Abstract
Limited R&D Investments in a Dynamic Scenario Restrain Market
Expansion
While fashions and consumer preferences are changing rapidly, most polymer
manufacturers in the personal care markets continue to employ older
technologies, modifying and/or changing the applications of the same core
polymer molecule. The 'Wal-Mart effect' – big shop-chains buying and
selling bulk products at lower prices, making consumers more cost-conscious
– is one reason for the lack of novel ideas emerging from major personal
care product manufacturers. The pressure on the formulators to reduce costs to
be able to produce cheaper formulations forces raw materials (polymer)
manufacturers to undertake cost-saving measures as well. This often means
reduced R&D investment toward new technologies. Added to these factors is
the non-harmonized regulatory environment across countries – mandatory
toxicity tests, safety tests, and strict criteria for conducting them –
which increase the costs to introduce a new molecule. While the confluence of
these factors discourage the introduction of new molecules, all efforts toward
producing cost-effective polymers with novel functionalities will surely garner
revenues for polymer manufacturers.
This Frost & Sullivan research service analyzes the U.S markets for
polymers in personal care products in terms of revenues and shipments by product
functionalities. The study offers key market drivers and restraints, in-depth
market analysis, competitive analysis, and strategies employed by participants
in the conditioning, rheology control, and hair fixing/styling polymers sectors.
Changing Fashion Trends Drive Demand for Innovative Materials
As part of the fast-moving personal care industry, cosmetic companies are
constantly inventing methods to differentiate their product from the
competition. "An innovative polymer ingredient can add novelty value to
products and permit unique marketing claims, thus justifying the premium pricing
of a product," says the analyst of the research. Formulators are also
increasingly using the science behind innovation as a part of their marketing
campaigns to appeal to the large base of health-conscious population consisting
of highly educated consumers who are willing to pay more for their cosmetic
products.
With consumers becoming more adventurous with their hair, there is an
expanding market for hair products that provide spiky, voluminous, shiny-looking
hair. This, in turn, is driving demand for innovative hair fixative and styling
polymers to add styling waxes, creams, and fluids to the traditional products
such as mousses, gels, and sprays.
Customer Convenience Instrumental in Increasing Revenue Margins
The customers for polymer manufacturers – personal care and cosmetic
formulators – are consolidating and becoming global in their operations.
Therefore, it is vital to develop flexible pricing models and innovative product
offerings to capture this shrinking customer base. Personal care and cosmetic
formulators themselves are streamlining production processes to stay
cost-competitive. They are looking for polymer ingredients that are convenient
to use, afford clarity to formulation, and eliminate the need for heat
processing, thereby saving time and money. "Since customers no longer want
a uni-functional product, polymer manufacturers should direct their product
development efforts toward building polymers that not only perform their core
function but also improve sensorial precision," notes the analyst.
In addition, health and environment conscious consumers are making products
with "all-natural" claims more profitable for personal care product
companies. Hence, polymer manufacturer need to diversify technology to develop
polymers that do not interfere with the final performance desired from the
natural extracts. Keeping pace with the fashion-conscious consumer is also
critical to channelize product development efforts toward improved performance
claims about health benefits, sun protection, and a sense of well-being.
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