In a recently released edition of Euromonitor International’s podcast series discussing global trends for industries, countries and consumers, Euromonitor’s Sara Green discussed ingredient trends in beauty and personal care in 2013 and why innovation is so important with John Madden, global head of ingredient research at Euromonitor.
Madden stated that many of the trends in the beauty ingredients industry are so fundamental that there won’t be a big change in the near future. These trends included the ongoing global economic slowdown, the importance of environmental consciousness and the influence of consumer opinion. “One of the biggest challenges faced by suppliers of value-added ingredients is to be able to differentiate themselves from low-cost suppliers, such as those increasingly found in Asia-Pacific,” Madden noted. “Companies can’t just compete on a cost per kilo basis—they must be committed to innovation. But we all know there has been a slowdown in ingredient innovation due to the recession and the consequent focus on cost cutting, as well as regulatory obstacles. It is for these reasons that partnerships between suppliers and brand manufacturers are so important. And today, this partnership approach has developed into open innovation, and this is now an integral part of the industry.”
He also noted increased use of UV absorbers and peptides as ingredients that are trending in beauty product development, as well as milder surfactants and emulsifiers. Madden also commented, “The use of natural ingredients will certainly grow, and this is all driven by consumer demand. For example, the global growth of plant extracts in hair care is expected to grow about 2% average growth from 2011 to 2016.”
Additionally, he said that consumer perception of ingredients with a negative reputation, such as parabens, triclosan and sulfates, will continue to cause them to have a rough time, particularly as they are reacted to by the media.
For the future, Madden commented, “Beauty and personal care is a very dynamic industry for a lot of ingredient suppliers, with lots of exciting challenges. However, like many industries, it is under a cloud due to the economic woes we face, and the ingredients category is not expected to show any growth over the next five years. It is for this very reason that ingredient suppliers must have the courage and energy to innovate if they are to survive.”