Thought Leadership

Middle East set to become global petrochemicals hub
Published in ICIS ( August 2010 )
Written by   Glyn Johnson
Description:  Recent years have begun to see a shift in what is considered a petrochemical hub, away from operations and production sites, towards locations that hold feedstock and logistical advantage. With its advantaged feedstocks and access to growth markets, the Middle East will become the petrochemical sector's core. However, there are also opportunities for success elsewhere, as the dynamic position of what is and is not an economically viable feedstock changes.

Natural Personal Care Goes Sustainable
Published in Pure Health Magazine ( August 2010 )
Written by   Nancy Mills
Description:  Consumers are becoming more sophisticated in terms of the ingredients they seek in their products. However, this trend has yet to manifest itself as significant growth in the sales figures of natural raw materials. The advancement of natural ingredients is hindered by their lower price:performance ratio compared to synthetic alternatives. One exception is the market for natural surfactants which is growing globally by nearly 4%, while synthetic surfactants exhibit a growth of less than 2%.

Selling Service and Product Quality to the Marine Market
Published in Lubes-n-Greases ( July 2010 )
Written by   George Morvey
Description:  Recent analysis by Kline found price the most important differentiator driving purchase decisions in Europe’s marine engine oil market. While pricing is driven by crude oil costs and other external factors, a strong quality and service model may allow suppliers to fully control their competitive positioning.

You Say Natural, I Say Sustainable...
Published in Happi ( July 2010 )
Written by   Nancy Mills
Description:  There is somewhat of a disconnection between the degree to which companies sell truly natural products and the degree to which these same companies deploy sustainable business practices. Furthermore, there is currently incongruence between brand sales in the naturals market and the amount of truly natural ingredients in the formulations. However, Kline asserts that these principles must come into alignment for long-term success.

Saudi Arabia: Ripe for Express Lubes
Published in Lubes-n-Greases ( May 2010 )
Written by   Scott Gould
Description:  Within the do-it-for-me Saudi Arabia market, there are puncture shops, the traditional channel, which account for 85 percent of the DIFM finished lube market. Next are dealerships – along with independent workshops – which control approximately 10 percent of the country’s DIFM market. Last are express lubes, which currently account for less than 5 percent.While currently a small channel, express lubes have high growth potential,for several reasons...

Brands Make A Comeback; OTC Market Resilient During Recession
Published in OTC PERSPECTIVES ( April 2010 )
Written by   Laura Mahecha
Description:  The U.S. OTC market is often a challenging market to make predictions about. There are so many instances where companies, brands, consumers, and even regulators buck trends that there are often reasons to look at things on a case-bycase basis. However, when it came to predicting the impact the economic recession of 2008-2009 would have on the industry, Kline turned to our vast historical data to make predictions.

Personal care markets expect a swift recovery from recession; Recession respite
Published in ICIS Chemical Business, Consultant's Corner ( April 2010 )
Written by   Gillian Morris
Description:  PERSONAL CARE remains a very attractive sector for the chemical industry. Global sales of finished products are $200bn (Eur150bn) at the manufacturers' level. From the chemical standpoint, specialties comprise 40% of the $10bn and $15bn global ingredients market. Thought by many to be relatively insensitive to economic cycles, 2009 proved to be a "wobbly" year for some personal-care ingredient firms. The key question for many industry observers and participants is: "When will the industry fully recover?" One thing's for sure:....

Step Back to Look Ahead - Not So Traditional Innovation Methods
Published in Happi ( April 2010 )
Written by   Nancy Mills
Description:  Breakthrough innovations often come about at the intersection of fields - such as the bicycle helmet that was designed after studying how the skull protects the brain. And this is where organizational innovation can come into play. When we as experts find a way to get out of our cocoons of entrained thinking and are able to see problems or situations in a new light, we can have those "ah-ha" moments.

