PARSIPPANY, NJ, December 13, 2017 – The highly competitive nature of the jan-san cleaning market has caused cleaning product suppliers to look deeper into end-user preferences and usage patterns to identify pockets of growth. Such insights help their business thrive in the $4.4 billion jan-san cleaning market, according to Kline’s 2017 edition of Janitorial and Housekeeping Cleaning Products: U.S. Market Analysis and Opportunities report, which is based on surveys with over 1,000 end users.

Hard-surface, hand-care, and floor-care products are the largest product categories, together accounting for over 85.0% of the total market value.

Liquid products dominate the industry, with concentrates and ultra-concentrates being popular for the efficiency they offer end users.

Spending on floor care cleaning products is decreasing as new construction uses lower maintenance flooring surfaces while other end users report performing floor care tasks, such as stripping and refinishing, less frequently as a way of cutting costs.

About half of the respondents report the usage of liquid and foam hand soaps. Foam continues to be adopted due to its “less mess” value proposition and popularity among patrons. Foam hand soaps, instant hand sanitizers, and aerosol odor-control products show the fastest growth rates from 2014.

Increased efficiency and equitable prices drive demand for green cleaning chemicals among education end users who seek safety at their facilities.

About 16.0% of end users report using hydrogen peroxide disinfectants, most coming from the healthcare, education, and nursing home/assisted living segments.

Healthcare facilities and nursing homes are the fastest growing end users due to the aging population and increased frequency of cleaning in hospitals, as they seek to discharge patients sooner. Contract cleaners, the third fastest growing segment, are adding more types of accounts to their portfolio beyond just office buildings. By offering custodial services at sometimes half the hourly charge rate, they continue to acquire users from the price-sensitive education segment.

Fast-casual restaurants, the fastest growing end-use segment in 2014, continues to grow albeit at a slower pace in 2017. This is due to fewer new fast-casual restaurants being opened and increased competition from fast-food chains with updated menus and interior designs, which has helped drive more visits from customers.

The competitive landscape is highly fragmented with the top 25 suppliers accounting for 55.0% of total market value. There is slow but steady industry consolidation towards larger market suppliers. Diversey, after being divested by Sealed Air to Bain Capital, is the leading supplier of janitorial and housekeeping cleaning products, followed by Ecolab, the leader in the foodservice sector, and GOJO Industries.

Consumption of the janitorial and housekeeping cleaning products is expected to reach $5 billion at the end user’s level in 2022. Lodging establishments, fast food restaurants, and industrial facilities are expected to show the highest growth rates over the following five years.

These and other market shifts and detailed survey results based on over 1,000 interviews with jan-san cleaning product end users and 70 unstructured interviews with suppliers, distributors, and trade associations are now available in our Janitorial and Housekeeping Cleaning Products: U.S. Market Analysis and Opportunities report. The foodservice cleaning segment is analyzed in a related report Foodservice Cleaning Products: U.S. Market Analysis and Opportunities.

About Kline & Company
Kline is a worldwide consulting and research firm 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 agrochemicals, chemicals, materials, energy, life sciences, and consumer products industries for nearly 60 years. For more information, visit www.KlineGroup.com.

PARSIPPANY, NJ – November 14, 2017 - Plenty of space for growth resides within the finished lubricants market, particularly within niche markets, such as bio-lubricants. Currently comprised of roughly 1% of the total finished lubricant market and driven by governmental regulations, it is expected to grow at a CAGR of 5% over the next five years, according to the latest report Opportunities in Bio-lubricants: Global Market Analysis by global market research and management consulting firm Kline.

Growth rates vary by region. Europe and South America advance at a slower pace than emerging markets in Asia. The United States is an exception, showing robust growth, driven in part by the Federal Bio-Preferred Program, along with the emerging supply of synthetic bio-based basestocks.

North America and Europe are the largest consumers of bio-lubricants because of the stringent environmental protection policies, including the Eco-label and VGP, but also due to heightened environmental awareness among end users. Together, the two regions account for nearly 80% of the global market. Asia-Pacific lags behind the two major regions but is quickly catching up with them. The markets in Asia are mirroring European and U.S. regulations, including green labels and public procurement directives. Both Japan and South Korea feature an eco-label for bio-lubricants.

The leading product category is hydraulic fluids, followed by metalworking fluids and chainsaw oils, transformer oils, gear oils, automotive engine oils, and greases. There is a new trend towards chlorine-free, non-toxic, and biodegradable additives and dedicated additive packages for green labels.

