Transcript Slide 1

Trends in the Global
Detergent Industry
by Novozymes
17/07/2015
AGENDA
 Trends in the Global Detergent Industry
 Global Mega Trends
 Mega Trends Define Detergent Industry Trends
 Novozymes Solutions to Accommodate Industry Trends
Global Mega Trends Impact Industry Players
- and Thereby Define Detergent Industry Trends
Ingredient
Suppliers
Detergent
Manufacturers
Consumers
Detergent
Industry
Trends
4 Mega Trends Impact the Detergent Industry
1
2
3
Global
warming
High energy
prices
Changes in
life style
4
Growing
emerging
economy
Global Warming Causes Increased Focus on the Environment
– Also in the Detergent Industry
1
Impact on the Detergent Industry
 Demand for more sustainable
detergent solutions
 Demand for alternative to
chemicals
 A need for solutions to remove soil
on clothes caused by pollution
 Demand for ingredients which can
be used to support “green” claims
High Energy Prices Put Pressure on the Industry to Come up
with New Alternative Solutions
2
Impact on the Detergent Industry
 Demand for less energy consuming
solutions
 Demand for non-petrochemical based
ingredients
 Demand for cold water wash
People Have Less Time and Higher Demands Regarding the
Washing Process – a Big Challenge for the Industry
3
Impact on the Detergent Industry
 Demand for shorter and faster wash
cycles
 Demand for easier washing with less
pre- and post treatment
 Willingness to pay for convenience
 Need for removal of tougher stains
from processed food
 Demand for innovativeness and change
Developing Markets are Growing Substantially
- Along With New Challenges for the Detergent Industry
4
Impact on the Detergent Industry
 Existing players need to be
innovative to keep new low cost
competitors at bay
 Demand for new solutions meeting
the needs of emerging market
consumers
Growing
emerging
economy
Top 10 Detergent Industry Trends
- Defined by Mega Trends...
1. Increase in sustainable ”green claims”
2. Both consumers and soapers want liquids
3. Washing at lower temperatures
4. Raw material prices are increasing
5. Co-branding used more frequently
6. Pre-spotters and gimmicks are popular
7. Whitening of clothes is important
8. Compact detergents continue to increase
9. Anti-allergy products increasingly popular
10. Demand for higher quality products
1. Increase in Sustainable ”Green Claims”
• ”Natural” claims used 5 times more today than in year 2000
Drivers:
•Global warming
•Increased focus on
the environment
(Source: Mintel)
2. Both Consumers and Soapers Want Liquids
- In 10-20 years, liquids will be larger than powders
% of Global Laundry Market Value
100%
Other det.
(23  26%)
80%
Drivers:
Drivers:
•Consumer
•High
energy
request
prices
for
convenience
•Increased focus
•Increased raw
on the
material prices
environment
create a need for
cost savings
60%
Powders
(62  50%)
40%
20%
Liquids
(15  24%)
0%
1997
Source: Euromonitor
1998
1999
2000
2001
2002
2003
2004
2005
2006
2. Europe and US Drive the Liquid Development
- but the trend will spill over into other regions
% of laundry market value
100
80
23
Powder
77
Liquids
49
66
60
82
40
51
20
34
18
0
1997
2006
Western Europe
Source: Euromonitor
1997
2006
North America
3. Consumers Want Savings on the Energy Bill
- The Number of Cold Water Claims Increase
Drivers:
•High energy prices
•Increased focus on
the environment
3. Wash Temperatures Decreasing Across the World
- European example:
% of washes, Denmark
80
% of washes, Germany
80
59
60
60
52
27
20
12
24
23
12
25
31
35
31
20
11
10
6
6
0
0
30
80
38
40
40
40
60
30
90
% of washes, Sweden
40
60
90
% of washes, UK
80
64
56
60
39
40
34
40
20
33
27
20
7
6
6
56
60
49
7
6
4
0
5
3
0
30
40
60
90
30
60
Wash temperature (ºC)
Wash temperature (ºC)
Source: SIFO, AISE, Novozymes analysis
40
1997
2006
90
4. Raw Material Prices Increasing
– Except for Enzymes
160
150
Drivers:
•High energy prices
Cost Index (1993 = 100)
140
LAS
AE
Zeolite
130
Savinase
120
Termamyl
110
100
90
80
70
1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007
Source: Colin Houston & Associates (Agglomerations Newsletter); Novozymes Analysis and estimates
5. Co-Branding Increasing In Detergents
- And in Other Industries
Drivers:
•Life style changes
•Increased brand
awareness
6. Increasing Demand for Innovation Drives the
Growth of Pre-spotters and Boosters
W. Europe - Markets for laundry and prespotters (M EUR)
Pre-spotters and
boosters
Laundry market
10000
600
Drivers:
•Life style changes –
demand for higher
efficiency, easier
laundering, better
stain removal and
innovation in
general
500
8000
400
6000
300
4000
200
2000
100
0
0
1997
Source: Euromonitor
1998
1999
2000
2001
2002
2003
2004
2005
6. Almost 4 Times the Amount of Product Introductions
in Pre-spotters and Boosters vs 5 Years Ago
# pre-spotter and booster launches in Europe
150
125
100
75
134
2005
2006
109
50
25
128
65
38
47
0
2001
Source: Mintel
2002
2003
2004
6. Example of Creative Pre-Spotters and Boosters
Stain removal sprays
Stain removal and brushes
Stain removal towels and boosters
Other stain remover types
7. Consumers Struggle to Keep Clothes White
Drivers:
•Increased amount of
air pollution
•Whiteness popular in
emerging markets
Mintel GNPD Detergent Review regarding launches in recent years:
“...whitening claim, ranks among the top three claims in the world”
8. Detergents Get Smaller
- and soapers save on cost
Drivers:
•Raw material prices
increasing creating a
need for cost savings

