Skin Care: Will SkinMedica Remain Unchanged After the Pfizer-Allergan Merger?
Over the last two weeks, a lot has been written—and not all of it complimentary—about the Pfizer and Allergan merger that will create on completion the world’s largest pharmaceutical company valued at $160 billion. Industry analysts and financial, legal, and political heavyweights are unanimous in their criticism of the ethics of the merger, announced on November 23, 2015, noting it for being a blatant tax inversion tactic. Merging with the Dublin, Ireland-based Allergan significantly reduces the U.S.-based Pfizer’s tax liability as corporate tax rates are lower in Ireland than in the United States.Continue reading
Beauty Apps 101: Customer Engagement and Retention Tool
This week, we have asked our beauty experts to reveal some interesting tidbits from Going Digital: Who’s Who in the World of Beauty Apps, a recently published report that focuses on beauty apps and developers transforming the digital landscape of the beauty industry in 2015.
Q: What can we expect to learn from this report?
A: First of all, this report is a great beginner’s tool to navigate the world of beauty apps, with general information on the mobile app industry and usage.Continue reading
Influenza Season has Catalyzed the U.S. Market for Professional Cleaning Wipes and Hand Care Products
As we enter the cold and flu season, people are more conscious about maintaining germ-free environments, investing more time and money in keeping surfaces and hands clean. This drives the demand for disposable wipes and hand sanitizers due to their high efficiency and ease of use.
As reported in Kline’s just released Professional Hand Care: U.S. Market Analysis and Opportunities study, instant hand sanitizers is one of the leading product categories, posting a compound annual growth rate (CAGR) of 5.4% from 2013 to 2015. Foam hand soaps is the second leading product category with over 22.0% market share of the total professional hand care market in 2015; moreover, this category posts the fastest CAGR of almost 7.0%.
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SIX MOST INTERESTING LUBRICANTS MARKETS IN AFRICA AND THE MIDDLE EAST
Accounting for approximately 8% of the global finished lubricant demand, Africa and the Middle East is a region ripe for growth. The region is forecast to grow at a modest compound annual growth rate (CAGR) of 3% until 2019. Infrastructure and a modernizing vehicle parc will play a role in altering the landscape for finished lubricants in the region.Continue reading
Merger and Tax Inversion are Distractions from the Crux of the Pfizer/Allergan Deal
On Monday, November 23, 2015, while many were working a short work week due to the Thanksgiving holiday in the United States, Pfizer and Allergan management were busy announcing a merger that will create the world’s largest pharmaceutical company valued at $160 billion. On the surface, analysts and politicians focused on the tax inversion created by this deal because Allergan (the smaller of the two companies) is acquiring the larger Pfizer. The reason is that Allergan (formerly of Irvine, CA) is headquartered in Dublin, Ireland, where corporate tax rates are lower than they are in the United States, where Pfizer is based. Once approved, this will mean corporate taxes for the new company (to be called Pfizer) will drop from a rate of 25% to 17%-18%.
The deal with Allergan comes after Pfizer attempted a hostile takeover of rival pharmaceutical company, AstraZeneca, based in London, England, in 2014, which was refused by AstraZeneca and frowned upon by British regulators. Tax inversion is not a new phenomenon, and the re-domiciling of corporate headquarters to places like Bermuda and Ireland have happened in many industries, not just in pharmaceuticals.Continue reading
Spanning the Globe with Beauty Devices: A Look at What’s New in 2015
In our ongoing journey to discover the gems of the beauty devices market, we continue to be amazed by the multitude of players that exist and the innovative approaches they constantly bring to their products. Many new, creative, and price-accessible devices launched in the market in 2014, contributing to its record-breaking growth of nearly 15% globally, with China being on top of the chart.Continue reading
Nine Things That Make Cosmoprof Asia Stand Out
I did not really know what to expect from Cosmoprof Asia. I was invited there as a speaker to talk about two out of many beauty market segments that Kline analyzes: natural personal care and professional nail care. During my two-day visit to the show, I came to realize that it differed in many ways from other shows I’ve attended.Continue reading
Kline’s November Index of Base Stock Production and Re-refining Cash Margins Shows Second Straight Month of Declines
In January 2014, Kline, a worldwide consulting and research firm serving needs of organizations in the lubricants and base stocks industry, introduced its monthly Base Stock Margin Index, a characterization of recent cash margin contributions in the U.S. base oil market over the past 24 months.
The Index estimates cash margin contributions associated with U.S. Group II base stock production. It simulates EBITDA before the deduction of corporate SG&A expenses for typical VGO-based virgin base stock plants and RFO-based re-refineries. Continue reading
