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Active Ingredients Market Prospects Look Fairer with Increased Innovation Activities Finds Frost & Sullivan - The rapidly growing personal care end-use market is a fertile breeding ground for active ingredients companies that can offer novel products and easier formulations
Active Ingredients Market Prospects Look Fairer with Increased Innovation Activities Finds Frost & Sullivan

 

NewswireToday - /newswire/ - Mumbai, India, 2009/12/21 - The rapidly growing personal care end-use market is a fertile breeding ground for active ingredients companies that can offer novel products and easier formulations.

   
 
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Ingredients with increased functional benefits and multi-application profiles are the order of the day, as manufacturers are hoping to make a splash in several segments through better formulations that provide multiple benefits from the same products.

New analysis from Frost & Sullivan (chemicals.frost.com), Strategic Analysis of the Indian Personal Care Active Ingredients Market, finds that the market earned revenues of $190.0 million in 2008 and estimates this to reach $329.8 million in 2014.

If you are interested in a virtual brochure, which provides a brief synopsis of the research and a table of contents, then send an email to Anish Charles / Nimisha Iyer, Corporate Communications, at anishc[.]frost.com / niyer[.]frost.com, with your full name, company name, title, telephone number, company email address, company website, city, state and country. Upon receipt of the above information, a brochure will be sent to you by email.

As active ingredients are the backbone of a product’s appeal, manufacturers must take efforts to market their benefits among the users. The rising consumer awareness and increasing ease of application have spurred the growth of this fledgling market in a number of segments and end-user markets.

"UV ingredients, in particular, are fuelling the demand for end-product skin creams and skin lightening lotions," says Frost & Sullivan Research Analyst Natasha Telles. "This trend is expected to continue as customers become more aware and manufacturers are compelled to use targeted ingredients for specific formulations."

The future success of market participants rests on their power to differentiate their ingredients and functionalities. This has resulted in a slew of innovations, ranging from the delivery of anti-aging actives through silicon elastomers to nutritional products that claim to posses anti-wrinkling and skin-smoothing properties.

Product development and market penetration are vital strategies for companies to enhance the growth of conditioning agents. However, in younger markets such as UV and exfoliating ingredients, market expansion and diversification are expected to aid in revenue generation.

"Personal care active ingredient manufacturers need to focus on the scientific efficacy and brand awareness of their products by constantly remaining a step ahead of market trends," notes Telles. "They need to aggressively maintain their first-mover advantage, given the large potential in terms of the raw materials provided by the Indian topography."

Manufacturers can greatly expand their customer base and market share once they realize that consumers are likely to prefer recognized Indian actives such as turmeric to exotic actives.

Once participants establish a toehold in the market, they will have to work hard to retain their market and revenue shares as the competition is price-based. Apart from inadequate product differentiation, it is the lack of intellectual property or trademarks for ingredients that has caused this situation.

This deficiency of proper legislation has hindered the growth of this sector, both internally and externally, as Indian exporters find it difficult to export ingredients to western markets because they are unable to claim ownership of their products. While India is a major source of raw materials, it does not claim any royalties or copyrights on any of its locally sourced actives, making it harder for domestic manufacturers to compete effectively.

"With increasing commercial and consumer interest in this market, it is important to strategically position products to create brand loyalty and thereby retain customers, creating product niches that will reduce the intensity of competition," observes Telles. "Showing superior ingredient backing through academic research and clinical trials would result in customers developing ingredient as well as supplier loyalty, enabling participants to distinguish their products."

Strategic Analysis of the Indian Personal Care Active Ingredients Market is part of the Chemicals & Materials Growth Partnership Services program, which also includes research in the following markets: green fuels In India, GCC construction chemicals market, and strategic assessment of the specialty chemicals market in GCC. All research services included in subscriptions provide detailed market opportunities and industry trends that have been evaluated following extensive interviews with market participants.

Frost & Sullivan, the Growth Partnership Company, enables clients to accelerate growth and achieve best-in-class positions in growth, innovation and leadership. The company's Growth Partnership Service provides the CEO and the CEO's Growth Team with disciplined research and best-practice models to drive the generation, evaluation, and implementation of powerful growth strategies. Frost & Sullivan leverages over 45 years of experience in partnering with Global 1000 companies, emerging businesses and the investment community from 40 offices on six continents.

Strategic Analysis of the Indian Personal Care Active Ingredients Market / P2CB

Contact:
Tanu Chopra
Corporate Communications – Middle East
P: +91.22.4001 3437
F: +91.22.2832 4713
E: tanuc[.]frost.com.

 
 
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Active Ingredients Market Prospects Look Fairer with Increased Innovation Activities Finds Frost & Sullivan

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