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TheStreet Open House

Shift Toward Environment-friendly Products To Fuel Uptake Of Green Surfactants In The Asia-Pacific, Says Frost & Sullivan

SINGAPORE, Feb. 27, 2013 /PRNewswire/ -- The green surfactant market is at a growth stage in the Asia-Pacific (APAC) countries of Australia, New Zealand, Singapore, Malaysia, Indonesia, Thailand and the Philippines. The market offers good growth potential, especially in Southeast Asian countries.

At present, however, demand is subdued mainly due to the price of green surfactants not being competitive with synthetic equivalents. Enhanced consumer awareness and greater affordability will push demand, especially in the personal care product segment. A positive regulatory enforcement will further boost market prospects.

New analysis from Frost & Sullivan ( http://www.chemicals.frost.com), Strategic Analysis of APAC Green Surfactants Market, finds that the market earned revenues of $590.9 million in 2011 and estimates this to reach $1,075.8 million in 2018. The research covers fatty alcohol ethoxylate, alkyl polyglucoside, methyl ester sulfonate, fatty alcohol sulfate and fatty alcohol ether sulfate segments.

"Growth in the green surfactants market will derive principally from the substitution of synthetic surfactants in key end-use industries like household and personal care products," noted Frost & Sullivan Chemicals & Materials Research Analyst Sushmita Mahajan. "Heightened environmental concerns and consumer awareness will promote the use of green surfactants, particularly in personal care products, where consumer trends favor milder, natural products.

Limited awareness about green products and a high degree of price sensitivity are the key factors restraining market expansion in Southeast Asia. It is different in Australia and New Zealand where there is greater environmental awareness and consumers are more willing to pay a slight premium for green surfactants. However, even these consumers are likely to switch to products containing less expensive, synthetic alternatives if the price difference is too high.

New production facilities for green surfactants in Southeast Asia, slated to come onstream this year, will increase the availability of green surfactants in the region. This will help in attaining economies of scale, making the price of green surfactants more competitive and encouraging their wider use in homecare and personal care products.

"In Southeast Asian countries, green surfactant manufacturers need to work closely with formulators from large multinational companies to accelerate the move to green surfactants," advised Mahajan. "Strong technical support from green surfactant manufacturers will motivate greater uptake by end-user industries."

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