how end-user markets are driving the demand for oleochemicals in asia

HOW END-USER MARKETS ARE DRIVING THE DEMAND FOR OLEOCHEMICALS IN ASIA

WEITING CHUANG

FEBRUARY 2015

© Euromonitor International / Sources from Euromonitor International

2

A leading resource for global market insight and business intelligence

Consumer-focused: industries, countries, consumers

Annually-updated syndicated research in 80 countries

Customized ad-hoc projects conducted globally in virtually every market

Euromonitor International ABOUT EUROMONITOR INTERNATIONAL

© Euromonitor International / Sources from Euromonitor International

3 ABOUT EUROMONITOR INTERNATIONAL

INDUSTRY OVERVIEW

TRENDS AND CONSUMER DEMAND

DISHWASHING STUDY

CONCLUSION

© Euromonitor International / Sources from Euromonitor International

5 GLOBAL OVERVIEW

US$45 of total home care retail sales globally in 2014

billion

7% value growth in 2014 in Asia Pacific

represented by Asia Pacific in 2014

26%

© Euromonitor International / Sources from Euromonitor International

6 ASIA PACIFIC HOME CARE PRODUCTS CONSUMPTION PER HOUSEHOLD

75%

11%

5%

Laundry Care

Dishwashing

Surface Care

9% Others(Toilet Care, Polishes…etc.)