Government initiatives alongside regulations and the emergence of high performance basestocks are pushing the once niche segment to the forefront, albeit moderately. “Growth will continue to reflect individual country regulations, domestic raw material supply, and available product technology, which varies from one market to the next,” comments Sharbel Luzuriaga, the project’s manager. “With a certain degree of ‘trial and error,’ suppliers continue to explore and develop market niches. Successful product launches are subsequently scaled up and rolled out into other markets, as can be seen across Europe currently.”

The leading market players established themselves through access to unique innovative, competitive green formulations, as well as specific regional or industry regulations, such as alpine, transformer, or forestry or through the aftermarket of “green” OEMs. Examples include di-electric fluids (Cargill), metalworking (Houghton), marine (Vickers), railroad (Bechem), tunnel driving (Condat), and mountain equipment (York).

Panolin and Fuchs are the leading suppliers of finished bio-lubricants worldwide, driven by their bio-lubricant range and focus, global reach, and OEM partnerships.

“Regulation can be a prelude to growth, with an incentive for blenders to develop relevant products and customer interest, especially when mineral lubricants continue to have significant cost advantages over bio-lubricants. However, regulation by itself, without the relevant enforcement, attractive product offerings in terms of price and performance and dedication, will not drive the sector,” adds Luzuriaga, who will be hosting a WEBINAR covering key insights on the bio-lubricants market on Wednesday, November 15, 2017 at 9:00 AM EST. Please click here to REGISTER.

About Kline & Company
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 agrochemicals, chemicals, materials, energy, life sciences, and consumer products industries for over 50 years. For more information, visit www.KlineGroup.com.

PARSIPPANY, NJ – October 4, 2017 - Energy conservation, GHG regulations as well as modernization of vehicle fleets and heavy equipment drive the lubricants market towards higher performance oils which in turn leads to an increase in additive consumption, particularly for dispersants, antioxidants, and viscosity modifiers, according to the recently published Global Lubricant Additives: Market Analysis and Opportunities report by global market research and management consulting firm Kline.

Lubricant additives are used to enhance the performance of base oil. They are used to improve wear, thickening, oxidative stability, cleanliness, and dispersancy of the fully-formulated fluid, among others. Additive consumption depends on several factors, such as specification upgrades and drain intervals.

According to David Tsui, a Project Manager in Kline’s Energy Practice, “New specifications are driving formulation changes and additive selection. Furthermore, regulations are driving those specifications towards lower viscosities and stricter chemical limits. Regulations targeting fuel economy and emissions are greatly impacting viscosity and the chemical composition of lubricant additives being used.”

“Specification upgrades are mandating increased antioxidant and dispersant usage. However, detergent and anti-wear use are being restricted by OEMs to protect emission systems. Such mandates will also favor the growth of anti-oxidants, ash-less anti-wear, and dispersants.” Tsui adds.

The total global lubricant additive consumption is over 4,400 kilotonnes in 2016. Asia-Pacific is the largest lubricant additive-consuming region in the world due to its considerable commercial and industrial segment.

Lubricant additives are categorized into key segments: automotive, industrial engine oil, general industrial oil, metalworking fluids, grease, and process oils.

The global ecomony’s slow recovery has hindered growth in the industrial and marine segments. Meanwhile, the growing vehicle parc and modernization of existing fleets are driving growth in the automotive segment.

As a result, automotive lubricants are the largest segment, accounting for more than two-thirds of the total lubricant additives market. Passenger car motor oil is now eclipsing heavy duty motor oil volumes.

Within metalworking fluid additives, the second largest segment of the market, the consumption of additives for removal, forming, protecting, and treating fluids is included. This segment is driven by removal fluids, which account for more than half of the category’s demand. The category is being increasingly regulated, with certain segments being adversely affected.

Globally, lubricant additives consumption is expected to grow at a compound annual growth rate of 0.7% from 2016 to 2021.

Insights from the Global Lubricant Additives: Market Analysis and Opportunities report will be discussed in an upcoming webinar that will be held on Wednesday, October 18, 2017 at 9:30 AM EST. Please click here to register.

About Kline & Company
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 agrochemicals, chemicals, materials, energy, life sciences, and consumer products industries for over 50 years. For more information, visit www.KlineGroup.com.

