Detergents Markets and Trends

Transcription

1 Detergents Markets and Trends DuPont Industrial Biosciences Sept. 7 th ; 2013 Copyright 2013 DuPont. All rights reserved. 1

2 Detergents Markets and Trends - Agenda Historic Developments of detergent ingredients and format Market developments»retail value»formats India consumer study Consumer market trends Industry mega challenges Solutions to the challenges Conclusions and What is Next? Copyright 2013 DuPont. All rights reserved. 2

3 Detergents: Historic development of ingredients and format : Soap making as a craft 1916 First synthetic detergent 1791 Nicholas Leblanc patents process to Soda Ash 1850 Ernest Solvay: Development of ammonia process 1914 Otto Rohm: First introduction of enzymes 1946 Introduction of phosphates: built detergents. 1950s First introduction on optical brighteners 1956 First liquid detergents (USA) 1959 Introduction of Bio-40, containing protease. 1960s First large scale use of enzymes in powder detergents. 1970s Softeners in detergents 1987 Genuine compact powder 1986 Non-phosphate detergents Sources: Cleaning institute, Wikipedia, detergent manufacturers 1998 First Unit dose formats (UK) 2008 Genuine compact liquids on market What s Next? Copyright 2013 DuPont. All rights reserved.

4 Retail Value Forecasts Detergent Formats HDD market growth roughly on par with HDL growth, but: Growth of HDL in all geographies, but strongest in North America. Growth of HDD focussed on Latin America, CEE and Asia Pacific, with decline in North America. Tablet format remains a (European) niche market for laundry. Enzyme inclusion in detergents rising: Western Europe (95%) Eastern Europe (65%) North America (70%) Latin America (40%) Asia Pacific (35%) Source Euromonitor Copyright 2013 DuPont. All rights reserved.

5 Laundry market growth driver Machine penetration versus disposable income Machine penetration: - Wealth and machine penetration are correlated... - Machine penetration slows down above ~ 75% - Current growth areas are: - China. - South Africa. - Eastern European countries. - Source: Euromonitor International, 2009 Copyright 2013 DuPont. All rights reserved. 5

6 FOCUS ON INDIA* India Laundry Consumer Study * Study commissioned by DuPont Copyright 2013 DuPont. All rights reserved. 6

7 Sales of Detergents by Category Copyright 2013 DuPont. All rights reserved. 7

8 WASHING MACHINE OWNERSHIP BY HOUSEHOLD (URBAN VS RURAL) 8.8% OF ALL INDIAN HOUSEHOLDS OWN A WASHING MACHINE 27.5% OWN A WASHING MACHINE OF ALL URBAN HOUSEHOLDS Larger cities tend to be more prosperous and have a higher penetration of washing machines but 'Urban India' accounts for only 33% of the population. 0.6% OF ALL RURAL HOUSEHOLDS OWN A WASHING MACHINE Copyright 2012 DuPont. All rights reserved. 8

9 Consumer Macro-Trends Copyright 2013 DuPont. All rights reserved. Source DuPont 9

10 Macro consumer trends driving the cleaning industry INSPIRING EXPERIENCES How do you stimulate consumers in a low interest category? CLEAN AND GREEN Consumers are coming to expect green benefits as standard THE NEW VALUE EQUATION How can you meet different consumer expectations of value? CONVENIENCE IS KING Convenience is becoming more important for consumers and retailers 10

11 THE NEW VALUE EQUATION BENEFITS Growth of private label Cost-competitive formulations Emerging middle class in D&E countries Reduced consumption of water and energy CHALLENGES REMAIN Lower cost (price & dosage) Multi-functional ingredients that work across stain spectrum and fabric types: no pre-wash or additional washing (hand or machine) Water quality differences in different geographies Less energy and water use Copyright 2013 DuPont. All rights reserved. 11

12 CONVENIENCE IS KING of US laundry consumers look for products which are the easiest and most convenient to use* BENEFITS Easy dosing Reduced washing time Shorter cycle Anti-wrinkle benefits Don t have to separate laundry (based on color/whites or wash temperature) CHALLENGES REMAIN Unit dose film material and formulation challenges Multiple dosing inside machine ingredients that can sustain temperature cycling *From the Household Sustainability Index Study, 2011 Copyright 2013 DuPont. All rights reserved. 12

13 GREEN WITHOUT THE PREMIUM of the Chinese industry experts believe that Asian consumers rank green issues very or quite highly. BENEFITS Bio-based materials equal/better performance and competitive cost Compaction Low temp washing Low water/easy rinse Shorter cycle Eco-packaging CHALLENGES REMAIN Surfactants and certain enzymes (lipase) to work at low temps Bio-based materials other than enzymes and conventional oleo-chemicals still a long way from commercialization Formulation challenges in compaction and super-concentrated formats Soil-release polymers that work on different types of fabrics Consumer perception (e.g. low temp wash vs. hygiene) Anti-bacterial *AOSDAC 2011 sustainability survey results: A different angle (part 3) Copyright 2013 DuPont. All rights reserved. 13

14 INSPIRING EXPERIENCES BENEFITS Feel, look and smell of laundry Secondary benefits from washing (i.e. stain resistance) Packaging attractiveness and perception of senses linked to visual CHALLENGES REMAIN Fabric care agents that work with different types of fabrics (cotton, synthetics, blends) Perfume stability and delivery Multi-cycle washing: color and fabric maintenance Whiteness Malodor control Copyright 2013 DuPont. All rights reserved. 14

15 Industry Mega-Challenges Copyright 2013 DuPont. All rights reserved. 15

16 Looking forward, our mega challenge is the exploitation of natural resources The over-exploitation of natural resources is already straining the sustainability of the Earth s ecosystems. The Millennium Assessment project estimates that 60% of the Earth s 24 main ecosystems that support human societies including rivers, lakes, ocean fisheries, forests, air quality and crop systems are being degraded or used unsustainably (MEA, 2005) Water is climbing in the list of environmental concerns. As a matter of fact, population living in areas under water stress will keep growing as shown below (in millions of people ) % of world population 2030 % of world population Total % change ( ) Severe % % 38% Medium % % 72% Low % % 4% No % % 4% Total % % 27% Source OECD, 2008

17 The solutions to the challenges A crucial component, as with previous crises where humanity has confronted the threat of resource restraints is technological innovation that creates new resources and allow efficient use of existing resources Biotechnology can provide a stream of such technological innovations. Biotechnology is now leaving its infancy and enable more sustainable cleaning. As a matter of evidence, the cost of human genome sequencing is going down from USD 10 million in 2004 to USD in a near future

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