Cosmetics and Toiletries: Emerging from Recession
Published in Cosmetics International ( April 2010 )
Written by   Anna Ibbotson
Description:  The cosmetics and toiletries market was a casualty of the recession but proved yet again to be more recession-proof than other industries such as automotive and construction. Besides the naturals segment as an option to reinvigorate the portfolio, other strategies could be adopted to expand geographically and maximize strong growth continuing within emerging countries such as the BRIC markets.

Looking Beyond Traditional Techniques to Nurture the Innovation Process
Published in Beauty Packaging ( March 2010 )
Written by   Nancy Mills
Description:  The personal care market is clearly becoming increasingly complex and sophisticated. Problems have deepened with the “new normal” in the market. Managers are called on to make sense of a wide range of factors to decide what products to develop, in alignment with what consumers really want.

Are Synthetics on the Horizon in the Middle East?
Published in Lubes-n-Greases ( March 2010 )
Written by   Geeta Agashe
Description:  Home to the world's largest crude oil reserves, the Middle East could be poised for a surge in demand for synthetic lubricants over the next 10 years.With a growing car population, skyrocketing supply of Group III base oils and increasing demand for higher lube performance the question becomes not if synthetics will grow in the region, but just how long it will take before the trend catches on.

Break the Bric
Published in ICIS ( February 2010 )
Written by   Milind Phadke
Description:  The impact of the recession on the BRIC countries has varied in both magnitude and duration. While Russia essentially collapsed, China and India barely slowed down. Brazil, like Russia, went into a recession, but the contraction was much milder in comparison with the latter…

Post-Recession Outlook - Crisis Changed Industry Landscape
Published in Lubes'n'Greases ( January 2010 )
Written by   Milind Phadke
Description:  The global lubricants industry is recovering, and Kline projects that global consumption will return to 2007 levels around 2012. However, the patterns of consumption are changing significantly due to the recession. Particularly, the recession has accelerated the shift in lubricant consumption from North America and Europe to Asia. The emerging structure of the global market will pose a num­ber of challenges to those in the lubricant, base stock and additive industries.

Blurring Boundaries
Published in CPC Ingredients ( October 2009 )
Written by   Anna Ibbotson
Description:  In the last 15 years, the pharmaceutical, personal care, and food industries have converged, giving birth to new industry segments: cosmeceuticals, nutraceuticals, and nutricosmetics. Knowing more about these markets can help smart brands take advantage of growing opportunities in these areas.

RUSSIA: The Jewel of the European Personal Care Market
Published in HBA ( September 2009 )
Written by   Carrie Mellage
Description:  The Russian C&T market reached $8.5 billion at the manufacturers level in 2008. Its C&T usage is similar to the world, but skews slightly stronger toward basic toiletries and oral care. Multinationals are increasing their presence in Russia, including in-country manufacturing. As competition in both Moscow and Saint Petersburg intensifies, both specialty retail networks and manufacturers are seeing new growth opportunities open up over the coming five years in vast and often untapped regions.

Beauty Retailing in the BRIC Markets
Published in HBA ( September 2009 )
Written by   Carrie Mellage
Description:  Mass merchandisers is the leading channel of distribution for personal care on a global basis, followed by drug outlets/pharmacies. In Brazil, food outlets is the leading channel with direct sales closing in, while department stores are noticeably absent. In Russia, it is direct and specialty sales that lead the way, and in India, independent, owner-operated kiranas remain the mainstay of the cosmetics and toiletries market. General stores and mass merchandisers are the largest channels in China.

Will U.A.E Recover?
Published in Lubes "n" Greases ( September 2009 )
Written by   Scott Gould
Description:  Since its inception in 1971, the United Arab Emirates has established itself as a key business hub in the Middle East. However, with the current recession, there is uncertainty as to whether or not the country will be able to return to the prosperity that preceded the downturn, and this leads in turn to questions about the future of its burgeoning lubricant industry. We believe the U.A.E. will rebound from the recession and that it will maintain its position as a multi-regional hub in the lubricants industry.