Most Western European and US powder detergent are
now compact

Eastern Europe has started a wave of concentrated
powders

US Wal-Mart sets restrictions on detergent volumes

A wave of liquid concentration in the US
9. Number of Anti-Allergy Product Launches Increasing due to Increased Awareness About Allergies
Hypo-allergenic launches are increasing…
# launches in Europe
50
45
40
•Increased awareness
about allergies
caused by
industrialization
37
36
Drivers:
29
30
20
10
16
8
0
2001
2.7%
Source: Mintel GNPD, www.astma-allergi.dk, Novozymes analysis
2002
2003
4.2%
5.9%
2004
2005
2006
11.8%
7.8%
9.4%
% Of total launches
9. Example of the Large Variety of
Sensitivity Products and Claims
10. Demand for Higher Quality and More Efficient Products
- the Use of Enzymes is now wide spread, also in emerging markets
%
Examples of enzyme penetration around the world
100
90
80
70
60
50
Non-enzymatic
93%
40
Enzymatic
75%
69%
30
65%
61%
59%
50%
20
10
0
Western
Europe
Novozyme estimate 2007
Eastern
Europe
USA
Syria
South
Africa
Tanzania
Pakistan
10. Soapers Signal ”High Quality” by Using Enzyme Claims on
the package
Drivers:
•Life style with
tougher stains from
processed food
•Higher demands for
efficiency in washing
process
Novozymes Already Launched Several Solutions to
Accomodate Industry Trends
Novozymes solutions:
Enzymes for:
• Shorter wash cycles
• Cold water washing (to reduce energy consumption)
• Removal of tough stains from processed food
• Whitening of clothes caused by air pollution
• Replacing of harsh chemicals in wash processes
• Substitution of ingredients based on petro-chemicals
• Easier and faster laundering with less pre-treatment
Topic for Discussion...
How does the global trends affect
your business?
- and what can Novozymes do to
help you?
Thank
you!