Chemical-free Floor Care: A Myth or the Near Future?

Tennant T300
Tennant T300

For many years, floor care machinery and cleaning chemicals have been complementary goods, together dealing with cleaning issues and adding value for end users. However, some suppliers have ­introduced new machinery that do not require chemicals to effectively perform cleaning tasks. To understand this market trend and find out whether it represents a threat to cleaning chemicals suppliers, we interviewed Laura Mahecha, Kline’s Manager of Industrial & Institutional (I&I) Cleaning Products Practice. (more…)

Free Webinar – OTC Cost Structures Shift as the Face of the Industry Changes

Free Webinar - OTC Cost Structures Shift as the Face of the Industry Changes
Free Webinar – OTC Cost Structures Shift as the Face of the Industry Changes

Industry consolidation, major new brand launches, and a series of mergers and acquisitions in the U.S. OTC market have caused OTC cost structures to shift both in the near- and long-term. The costs associated with marketing, sales, and promotions of OTC brands tend to have wider swings from year to year, offset by administrative and R&D costs that tend to be more stable over time. (more…)

What is Supporting Strong Growth of the U.S. OTC Market?

OTC Market
OTC Market

Driven by the market return of popular OTC brands from Johnson & Johnson and GlaxoSmithKline, as well as the success of several Rx-to-OTC switch brands, the U.S. OTC market increases by a solid 4% in 2015, reveals our recently published Nonprescription Drugs USA report.

In October 2015, Johnson & Johnson announced that the FDA approved the reopening of the Fort Washington, PA, plant that had been shuttered since May  2010. Johnson & Johnson’s key brands, including Tylenol Arthritis Pain and Tylenol 8 Hour, are re-launched in 2015, supporting overall sales growth of the OTC drugs market. Steady distribution of Zyrtec and other key brands from the market leader, Johnson & Johnson, help propel sales in the OTC market. (more…)

Six Key Things to Know about the Natural Personal Care Market

Natural Personal Care
Natural Personal Care

We have seen the natural and organic personal care market shift from a niche industry to a force of power over time, with naturals still gaining ground. As we continue to explore this market for the next edition of our Natural Personal Care Global Series report, early findings reveal another green year backed by an increasing shift of awareness from consumers towards choosing more natural products. The natural personal care market outpaces the growth of the cosmetics and toiletries market in the United States, with an estimated 9% growth in 2016 compared to the about 4% in general market in 2015. What’s behind this robust growth? (more…)

The Changing Role of Building Service Contractors in U.S. Janitorial and Housekeeping Cleaning Products

Janitorial and Housekeeping Cleaning Products
Janitorial and Housekeeping Cleaning Products

There are over 54,000 independent building service contractors (BSCs) that clean and maintain commercial, industrial, and institutional facilities in the United States. Accounting for over 30% of the market’s sales, contract cleaners are the largest end users of janitorial and housekeeping cleaning products in the country.

Contractors have increased penetration and revenues; however, cutbacks and changes in floor care programs have affected this leading segment, in terms of chemical purchases. End users are operating under tight budget constraints with a focus on margins, resulting in resistance to price increases and reduced frequency of stripping and finishing floors.
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Rivalry in the Chinese Market for Synthetic Latex Polymers will Continue to Intensify

Synthetic Latex Polymers
Synthetic Latex Polymers

Accounting for almost 25% of the global market share, China is the second largest consumer of synthetic latex polymers after North America, according to the just-published China report from Kline’s continuous program Synthetic Latex Polymers: Global Business Analysis and Opportunities. A considerably higher GDP growth compared to the developed world, low industry regulations, and stability in raw material prices appeals to multinational corporations and domestic suppliers, increasing market rivalry dramatically.
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Kline’s Index of Base Stock Production and Re-refining Cash Margins Indicates Improved Profitability over the Past Three Months

lubricant basestocks, Brent Crude Oil, base oils, Base Stock Margin Index
Base Stock Margin Index

In January 2014, Kline & Company, a worldwide consulting and research firm serving needs of organizations in the lubricants and base stocks industry, introduced its monthly Base Stock Margin Index, a characterization of recent cash margin contributions in the U.S. base oil market over the past 24 months.

The Index estimates cash margin contributions associated with U.S. Group II base stock production. It simulates EBITDA before the deduction of corporate SG&A expenses for typical VGO-based virgin base stock plants and RFO-based re-refineries. A more detailed description of the Margin Index can be found in the January 2014 release.

“Since the last release of the Margin Index, Brent crude oil prices have increased by one-third,” noted Ian Moncrieff, Vice President of Kline’s Energy Practice. “Brent crude oil increased from an average of $33.70/Bbl in quarter one, to $45.52/Bbl in quarter two, and then held steady through the first two months of quarter three. While VGO feedstock price increases for conventional Group II refiners were similar to those for Brent (i.e., VGO cracks remained stable), re-refiners experienced a smaller increase in UMO feed prices from quarter one to quarter two, as used oil collector/aggregators were able to limit reductions in pay-for-oil fees required of used oil generators as heavy fuel oil prices increased.” (more…)

Free Webinar – Spotlight on Pain Management Tools and Devices

Free Webinar: Spotlight on Pain Management Tools and Devices
Free Webinar: Spotlight on Pain Management Tools and Devices

The pain management devices market is growing at a healthy pace due to the introduction of several new products, which have made these devices more accessible to consumers. Analgesic marketers in the United States, such as Chattem and Bayer, have expanded into this segment with strong marketing resources and shelf space in mainstream channels.

During this live webinar, Kline’s Karen Doskow and Sai Swaroop will share insights from our newly published Pain Management Devices: Global Market Analysis and Opportunities report series. The session will take place on Thursday, September 22, 2016, at 10:00 AM EDT | 16:00 PM CET. Register here (more…)

Professional Hair Care Gets the Royal Treatment

Salon Hair Care Global Series
Salon Hair Care Global Series

A new generation of treatment products has propelled the salon hair care industry to hit a five-year high in terms of sales growth in 2015. Treatment products was the only product type to register a double-digit gain for the year, with growth nearly four times the industry average. Driven not only by bond multipliers—a brand new sub-category created singlehandedly by Olaplex that was quickly and fiercely replicated by countless others—but also by many deep nourishing treatments and multi-benefit products, as more emphasis is placed on healthier hair and scalps.
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Poised for Solid Growth, Probiotics Appeal to a Variety of Consumers and Health Issues

Probiotics
Probiotics

Over the past several years, the U.S. market for probiotics has emerged as one of the fastest growing consumer healthcare markets, consistently achieving double-digit sales growth. In 2015, according to our recently published Nonprescription Drugs USA and Natural OTCs: Impact of Non-drug Products on the U.S. OTC Market studies, the total market for probiotics is estimated at over $530 million, up above 15% since 2014. It is not uncommon for the category and some brands to achieve sales growth of 15% to 25% on a year-over-year basis. These high growth rates have been sustained by increased consumer awareness and more chronic use as consumers see the value in taking probiotics to increase their immunity rather than just help treat episodic digestive ailments. Furthermore, compared to more traditional digestive products, probiotics have relatively high retail price points, which helps drive overall sales for this market segment. (more…)