Opportunities in the Indian Biocides Market
Published in Chemistry Today (See page IV) ( August 2009 )
Written by   Anna Ibbotson
Description:  The Indian chemical industry has benefited from strong growth in recent years, indeed since 2004 GDP growth has exceeded 9 percent. However, India does not remain isolated from the global financial crisis with GDP growth during the last quarter of 2008 dropping to 5.3 percent. In line with the increased industrialization of India the biocides industry has benefited, and has experienced nearly double digit average growth in recent years. Suppliers into the biocides industry are expected to continue to enjoy growth of between 5 percent to around 10 percent until 2012, dependent upon the biocide product and the application the biocide is being used within, despite the global economic downturn.

Mega Mergers Ahead for Downstream Brand Owners?
Published in In-Cosmetics ( July 2009 )
Written by   Gillian Morris
Description:  With the global personal care industry projected to grow at 3.5% per year to reach manufacturers sales of $233 billion by 2013, acquisitions will indeed serve a key role in helping brand owners realize continued profitable growth. With Russia poised to become the number one European market, and China or Brazil likely to occupy the number two market in the world by ousting Japan, marketers clearly need to further secure their foothold in these key markets. The M&A pace for personal-care ingredients overall could pick up during the latter half of 2009 and throughout 2010. It is weathering the recession and uncertain economic environment better than other chemical sectors like construction, coatings, and automotive.

Additives on Divergent Paths
Published in Lubes "n" Greases ( July 2009 )
Written by   Milind Phadke
Description:  It is a well-accepted article of faith that Western Europe will see a significant decline in passenger car motor oil consumption. As a result, consumption of lubricant additives used to blend PCMO is also expected to decline. However, there are a few bright spots for additive companies due to two key factors: increasing penetration of higher quality oils and rising usage of biodiesel. Kline recently conducted an analysis to gauge how demand for key additive classes will be affected through 2013 by market penetration of ACEA 2008 sequence oils and by penetration of biodiesel in overall diesel consumption. This analysis does point to the shifting emphasis of the different functional classes within the overall additive demand.

European Biocide Product Directive Causes Industry Headache
Published in ICIS ( July 2009 )
Written by   Anna Ibbotson
Description:  IN Europe, suppliers of biocides face great regulatory challenges following the introduction of the Biocide Product Directive (BPD). The aim of the BPD is to harmonize the market for biocidal products and their active substances, while providing a high level of protection for humans, animals and the environment. The responsibility for adhering to the directive lies with the producers and formulators, who must apply for authorization by submission of a dossier containing the relevant materials such as scientific studies. It is unlikely that the BPD will drive significant consolidation through further acquisitions, but more likely from smaller players simply exiting the market. The most significant impact long term is expected to be reduction in innovation due to the cost of registering new products.

Group I Deficit Looms for Africa, Middle East
Published in Lubes "n" Greases ( May 2009 )
Written by   Bill Downey
Description:  Business has been pretty good in Africa and the Middle East for marketers of lubricants formulated with API Group I base stocks. Demand for these products has been growing at a consistent rate and shows no sign of falling anytime soon. Surplus Group I stocks from Europe represent a key source of supply for the Africa and Middle East market, but several Group I refineries in Europe are being shut down or will be designated for closure in the near future. Although no Group I refineries are being shuttered in Africa or the Middle East, the only capacity being added locally is for Group III base stocks, nearly all of which is intended for export. Kline believes virtually all of the Group I supply gap will be filled by new plants in the region producing Group III.

