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Consumer Demand for Bio-based Personal Care Products Increases Phytochemical Production Finds Frost & Sullivan - Partnerships with global chemicals companies will be vital to create new growth opportunities, finds Frost & Sullivan - Frost.com
Consumer Demand for Bio-based Personal Care Products Increases Phytochemical Production Finds Frost & Sullivan

 

NewswireToday - /newswire/ - Cape Town, South Africa, 2017/07/25 - Partnerships with global chemicals companies will be vital to create new growth opportunities, finds Frost & Sullivan - Frost.com.

   
 
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As consumers become increasingly discerning and demand personal care products that address their specific needs, the market for phytochemicals is receiving a massive boost. These bio-based chemicals have significant potential as product differentiators, as suppliers are eager to showcase their new chemicals and wider product portfolios.

“Sub-Sahara Africa (SSA) has up to 60,000 species of plants, which translates to abundant feedstock for phytochemical production,” said Frost & Sullivan Visionary Science Senior Industry Analyst Constance Nyambayo. “The higher production opportunities stoke product and research and development (R&D) collaborations among stakeholders that will, in turn, boost the commercialisation potential of phytochemicals.”

By boosting operations to obtain higher economies of scale, phytochemical manufacturers can make their products comparable in price to synthetic chemicals and achieve long-term viability in the personal care market. Additionally, backward and forward integrations help chemicals suppliers position themselves along several nodes in the value chain and capture margins at more than one point.

Growth Opportunities in the Phytochemicals Market in Sub-Saharan Africa, 2016 is part of Frost & Sullivan’s Future of Health, Beauty and Packaging Growth Partnership Subscription. The market analysis focuses on the phytoingredients used in personal care products, such as skin lightening, moisturiser, UV-absorbers, antimicrobials and antibacterial, exfoliators and anti-aging formulations.

Click here for complimentary access to more information on this analysis and to register for a Growth Strategy Dialogue, a free interactive briefing with Frost & Sullivan’s thought leaders.

Operating in a fledgling market, phytochemical manufacturers have to invest substantially in technology, consumer research and advertising. The long wait to obtain and maintain bio prospecting licenses often deters investors, as do the lack of homogeneity and efficacy in chemicals, and the high costs of processing phytochemicals. Entrants need to sign partnerships with diverse companies in the chemicals ecosystem to quickly establish themselves.

Collaborations with chemicals companies are critical because home and personal care companies purchase chemicals from global suppliers that manufacture or source their chemicals overseas. This increases the costs for consumer goods companies; however, the lack of local participants that meet their quality standards as well as the lower retail prices in the region make it difficult for them to expand or survive. The entry of international chemical companies with greater technical abilities is set to change the competitive landscape.

“There is huge potential waiting to be tapped into in unexplored ingredients and in customer bases beyond the traditional markets of South Africa, Kenya and Nigeria,” noted Nyambayo. “The development of diverse product portfolios tailored for the SSA population, focusing not just on women but on men as well, will widen the customer pool. Phytochemical manufacturers can further broaden their target market by employing wholesome manufacturing, agricultural and clinical practices, and adhering to ethical sourcing to achieve international standards.”

About Frost & Sullivan
Frost & Sullivan (frost.com), the Growth Partnership Company, works in collaboration with clients to leverage visionary innovation that addresses the global challenges and related growth opportunities that will make or break today's market participants. For more than 50 years, we have been developing growth strategies for the global 1000, emerging businesses, the public sector and the investment community. Contact us: Start the discussion

Growth Opportunities in the Phytochemicals Market in Sub-Saharan Africa, 2016 - MCFA-39

 
 
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Consumer Demand for Bio-based Personal Care Products Increases Phytochemical Production Finds Frost & Sullivan

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