Changing Tides: Procter & Gamble Returns to its Roots, and the Rise of Coty’s Beauty Empire
Procter & Gamble (P&G) has been the leader in the U.S. beauty and personal care market since the very first edition of Kline’s Cosmetics & Toiletries USA report was published in 1963. That study, which was authored in part by Dr. Charles Kline himself, reported P&G among the leaders in the soap, deodorant, toothpaste, and shampoo categories—a position the company still retains some 50+ years later, now with a new CEO taking the helm.
Once the transaction to shift ownership of 43 brands to Coty, which was announced in July 2015, is complete, P&G will slip to the #2 spot, leaving L’Oréal in the #1 position. Meanwhile, Coty will jump to fifth place, up from ninth, edging Johnson & Johnson out of the top five.Continue reading
Rx-to-OTC Switches – Game Changers for the U.S. OTC Drugs Market through 2019
Growth of the U.S. nonprescription market is primarily driven by Rx-to-OTC switches as they bring former prescription users to the OTC market. Due to an increasingly favorable regulatory environment, Kline forecasts robust Rx-to-OTC switch activity over the next five years with several all new OTC categories emerging along with many new brands entering the market into existing categories.
If all switches occur over the next five years (even those with low to moderate likelihood), the market is forecast to increase at a compound annual growth rate (CAGR) of 5% by 2019, according to the recently published report covering Rx-to-OTC Switch Pipelines in the United States. By contrast, if the only switches that come to market are those that are predicted to have moderate to high likelihood of approval and launch, the overall OTC market will expand by a CAGR of 3.6% over the next five years.Continue reading
Beauty’s Digital Pure Plays Go Physical
The last several years have been all about beauty marketers and retailers embracing digital. For good reason too, as e-commerce has been the fastest growing retail channel in the U.S. beauty market, advancing at a compound annual growth rate of 24% since 2009. In a turn of events, Kline observes the opposite occurring in 2014, as digital pure plays are increasingly expanding beyond the virtual world into the physical one.
Birchbox, the pioneer of online subscription sampling, opened its first physical store in New York City in 2014, followed by its first holiday pop-up shop for men later in the year. The firm has also teamed up with Gap to bring Birchbox to seven U.S. locations through pop-up shops.Continue reading
Kline’s July Index of Base Stock Production and Re-refining Cash Margins Indicates Continued Declines for Base Oil Producers
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
Beauty’s Bright New Crop at Cosmoprof North America
The beauty industry came together at the Mandalay Bay Convention Center in Las Vegas last week for the annual Cosmoprof North America show. A highlight of the event was the first-ever Beauty Pitch, which allowed dozens of beauty entrepreneurs to present their brand to a expert panel of judges, including famed billionaire entrepreneur Mark Cuban and industry icon, CEO, and Co-Founder of John Paul Mitchell Systems, John Paul DeJoria. Beauty Pitch was such a success that it has already been added as a permanent fixture to future shows. Congratulations to this year’s winner, 100% Pure, which is a natural cosmetics brand.Continue reading
China Strengthens its Grip, while Malaysia is a Rising Star in the Asia-Pacific Finished Lubricants Market
Accounting for 40% of the global market, Asia-Pacific is the leading region for finished lubricant demand. Emphasis on fuel economy and a modern vehicle parc will drive the use of synthetics and other lighter viscosity grade lubricants for passenger car motor oil (PCMO) in the region. Capitalizing on this shift, China and Malaysia are integral to the strong performance of finished lubricants in the Asia-Pacific region, capturing about 45% of regional demand, according to the soon-to-be-published Global Lubricants: Market Analysis and Assessment report by global market research and management consulting firm, Kline.
In China, synthetic oils have grown at more than 10% annually since 2013. Mobil 1 from ExxonMobil is the best-known full synthetic product in China, and similar products from Shell and BP products are also very popular.Continue reading
Unilever Builds Skin Care Business with a Superfecta of Indies
In 2015, the trend towards acquiring successful up-and-coming, innovative brands continues. Some of the most notable headlines in the beauty industry in recent months are about who is being acquired by whom. More importantly, these acquisitions feature a new generation of competition for the leading companies—indie brands. As noted by Carlotta Jacobson, President of CEW, at a recent CEW Newsmaker Forum, “These brands are the new newsmakers.” Many leading companies, like Unilever, are taking notice.Continue reading
UEBT’s “Beauty of Sourcing with Respect” Event is All About Biodiversity
In the heart of Paris, next to the famous Arc de Triomphe, the Union of Ethical Biotrade (UEBT) organized the seventh edition of their annual conference entitled “The Beauty of Sourcing with Respect.” This year, the event was dedicated to the subject of biodiversity in the segment of beauty and personal care products. Gathering more than 150 people in the beautiful venue of Etoile Saint Honore, the participant list was very diverse and included representatives of beauty companies, government representatives from several countries, UN and European Commission, as well as raw ingredient producers, press, and many others.Continue reading
Wipes Grow Faster than the Overall Professional Cleaning Market
All product categories and companies register growth on the market for professional cleaning wipes that increases by over 5% in 2014. Several companies, such as market leader Clorox Professional Products or various smaller brands like Metrex Research or Spartan Chemical, are growing faster than the overall market growth, reveals the imminent Professional Cleaning Wipes USA: Market Analysis and Opportunities report. This across the board uptake is due fact that end users view wipes as a convenient and effective way to clean their facilities.Continue reading
General Industrial Oils: Mineral Products to Continue Dominance; Synthetics to Lead Growth
The current global demand for general industrial oils (GIO) stands at approximately 6,500 kilotonnes and is projected to exhibit moderate growth over the course of the next five years. With over 50% share in the global consumption, hydraulic fluids are the most consumed GIOs by a wide margin. The share of different GIOs and grease are almost similar across all regions, with some variation in share of individual products. Hydraulic fluids are the most commonly consumed GIO in all regions, followed by gear oils and turbine and circulating oils.Continue reading