Personal Care Companies Should Tackle Downturn with Best Business Models.
Published in ICIS ( April 2009 )
Written by   Gillian Morris
Description:  In this uncertain economy, personal care continues to be a bright spot and represents an attractive space for the chemical industry, but companies still need to get their product portfolio and business model right. Personal care offers substantial scope for innovation as brand owners across all trade classes seek innovative ingredients that enable differentiated performance label claims and/or the next personal care mega trend. 2009 is year for tough decisions. One recommendation is for companies to continue to invest in components that are critical to the success of the business and ensure that they are grounded in adding value to customers.

Branding for Industrial Lubricants
Written by   Geeta Agashe ( March 2009 )
Description:  Geeta Agashe, Kline's Vice President of the Energy Practice, discusses advantages of branding in the lubricants industry noting many firms still struggle to see its relevance, especially when it comes to industrial lubes. By not having a brand strategy, marketers are not maximizing investments that they have made in developing superior products. Kline contends that it is an efficient and effective tool that offers the benefits such as brand equity, better control and management of complex businesses, and internal consistency, and longevity.

Economic Woes May Drive Personal Care Sales Down, but Naturals Products are Well-Positioned to Weather the Storm
Published in In Cosmetics Newsletter ( January 2009 )
Written by   Karen Doskow
Description:  As consumer spending tightens, the natural personal care market is bracing for the same impending downturn that will likely affect every consumer goods market sector. But consumers' desire for safer products and concern for the environment, combined with greater mainstream availability of natural products, may continue to drive growth in this segment.

The Correct Cut
Published in Lubes-n-Greases ( January 2009 )
Written by   Luca Raffellini
Description:  Recessionary periods usually present lubricant and chemical players with the dual challenge of shrinking sales volumes and decreasing prices. This time, they may also experience margin squeezes from rising raw material costs, although there is great uncertainty about commodity prices. While the typical reaction in a downturn is to concentrate on cost reduction, in this article you can read about at least three reasons why managers should now focus on price management and the revenue side.

Yesterday, Today, Tomorrow
Published in Compoundings ( December 2008 )
Written by   Bill Downey
Description:  "It was the best time of times and the worst of times all in one year," Bill Downey summarizes year 2008 in lubricants business. Looking into year 2009 he says that the lubricants business will continue to be essential to so many sectors of the economy. To ensure the prosperity it will be important to react to basestock volatility by covering downside risk and moving focus to high value-added space.

How Chemical Companies Can Plan and Manage Investor Relations for the Market Upswing
Published in ICIS Chemical Business, Consultant's Corner ( December 2008 )
Written by   Eric Vogelsberg, Jonathan Goldhill and Timothy Gerdeman
Description:  The global financial crisis has slashed chemical and material stocks, and there is consensus that the industry has yet to feel the full brunt of a global recession. We expect headwinds in the stock market to continue into 2009. Kline & Company and StreetSmart Strategies believe that in the next several quarters, the industry will be confronted with some of the greatest commercial and financial challenges in its history. If these are not addressed, the impact on a company's performance and valuations could be severe. The question of what companies can do is a focus of this article.

Turkey is a Big and Growing Market. What's Not to Like?
Published in Lubes-n-Greases ( November 2008 )
Written by   Geeta Agashe
Description:  While Turkey's gross domestic product averaged 7.4 percent annual growth over the past five years, vehicle production in 2007 rose 11.3 percent from 2006, and the car population grew by 9 percent. This boost will fuel lubricant demand in the consumer automotive segment and offset any losses due to longer drain intervals for newer cars. Turkey's healthy economy also points to great potential in the commercial automotive and industrial lubes segment.

Home Fragrance Still Hot!
Published in GCI Magazine ( November 2008 )
Written by   Karen Doskow
Description:  Fueled by a strong sales boost in multifunctional room sprays and reed scent diffusers, the U.S. home fragrance market posted a very strong 6.2% sales gain for 2007, with total market retail sales reaching $5 billion. The latest data from Kline & Company's study, Home Fragrances 2007: U.S. Market Analysis and Opportunities, indicates the market will continue on its upward trend during the next five years, with continued innovation and the incorporation of natural/sustainable products playing an important role in the uptick through 2012.

