Kline Study Reveals Changing Consumer Behavior Forces Shift in Global Beauty Retail Channels

Kline Study Reveals Changing Consumer Behavior Forces Shift in Global Beauty Retail Channels

LITTLE FALLS, NJ, December 15, 2009 – As developing nations continue to embrace modern retail formats, beauty marketers in the Western world are working overtime to devise market-specific strategies to keep up with changing consumer behavior. According to data from Beauty Retailing Global Series, the latest research conducted by worldwide consulting and research firm Kline & Company, the nuances of each individual market demand that beauty brands evolve alongside consumers to compete on the worldwide stage.

“The takeaway message is that there is no one-size-fits-all strategy for success,” says Carrie Mellage, Director of Consumer Products Research for Kline. “The unique features of each country require marketers to think globally, but act locally to capitalize on specific opportunities. As an example, the rural population in Brazil is a huge potential market that depends heavily on direct person-to-person sales, while the more sophisticated and fickle shoppers in the mature beauty markets must be lured with exclusive offers, steep discounts, cool iPhone apps, and social media connections.”

In the United States, the weak economy has forced department store share of the total market down another two points versus 2003 levels. The decline has prompted both marketers and retailers to actively engage customers with purchase incentives, loyalty programs, and even direct sales. Brands like Lancôme, Estée Lauder, and Clarins have stepped up marketing directly to customers with online enticements like bonus gifts and free shipping with purchase.

As a result of stellar growth in developing countries, direct sales has actually emerged as the fastest growing retail channel in the world for beauty products, posting a robust 8.6% increase in sales—nearly double that of the overall market. Driven partly by the earnings potential for person-to-person sales in light of a difficult job market, Internet sales have also contributed to channel growth, more than doubling over the past five years, as consumers have become increasingly comfortable making online purchases.

“Savvy brands are employing a mix of complementary channels, including online sales, catalogs, and social networking to maximize their reach and target consumers in the format that’s most comfortable for them,” explains Karen Doskow, industry manager for consumer products research at Kline.

Through novel approaches, such as YouTube videos that show how to apply products, interactive try-before-you-buy apps for the PC and iPhone, and even sampling programs like New Beauty’s members-only TestTube and vending-machine-like mall kiosks, brand marketers hope to diversify their customer base by going direct to the consumer.

In China, double-digit growth is led by expansion in the number of doors across all channels, including department stores Parkson and Wangfujing, mass merchandisers Carrefour and Walmart, and specialty stores Sephora and 1000 Colors. Meanwhile, India’s independent, owner-operated kiranas—unlike any other outlet in the world—remain the mainstay of the personal care market with 78% market share and 9% growth in the past five years. However, despite the unique format of kiranas, faced with impending competition from homogenizing retailers Walmart and Carrefour, many kiranas have started to adopt Western retail concepts.

Around the world, chain drug stores have dramatically increased floor and shelf space for beauty products and introduced a more posh shopping environment that mimics the feel and service levels of specialty or department stores, but with the convenience of drug store, to lure customers. This has helped spur growth of 5.4% through the channel, still ahead of the market’s overall 4.7%growth.

A Kline exclusive, Beauty Retailing Global Series is the only source for detailed and comprehensive data and analysis on the cosmetics and toiletries retail environment, covering 11 of the leading markets worldwide and 21 personal care product categories. Kline’s multinational team of beauty market experts on the ground in each country worked to compile data based on sales figures at the manufacturers’ level from 2003-2008.

Now in its 8th edition, the report is available as a full-service program that includes a world overview, containing profiles for 32 of the leading global and regional retailers, plus detailed reports for all 11 country markets, as well as Kline’s FutureView forecast for each market through 2013. Each market volume is also available individually.

For more information about Kline’s Beauty Retailing Global Series visit /reports/y416f2.asp.

About Kline
Kline is a worldwide consulting and research firm dedicated to providing the kind of insight and knowledge that helps companies find a clear path to success. The firm has served the management consulting and market research needs of organizations in the chemicals, materials, energy, life sciences, and consumer products industries for 50 years. For more information, visit www.klinegroup.com.

