Visiongain. -v1531/ Publisher Sample

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1 Visiongain -v1531/ Publisher Sample Phone: (US) or or (Int'l) Hours: Monday - Thursday: 5:30am - 6:30pm EST Fridays: 5:30am - 5:30pm EST customerservice@marketresearch.com MarketResearch.com

2 Dispensers: many of which are made of plastics and the packaging type is observing greater adoption by cosmetics companies. Dispensers and airless dispensers with double bottom in particular, cannot be contaminated from the outside, and can be completely emptied What is driving the Growth of the Plastics Cosmetics Packaging Submarket? The major driving factors of the plastics cosmetics packaging submarket include the costeffectiveness, good performance, reliable protection, colour versatility, flexibility and easy transportation and storage of plastics. Plastics packaging is cheaper to produce than many of the packages made from other materials which provide similar functions. Affordability is key in today s packaging world where packaging manufacturers are facing rocketing competition as well as stronger than ever price pressure from end-users. In an attempt to increase profit margin and to control cost, many of the cosmetics, especially those in the mass market, have chosen plastics as the packaging material. Even though the rise in price of raw materials has made plastics more expensive than it was decades ago, plastics are still very affordable. Moreover, there has been continuing effort in searching of better but cheaper alternatives to petroleum-based plastics, which will even enhance the material s costeffectiveness nature. While being cheaper to produce, plastics can perform almost as good as, if not better than, most of the packaging made of other materials. Plastic packaging is durable. It neither rusts nor rots by natural means. It is also sturdy and can withstand the damaging effects of acids, sugars and salts to a great extent. They are waterproof, tear proof and shatterproof, which makes it easy to manage, transport and store. Moreover, plastics are light-weight, especially compared with its metal and glass counterparts, and this makes plastic packaging easier and cheaper to handle. Technical advances have made plastic a better material for cosmetics packaging. Modifications of Plasma Impulse Chemical Vapour Deposition (PICVD) give plastic all the positive properties of glass. A PICVD coating can create a barrier that gives longer shelf lives of the contents. Moreover, plastic is cheaper, lighter and less fragile than glass. As a consequence, plastic has been seen, and will continue to replace glass as the packaging material for many of the cosmetics products. Another driving factor is the establishment and development of cosmetics industries in emerging economies. Increasing income, changing lifestyle, fast urbanisation and greater beauty awareness Page 109

3 Italy s Cosmetics Distribution Channel Figure 6.22 Italy Cosmetics Distribution Channel 1976, 2006, 2012 (Market Share, %) 7.6% 5.1% 12.2% Pharmacies Perfume Shops % 30.9% Mass Market Mail Order Door-to-door 10.9% 0.8% 3.8% 3.2% 14.1% Pharmacies Mass Market Perfume Shops Door-to-door % 26.0% Mail Order Beauty Salons Herbalist Shops 2.7% 6.7% 4.1% 4.5% 0.7% 18.2% Pharmacies Mass Market Perfume Shops Door-to-door % 22.8% Mail Order Beauty Salons Hairdressing Herbalist Shops Source: Cosmetica Iatlia 2015; Visiongain 2015 Although consumers have not been put off by the weak economy, they changed their shopping behaviour which has taken effect on the different channels. Alternative channels and the herbalist shops are increasing in market share, indicating consumers readiness to change the channel and to spend less, as well as going about choosing hedonistic buys with more freedom and fewer Page 160