A Bane for Engine Oils, a Boon for Marketers?
Published in Lubes-n-Greases ( September 2008 )
Written by   Milind Phadke
Description:  Although there is growing recognition in the lubricants industry that biodiesel can harm engine oils, ultimately it could be a boon for lube suppliers by helping to curtail decreases in demand in markets such as Western Europe. In this article Milind Phadke, Industry Manager in the energy practice at Kline looks at the increasing biodiesel usage and declining demand of the engine oil in Western Europe.

High Fuel Costs Hurt Lube Marketers
Published in Lubes-n-Greases ( August 2008 )
Written by   Geeta Agashe
Description:  The rise in crude oil prices coupled with a cut back on oil consumption by consumers is impacting suppliers at all points along the automotive lubricants value chain. Geeta Agashe, vice president in Kline's Energy practice evaluates the situation on today's lube market. "All in all, this threat must be looked at as an opportunity. Not doing so, according to many, may put the very survival of lubricant marketers at a risk!"

How Chemical Companies Can Manage Commoditization and Make It a Competitive Advantage
Published in ICIS Chemical Business, Consultant's Corner ( July 2008 )
Written by   Jonathan Goldhill
Description:  In this ICIS consultant's corner Jonathan Goldhill, a senior vice president with Kline, analyzes the challenges of commoditization in the specialty chemical industry, providing the companies with insights on how to identify this trend and turn it into an opportunity to gain competitive advantage. He notes that commoditization should not be viewed as a change in state from a specialty business to a commodity business, but as a counterforce that resists attempts at differentiation across a specialty/commodity continuum.

Cleaning Products are Getting Greener
Published in ICIS Chemical Business, Consultant's Corner ( June 2008 )
Written by   Bruce Boynick
Description:  Kline senior associate, Bruce Boynick, analyses a new era of sustainability in the consumer and commercial cleaning products industry. In his article, Bruce emphasizes that "Sustainable practices are about the process, not just the product ", as he discusses opportunities for cleaning product suppliers, retailers, distributors and end-users to promote environmental sustainability across the entire value chain.

Rising Crude Drives SLP Price Hikes: Competitive Strategies in an Uncertain Market
Written by   Anna Ibbotson ( June 2008 )
Description:  Kline Chemicals and Materials Manager, Anna Ibbotson discusses the various strategies undertaken by SLP suppliers feeling the squeeze of rising raw material costs. Learn how suppliers are increasing production to meet demand yet also controlling costs to maintain competitive pricing.

Global Trends for Speciality Surfactants for Personal Care Products
Published in Speciality Chemicals Magazine ( June 2008 )
Written by   Gillian Morris
Description:  Gillian Morris, a director with Kline's chemicals industry consulting practice looks at the tangled way in which "green" and "natural" are driving the market in personal care surfactants. There is a trend within both suppliers and personal care products manufacturers to become better stewards of the environment. Nothing is defined yet and the overall trend is still loose, but it seems to be coalescing around growing environmental concerns amongst consumers.
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New Chevron Plant Will Make Waves Worldwide
Published in Lubes-n-Greases ( May 2008 )
Written by   Description:  In this article Geeta Agashe and Bill Downey, vice presidents in Kline's Energy practice evaluate Chevron's anticipated construction of a new API Group II/Group III base stock plant in the US, which promises major implications for every member of the lubricant value chain around the world. Chevron's expansion strategy is clearly driven by its need to increase its internal base stock supply and its shift to a more global positioning.