Emulsion Polymer Consumption in Construction in China Experienced Double-digit Growth in 2008, According to Kline

Emulsion Polymer Consumption in Construction in China Experienced Double-digit Growth in 2008, According to Kline

LITTLE FALLS, NJ, August 13, 2009 – Average volume growth of synthetic latex polymers in China is predicted to be 7.5% from 2008 to 2013, continuing to outpace growth in Europe and the United States, according to the latest study Synthetic Latex Polymers 2009: China Business Analysis and Opportunities from worldwide consulting and research firm Kline & Company.

Top-line growth is continuing in China despite some sectors such as adhesives and sealants, leather, and textiles, which serve the export market, being affected by the economic downturn.

Acrylics account for nearly 50% of the market in China; other latexes commonly being used include styrene butadiene, polyvinyl acetate, and vinyl acetate ethylene. The leading three applications—adhesives and sealants, paper, and paints and coatings—consume over 75% of the volume of synthetic latex polymers in China.

A key area of growth for synthetic latex polymers suppliers is within construction. Supported by the development of the construction industry as one of the key drivers of the Chinese economy, emulsion polymers consumption has experienced double-digit growth. The Chinese construction industry accounted for approximately 20% of the nominal gross domestic product (GDP), contributing RMB 6,114 billion in 2008.

Supply of synthetic latex polymers is highly fragmented in China; however, within construction, the supplier base is slightly more consolidated. Suppliers are typically focused by application, with a mixture of multinational companies and very large domestic players dominating the value chain.

“Desire for improved living standards, along with higher construction standards such as waterproofing, tile application, and so on in residential and commercial buildings will continue to drive growth of the construction market in China,” notes Anna Ibbotson, Industry Manager at Kline’s Chemicals and Materials practice. “With the development of the local construction industry, the need for synthetic latex polymers will also increase.”

Synthetic Latex Polymers 2009-2010 Global Series: Business Analysis and Opportunities includes current and forecast demand by major product and end-use industry, product grades and prices, applications, distribution channels, supplier sales, and technical and market trends. Manufacturing economics will also be analyzed for selected synthetic latex polymers.

About Kline
Kline is a worldwide consulting and research firm dedicated to providing the kind of insight and knowledge that helps companies find a clear path to success. The firm has served the management consulting and market research needs of organizations in the chemicals, materials, energy, life sciences, and consumer products industries for 50 years. For more information, visit www.klinegroup.com.

Shell Maintains its Leadership Position in the Global Finished LubricantsMarket, according to Kline

Shell Maintains its Leadership Position in the Global Finished LubricantsMarket, according to Kline

LITTLE FALLS, NJ, August 4, 2009– Shell has maintained its global leadership position on an overall volume basis supplying 13% of all finished lubricants in 2008, according to the latest study, Competitive Intelligence for the Global Lubricants Industry, 2008-2018, from worldwide consulting and research firm Kline & Company.

ExxonMobil has maintained its number two market share position, accounting for an estimated 11% market share in 2008. BP, Chevron, and PetroChina round out the top five lubricant marketers. Kline’s report assessed the global market for finished lubricants at 38.2 million tonnes in 2008, down 2.6% from 2007.

The Asia-Pacific region is expected to continue to show the most robust growth on a volumetric basis. The impact of the global recession has been less severe in China and India. Together, the two account for 18.4% of global lubricant consumption. The markets in the United States, Germany, Russia, and Japan show the largest declines due to the onset of recession albeit due to different drivers.

Of the three market segments, the consumer automotive segment seems to be the least impacted as compared to the commercial automotive and industrial oils and fluids segment. The slump in auto manufacturing, construction, and general industrial machinery industries have led to a slump in the trucking, quarrying, aggregates, mining, chemicals, fabricated metals, and primary metals industries.

“Process oils and metalworking fluids in the industrial segment and ATF in the automotive segment seem to be the most impacted by the recession, as well as by a significant loss in factory-fill volumes,” says Geeta Agashe, Vice President, Energy at Kline. The food processing and power transmission industries seem to be the least impacted. “Also, we believe that the large majors with a balanced portfolio will be the least impacted, and the niche marketers who are specialized and as an example only active in the process oils or metalworking fluids segments, or primarily active in those countries which have felt the brunt of the recession will have to fight hard to survive,” per Agashe. This might indeed be a great time for companies to seek acquisition targets and stay the course, as the markets will re-bound eventually.

