INGREDIENT TRENDS AND INNOVATION IN SUN PROTECTION

IN-COSMETICS GLOBAL – LONDON, 5TH APRIL 2017

MARIA CORONADO ROBLES, ANALYST - INGREDIENTS RESEARCH
ABOUT EUROMONITOR INTERNATIONAL 2

Euromonitor International – Strategic Market Research

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SUNSCREEN INGREDIENTS GLOBAL MARKET
CONSUMER DEMAND INNOVATION IN SUN PROTECTION
THE WESTERN EUROPEAN SUN PROTECTION MARKET
LATEST INNOVATIONS AND FUTURE OPPORTUNITIES
SUNSCREEN INGREDIENTS: GLOBAL MARKET 4

Sunscreen Ingredients in Beauty and Personal Care

Asia-Pacific
Main global growth driver
2020 28% 16% 23% 21%

North America
2015 34% 15% 22% 18%
Largest market
0 10,000 20,000 30,000 40,000 Losing share as emerging
Market size, Tonnes markets gain momentum

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 SUNSCREEN INGREDIENTS: GLOBAL MARKET 5

Top Ten Markets for Sunscreen Ingredients in Beauty and Personal Care

70% GLOBAL MARKET (2015) GERMANY 1300 T 6% CAGR

SPAIN 1200 T 7% CAGR

USA 9,600 T 10% CAGR
UK 900 T
Main global market
ITALY 800 T 5% CAGR
1% CAGR
FRANCE 600 T 6% CAGR

BRAZIL 3200 T CHINA 2500 T

11% CAGR
11% CAGR

JAPAN 800 T 3% CAGR

5% CAGR
*CAGR (2015-2020) SOUTH KOREA 600 T

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SUNSCREEN INGREDIENTS: GLOBAL MARKET 6

Commercially Available UV Filters

INCI Name / USAN Name Abbreviation Globally approved

Bis-Ethylhexyloxyphenol Methoxyphenyl Triazine / Bemotrizinol BEMT No
Butyl Methoxydibenzoylmethane / Avobenzone BMBM Yes
Terephthalylidene Dicamphor Sulfonic Acid / Ecamsule TDSA Yes
Zinc Oxide ZnO Yes
Benzophenone-3 / Oxybenzone BP3 Yes
Diethylhexyl Butamido Triazone / Iscotrizinol DBT No
Ethylhexyl Methoxycinnamat e/ Octinoxate EHMC Yes
Ethylhexyl Salicylate / Octisalate EHS Yes
Ethylhexyl Triazone / Octyltriazone ETH No
Homosalate HMS Yes
Octocrylene OCR Yes
Phenylbenzimidazol Sulfonic Acid / Ensulizole PBSA Yes
Titanium Dioxide TiO2 Yes

* Others refers to any other UV filter not included in the table

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SUNSCREEN INGREDIENTS: GLOBAL MARKET 7

Challenges in Sunscreen Formulation

LEGISLATION

TYPE OF RADIATION

PATENTS

COMPATIBILITY

PRICE

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 SUNSCREEN INGREDIENTS: GLOBAL MARKET 8

The Evolution of Sun Protection

UVB & BROAD

UVB FUTURE
UVA II SPECTRUM

1930 -1940 1970 -1990

First sunscreen SPF on labels
UVA protection
Different regulations
NOW
UVB / Full UVA
?
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SUNSCREEN INGREDIENTS: GLOBAL MARKET 9

Type of UV Filter in Beauty and Personal Care

North America
Sunscreens provide less UVA protection
7% 14%
9%
47%
27%
9% 11%
25% Minerals Minerals
60%
57%

10%

16%
29%
39%
44%
11% 35%
Minerals
Minerals
9%
30%
24%

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 SUNSCREEN INGREDIENTS: GLOBAL MARKET 10

Growth Opportunities for Sunscreen Ingredients in Beauty and Personal

Care

50
40
30
CAGR % (2015-2020)

20
10
0
-10
-20
-30

UVB UVB /UVA II UVA I UVB / UVA I-II

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SUNSCREEN INGREDIENTS: GLOBAL MARKET 11

Sunscreen Ingredients in Beauty and Personal Care by Category

80% 75%

75%
35% 60%
90% Sun Care
Skin Care
Colour Cosmetics
Baby and Child-specific Products Asia Pacific
Hair Care
others The most fragmented market