PARSIPPANY, NJ – August 30, 2017 – Digestive disorders affect nearly 70 million people in the United States, or about 20% of the population. Alongside this dramatic number, a growing number of consumers seek to improve immunity and understand the strong link between the digestive and immune systems. These two groups of consumers help to propel strong sales of probiotics. The market for digestive health products is growing at over 20% in 2016, finds Kline’s just-published Digestive Health, Immunity, and Probiotics: U.S. Market Analysis and Opportunities study.

The latest research developments also drive interest in probiotics and improved health as new findings support the use of probiotics in treating a variety of disorders. Studies that link the use of probiotics to healthy digestive and immune systems are helping to create interest in the category. “We have seen several new probiotic launches recently appealing to specific conditions or groups of consumers such as immune support, women’s health, and children’s immunity,” states Laura Mahecha, Kline’s Healthcare Industry manager.

Moreover, the way these products are delivered has changed dramatically. While most probiotics on the market are still available in tablet or caplet forms, new delivery systems, such as drinks, sodas, chews, cubes, liquids, gummies, fizzy powders, and prefilled straws, are becoming more popular and attracting new users to the category.

The three digestive health market segments covered in the study are digestive enzymes, probiotics, and probiotic beverages. Probiotic beverages, which includes drinks, juices, shakes, and select kefirs and kombuchas, are the second largest category and fastest-growing category, driven by consumers’ interest in probiotics and the desire for healthy drinks. Probiotic beverages are a convenient and fun way to take probiotics.

Probiotics, including combined probiotics with prebiotics, is the largest category and experiences robust growth fueled by a strong consumer interest due to supporting research studies, new product innovation, and increased advertising. In addition, companies such as The Clorox Company and Royal DSM are increasing distribution of their respective brands being sold in the food, drug, and mass merchandiser retail outlets. Royal DSM, with its digestive health brands Culturelle and UP4 A Happier Inside, acquired in 2016, holds a significant 13.5% market share across all channels.

The market for digestive health products is made up of many diffuse manufacturers. Some are small start-up organizations, such as Olly and Suja Life, others are small to medium sized companies, such as Church & Dwight and Lifeway Foods. Several probiotic lines are marketed by companies that have been acquired by large multinational companies and gain the support and resources of their new parent companies. Examples of such acquisitions include The Clorox Company’s acquisition of Renew Life, The Pepsi Company’s acquisition of KeVita, and Royal DSM’s acquisition of UP4 A Happier Inside.

Digestive Health, Immunity, and Probiotics: U.S. Market Analysis and Opportunities provides a comprehensive assessment of the quickly growing market for digestive immune health products. This report focuses on both mass and specialty brands, as well as refrigerated products through all retail channels. This study provides insights on market trends, growth rates, and the competitive landscape in this dynamic market.

About Kline & Company
Kline is an international firm that has served the management consulting and market research needs of organizations in the agrochemicals, chemicals, materials, energy, life sciences, and consumer products industries for almost 60 years. For more information, visit www.KlineGroup.com.

PARSIPPANY, NJ – July 31, 2017 - With hundreds of new doors opening in various formats, the expanding cosmetics specialty and vertically integrated stores, such as Ulta, Sephora, Bluemercury, NYX, Kiko Milano, and e.l.f., which have grown at a compound annual growth rate of nearly 19% over the past five years, now account for an estimated 20% of total beauty market sales, finds Kline’s just-published Beauty Retailing USA: Channel Analysis and Opportunities report.

“While traditional department stores experience declining traffic and store closures, brick-and-mortar is not a dying breed, but a rising phenomenon of specialty retailers and vertically integrated stores that set trends, provide open-sell environments, offer solution-based approaches in digital formats, and enhance the overall consumer experience,” comments Naira Aslanian, the study’s project manager.

Bluemercury has made headlines in recent weeks, opening its digitally-enhanced flagship location in New York City, with plans to open 40 more stores by the end of the year. In 2017, Sephora opens its largest store in North America in New York, and a few days ago its smallest 2,000 square foot freestanding concept store, Sephora Studio, opens in Boston. This concept is one step towards creating more curated and digital experiences for consumers in the real world. Alongside digital tools, increasingly demanding younger generations require one-on-one services, including 15-minute facials and 45-minute makeovers that drive consumers seeking a spa-like experience into stores.