Competitive Intelligence for the Global Lubricants Industry, 2008-2018 provides a detailed analysis of the global automotive and industrial lubricant industry segments and the players who participate in them. It combines regional market analyses into a comprehensive program to provide finished lubricant formulators, additive and basestock suppliers, and end users with the latest information on products, services, applications, and trends.

About Kline
About Kline Kline is a worldwide consulting and research firm dedicated to providing the kind of insight and knowledge that helps companies find a clear path to success. The firm has served the management consulting and market research needs of organizations in the chemicals, materials, energy, life sciences, and consumer products industries for 50 years. For more information, visit www.klinegroup.com.

OTC Market is not Largely Impacted by Recession; However, Prominent Growth Remains Only in Some Categories, According to Kline

OTC Market is not Largely Impacted by Recession; However, Prominent Growth Remains Only in Some Categories, According to Kline

LITTLE FALLS, NJ, July 15, 2009 – The overall OTC market grew 3.2% during non-recession years and only 1.2% during recessions according to the latest research Impact of Recessions on the U.S. OTC Marketfrom worldwide consulting and research firm Kline & Company.

The impact of recessions on the OTC market mainly comes from erosion of branded OTC sales by private-label products and is reflected in slower growth rates. The level of erosion varies by product classes and categories. However, Rx-to-OTC switches, major innovations, and new product launches with related promotion that occur during recessions help cancel the effect of private-label erosion.

While overall the U.S. OTC market grows at slower rates than during non-recession periods, private-label OTC medicines outgrow 2007 rates by 5.7% over the same time period, suggesting that consumers are more aware of private-label products and are generally satisfied with the efficacy and price. Private-label products in categories such as general pain relievers, antacids, and allergy medicines posted the highest growth, driven primarily by launches of private-label omeprazole (Procter & Gamble’s Prilosec OTC) and cetirizine (Johnson & Johnson’s Zyrtec).

Sales of Rx-to-OTC switch brands are either not impacted or are less impacted than regular OTC brands by recession. For instance, the Rx-to-OTC switch of Claritin in 2003 only lost 18% of sales to its sales to private-label competitors in the non-recession period, while private-label equivalents of Zyrtec launched in early 2008 seized one-forth of brand sales during 2009, a recession year.

“There is clear evidence that private-label OTCs grow at significant rates during a recession. Consumers did trade down to private label, and branded products lost considerable shared private label, but at the same time, several switch products still did really well as consumers are still willing to pay extra for a product they feel is more innovative and offers more relief,” says Laura Mahecha, healthcare industry manager at Kline.

In previous recessionary periods, overall OTC sales declined two years in a row; from 1999 to 2000 overall manufacturers’ sales were down 0.6%, and then declined again from 2000 to 2001 by 0.5%. Declines for the market were not very steep and this may be a result of sustained private-label sales.

Impact of Recessions on the U.S. OTC Market provides subscribers with a historical perspective on industry performance during recessions over the past three decades in order to estimate impacts of the current economic recession on OTC sales performance. The report offers detailed forecasts through 2011 in terms of sales for the existing OTC market and expected future Rx-to-OTC switches. Three scenario forecasts are offered including the most likely-case, best-case, and worst-case sales performance with all assumptions clearly defined.

About Kline
Kline is a worldwide consulting and research firm dedicated to providing the kind of insight and knowledge that helps companies find a clear path to success. The firm has served the management consulting and market research needs of organizations in the chemicals, materials, energy, life sciences, and consumer products industries for 50 years. For more information, visit www.klinegroup.com.

Kline’s “Probable Case Scenario” until 2013 Reflects Average Annual Growth of over 10% for the Synthetic Latex Polymers Industry in India

Kline’s “Probable Case Scenario” until 2013 Reflects Average Annual Growth of over 10% for the Synthetic Latex Polymers Industry in India

LITTLE FALLS, NJ, July 8, 2009 – The estimated growth rate of the Indian synthetic latex polymers market has been about 14% (by volume) since 2005. It is further anticipated that the Indian synthetic latex polymers industry would grow at a compound annual growth rate of 10.4% until 2013, according to the latest research Synthetic Latex Polymers India 2009 from worldwide consulting and research firm Kline & Company.

