Enhanced Supply of Environment Friendly Oleochemicals to Positively Impact European Anionic Surfactants Market

10-Oct-2006

The shift to oleochemical-based products are likely to minimise the problem of overcapacity, stabilise prices and reduce regulatory pressures for participants in the European anionic surfactant market. The growing emphasis on environment-friendly products will encourage end product manufacturers to increase their consumption of biodegradable oleochemical-based anionic surfactants in key applications, thus providing significant business opportunities. Frost & Sullivan finds that the European Anionic Surfactants Market earned revenues of EUR 1234.8 million in 2005 and estimates this to reach EUR 1677.1 million in 2012.

"Oleochemical-based sources will dictate the future of sulfonated anionic surfactants in Europe," states Frost & Sullivan Research Analyst Mahesh Kumar. "Anionic surfactants based on crude oil sources will witness reduction in key application and formulations."

The rising price of crude oil and their derivatives is minimising profit margins for sulfonated anionic surfactants. Furthermore, heightened concerns over their biodegradability and negative environmental impact are deterring their use in key applications. The anticipated increase in the supply of oleochemicals sources and subsequent expansion in production of biodegradable sulfonated anionic surfactants will offer a potentially strong solution to the current crisis.

Manufacturers are currently struggling with issues of oversupply, declining profit margins and problems related to deformulation. In addition, directives such as Detergent Directive and Dangerous Substances Directive, together with increasing consumer awareness are obliging manufacturers to produce biodegradable products.

"At the same time, low cost competition is compelling manufacturers to extend the scope of value-added services to ensure long-term business relationships and achieve visible differentiation," adds Mr. Kumar. "Providing value-added services in key market segments along with continuous product development will be critical to survive in this market."

Proactively identifying customer needs and building a balanced product portfolio will help companies effectively meet changing market demands. Monitoring end-user markets and being prepared for shifts in customer dynamics will also provide market participants an opportunity to leverage emerging growth opportunities.

If you are interested in a virtual brochure, which provides manufacturers, end users, and other industry participants with an overview of the latest analysis of the European Surfactants Market Review: Anionic Surfactants then send an e-mail to Janina Hillgrub using the 'Contact' button below.

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