Growing Demand from Home and Fabric Care Segment Fuels Increased Uptake of Specialty Ingredients
"Although specialty ingredients have a narrower spectrum of uses in comparison to commodity ingredients, their use in various household and fabric care products is witnessing growth," notes Frost & Sullivan Research Analyst Ms. Niranjana Ganesh. "Increased R&D initiatives, product innovation and the adoption of a collaborative approach with home care companies are other factors strengthening the market for specialty ingredients."
Specialty ingredients are finding application in products such as dishwashing liquids, floor cleansers, sanitary cleansers, glass or window cleansers, as well as oven and metal cleansers. Companies in the home and fabric care market rely greatly on research-driven specialty chemical suppliers to provide them with new and more efficient ingredients for their products. With increasing emphasis on cleanliness and hygiene, the market for home care ingredients offers tremendous growth potential to chemical manufacturers. However, a major factor hampering the growth of specialty ingredients in the market is the rising price of feedstock, which serves as raw material. Small producers in Europe that are not backward integrated into raw materials are faced with high feedstock costs and staggering demand.
"Strong demand in the market, combined with rising energy and raw material prices, is compelling ingredient suppliers to raise prices of specialty ingredients supplied to the home care market," remarks Ms. Ganesh. "This has resulted in intense competition, thereby emphasising the need to boost innovation and accelerate product development."
Specialty ingredient suppliers will need to pursue product development as a corporate-level growth strategy to develop new products for existing customers. Products placed in the market should meet price constraints, while still seizing a favourable market share. Continuous innovation and focus on R&D will become important to create differentiation and gain a competitive edge. R&D should focus on new benefits and novel product forms. As such products can be easily copied by competitors, identifying new benefits that innovative specialty ingredients can add to home care products will become essential.
In view of the mature nature of the market, joint venture projects are considered a vital strategy for the development of breakthrough, consumer-noticeable, differentiating technologies. A collaborative approach will become critical to achieving market success.
If you are interested in a virtual brochure, which provides manufacturers, end users, and other industry participants with an overview of the latest analysis of the European Markets for Home Care Ingredients, please send an e-mail to Janina Hillgrub, Corporate Communications, using the 'Contact' button below.
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