“The major driver for development of the synthetic latex polymers industry in India is the high growth rate of end-use industries like paints and coatings, adhesives, construction, automotive, etc.,” notes Parvesh Magoo, Consultant, Chemicals & Materials Practice at Kline. Another impetus comes from the fact that there are no major substitutes to replace synthetic latex polymers in their functional aspects across the various application segments.

Multinational companies like BASF and Rohm and Haas, as well as local players like Jesons Industries, Visen Industries, and Speciality Industrial Polymers & Coatings Pvt. Ltd., have expanded their capacity in the last couple of years due to the growing demand in the Indian market.

In 2008, the Indian synthetic latex polymers market was estimated at 219,000 dry tonnes. Most suppliers of synthetic latex polymers in the Indian market, both multinational companies and local players, are mainly competing in the acrylics product category. Although there are no stringent regulations in place currently, the suppliers have been continuously creating awareness amongst end users with regards to the usage of environmentally friendly and “greener” products.

The price, quality, and assurance of supply are the critical factors affecting the choice of suppliers by the end users. “Although export-oriented industries like leather, textiles, and carpet have been affected by the global economic turndown, they are expected to rebound in the next three to five years, subsequently increasing the synthetic latex polymer usage within these applications,” adds Mridul Joy, Consultant, Chemicals & Materials Practice.

The key applications which consume synthetic latex polymers in the Indian market are adhesive and sealants, paints and coatings, and textiles, constituting together around 75% of the total market by volume. Among the product categories of synthetic latex polymers acrylics form the dominant product type, constituting about 45% of the overall Indian market.

Synthetic Latex Polymers 2009-2010 Global Series: Business Analysis and Opportunities, global series of regional business analyses is designed to assist suppliers of synthetic latex polymers to understand the key dynamics of each significant market and product segment.

About Kline
Kline is a worldwide consulting and research firm dedicated to providing the kind of insight and knowledge that helps companies find a clear path to success. The firm has served the management consulting and market research needs of organizations in the chemicals, materials, energy, life sciences, and consumer products industries for 50 years. For more information, visit www.klinegroup.com

Growth of Biocides Used in Disinfectants and Sanitizers Exceeded Growth of Specialty Biocides in the United States in 2008

Growth of Biocides Used in Disinfectants and Sanitizers Exceeded Growth of Specialty Biocides in the United States in 2008

LITTLE FALLS, NJ, JUNE 15, 2009 – Average growth of specialty biocides used in disinfectants and sanitizers in household, industrial, and institutional cleaners was 2.9% in 2008, which exceeded growth of the overall biocide industry in the United States downplayed due to recession to 1%, according to the latest research Specialty Biocides 2008: A Global Series of Regional Market Analysesfrom worldwide consulting and research firm Kline & Company.

In 2008, the U.S. specialty biocide market was just under $2.0 billion; with market volumes approaching 600 million lbs. Water treatment is the leading application group in the United States, with halogenated biocides the leading category due to significant consumption within water treatment. The household, industrial, and institutional cleaning products industry consumed around $130 million of specialty biocides in 2008.

The green trend is affecting customers of specialty biocides within the household, industrial, and institutional cleaning products sector. The importance of this trend has been acknowledged not only by such specialty companies as Method Home Products and Seventh Generation, Inc., but by major mainstream companies in the industry, signified, for example, by Clorox’s launch of its new product line Green Works in January 2008, which are cleaners based on naturally derived ingredients.

Following the green cleaning trend, environmentally friendly biocides used in disinfectants and sanitizers are being preferred to other biocide formulations. Biocides which are highlighted as being environmentally friendly are those which break down quickly to non-polluting constituents with no potential to bioaccumulate.

“Although green cleaning products only comprise a small percentage of the total household, industrial, and institutional cleaning products market, sustainability and environmental responsibility is where the industry is focused,” says Anna Ibbotson, Industry Manager at Kline’s Chemicals and Materials practice. “As there is currently no uniform industry definition for green, it creates a huge challenge for chemical suppliers to develop and then position their products to address this market movement.”