16.6 kg Household Consumption Per Year

© Euromonitor International / Sources from Euromonitor International

7

Malaysia Laundry Care FOCUS COUNTRIES BREAKDOWN

26,035

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Hand Wash Detergents

Auto Powder Detergents

Auto Liquid Detergents

Fine Fabric Detergents

© Euromonitor International / Sources from Euromonitor International

8

China Laundry Care FOCUS COUNTRIES BREAKDOWN

13,800

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Hand Wash Detergents

Auto Powder Detergents

Auto Liquid Detergents

Fine Fabric Detergents

© Euromonitor International / Sources from Euromonitor International

9

Philippines Laundry Care FOCUS COUNTRIES BREAKDOWN

9,751

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Hand Wash Detergents

Auto Powder Detergents

Auto Liquid Detergents

Fine Fabric Detergents

© Euromonitor International / Sources from Euromonitor International

10

Indonesia Laundry Care FOCUS COUNTRIES BREAKDOWN

8,341

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Hand Wash Detergents

Auto Powder Detergents

Auto Liquid Detergents

Fine Fabric Detergents

© Euromonitor International / Sources from Euromonitor International

11

India Laundry Care FOCUS COUNTRIES BREAKDOWN

6,371

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Hand Wash Detergents

Auto Powder Detergents

Auto Liquid Detergents

Fine Fabric Detergents

INDUSTRY OVERVIEW

TRENDS AND CONSUMER DEMAND

DISHWASHING STUDY

CONCLUSION

© Euromonitor International / Sources from Euromonitor International

13

Technology Consumer Demand

• Growing disposable income

• Rising penetration rate of washing machines

© Euromonitor International / Sources from Euromonitor International

14 TRENDS AND CONSUMER DEMAND - TECHNOLOGY

© Euromonitor International / Sources from Euromonitor International

15 TRENDS AND CONSUMER DEMAND - TECHNOLOGY

© Euromonitor International / Sources from Euromonitor International

16

0

10

20

30

40

50

60

70

80

90

100

Malaysia

China

Philippines

Indonesia

India

Washing Machine Penetration Rate

TRENDS AND CONSUMER DEMAND - TECHNOLOGY %

of

Ho

use

ho

lds

Powder- US$1.9/kg

Hand- US$0.9/litre

Liquid- US$3.6/litre

© Euromonitor International / Sources from Euromonitor International

17

Laundry Products Development

TRENDS AND CONSUMER DEMAND - TECHNOLOGY

Bar

Bleach

Hand

Hybrid

Hand

Softeners

Auto Powder

Auto Liquid

Stain Removers

Auto

Con. Powders

Con. Liquids

Tablets

Fine Fabric

Modern

Low Disposable Income High

© Euromonitor International / Sources from Euromonitor International

18

Time Consumer Demand

• More business activities in big cities

• Longer working hours

© Euromonitor International / Sources from Euromonitor International

19

33 34

39

44

Australasia North America Europe Asia

TRENDS AND CONSUMER DEMAND - TIME

Average Weekly Working Hours in 2013

© Euromonitor International / Sources from Euromonitor International

20

Laundrettes TRENDS AND CONSUMER DEMAND - TIME

Indonesia and Thailand

http://www.xn--12cmk9cuejk8azk7c.com/NP-1667-%E0%B8%A3%E0%B9%89%E0%B8%B2%E0%B8%99%E0%B9%83%E0%B8%99%E0%B9%80%E0%B8%84%E0%B8%A3%E0%B8%B7%E0%B8%AD_mr.clean.html

