analysis of organic and natural ingredients market643...total organic and natural ingredients...
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Analysis of Organic and Natural Ingredients Market in
Western Europe for Home and Personal Care Quest for a Green Economy Drives Growth in the Emerging Market
M978-39
December 2013
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Executive Summary
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Executive Summary
• The Western European market for organic and natural ingredients for home and personal care was estimated to be worth $659.2 million in 2012. The market size is expected to be approximately $839.9 million in 2017, growing at a CAGR of 5%.
• The market is analyzed in 2 segments—home care ingredients and personal care ingredients.
• The home care ingredients segment covers surfactants, fabric enhancers, enzymes, rheology modifiers, and disinfectants and biocides. Personal care ingredients segment covers active ingredients under sub segments – anti-aging, moisturizing, exfoliating, anti-microbial, and UV filters.
• The personal care ingredients segment is driven by growing demand for cosmetic products and the preference for natural ingredients.
• Key competitive factors for market growth are:
o Product differentiation
o Competitive pricing
o Superior product quality and technical performance,
Source: Frost & Sullivan
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• Single and multi-level distributors constitute the predominant sales channel for most segments.
• Sustainability, and independence from fluctuating oil prices are the main incentives for customers to shift from synthetic to organic and natural ingredients.
• The surfactants and enzyme sub segments of home care, and anti-aging and moisturizing sub segments of personal care are expected to exhibit the highest growth in future.
Executive Summary (continued)
Source: Frost & Sullivan
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Executive Summary—Market Engineering Measurements
Total Organic and Natural Ingredients Market: Western Europe, 2012
For a tabular version click here. Stable Increasing Decreasing
Market Stage
Growth
Market Revenue
$659.2 M
(2012)
Compound
Annual Growth
Rate
5.0%
(CAGR: 2012–2017)
Base Year
Market Growth
Rate
3.8%
Customer Price
Sensitivity
5
(scale: 1 [Low] to 10 [High])
Degree of
Technical
Change
7
(scale: 1 [Low] to 10 [High])
Market Size for
Last Year of
Study Period
$839.9 M
(2017)
Market Overview
Note: All figures are rounded. The base year is 2012. Source: Frost & Sullivan
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Executive Summary—CEO’s Perspective
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The trend towards natural ingredients is higher in personal care, while home care focuses on sustainability and biodegradability.
3
Intense mergers and acquisitions (M&A) activities between specialty chemical, oleochemical and natural extract companies impact market dynamics.
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Innovation and achieving product performance comparable to synthetic ingredients are the key success factors in the market.
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the market. Product differentiation and carbon footprint reduction are the key incentives for adoption of organic and natural ingredients in home care and personal care formulations.
1 Increasing green awareness and environment consciousness drive demand for organic and natural ingredients.
Source: Frost & Sullivan