Kline’s Specialty Biocides 2008: A Global Series of Regional Market Analyses presents an overview of market developments and regulatory issues in each regional market and provides estimated consumption of biocides by volume and value according to end-use application, as well as a five-year outlook.

About Kline
Kline is a worldwide consulting and research firm dedicated to providing the kind of insight and knowledge that helps companies find a clear path to success. The firm has served the management consulting and market research needs of organizations in the chemicals, materials, energy, life sciences, and consumer products industries for 50 years. For more information, visit www.klinegroup.com.

Kline Projects Moderate Growth Over the Next Five Years in the Cosmetics & Toiletries Market

Kline Projects Moderate Growth Over the Next Five Years in the Cosmetics & Toiletries Market

-- Market Should Witness Two More Years of Sluggish Growth - as Consumers Continue to Spend Less - Followed by Three Stronger Years --

LITTLE FALLS, NJ, May 27, 2009 – U.S. sales in the cosmetics and toiletries market grew only by 0.3% in 2008, the lowest since 1991, according to the latest study completed by worldwide research and consulting firm Kline & Company. The new data available in Cosmetics & Toiletries USA 2008 indicates that sales have reached a total of $35.6 billion at the manufacturers’ level, but consumer concerns about the recession may ensure that these levels do not rise higher during 2009–10.

Consumers are showing a preference for competitively-priced products from the mass and direct trade classes. Therefore, premium products sales are being affected heavily by these negative market conditions. In fact, salon, specialty, and luxury trade classes all demonstrated negative growth, whereas mass and direct trade classes turned out to be the fastest growing segments.

“The new frugal mindset imposed by the recession has altered spending and product consumption habits, some of which will probably continue into the foreseeable future,” notes Nancy Mills, Industry Manager, Consumer Products practice, at Kline. “Many people have traded down on certain products, and as they get accustomed to buying some lower-priced or private-label products, and shop more in the lower-priced channels, they might well continue with those habits after the tough times have subsided. To be successful, companies will likely continue to infuse the mass segment with more sophisticated products to compete with luxury products.”

Skin care, the largest product class, was also the second-fastest growing category during 2008, spurred by the sun care category. Although consumers have curtailed spending, they are not ignoring innovative and sophisticated new products. Marketers propel growth with product development, albeit the rate of new launches slows down in 2008. Some brands that did very well in the previous years such as Bare Escentuals, had slower growth in 2008, whereas, some mass brands like Garnier skin care and Neutrogena sun care showed very strong growth. Some luxury brands did buck the trend with great results—such as La Prairie.

Oral care is the fastest growing product class, in part, due to new product activity led by the very successful launch of Colgate Total Advanced Whitening toothpaste. Other products such as ACT mouthwashes had outstanding growth due to repositioning efforts by new owner Chattem. Also, Burt’s Bees, along with mass brands in other categories including Rimmel and TREsemmé, performed well above the average.

Kline projects a moderate growth over the next five years. Years 2009–10 will be sluggish, but the following three years are expected to witness growth. This growth will be affected negatively by stricter legislation on claims and ingredients and the new consumer mindset of cautiousness on spending. However, it will be impacted positively by product innovations and new alliances and mergers between companies.

Cosmetics & Toiletries USA 2008 is the authoritative source of information on the cosmetics and toiletries industry. It contains information on market size, retail sales, channel breakdowns, trends, as well as forecasts for 29 product categories, and detailed profiles of 26 leading marketers.

About Kline
Kline is a worldwide consulting and research firm dedicated to providing the kind of insight and knowledge that helps companies find a clear path to success. The firm has served the management consulting and market research needs of organizations in the chemicals, materials, energy, life sciences, and consumer products industries for 50 years. For more information, visit www.klinegroup.com.

Increasing Safety Concerns Boost Consumption of Biocides according to Kline

Increasing Safety Concerns Boost Consumption of Biocides according to Kline

LITTLE FALLS, NJ, May 12, 2009 – Growth in safety concerns for both consumers and livestock breeders is one of the factors driving consumption of biocides in animal biosecurity applications in Europe, according to the latest research in Specialty Biocides 2008: A Global Series of Regional Market Analyses from worldwide consulting and research firm Kline & Company.