Alberta, Canada could be the next petrochemical hub thanks to its oil sands
Published in ICIS Chemical Business ( May 2008 )
Written by   Fred du Plessis
Description:  Fred du Plessis, Kline senior vice president provides the insights on Canada's province potential to become a major petrochemical supplier in the coming years. Alberta's key government groups have focused on developing a value added downstream industry based on the oil sands to produce petroleum products and petrochemicals, rather than simply selling the processed oil. Kline has developed a 25 year plan for implementing an integrated network of petrochemical clusters, and has determined the most economically feasible and ecologically sensitive downstream products to manufacture at these sites.
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Historical Data Proves Lauder's Lipstick Theory More than Just Lip Service
Published in CosmeticBusiness ( April 2008 )
Written by   Carrie Mellage
Description:  Ever since Leonard Lauder first put forth his famed Lipstick Theory, economists and industry analysts have debated its validity. Could lipstick sales really point to the overall state of the economy?
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Nutricosmetics - Decoding the Convergence of Beauty and Healthcare
Presented at IN-COSMETICS 2008
Presented by   Carrie Mellage ( April 16, 2008 )

The "Greening" of Personal Care - Separating Perception from Reality
Presented at IN-COSMETICS 2008
Presented by   Gillian Morris ( April 15, 2008 )

South Africa: Continent's Key Market
Published in Lubes-n-Greases ( March 2008 )
Written by   Geeta Agashe
Description:  In this article Geeta Agashe, Kline's Vice President of the Energy Practice, discusses changes in South African lubricant market. She discusses the change over to higher performance lubricants driven by couple of factors, such as environmental regulations or increased import of higher performance base oil. She also stresses out the importance for marketers not to see South Africa as one big market but a group of provinces with different demographics.
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Crystallography: The Long-Term Price of Oil
Published in Journal of Petroleum Technology ( March 2008 )
Written by   Ian Moncrieff
Description:  In the absence of huge technology investments to bring solids and gases firmly into the domain of liquid fuels, with continuing growth in world demand, and with declining surplus oil reserves in the Middle East, there are no obvious outcomes under which future oil price increases can be contained, writes Ian Moncrieff, Vice President Oil and Gas of Kline & Company. The bottom line is that $100/bbl oil is here to stay.
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Petronas Buys a Place in Europe
Published in Lubes-n-Greases ( January 2008 )
Written by   Geeta Agashe
Description:  By combining two complementary companies, each with strong positions in their respective geographic regions, Petronas made itself a global competitor with vertical strength.
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Looking Back on 2007
Published in Compoundings ( December 2007 )
Written by   Bill Downey
Description:  By comparison with 2005 and 2006, 2007 has been less turbulent for the lubricants industry, but still rich with lessons. William R. Downey, a Vice President, Petroleum and Energy at Kline, describes past years trends and retrospective on lubricant business development driven by environmental opportunities, becoming more global with bigger competitors!
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Market Survey: Learn Terrain When Entering New Country
Published in Lubes-n-Greases ( December 2007 )
Written by   Richard Lucas
Description:  If you are a marketing manager of automotive lubricants, you are aware that developing markets turn into some of the best opportunities for rapid growth. In these markets distribution channels are obviously vital, and you need a thorough understanding of how they operate in each region. Richard Lucas, managing director of PMR, an affiliate of Kline & Company, discusses successful distribution channels in this article.
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A Message on REACH and Metalworking Fluids: Keep the Lines - Communication and Supply
Published in Lubes' n' Greases Europe - Middle East - Africa ( October 2007 )
Written by   Frans van Antwerpen

GTL: A Question of When
Published in Lubes' n' Greases Europe - Middle East - Africa ( August 2007 )
Written by   Geeta Agashe

Taking the Pulse of Poland's Lubes Market
Published in Published in Lubes' n' Greases Europe - Middle East - Africa ( June 2007 )
Written by   Ian Butcher

Mergers & Acquisitions Among the Personal Care Value Chain
Presented by   Gillian Morris ( April 19, 2007 )

Professional Personal Care: Hair Care and Skin Care
Presented by   Carrie Mellage ( April 17, 2007 )

Navigating Nanotechnology
Published in Kline & Company ( February 2007 )
Written by   Gillian Morris