China and C&T raw materials
The new study, "Speciality Raw Materials for Cosmetics and
Toiletries, Vol. 1: Asia-Pacific 2005", reports that nine per cent of
the $3bn global market is now provided by Chinese companies, with
growth in the sector predicted to increase by 10 per cent every year
for the next five years.
"When we examined the Chinese market just four years ago, the local
suppliers were just starting to make an impact on the global stage,"
said Gillian Morris from Kline & Company's research division.
"Now, when we look at the top suppliers in the top five specialty
raw material product categories in China, the Chinese suppliers are
moving in on the multinationals. There are Chinese suppliers in every
product category, from hair fixative polymers to UV absorbers."
Conditioning polymers, skin whitening agents and emollients are said
to demonstrate the continued highest growth rate, at more than 12 per
cent each, which actually outpaces the overall growth for the industry.
The Chinese association that a lighter complexion is more beautiful
means that skin whiteners are leading the pack.
While the Chinese market for both finished cosmetic and toiletry
products and raw materials is growing steadily, the Japanese market
offers different kinds of opportunities and challenges to raw material
"The Japanese population has a high level of disposable income, and
it spends more per capita on personal care products than any in other
country in the world, but the finished products and raw materials
markets are mature, offering very low growth rates in comparison with
China. Still, we see some of the greatest innovations coming out of the
Japanese market," said Morris.
Eric Vogelsberg, senior vice president and head of Kline's Chemicals
& Materials consulting practice said that finished products
manufacturers are now using their low-cost positions with the local
Chinese suppliers to put pricing pressure on multinational raw
"In order to defend their market share, the MNCs have to focus on
innovation and a strong IP position. They'll need to compete on
ingenuity and their ability to serve as a consistent and secure global
source of supply rather than on price," he said.