Animal breeding is one of the leading activities within agriculture and an important biocidal products’ user, especially within poultry and pork breeding. Building disinfection represents a significant part of the biocides volumes used in animal biosecurity.

Consumption of specialty biocides at the supplier level in animal biosecurity sector is valued at just over €7 million. On a value basis, glutaraldehyde is the leading biocide product, accounting for nearly one-third of the total market value.

“Despite growth in Europe tracking at around 3%, there are a lot of strong growth drivers influencing this market,” comments Anna Ibbotson, Chemicals & Materials Industry manager at Kline. “For example, continuous consolidation to create larger, more industrialized farms—particularly in Eastern Europe—and increased awareness and concern over animal safety. Consumers’ continuously growing awareness about safety issues such as BSE, avian flu, and most recently swine flu act as catalysts for the growth of this industry.”

“In the animal biosecurity sector, the use of biocides is the most effective preventive way of reaching microbiological safety, and therefore the one which will be privileged against curative antibiotics in the long-term, to make possible the co-existence of two rather opposite necessities in modern breeding—intensive breeding rate and microbiologically safe animal environment,” adds Nikola Matic, Chemicals & Materials Industry, senior analyst at Kline.

Regulatory pressure is a driving factor for the overall specialty biocides market in Europe. Although the overall market appears rather stable, product replacement and switching is occurring due to the impact of the Biocidal Products Directive (BPD).

Kline’s Specialty Biocides 2008: A Global Series of Regional Market Analyses presents an overview of market developments and regulatory issues in each regional market and provides estimated consumption of biocides by volume and value according to end-use application, as well as a five-year outlook.

About Kline
Kline is a worldwide consulting and research firm dedicated to providing the kind of insight and knowledge that helps companies find a clear path to success. The firm has served the management consulting and market research needs of organizations in the chemicals, materials, energy, life sciences, and consumer products industries for 50 years. For more information, visit www.KlineGroup.com.

Private-label OTC Drugs Post Solid Gains in 2008, According to Kline

Private-label OTC Drugs Post Solid Gains in 2008, According to Kline

LITTLE FALLS, NJ, April 8, 2009 – Manufacturers sales of OTC drugs grew by 2.4% from $17.8 million in 2007 to $18.3 million in 2008, according to the latest research in Nonprescription Drugs USA 2008: Market Analysis and Opportunities from worldwide consulting and research firm Kline & Company

Private-label OTC medicines were up 8.2% over the same time period, within which antacids and allergy medicines posted the highest growth last year, driven primarily by increases in sales of private-label omeprazole (Procter & Gambles Prilosec OTC) and cetirizine (Johnson & Johnsons Zyrtec).

The following two areas distinctively posted very high growth mainly as a result of Rx-to-OTC switches: allergy, asthma, and sinus medications were up 17.3% as a result of strong sales from Johnson & Johnson's Zyrtec brand, as well as its equivalent private-label cetirizine; feminine products was the other area that grew 7.3% in 2008 as a result of strong sales growth of personal lubricants, as well as the Rx-to-OTC switch brand Plan B by Barr Laboratories.

By contrasting the overall growth rates for OTCs with the growth rates for private-label products we can easily make the case that more Americans were seeking value and using private-label in 2008, says Laura Mahecha, industry manager at Kline's Healthcare practice. However, not all categories suffer from higher private-label growth as some are able to maintain growth for branded products. During tough economic times, consumers are willing to spend more for some brands they are loyal to and that offer good efficacy, says Mahecha. However, if consumers view brands as being a commodity or not offering special advantages they may be able to make the trade-off to private-label. Mahecha goes on to say, As the recession continues into 2009, we expect to see increased value messages as part of branded advertising to combat the impacts of private-label erosion. Branded OTCs may use advertising messages to stress the brands value, efficacy, safety, and possibly longer-lasting doses, which translates into fewer doses and therefore, costs less.

