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

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3 ABOUT EUROMONITOR INTERNATIONAL


INDUSTRY OVERVIEW

TRENDS AND CONSUMER DEMAND

DISHWASHING STUDY

CONCLUSION


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%



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



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



8

China Laundry Care FOCUS COUNTRIES BREAKDOWN

13,800

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%







9

Philippines Laundry Care FOCUS COUNTRIES BREAKDOWN

9,751

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%







10

Indonesia Laundry Care FOCUS COUNTRIES BREAKDOWN

8,341

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%







11

India Laundry Care FOCUS COUNTRIES BREAKDOWN

6,371

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%






INDUSTRY OVERVIEW

TRENDS AND CONSUMER DEMAND

DISHWASHING STUDY

CONCLUSION


13

Technology Consumer Demand

• Growing disposable income

• Rising penetration rate of washing machines



14 TRENDS AND CONSUMER DEMAND - TECHNOLOGY



15 TRENDS AND CONSUMER DEMAND - TECHNOLOGY



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



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



18

Time Consumer Demand

• More business activities in big cities

• Longer working hours



19

33 34

39

44

Australasia North America Europe Asia

TRENDS AND CONSUMER DEMAND - TIME

Average Weekly Working Hours in 2013



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



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



22

Consumer Demands

CONSUMER DEMANDS - SPACE

Space Consumer Demand

• Highest population density in the world

• Highest price per land in the world



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



24

Coin Laundry TRENDS AND CONSUMER DEMAND - SPACE

China, Malaysia and Thailand



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



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



27

Consumer Demands

CONSUMER DEMANDS - SPACE

Health & Wellness Consumer Demand

• Longest life expectancy

• Lowest birth rate



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



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/



30

Happiness Consumer Demand

• More delicate clothing requiring specific care

• Yearning for intangible benefits with premium packaging



31

Self-Treatments for Happiness TRENDS AND CONSUMER DEMAND - HAPPINESS

Men Women

83%



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/



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



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


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



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

%



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



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



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


http://www.google.co.uk/url?sa=i&rct=j&q=&esrc=s&source=images&cd=&cad=rja&docid=teWmBF3_BC5LMM&tbnid=4y7R0c7eL7nSmM:&ved=&url=http://www.appliance-reviews.co.uk/p/Next-RETRODWC-Standard-Dishwashers-in-Cream-25330/specification&ei=0UAUU6u2KqOV7Qae_oDoBg&bvm=bv.61965928,d.ZGU&psig=AFQjCNHueQShl9RRf3dfSYFWQw98wUvfKw&ust=1393922641988584

INDUSTRY OVERVIEW

TRENDS AND CONSUMERS DEMANDS

DISHWASHING STUDY

CONCLUSION


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



43 CONCLUSION

Technology

Time

Space Health &

Wellness

Happiness



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

[email protected]

+65 6429 0590 ext: 6751

mailto:[email protected]

Business

How End-User Markets are Driving the Demand for Oleochemicals in Asia