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SUNSCREEN INGREDIENTS GLOBAL MARKET
CONSUMER DEMAND INNOVATION IN SUN PROTECTION
THE WESTERN EUROPEAN SUN PROTECTION MARKET
LATEST INNOVATIONS AND FUTURE OPPORTUNITIES
CONSUMERS DEMAND INNOVATION IN SUN PROTECTION 13

Consumers Want More

Consumers Ingredients
HIGHER SUN PROTECTION SUNSCREENS

BEYOND SUN PROTECTION BOTANICALS & VITAMINS

WATER RESISTANCE SYNTHETIC POLYMERS

IMPROVED SENSORIAL FEELING EMOLLIENTS

SURFACTANTS /
MILDNESS
PRESERVATIVES.

CONVENIENCE ALCOHOL / WAXES

ADDED BENEFITS SKIN CONDITIONING / SKIN

BENEFITING AGENTS

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SUNSCREEN INGREDIENTS GLOBAL MARKET
CONSUMER DEMAND INNOVATION IN SUN PROTECTION
THE WESTERN EUROPEAN SUN PROTECTION MARKET
LATEST INNOVATIONS AND FUTURE OPPORTUNITIES
THE WESTERN EUROPEAN SUN PROTECTION MARKET 15

Opportunities for Growth in Western Europe

Huge Big opportunities Small Further

opportunities opportunities Opportunities

25
Absolute Volume Growth (2015-2020)

Sunscreens
20
2500
15
1400 Emollient esters
Tonnes

10
Alcohol
1200
Synthetic
5
300
Polymers
Vitamins &
derivatives Botanicals
0

5 7 9 11 13 15 17 19 21 23
CAGR,% (2015-2020)

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 THE WESTERN EUROPEAN SUN PROTECTION MARKET 16

Huge Opportunities for UV Filters

1600
Absolute Volume Growth (2015-2020) Tonnes

1400
HMS
1200

1000

800

600

400 EHS OCR

ZnO
200 TiO2
BMBM
0
EHT
-200 EHMC
BEMT
-400
0 200 400 600 800 1,000 1,200 1,400

Market size (2015), Tonnes

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THE WESTERN EUROPEAN SUN PROTECTION MARKET 17

Big Opportunities for Emollient Esters and Alcohol

3000
Absolute Volume Growth (2015-2020) Tonnes

2500 Sunscreens

2000

1500 Emollient esters

9000
Alcohol
1000
2700 2300

1000
500 1000

0
0 1,000 2,000 3,000 4,000 5,000 6,000
Market size (2015), Tonnes

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THE THE WESTERN EUROPEAN SUN PROTECTION MARKET 18

Small Opportunities for Vitamins and Copolymers

350
Absolute Volume Growth (2015-2020) Tonnes

300 Vitamins
Copolymers

250

200

150
9000
Vegetable oils
100
2700 2300

50 1000 1000

0
0 20 40 60 80 100 120
Market size (2015), Tonnes

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THE THE WESTERN EUROPEAN SUN PROTECTION MARKET 19

Further Opportunities for Additional Ingredients

90
Absolute Volume Growth (2015-2020) Tonnes

80 Waxes

70
Ascorbic Acid
60

50
9000
40 Peptides

30 Plant extracts
2700 2300

20
1000 1000
10 Niacinamide

0
0 5 10 15 20 25 30
Market size (2015), Tonnes

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SUNSCREEN INGREDIENTS GLOBAL MARKET
CONSUMER DEMAND INNOVATION IN SUN PROTECTION
THE WESTERN EUROPEAN SUN PROTECTION MARKET
LATEST INNOVATIONS AND FUTURE OPPORTUNITIES
LATEST INNOVATIONS AND FUTURE OPPORTUNITIES 21

Top Areas for Innovation

Smart devices /APP Pharma- derived

Naturals Free from

On the go Anti-pollution

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LATEST INNOVATIONS AND FUTURE OPPORTUNITIES 22

Top Areas for Innovation

Multicultural Full protection

Segmentation From within

Sport & Health Ingredients

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THANK YOU FOR LISTENING

FOR FURTHER INSIGHT PLEASE CONTACT

Maria Coronado Robles

Industry Analyst - Ingredients
maria.coronadorobles@euromonitor.com