According to preliminary research for Kline's upcoming report Impact of Recessions on the U.S. OTC Market, past declines during recessions have not been particularly steep for the industry. OTC sales declined two years in a row; from 1999 to 2000 overall manufacturers sales were down 0.6%, and then it declined again from 2000 to 2001 by 0.5%. Declines for the market were kept at bay possibly as a result of Rx-to-OTC switches, continued innovation, and to some extent sustained private-label sales, albeit at lower price points. There may also have been some spill over from Rx patients who chose OTCs as less expensive alternative in some cases to Rx medications and MD visits. Further research for this study will analyze the shifts in ad spending by marketers, shifts in private-label share, and the impacts innovations have had on industry performance during past recessions in order to forecast impacts of the current recession.

Kline's Nonprescription Drugs 2008: U.S. Market Analysis and Opportunities contains sales data on hundreds of OTC brands and companies, new product and ad spending analysis, retail distribution, five years historical sales and five year sales forecasts for 36 major product categories, detailed profiles of 15 leading marketers and 50 minor companies, and an analysis of media spending.

Kline's Impact of Recessions on the U.S. OTC Market is a comprehensive assessment that will provide subscribers with a historical perspective on industry performance during recessions over the past three decades and forecasts impacts of the current economic recession on OTC sales performance.

About Kline
Kline is a worldwide consulting and research firm dedicated to providing the kind of insight and knowledge that helps companies find a clear path to success. The firm has served the management consulting and market research needs of organizations in the chemicals, materials, energy, life sciences, and consumer products industries for 50 years. For more information, visit www.KlineGroup.com.

Kline Projects Growth of Lubricant Additives Consumption Despite the Downturn

Kline Projects Growth of Lubricant Additives Consumption Despite the Downturn

-- A significant shift in consumption patterns in the lubricant additives industry is occurring mainly due to changes in service and performance requirements of automotive engine oils. --

LITTLE FALLS, NJ, March 18, 2009 – While the consumption of finished lubricants is projected to be essentially flat between 2008 and 2013, consumption of lubricant additives will grow at a respectable 0.7% per year according to the latest research from worldwide consulting and research firm Kline & Company.

The key change driver of the lubricants industry will be the development of new quality levels for passenger car motor oils (PCMO) and heavy duty motor oils. The drivers for these quality upgrades are compatibility with emission control, use of bio-fuels, use of ultra low sulfur diesel, focus on improving fuel economy in PCMO, and increasing the life of the engine oil.

“Despite the economic recession, consumption of lubricant additives will show moderate overall growth,” says Milind Phadke, project manager at Kline’s Energy research practice. “Some function classes like dispersants, antioxidants, friction modifiers, and viscosity index improvers are growth opportunities due to the increased focus on engine oil longevity, the need for greater oxidation inhibition, the use of biofuels, and the increased use of multigrades.”

Volumetric data from Global Lubricant Additives 2008: Market Analysis and Opportunities shows that improvement in performance levels in advanced economies and improved treat rates in cost-competitive markets drives a relatively strong growth in lubricant additives. Some functional classes like antioxidants (growing at 2.6%), dispersants (growing at 1.2%), and friction modifiers (growing at 1.1%) are projected to experience even stronger growth than the overall additives growth rate.

Kline’s report estimates the global consumption of lubricant additives at 4,130 kilotonnes in 2008, and this includes consumption of both active additive components as well as diluent oil. Overall consumption in the most likely scenario is projected to grow at 0.7% per year, reaching 4,285 kilotonnes by 2013.

Global Lubricant Additives 2008: Market Analysis and Opportunities provides a comprehensive analysis of the global market for lubricant additives, focusing on estimated consumption by chemical class and additive type, key trends, market developments, challenges, and business opportunities, and includes access to Kline’s proprietary lubricant additives de-blend model.

To learn more about Global Lubricant Additives 2008: Market Analysis and Opportunities, go to /reports/y655.asp.

About Kline
Kline is a worldwide consulting and research firm dedicated to providing the kind of insight and knowledge that helps companies find a clear path to success. The firm has served the management consulting and market research needs of organizations in the chemicals, materials, energy, life sciences, and consumer products industries for 50 years. For more information, visit www.KlineGroup.com.