Fenchem bids to crack cosmetics sector

Chinese food ingredients supplier Fenchem is branching out into the cosmetics sector for the first time.

The Nanjing-based company has launched a cosmetic grade version of its HyaMax-branded sodium hyaluronate, which is said to hydrate tissues and smooth and soften the skin, making it suitable for anti-ageing applications.

The market for cosmetics in Asia is vibrant. Total sales of cosmetics and toiletries in the region stood at $71 billion last year, compared with $56 billion in 2002, up 28% over the period, according to Euromonitor.

Last year, sales rose by 12% year-on-year in India and China, by 11% in Indonesia and by 6% in Malaysia.

Smaller markets such as Vietnam and Thailand also showed solid growth, improving by 9% and 8% respectively last year. All this compared favourably to total global growth of 6%.

Driving this performance was macroeconomic growth which had led to rising incomes and the development of the market by multinational operators, said Euromonitor. Other factors more particular to the region had also helped develop sales. Vietnam, China and India, for example, had all seen values for cosmetics and toiletries stimulated by ongoing urbanisation in the country, as rural consumers moved to urban areas in search of work.

Fenchem, which established offices in the US in August 2007 and also has a European base in Norway, entered the cosmeceuticals sector last year when it began targeting some of its food ingredients, including HyaMax, ?at the "beauty from within" market.

China, Japan, India
Market Sizes - Historic - Retail Value RSP - US$ mn - Fixed 2007 Exchange Rates - Value at Current Prices
Categories Geographies 2002 2007
Cosmetics and toiletries China 8249.3 14296.3
Cosmetics and toiletries India 3183.4 4677
Cosmetics and toiletries Japan 27599.5 30500.1
Sources:
1. Cosmetics and Toiletries: Euromonitor International
©2008 Euromonitor International
Market Sizes - Historic - Retail Value RSP - US$ mn - Fixed 2007 Exchange Rates - Value at Current Prices - Period Growth
Cosmetics and toiletries 2002-07 % 2002-07 CAGR % 2002-07 Absolute
China 73.3 11.6 6047.1
India 46.9 8 1493.6
Japan 10.5 2 2900.6
Sources:
1. Cosmetics and Toiletries: Euromonitor from trade sources/national statistics
Note: Sum of sectors is greater than the market size because the four men's toiletries subsectors are included in men's grooming products as well as deodorants, skin care, bath and shower products and hair care.
©2008 Euromonitor International

©2008 Euromonitor International

Southeast Asia

Market Sizes - Historic - Retail Value RSP - US$ mn - Fixed 2007 Exchange Rates - Value at Current Prices - Period Growth

Categories Geographies 2002-07 % 2002-07 CAGR % 2002-07 Absolute
Cosmetics and toiletries Asia Pacific 27.6 5 15363.4
Cosmetics and toiletries - modelled Brunei - modelled 13.6 2.6 6.6
Cosmetics and toiletries - modelled Cambodia - modelled 69 11.1 13.6
Cosmetics and toiletries Indonesia 76.2 12 713.1
Cosmetics and toiletries - modelled Laos - modelled 69.8 11.2 7.4
Cosmetics and toiletries Malaysia 29.5 5.3 221.9
Cosmetics and toiletries - modelled Myanmar - modelled 24.6 4.5 8.5
Cosmetics and toiletries Philippines 40.3 7 534.6
Cosmetics and toiletries Singapore 33.9 6 150.9
Cosmetics and toiletries Thailand 49.8 8.4 785.4
Cosmetics and toiletries Vietnam 75.8 11.9 223
1. Cosmetics and Toiletries: Euromonitor International

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