© Euromonitor International / Sources from Euromonitor International

21

Product Example TRENDS AND CONSUMER DEMAND - TIME

Pao Winwash Night wash detergent Formula for drying without sun

Comfort One rinse fabric softener Save 2/3 of time and water

http://www.lion.co.th/pdetail.p

hp?cat=1&brand=20&group=

42&pitem=121

http://www.comfort.com.vn/san-

pham/comfort-dam-dac-mot-lan-xa

© Euromonitor International / Sources from Euromonitor International

22

Consumer Demands

CONSUMER DEMANDS - SPACE

Space Consumer Demand

• Highest population density in the world

• Highest price per land in the world

© Euromonitor International / Sources from Euromonitor International

23 TRENDS AND CONSUMER DEMAND - SPACE

0

100

200

300

400

20082009

20102011

20122013

Asia Pacific

Western Europe

World

Middle East and Africa

Latin America

North America

Eastern Europe

Australasia

Average Space Per Capita

Sq km

© Euromonitor International / Sources from Euromonitor International

24

Coin Laundry TRENDS AND CONSUMER DEMAND - SPACE

China, Malaysia and Thailand

© Euromonitor International / Sources from Euromonitor International

25

Product Example

TRENDS AND CONSUMER DEMAND - SPACE

Samsung Washing machine with built in sink

Hitachi Washer-Dryer all in one

http://kadenfan.hitachi.co.jp/wa

sh/lineup/bd/

https://www.youtube.com/watch?v=DSfotHHcmoI

© Euromonitor International / Sources from Euromonitor International

26

Product Example

TRENDS AND CONSUMER DEMAND - SPACE

Nanox 5 times concentrated detergent 500g small packaging

Livincare Laundry sheet 1/12 of usual space

http://24h.pchome.com.tw/prod/DAAK16-

A9005DVHG?q=/S/DAAK16

http://www.lion.co.jp/en/products/html/pro

_c036.htm

© Euromonitor International / Sources from Euromonitor International

27

Consumer Demands

CONSUMER DEMANDS - SPACE

Health & Wellness Consumer Demand

• Longest life expectancy

• Lowest birth rate

© Euromonitor International / Sources from Euromonitor International

28

1%

10%

7%

13%

3%

66%

Australasia

Eastern Europe

North America

Western Europe

Latin America

Asia Pacific

TRENDS AND CONSUMER DEMAND – HEALTH AND WELLNESS

Daily Water Pollutant Emissions

Organic Water Pollutant Emissions

© Euromonitor International / Sources from Euromonitor International

29

Product Example

TRENDS AND CONSUMER DEMAND – HEALTH AND WELLNESS

Scotch-Brite 80% nature ingredients detergent 97% Biodegradable surfactants

Yak-Cho Eco friendly hand dishwashing Apply on both dish & vegetable

http://www.buykorea.org/product-

details/eco-friendly-dishwashing-

detergent--3018612.html

http://solutions.3m.com.tw/wps/portal/3M/z

h_TW/twScotchBrite/home/intro/nature/

© Euromonitor International / Sources from Euromonitor International

30

Happiness Consumer Demand

• More delicate clothing requiring specific care

• Yearning for intangible benefits with premium packaging

© Euromonitor International / Sources from Euromonitor International

31

Self-Treatments for Happiness TRENDS AND CONSUMER DEMAND - HAPPINESS

Men Women

83%

© Euromonitor International / Sources from Euromonitor International

32

Product Example

TRENDS AND CONSUMER DEMAND - HAPPINESS

Mukunghwa Designed for underwear wash Mild to hand skin

Fa Fa Fine Fragrance Fragrant fabric softener Gender-targeted flavours

http://www.mkh.co.kr/brand/product/pr

oduct_view.php?seq=50&cate1=0300

&cate2=

http://www.fafa-

online.jp/shopdetail/005003000019/

© Euromonitor International / Sources from Euromonitor International

33

2%

4%

4%

5%

50%

37%

38%

61%

47%

47%

55%

33%

1%

12%

4%

0%

Singapore

Taiwan

South Korea

Japan

Fine Fabric Detergents Auto Liquid Detergents Auto Powder Detergents Hand Wash Detergents

Developed Countries in Asia - Laundry Care TRENDS AND CONSUMER DEMAND - HAPPINESS

© Euromonitor International / Sources from Euromonitor International

34

0

50

100

150

200

250

Japan

South Korea

Taiwan

Singapore

Fine Fabric Detergent Market Size For Developed Countries TRENDS AND CONSUMER DEMAND - HAPPINESS

US

$-M

illio

n

INDUSTRY OVERVIEW

TRENDS AND CONSUMERS DEMANDS

DISHWASHING STUDY

CONCLUSION

© Euromonitor International / Sources from Euromonitor International

36

Dishwashing Market Size DISHWASHING STUDY

- 500 1,000 1,500 2,000

Singapore

Hong Kong, China

Malaysia

Indonesia

Vietnam

Taiwan

Thailand

Philippines

South Korea

India

Japan

China

2013 Dishwashing Market Size in Value

US$-Million

© Euromonitor International / Sources from Euromonitor International

37

Dishwashing – Forecast CAGR% DISHWASHING STUDY

-2 0 2 4 6 8 10 12

Taiwan

Hong Kong, China

Singapore

Japan

South Korea

Malaysia

Thailand

India

Vietnam

China

Philippines

Indonesia

2013-2018 Forecast CAGR %- Value Terms

%

© Euromonitor International / Sources from Euromonitor International

38

Global Dishwashing - Tipping Point DISHWASHING STUDY

0

2000

4000

6000

8000

10000

12000

140002

00

0

20

01

20

02

20

03

20

04

20

05

20

06

20

07

20

08

20

09

20

10

20

11

20

12

20

13

20

14

20

15

20

16

20

17

20

18

20

19

20

20

20

21

20

22

20

23

20

24

20

25

US

$ B

illi

on

Developed Emerging

2019

© Euromonitor International / Sources from Euromonitor International

39 DISHWASHING STUDY

Dishwashing Machine Penetration Rate

0

1

2

3

4

5

6

7

8

China

India

Indonesia

Malaysia

Philippines

% o

f H

ou

seh

old

s

© Euromonitor International / Sources from Euromonitor International

40

Dishwashing Products Evolvement

DISHWASHING STUDY

Low Disposable Income High

http://www.colgate.com.m

y/app/Colgate/MY/Househ

oldCare/ProductRecomm

ender/DishWashingPaste/

Webpages/Axion.cvsp

http://www.palmolive

.com/products/dish-

washing-

liquid/original

INDUSTRY OVERVIEW

TRENDS AND CONSUMERS DEMANDS

DISHWASHING STUDY

CONCLUSION

© Euromonitor International / Sources from Euromonitor International

42

Asia Pacific Home Care Product Market Size CONCLUSION

0

10,000

20,000

30,000

40,000

50,000

60,000

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

US

$ M

illi

on

Home Care Laundry Care Dishwashing

© Euromonitor International / Sources from Euromonitor International

43 CONCLUSION

Technology

Time

Space Health &

Wellness

Happiness

© Euromonitor International / Sources from Euromonitor International

44

Product Example

CONCLUSION

Pao Winwash Night wash detergent Formula for drying without sun

Heyaboshi Top Hang-to-dry indoors Prevents odors from damp laundry

http://www.lion.co.th/pdetail.p

hp?cat=1&brand=20&group=

42&pitem=121

https://www.lion.co.jp/en/products/html/pro

_c002.htm

THANK YOU FOR LISTENING

Weiting Chuang

Research Analyst

weiting.chuang@euromonitor.com.sg

+65 6429 0590 ext: 6751