4 way back in Today, the Indian cosmetics industry has a plethora of herbal cosmetic brands like Forest Essentials, Biotique Himalaya, Blossom Kochhar, VLCC, Dabur, Lotus and many more. The most significant increase in demand is expected to occur in Southern India, which is more inclined towards home-made natural cosmetic products. Another factor shaping the Indian cosmetics market is India's obsession with fair skin, which drives the growth of skin-whitening products. The existence of skin-whitening product in India can date back to the 1970s when Unilever launched Fair & Lovely cream which has subsequently spawned numerous whitening face cleansers, shower gels and even vaginal washes that claim to lighten the surrounding skin. The skin-whitening products have recently expanded into male cosmetics, driven by the rising beauty awareness among men. In 2005, the cosmetics company Emami launched Fair & Handsome for men. It has been estimated that the Indian whitening cream market was worth $432 million in 2010 and growing at 18% per year. Indian men are putting increasing efforts in making themselves looking good. Rising disposable income and the increasingly complex grooming routines of Indian men are among the key drivers behind recent changes in the Indian cosmetics market. The most significant increase is expected to be observed in pre-shave and post-shave cosmetics products. Indian consumers are seeking products that meet specific requirements caused by their life stage. For example, young consumers are looking for single pack razors and shaving gels/foams, while older consumers look for traditional pre-shave creams from established brands. A change in gender behaviour has led Indian men to seek greater grooming comfort while shaving at a low price Packaging Size and Type Matters in India According to the Ministry of Commerce, the Indian packaging industry is currently the sixth-largest in the world and has the potential to develop into the fourth-largest over the next three to five years. In order to achieve this goal, the industry will need to carefully profile the billion plus Indian consumers in order to formulate appropriate strategies for meeting their packaging needs. Keeping packaging of cosmetics relevant and exciting is an inherent challenge for bands. Companies also have to offer new packaging designs that are better and more convenient than previous designs. However, the real challenge arises when solutions to meet diverse needs come at a high price. Delivering new and affordable packaging designs forms the angle of reach for most Indian design house. Shopping behaviour is evolving too as consumers are driven by a desire for greater convenience and are turning to shopping in malls and Private Labels when purchasing goods. The rising aspirations of middle-class consumers is boosting new categories and the demand for luxury goods; at the same time, inherently price sensitive consumers also look for value-for-money Page 179

5 Table 9.6 Albea M&A Activities (Time, Description) Time January 2011 November 2011 April 2012 December 2012 Description Acquired the Betts Group, one of the world s leading producers of printed laminate tubes for the oral care and personal care sector. Acquired US business Eyelematic to expand its capabilities in a number of key areas, particularly in metal parts. Acquired TEX China, a cosmetics and perfumery packaging manufacturer in Guangdong, China. Acquired Rexam Personal Care, Cosmetic Division, a leading producer of dispensing systems and make up packaging for the cosmetic and personal care market. Source: Albea 2015; visiongain Albea Products & Services 2015 Table 9.7 Albea Cosmetics Packaging Products/Services 2015 (Packaging Type, Products, Specification) Packaging Type Product Specification Full Service, Bags & Promotional Items Pumps & dispensers Tubes Full Service Bags & Promotional Items Fine midst pumps Viscous liquid dispensers Foam pumps Droppers Plastic tubes Laminate tubes Albea offers a wide range of formulas that can be customized with customer s choice of ingredients, colour and fragrance. Beyond the formula, Albea propose innovative filling technologies, unique textures and exclusive formulas that offer visual impact and excitement. Albea offers various items such as: bags, totes, travel articles, leather goods, cases, wrapped boxes, accessories, fabrics and fancy jewellery. Product range includes art of spray, medium and high profile pump, and low and ultra low profile pump. Products include atmospheric pumps and airless dispensers Products include squeeze, handheld, tabletop, and travel size Include glass vial and plastic vial Products include tubes with flip-top caps, screw caps, applicators, airless pump dispensers, nozzle/cannula tubes, nozzle/cannula tubes, doses/samples/kits, Large capacity, ecodesigned tubes, polyfoil Products include tubes with flip-top caps, screw caps, applicators, nozzle/cannula tubes, nozzle/cannula tubes, doses/samples/kits, tubes with security closures, eco-designed laminate tubes, Reflextion TM Page 209

6 estimates Crown Holdings revenue for fiscal year 2015 to be $9.8 billion, a 7.5% increase from the previous year. The company s growth will be mainly driven by the optimistic outlook of the emerging economies, where Crown Holdings already has strong presence and will continue to focus on. The developed economies where the company has established presence will hopefully recover and experience steady growth in the near future. The impact on revenue of the Mivisa acquisition, which was completed in Q2 2014, will continue at least till Q The EMPAQUE acquisition which is finished in Q is likely to further enhance growth. As the effects of acquisitions die out, the growth rate will fall gradually. Table 9.14 Crown Holdings Revenue Forecast ($bn, AGR %, CAGR %, Cumulative) Sales $bn AGR % CAGR % CAGR % Source: visiongain 2015 Figure 9.15 Crown Holdings Revenue Forecast ($bn, AGR %) Sales $bn Year AGR % Sales $bn AGR % Source: visiongain Page 222