Vertically-oriented boutique beauty stores, such as NYX, e.l.f., and Kiko Milano, are conquering local malls as these fast-growing newcomers offer unique concepts targeted to younger consumers at lower price points. These brands are increasingly offering digital enhancements, such as NYX’s iPads that help create different looks with beauty influencers/vloggers walking consumers through the process while in store. Enhancing a customer’s experience with a brand is one of the key reasons for the incredible growth of these free-standing beauty stores, finds Kline’s Boutique Beauty Retailers: Channel Analysis and Opportunities.

Department stores, however, are not giving up. They’re mimicking tactics applied by successful multi-brands specialty stores to draw more traction. In early 2017, Bloomingdale’s launches the first Knockout Beauty boutique composed of prestige brands with a natural/organic slant. Nordstrom’s beauty area continues to evolve, bringing in brands with limited distribution. Nordstrom also adds beauty concierges in remodeled locations to help guide consumers across brands, showcasing the top products in each beauty category. Neiman Marcus launches its Memory Mirrors to help consumers remember the steps and products used during the in-store makeover.

A different type of revival is evident in the person-to-person segment of the direct sales channel. Previously characterized by powerhouses like Avon and Mary Kay, this segment has seen the rise of new stars that offer targeted, results-driven products, as well as the utilization of social media platforms and millennial sales associates. Players such as Rodan + Fields, Younique, Beautycounter, Ever Skincare, and Monat are the new generation of social selling brands that will have a high impact on the segment. The proof of this growing trend is Coty’s acquisition of a 60% stake in Younique in early 2017, desiring to tap into this new genre of social media-oriented person-to-person sales. To learn about key findings for the dramatically evolving beauty retailing landscape in the United States, REGISTER for our Technology’s Impact on the Beauty Shopping Experience webinar taking place on Wednesday, August 2, 2017.

Beauty Retailing USA: Channel Analysis and Opportunities is comprehensive analysis of the complex environment for retailing cosmetics and toiletries in the United States. With detailed channel and retailer profiles, this research provides a clear view of the challenging and ever-changing retail landscape specific to beauty and personal care products.

About Kline & Company
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 agrochemicals, chemicals, materials, energy, life sciences, and consumer products industries for nearly 60 years. For more information, visit www.KlineGroup.com.

In January 2014, Kline & Company, 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. A more detailed description of the Margin Index can be found in the January 2014 release.

“The sustained low crude oil price during the first quarter of 2016 provided a temporary month of strong margins in January,” noted Ian Moncrieff, Vice President of Kline’s Energy Practice. “However, once the pricing lag for base oils caught up with feedstocks, February and March proved to be tougher and tougher months for refiners.”

“Brent crude oil’s monthly average of $30.70 per barrel for January was the lowest monthly average since December 2003. By the end of January, another round of declines to base oil postings was announced; however, margins, at this point in time, improved relative to December, as this most recent adjustment to postings still lags behind the continued fall to feedstock prices. As for conventional refiners, the weakness in the middle distillate market noted in December was somewhat alleviated, as ULSD cracks above VGO went back to being positive, providing an additional lift to cash margins.”

“Moving into February, both conventional refiners and re-refiners were adversely affected by a simultaneous increase to Brent crude prices and a decrease to base oil postings. While ULSD continued on its moderate rebound—surpassing gasoline prices by $0.063 per gallon—base oil postings were hit again with another round of discounts in the range of $0.12-0.20 per gallon.”

“Finally, during the month of March, the Group II postings were stable, while other API groups and grades showed slight upticks in pricing. Meanwhile, the price of Brent crude oil increased by 18% and was the primary cause for the decrease in margins during this month. Furthermore, the ULSD crack over VGO still remained weak, providing muted returns for conventional refiners.” “As we continue to follow the EIA’s metric of U.S. ‘lubricant’ consumption, 2015 was a strong year for lubes in the United States, as the total volume of lubricants supplied was a 7% increase over the 2014 level. On average, margins were slightly better in 2015 than in 2014, which is consistent for a period of higher demand and capacity utilization. Despite the total U.S. ‘lubricant’ supply for 2015 appearing to have grown, the global market fundamentals of 2015 still remain weak.”

Looking forward, Moncrieff added, “Kline, in association with SBA consulting introduced the Base Oil Plant Health Check in February. This service combines the industry-leading market, commercial, and technical insights of Kline’s Energy practice, working in close association with Steve Ames. With the underlying weakness to supply/demand and capacity utilization fundamentals, the analysis provided by the Base Oil Plant Health Check can help the refiner evaluate opportunities for enhancing its competitiveness against its industry peers.”

