Oil price dip of 2020

[TREND 11] Oil Price Dip of 2020

[TREND 11] Oil Price Dip of 2020

Oil price dip of 2020

Historically plummeting crude oil prices affected large oil exporting countries, notably Saudi Arabia, which has experienced an unprecedented double hit. The country has been affected by the COVID-19 shutdowns as well as by even lower oil prices as the world closed down.

This, however, could be an opportunity for the country and other oil exporting countries to start the transition to low carbon and diversifying their industries. Most countries in the Middle East region are already enhancing their industrial sector to change from being oil-driven economies to one driven by manufacturing, trading, production, and mining. This shift in focus will drive growth in the lubricants consumed by the industrial segment. This will also drive the need for more commercial vehicles, helping to drive commercial lubricants consumption growth until 2024.

On the global scale and in normal times, the low oil prices would bring a positive effect on the global economy. This is because lower oil prices benefit the manufacturing sector by reducing the costs for the manufacturing and transport. This reduction of costs could be passed on to the consumer.

With the COVID-19 outbreak, however, there is little hope that consumers will substantially increase their traveling and spending plans.

#klinetrends #kline2020countdown #crudeoil #lubricants #Covid19 #oilprices #exploration #crudeoil #petroleum #oil #gas #oilandgas

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DAY 7 HYDROGEN ECONOMY 2

[TREND 10] The Hydrogen Economy

[TREND 10] The Hydrogen Economy

In July 2020, the EU announced its hydrogen policy to achieve a carbon-neutral economy. Several countries, including Australia and Japan, issued such policies in the past. However, the EU policy is more comprehensive and takes an integrated approach to reducing carbon footprints. The policy, issued as part of the EU’s COVID-19 pandemic recovery efforts, is based on a philosophy of “rebuild better” to be better equipped to fight climate change.​

There is certainly a lot of enthusiasm behind this plan. It would be reasonable to assume that some subset of it, if not the whole plan, will be realized, provided the current zeal for this technology does not fade away.​

Besides power generation, a large impact of the hydrogen economy will be felt in the transport sector: trucking, personal mobility, marine, railways, and aviation. ​

European lubricants demand was in a gentle decline before the COVID-19 crisis. Significant demand contraction has occurred in 2020, some of which will be recovered in 2021. In the mid- to long-term, however, commercial engine oil demand contraction on account of the growing hydrogen economy should be assumed. Subject to the growth in hydrogen supply and supply infrastructure and continuous hydrogen fuel cell technology development, HDMO demand will experience significant demand.

#klinetrends #kline2020countdown #technology #hydrogen #sustainability #innovation #future #hydrogenenergy #hydrogeneconomy

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physicians dispense skin care products online

[TREND 9] Dispensing Skin Care Physicians Go Digital

[TREND 9] Dispensing Skin Care Physicians Go Digital

physicians dispense skin care products online

The current pandemic has pushed physicians to dispense skin care products more often than before, as this was their major source of revenue during the lockdowns both in Europe and the United States. More than two-thirds of the physicians we surveyed in our recently published report cited that their retail business of skin care products has grown in 2020. What has contributed to this positive result?​

Many physicians are shifting to digital initiatives such as virtual consultations and tele-medicine to promote their services and products while engaging their patients. Several physicians have also launched websites to serve as a source of consumer-friendly information on skin care conditions, along with cosmetics and aesthetic treatments. Professional skin care marketers also increased their digital initiatives to support their physician accounts. ​

Physician-dispensed skin care brands have pivoted to e-commerce in a unique way by creating microsites this year. This concept allows consumers to replenish their favorite professional skin care products online through a unique URL that is linked back to their physician, while at the same time allowing the brands to support their physicians by giving them a commission for each transaction. Additionally, sales through third-party e-tailers like Dermstore and through brand websites fueled growth of professional skin care products.​

#klinetrends #kline2020countdown #ecommerce #beauty #retail #cosmetics #skincare

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shift to e-commerce

[TREND 8] E-COMMERCE Is Queen in Beauty

[TREND 8]E-COMMERCE Is Queen in Beauty

shift to e-commerce

This year, the beauty industry is witnessing one of the strongest shifts to e-commerce ever. The transformation began in March 2020 with the onset of the COVID-19 pandemic, causing the omnichannel approach to lose relevance as many brick-and-mortar retailers were forced to shutter. The change to digital will be accelerated as health and safety standards may encourage consumers to permanently use alternate methods to purchase products. ​

In this new beauty marketplace, a strong e–commerce presence is vital to surviving the pandemic. Today, the e-commerce channel accounts for more than 15% of beauty industry sales, up from almost nothing only a decade ago. Sales growth for 2020 is on track to surge by more than 20%. Virtual consultations, events, and try-ons, as well as online communities, live chatbots, and payment installment programs, are all strategies marketers are using to lure consumers online. Pick-up-and-go and delivery services also saw and will continue to see spikes in usage well into 2021.

