The key word on everyone's lips - Innovation
dominate amidst all the new product launches, trend surveys and
general hype. That word was innovation and it is something that is
injecting renewed growth within all sectors of the industry.
A series of marketing conferences given at the event each lifted the lid on different aspects of the industry - how it is evolving, key growth markets and key demographic trends.
But none of them failed to stress the importance of innovation, particularly in the developed markets where growth is weaker and interest in functional and effictive products is really in demand.
In particular, a presentation by Gillian Morris, Industry Manager, Chemicals and Materials of Kline & Company, chose 'Innovation in personal care' as the title of her presentation.
Morris emphasised how consumers are looking for personal care products that really work, which is the chief driving force in the demand. In turn, she pointed out that innovation is now changing raw materials, with ingredients being developed, in particular on the ingredients side, where functionality has become a key issue.
Morris pointed out how finished product companies are craving new technologies, which means that suppliers are having to invest heavily in research and development, but is equally providing them with lots of opportunities.
The results of this drive are clear to see. Just walk into any shop retailing personal care products and the choice is unbelievable. Whereas only 15 years ago hair care revolved around products for dry, greasy or normal hair, now there is a product for every hair 'issue'.
Ingredients has been one of the biggest benefactors of the increasing interest in personal care products that are really effective. Morris pointed out that in particular manufacturers of silicones, delivery systems of every kind, active ingredients, peptides as well as botanicals and natural ingredients have been the major driving force in this area.
Euromonitor's Claire Briney pointed to the fact that, although overall growth is still strong in the $254 billion global cosmetic and toiletry market, it has slowed in recent years. She pointed to the fact that in particular growth in the highly developed US and Western European markets has slowed.
But Briney pointed out the fact that in these markets 'micro segmentation' is leading to further growth, as companies increasingly launch products with higher levels of active ingredients and functionality.
This is particularly true of the hair care segment, where products have been launched with UV screens, anti-ageing, curling and straightening functionality.
Likewise Briney also pointed how packaging innovation is also helping to drive the market, with single serve packaging, increasingly ergonomic designs and innovations in closures helping to drive the market.
This micro segmentation in the developed markets, combined with strong growth in the developing markets should see annual growth top 3.7 per cent, leading the value of the market to exceed $300 billion by 2010.
The drive for innovation is presenting a problem though. The constant search for new and improved technologies is stretching many research and development facilities to their limits.
And with the industry living under the pressure of getting products to market as fast as possible, that is leaving many individuals in this area working around the clock.
