Issue 22
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Category		Title		Reference
Market Report		Trends in Cosmetic Care Products		Bernd Brackmann

The basic chemicals and additives used in the manufacture of cosmetics are governed by prevailing fashions in the market, which in turn are influenced by the expectations of consumers. This can be seen by rising or falling sales quantities in the individual market segments. Quality and safety are prerequisites, but the market is open to further optimisation.

Not only value for money will gain in importance in the cosmetics branch, but also the additional use. The moisturising cream which also contains UV protection will not just be in demand in summer when the sun is shining. The difference between the commodities market and the specialties market is increasing all the time, however there is sufficient room in the market niches to gain control. Once one is established in a high price market niche, faithful customers can be reckoned with. Growth takes place mainly in price aggressive segments. With the introduction of the Euro, Euro brands will also have European prices and overpriced regional products will suffer at first before being inevitably supplanted.

As a result of increasing awareness with regard to health and body, skin care will gain in importance. This can no longer be considered a luxury. Skin care products will not suffer from a recession because, apart from subjective skin sensitivity, skin diseases caused by civilisation will increase. Cosmetics will profit from this to a great extent.

The result of an opinion poll where any amount of answers could be given to the question “What does the EU citizen expect from the skin and hair care market?” supports this statement: the main problem and focal point of interest is clearly skin moisturising with 40 percent, followed by skin aging with 20 percent, regeneration with 18 percent and 15 percent each for protection and aura/freshness. The interesting thing about these statistics is not that almost one quarter of Germany’s women are conservative where cosmetics are concerned but the fact that 60 percent represent a potential for the use of cosmetics.

Take a look at a German bathroom: this is where both men and women improve how they feel, by daily showering or hair washing and subsequent use of scented products (see Table). There is still a lot of potential here if 100 percent utilisation is to be achieved.

Table
German Well-Being (%)
	Women		Men
	´93	´98	´93	´98
daily shower	71	76	67	71
daily hairwash	46	55	50	59
scented products	67	71	40	45
Source: Kosmetik Report 1.7.98
©Skin Care Forum

The number of people is increasing and in the EU world they are becoming older, have a shorter working life and have money to increase their feeling of well-being. According to advertising agencies, seniors refers to all those of 50 and above. It is good to know that this group learned to deal with cosmetics at an early age – as opposed to the 70 year olds. They can afford quality to hide the increasingly visible signs of age and wisdom. It is worth giving almost anything a try. Taking all these factors into account, the opportunities for innovation and turnover are very good.

A wide product range is used in these three market segments of hair, body and oral care: from conditioning agents via protein derivatives to special alkyl polyglucosides for toothpastes.

These products are solutions to problems if they are used in the correct combination in formulations. Thus it is not the individual product which is decisive for the optimal solution but the whole concept of the formula. A challenge for the formulator and the supplier.

In order to succeed in the market in future, the supplier has to be ready for changed requirements.

• Proximity to the customer in order to recognise the needs and problems of the customer at an early stage.

• Market orientation in order to be able to supply the customer with the required solutions to problems and product concepts.

• Internationalisation in order to be able to provide the same high standard in service, advice and know-how worldwide.

For the tasks of the customer have become more complex:

• He is constantly aiming at developing new marketing ideas. In order to do this he needs solutions!

• Basic research and production know-how are expensive. Here he expects co-operation with his supplier.

• Formulations, specially with new substances, require time consuming and costly test series. Optimisation work reduces time and costs.

• Ecological products are virtually taken for granted. It ought to be just as much a matter of course that only those substances are offered and used which are effective and meet legal requirements.

• Toxicological, ecological and dermatological tests provide the certainty that everything possible has been done for the product. A service that a potential manufacturer should offer.

It is worth making this effort. In Europe alone each citizen spends between 131 Euros in France to 62 Euros in Portugal for body care products.

An interesting field of activity for our trendy seniors is skin care. From facial care to sun care preparations, deos and antiperspirants, decorative products to freshen-up towels there are application possibilities for cream and ointment bases, emulsifiers, oily components and so on, right up to cosmetic active ingredients.

A worldwide uniform emulsifying and consistency giving base is taken for granted by international suppliers in this market segment also.

This is also valid for surfactants used in the cosmetic field. The differentiation is with the additives, in the application of special surfactants such as APG or active ingredients.

9.3 million tons of surfactants are used worldwide for all types of application whereby LABS occupies second place after soap. 23 percent of the worldwide quantity, i.e. 2.1 million tons are used in Europe.

The trend towards oleochemical based surfactants remains strong in the cosmetic industry. When it comes to body contact there really does seem to be a preference for something grown naturally to something based on petrochemicals. This sounds simple when it is reduced to a few cartoon balloons such as

• preferably from nature than from crude oil for oleochemistry

• preferably renewable than fossil for products from solar energy

• preferably recycling than rotting for chitosan

• preferably protection than repair for skin care preparations

• preferably safer than cheap for ecologically perfect products

• preferably wellness than nothing for a good feeling with aromatherapy

• preferably virtual computer tests than animal tests for test purposes

Apart from all of these ideas for the consumer manufacturers also have a few wishes:

• Increasing profitability by reducing complexities is always desired. No problem because all that is required is to reduce production costs. The resulting logistic savings are a pleasant side effect. The solution is just as simple: the application of prefabricates. The problem as such is to find the right product from a suitable manufacturer. A practical example is the application of pearlshine concentrates for all surfactant applications.

• It would also be nice if producers could influence the market by bringing out something really new. It does not have to be a sensational patent, just something to improve convenience, comfort would help to win a new customer. Maybe the Euro is a good opportunity to simplify market entry and enable over regional direction.

The outlook once again as a central statement: “the chances for innovation and turnover are available”. The idea is joint action: the cosmetic manufacturer with convincing marketing ideas and the supplier with suitable concepts and products for converting these ideas into reality.

Reference

Brackmann, Bernd; Trends in Körperpflegemitteln; SÖFW-Journal 4 (1999) 56-59

Bernd Brackmann

Bernd Brackmann, with Henkel KGaA since 1964. After chemical and commercial training he assumed a position as sales executive and later as product manager. Since the carve-out of Henkel’s Business Unit Chemical Products and the establishment of Cognis Deutschland GmbH in 1999 he has been in charge of Corporate Product Management in the fields of technical and commercial projects, market research, trend research, technical training and public relations.