#klinetrends #kline2020countdown #ecommerce #beauty #retail #cosmetics

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e-commerce lubricants, grease and auto parts sales

[TREND 7] E-COMMERCE: A New Standard in Oils, Lubricants, and Auto Parts Sales

[TREND 7] E-COMMERCE: A New Standard in Oils, Lubricants, and Auto Parts Sales

e-commerce lubricants, grease and auto parts sales

COVID-19 has dramatically accelerated an expansion of e-commerce and the technological platforms enabling e-commerce, as consumers now must turn to online shopping for essential and discretionary products. Online automotive and lubricants sales and services are no exception; however, they were already rising prior to the pandemic. The shift to online purchases has boosted the lubricants market from several perspectives.​

In terms of lubricants demand, increased e-commerce activity has boosted demand for light- to medium-duty vehicles for delivery services, leading to a boost in demand for lubricants. In Asia, growth in motorcycle oil demand is driven by two-wheelers engaged in e-commerce and food delivery services. This is also expected to further promote development of the two-wheeler parc in the region. ​

In terms of lubricants sales channels, new alternative channels have started appearing and are providing opportunities for greater growth as people adapt to a post–COVID-19 world. In China alone, alternative channels are projected to double by 2025 as consumers embrace these new means of vehicle service and lubricants procurement. These new channels include online to offline (O2O) and other Internet platforms, along with car-sharing platforms. ​

In terms of lubricants services, COVID-19 is helping create a shift in how dealerships interact with customers. With the threat of the virus, some vehicle owners had started to look for contactless options where they can pay through their phones, drive into a bay to have service performed, and leave without ever opening their vehicle door. Due to COVID-19 safety protocols, customers and dealerships are embracing more online services to maintain social distancing. This has also allowed some innovative dealers and OEMs to roll out alternative options to benefit their customers and help their business remain healthy. ​

#klinetrends #kline2020countdown #ecommerce #retail #lubricants #oilgas

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technology in beauty trend

[TREND 6] Faster Transitions in Beauty Technology

[TREND 6] Faster Transitions in Beauty Technology

technology in beauty trend

A new class of tech-driven beauty products has emerged in the market, allowing consumers to self-treat their issues. Companies unveiled new services, offering face and product recognition, virtual try-ons, skin analysis, and voice command features. Meanwhile, Sephora uses a Custom Engraving Machine in select stores to encourage fragrance purchases. ​

As marketers continue to adapt to a digital strategy due to social distancing, more players are expected to tap into the personalized beauty segment. Content through Instagram Live and TikTok gives brands the opportunity to create a deeper connection with the consumer. Some brands, including Anastasia Beverly Hills and SkinCeuticals, are taking this a step further, offering master classes through platforms such as Zoom. ​

Following the rising consumer appetite for expensive hair tools and appliances, marketers have been more experimental with their product offerings, introducing cordless and compact hair dryers and those that are being developed with AI. Cordless dryers are being touted as products of convenience for on-the-go individuals as well as professionals, and the new AI-based hair dryers are being considered a step in the right direction to reinvigorate the hair-dryer category.

#klinetrends #kline2020countdown #beauty #beautytech  #cosmetics #innovation

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EV vehicles in a new decade

[TREND 5] Major Shift to Alternative/EV Vehicles over the Next Decade

[TREND 5] Major Shift to Alternative/EV Vehicles

EV vehicles in a new decade

Meanwhile, electric vehicles are disrupting the automotive space. We should see a sustained shift to electric vehicles over the next two decades. ​

Before the COVID-19 crisis, the EV market was booming. In the early stages of expansion, EVs were heavily promoted by strong governmental intervention, leading to regulatory frameworks imposing stringent emission reduction levels, coupled with generous financial support and incentives. Currently, there are three key issues preventing the mass-scale consumer acceptance of EVs: the relatively high vehicle cost, lack of dense recharging infrastructure, and limited vehicle range. Prior to the pandemic, Kline reported that EVs might account for about a third of the global passenger vehicle fleet by 2040. But as the world is gradually entering a post-COVID-19 “new normal,” the question is whether the pace of deployment of EV technology will be slower or faster in the aftermath of C-19 and if governments prioritize the emerging challenges at various fronts.​

The interest in speeding up the deployment of the digital economy and smart technologies could also impart momentum to autonomous and electric vehicles.​

The year 2021 will already be marked as the beginning of new era by literally dozens of new EV launches in the United States and Europe (Audi E-Tron GT, Lotus Evija, Porsche Taycan, SEAT el-Born, Fiat 500e – from luxury to premium to mass). ​

Some companies emerge as the winners in this revived interest for EVs. Nikola, a company operating in fuel cell battery-powered trucks, went public, reaching a market capitalization of USD 26 billion. Tesla is also doing relatively well, pushing to increase its production volumes and getting an immediate positive response from the market, with company shares increasing stock values. ​

#klinetrends #kline2020countdown #electricity #EV #BEV #decarbonization #CO2 #emissions #mobility

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hand care products market on the rise

[TREND 4] Huge Increases in Consumer and Professional Hand Care

[TREND 4] Huge Increases in Consumer and Professional Hand Care

hand care products market on the rise

While the world contends with the COVID-19, there have been strong surges in consumer demand for hand care products. A category that has previously seen comfortable growth, averaging increases of about 4% annually over the last five years, hand sanitizers are now on track to more than double sales in 2020 in the United States alone. Stockpiling and price increases for alcohol-based hand sanitizers are also expected to contribute to the significant sales gains this year.

