Crucial in the growth chain of the cosmetics market , the chemical ingredients for cosmetics, specially the imported ones , has undergone adjustments in recent years and endearing cosmetics manufacturing in the country. Considering that most of the manufacturers of the cosmetics market uses imported ingredients, this year cosmetic companies and their consumers should have the value of their products impacted by this market.
Third largest global market in the consumption of beauty products, Brazil still has optimistic outlook for growth, but the challenges will be greater than ten years ago. It reveals that the study by Factor-Kline whose results regarding the area of cosmetic ingredients in Brazil, will be announced at the Congress of FCE Cosmetique in Sao Paulo (12-14 May).
The study has evaluated more than 100 personal care ingredients, divided into eight main categories under viewpoints of suppliers, type of ingredient, and application, including preservatives, conditioning polymers, surfactants, emollients, emulsifiers, polymers hair fixing, UV absorbers and rheology modifiers.
The ingredients market was estimated by Factor-Kline at about USD 1.1 billion (ex-factory) in Brazil in 2013, with estimated growth of 3-4% in the coming years.
Total sales in 2013: USD 1.1 billion
It is a market comprised predominantly of European and North American companies operating in the Brazilian market directly, or through several levels of distributors achieving to penetrate from medium to small companies.
Kline & Factor´s study reveals that Brazil is the largest region of the planet in hair care in 2013, that 86% of women at least once have already colored their hair, and that 70% of the population has curly or wavy hair. It is also a market that still holds 9% in skin care, and 67% of the population has mixed or oily skin.
Considering that Brazilian women are increasingly demanding regarding hair care products, and regarding sensory products for the face, the Brazilian market has great growth potential for companies of chemical ingredients, especially those that bring innovations and technologies for cosmetics companies.
The study evaluated the size of the market of special actives by product category and functionality; growth prospects within each category and functionality for special actives; main suppliers and how the mergers activity has shaped the market, among other issues.
In recent years, many of these companies have made acquisitions and / or mergers, an strategic way to position themselves more strongly in this market.
Acquisitions in the market for personal care ingredients:
• In 2011, Ashland has acquired International Specialty Products Inc. (ISP), expanding the portfolio in the areas of personal care, with emphasis on the functional ingredients. With this acquisition, Ashland also incorporated the French company specialized in biotechnology Vincience for the extraction of bioactive ingredients for the skincare and haircare.
• BASF has made three important acquisitions that have consolidated it in the Brazilian market of specialties: Ciba (2009), which strengthened the product portfolio. Cognis Holding Luxembourg (2010), one of the leading supplier of specialty chemicals targeted for consumer goods. Laboratoires Sérobiologiques, with important innovations in cosmetology.
• In 1997 Croda has acquired Sederma of France, a leading global supplier of active ingredients for the cosmetics industry with a unique range of products for skin care and hair. In 2006, acquired Croda Uniqema from ICI, establishing itself as a global leader in specialty chemicals. In 2012 Croda announced the acquisition of IRB (Istituto di Ricerche SpA Biotecnologiche), a world leader in the emerging market of the plant cell culture.
• Em 2003 a DSM adquiriu a Roche Vitamins & Fine Chemicals, ampliando seu objetivo de investir no segmento Life Science.
• Symrise has strengthened its position in the global market with several strategic acquisitions since 2006. The last three acquisitions were: Manheimer Fragrances and Intercontinental Fragrances (2009), which substantially strengthened the Air Care segment. Futura Labs (2009), one of the leading manufacturers of flavors and fragrances in Egypt and the United Arab Emirates. Belmay (2013), American Fragrance Manufacturer
• In Brazil, Ionquimica in 2014 gets named Agia, which reinforces a new step of the company with different integration strategies and growth.
According to Kline & Factor, relative to other countries, Brazil still underinvested in innovation in the area of raw materials, evaluating the past few years and launches. However, according to the agency, the search for innovative solutions is increasingly present in the routine business of the cosmetic area.
The study results will be presented at the 27th Brazilian Congress of Cosmetology, addressing an insight into the overall performance of the ingredients market in Brazil, focusing on trends and the main categories of ingredients.