For more information on the Health Check study, the Kline Index, or to inquire about our pricing and margin analysis services to the base stocks industry, please contact Ian Moncrieff, Vice President (Ian.Moncrieff@klinegroup.com) at (973)-615-3680 in Kline’s Energy Practice.

For more information on the Health Check study, the Kline Index, or to inquire about our pricing and margin analysis services to the base stocks industry, please contact Ian Moncrieff, Vice President (Ian.Moncrieff@klinegroup.com) at (973)-615-3680 in Kline’s Energy Consulting Practice.

PARSIPPANY, NJ – April 12, 2017 - Changing industry regulations and continuous development across end-use applications are the key factors affecting the USD 4.5 billion market for specialty biocides in China, Europe, India, and the United States, according to Kline’s just-published chapters of its Specialty Biocides: Regional Market Analysis study.

The United States remains the largest global market for specialty biocides with USD 2.9 billion in revenues, notably due to an unmatched market for wood preservation. Miscellaneous biocides, including creosote, which is primarily used in wood preservation, are holding the leading positions in terms of volume and value. However, the use of some biocidal products falls under new regulations introduced by the Environmental Protection Agency (EPA). The EPA has classified copper chrome arsenate (CCA) as a restricted use product to be used only by certified pesticide applicators in industrial applications. The regulations will adversely affect wood treatment with CCA for all residential uses. It is expected that in five years no wood treater or manufacturer will use CCA to treat wood in residential sectors. Due to the risks associated with occupational exposure, the wood preservation industry is gradually moving away from arsenic-containing preservatives towards new alternative wood preservatives, such as copper naphthenate, which are safer and environment friendly according to the EPA’s risk assessment.

In Europe, the biocides market has become increasingly shaped by regulatory pressures from Biocidal Product Regulations (BPR). All the suppliers operating in the EU zone are now required to register their products with the European Chemicals Agency (ECHA). The entire process might take up to 10 years and can cost millions of euros. This stimulated an intense industry consolidation. Ashland sold its biocidal business to Troy Corp, and Dow Chemical’s has acquired Rohm and Haas. Other suppliers decided to exit the EU market completely, including BWA Water Treatment. Even the product registered under ECHA as a biocidal substance face with tight regulations, due to the allowed levels of certain actives. The introduction of concentration level of MIT at 1,500 ppm resulted in a considerable drop in the product consumption since 2016. The ongoing regulations create uncertain expectations in suppliers regarding the market’s future. Thus, suppliers tend to focus on the actives which are less likely to be restricted, such as IPBC among the fungicides and glutaraldehyde in oil and gas uses, or cut down the products, such as triazines, as they are more likely to fall under new restrictions.

In China, the consumption of specialty biocides is still influenced by large use of commodities (and notably sodium hypochlorite), which had hindered the growth of specialties’ consumption in some applications, such as aquaculture. With China being the largest freshwater fish producer globally, this application is an important one in the country. The macroeconomics of some industries, such as paper, which is another large consumer of biocides in the country, have played their role in a rather stagnant consumption of biocides in the concerned applications.

India shows a double-digit growth rate due to the rapid extension of strategic applications, such as paints and coatings, leather, antifoulant marine coatings, and metalworking fluids, and approaches USD 93 million in revenues. Industrial preservation applications are leading the market demand by volume and value. Paints and coatings is the most consuming sub-application in volume terms, primarily due to the rapidly growing construction sector. In terms of volume, nitrogen-based biocides is the leading category due to significant use of quaternary ammonium compounds across most end-use applications. Consumption of specialty biocides in hygiene applications will benefit from the increasing awareness among consumers about the importance of sanitizers and disinfectants.

The competitive landscape is fragmented with multinational companies being the leading suppliers of specialty biocides in volume and value terms. Lonza is the largest supplier of specialty biocides to Europe and the United States in value terms. In India, Meltzer Chemicals is the leading supplier by value, followed by Clariant and Troy Corporation. In China, a similar situation to India can be found with multinational suppliers competing with local suppliers. Hebei Jihang, American Chemet, and Hanadn Ruibang are the largest suppliers in volume terms.

