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

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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

2

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.

4

Innovation and achieving product performance comparable to synthetic ingredients are the key success factors in the market.

5

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