Quest for green sustains naturals market in Western Europe
Drivers noted by the firm include the demand for bio-degradable personal care products from European consumers who are looking for a lesser environmental impact than synthetic solutions.
Strategic partnerships between specialty chemical companies and plant-based extract manufacturers analysts say, will set the trend.
“Innovation and product differentiation are key success factors in this fiercely competitive market,” says Frost & Sullivan Analyst, Aparna Balasubramanian.
“The cost associated with the procurement and processing of organic and natural raw materials into specialty ingredients is higher than that for synthetic chemical based ingredients,” she adds.
A call for unified standards as market grows
As a result of these drivers, the highly user-centric organic and naturals market will soon become a fast-growing one as the need for sustainable ingredients, such as enzymes and plant-derived actives is fuelled.
Exploring novel sources, including oleochemicals, to develop specialty ingredients will also enable product manufacturers to keep up with consumer requirements and achieve an edge over the competition.
However; analysts say the lack of common unified standards is still leading to end-user confusion, which will ultimately affect market development, and needs to be rectified.
Although certifying bodies such as Ecocert are well-recognised across Europe, regional certifications find better acceptance.
..This in turn affects supply chains
This poses a challenge for producers that must comply with various certification rules for marketing products in different countries. “To overcome cost restraints, employing lean manufacturing and price optimisation will be vital,” says F&S VP Shomik Majumdar.
“As a multitude of suppliers scramble to expand their share in the market, strategic partnerships and backward integration of specialty chemical companies with plant-based extract manufacturers will also simplify supply chain difficulties and enhance product lines,” he explains.