The European, Chinese, and U.S. markets are projected to show a low, but stable growth of 1.8% from 2016 to 2021. In the United States, MCA and dissolved copper azole are expected to be the fastest growing biocidal actives, as they will take over the share from the phased-out products, such as CCA. The growth in Europe is affected by a slow recovery from financial crisis in several important market sectors, notably related to the construction sector, such as paints and coatings or plastics and resins. Halogenated and phenolics biocides are expected to be the fastest growing product in the region. India is projected to show double-digit growth through 2021, with nitrogen-based, organosulfur, and halogenated biocides being the most rapidly growing categories. In China, the market will be negatively affected by the slow growth of a few key consuming applications, namely water treatment (and paper applications in particular) and aquaculture, a large application in the country. In the meantime, industrial preservation applications and other hygiene applications are expected to enjoy solid growth figures by 2021.

Discover new business opportunities in the specialty biocides market with Kline’s upcoming webinar Specialty Biocides: Regional Markets Analysis. This presentation will focus on market size by region, consumption of the main products used in each application, regulatory issues, and market forecasts through 2021. Register >

About Kline & Company
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 agrochemicals, chemicals, materials, energy, life sciences, and consumer products industries for over 50 years. For more information, visit www.KlineGroup.com.

PARSIPPANY, NJ – January 23, 2017 –According to the recently published Opportunities in Lubricants: China Market Analysis report from global market research and management consulting firm Kline, total consumption of lubricants in China is estimated at 7,000 kilotonnes, valued at an estimated USD 26 billion in 2015.

In China, the total consumption of consumer automotive lubricants in 2015 is estimated at 1,400 kilotonnes, valued at approximately USD 11 billion and forecast to grow 3.7% by 2020, with new passenger car sales growing 9.2% during the first half of 2016. This includes factory-fill for all product categories and greases.

In the consumer segment, engine oil is the leading product, accounting for over 1,200 kilotonnes, or 90% of the total volume and total value. Gear oil ranks a distant second with 4% of the volume, followed by ATF and grease. Shell is the largest supplier in 2015, capturing 14% of the market by volume. The domestic brand Sinopec ranks second.

In the engine oil category, the most popular viscosity grade is 10W-30 and 10W-40, typically with the SJ, SL, and SM API service levels. This viscosity grade 10W accounts for about 45% of the total volume of engine oil consumed by the consumer automotive market segment. The most popular type of gear oil is viscosity grade 80W-90, and the typical service level is GL-5. The major ATF type in the Chinese consumer automotive market is Dexron III. The major grease product type is lithium complex base grease used as factory-fills.

In China, the installed subsegment is the leading outlet for consumer automotive lubricants in 2015. An estimated 1,300 kilotonnes, or 93% of the total volume, are sold through this sector valued at USD 10.5 billion in consumer sales. Due to the minor share of the DIY market, retail outlets follow with an estimated 110.9 kilotonnes, valued at USD 592.1 million. Within the installed sector, repair garages, including both independent repair garages and authorized repair garages, are the leading class of trade, while in the retail sector, gas stations are the leading class and have overtaken auto parts stores in recent years.

According to David Tsui, a Project Manager in Kline’s Energy Practice, “The distribution channels for consumer automotive lubricants are split among direct, OEM, and distributor, in terms of the purchase channel of different sub-segments. Around half of the volume are sold to garages via distributors. Direct sales are mainly to the OEMs for factory-fill. The authorized repair garages mainly purchase from OEMs.”

The car population in China has reached over 150 million in 2015, an increase of over 12.5% compared to the figure in 2014. Since 2003, the rate of increase in the car population in China has remained at a high level, averaging over 11 million new vehicles per year.

Since 2009, the Chinese government has implemented several policies to stimulate consumption. In 2015, including tax reduction and the subsidies in the auto-to-rural policy, the favorable tax policy on the procurement of low emission cars supported the automobile market against the gradually decreasing growth rate in China.

“Although the consumer segment appears to be the best performing segment, there are opportunities for growth in the industrial and commercial segments as well. Companies will need to adapt to the governmental regulations and societal norms to prosper in this modernizing Chinese market,” adds Tsui.

These findings and more will be discussed in a complimentary webinar, which will discuss the recently published Opportunities in Lubricants: China Market Analysis report on Wednesday, February 8, 2017. If you are interested in joining us, please click here to register.

About Kline & Company
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 agrochemicals, chemicals, materials, energy, life sciences, and consumer products industries for over 50 years. For more information, please visit www.KlineGroup.com.