The cosmetics and personal care market is a bright spot for many chemical companies during the recession. Univar Personal, Gelest and Rhodia are among the firms that have indicated continuing demand for cosmetic and personal care products and ingredients. However, customers are switching to more cost-effective brands and products. To continue to attract customers and to be able to increase prices, companies are investing in innovation and marketing. Market research firm Kline reports that last year leading marketers of personal care products spent 53% of revenues on marketing and 7% on other expenses including R&D. According to Euromonitor International, the cosmetics and toiletries market grew about 5% last year, the same as 2007, due mostly to demand for skin and facial care products. Chemical consultants Neil A. Burns expects flat volumes this year. One of the faster growing sectors is natural personal care. Kline estimates 2008 sales of natural personal care products will grow 19% in the US to more than $2 billion and will grow 15% in Europe to around $3 billion.

Source: ICIS