We’re also seeing unprecedented growth in sales and consumption of professional hand care products, and this is expected to continue for several years. Most I&I end users expect they will spend more on hand care in 2021 than they did in 2020.​ In 2020, nearly half of the I&I end users we surveyed estimate they spent up to 50% more on hand care, one-third spent twice as much, and only 7% of end users indicate they are spending less.​ The main reason for spending more on hand care is more frequent hand washing.

Ingredients demand closely follows product consumption trends. Consequently, ingredients such as preservation solutions, emollients, and mild-surfactant products are expected to have sustained if not exceptional global growth due to the heightened use of hand soaps and sanitizers.

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Covid has increased demand for cleaning and sanitizing products

[TREND 3] Disinfection of Just About Everything ​

[TREND 3] Disinfection of Just About Everything

Covid has increased demand for cleaning and sanitizing products

The pandemic has increased demand for cleaning and sanitizing products, positively affecting and changing the industry of HI&I ingredients. ​

Demand for cleaning products in the household sector started to skyrocket in March and April, and the following months remained high, with some categories—such as disinfectants and bleaches—increasing by more than 50% year-over-year. ​

New product categories, such as vegetable cleaners to disinfect vegetables and disinfection sprays to quickly disinfect any surface, emerged.​

Sales of professional disinfectants, sanitizers, and hand care products have surged tremendously in 2020 and are expected to continue having high growth in the near future as more facilities are fully reopened. ​

The trend toward green ingredients has been partially left behind as ingredients claiming to combat pathogens grew in demand despite concerns about the harm they can cause humans and the environment. Those ingredients include quats, which are in disinfectants; quats in EU had a demand increase of at least 50%. ​

The shift toward milder antimicrobials, as the segment was increasingly coming under regulatory pressure, has slowed. Consumers are more concerned about COVID-19 and want effective chemicals that can kill the virus than they are concerned about the skin irritation antimicrobials may cause. ​

The pandemic is driving unprecedented consumer concern about the safety and cleanliness of the vehicles they own, buy, rent, repair, or share. Seeing an opportunity in the space, Shell Lubricants US and Turtle Wax Inc. are joining forces to launch a total vehicle hygiene company that is focused exclusively on the auto industry.

Follow our 2020 COUNTDOWN CALENDAR for the 30 biggest trends HERE

 

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The Shift from Traditional to Clean Energy

[TREND 2] The Shift from Traditional to Clean Energy

[TREND 2] The Shift from Traditional to Clean Energy​

The Shift from Traditional to Clean Energy

The most notable transformation of oil majors is their explicit effort to evolve, both in their brand image as well as their product portfolio, from fossil fuel companies to energy providers. In 2020, we saw huge shifts as major oil companies committed to greater investments in a mixed portfolio of fossil fuels and renewables while making public declarations of aggressive objectives to lower their impact on the environment. The divestments from coal and petrochemicals were matched by a huge upturn in “green” energy investments. ​

The European O&G giants, in particular, have been very vocal about their commitment to “going greener.” Spain’s Repsol was the first to publicly commit to going “NetZero by 2050,” followed by oil giants such as BP, Total, ENI, and Shell.

Asia is following the lead from Europe. In October of this year, Petronas became the first Asian oil company to fully commit to going NetZero by 2050, and PetroChina came just short of the full commitment by promising to “come close to NetZero” in the same timeframe. As countries like China, Japan, and South Korea have all announced these same goals, we expect to see more of the petroleum giants in the AP region follow suit. ​

In America, petroleum giant ExxonMobil is not declaring to “go green” anytime soon. However, it is making significant advancements in technologies and innovations that will improve its own efficiencies and reduce its carbon footprint. It is also leading the pack on carbon capture and storage. The shift to a “greener” government just might push the U.S. giants to commit further.​

One of the biggest unknowns right now is just how fast and how far these companies will go in their efforts to meet their declared ambitions. Nevertheless, the one certainty is that the world is moving toward renewable sources of energy. Acting to reduce carbon emissions is a long-term megatrend that will not disappear anytime soon. ​

Follow our 2020 COUNTDOWN CALENDAR for the 30 biggest trends HERE

 

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