J. Cosmet. Sci., 56, 337-377 (September/October 2005) Papers Presented at the Annual Scientific Seminar of the Society of Cosmetic Chemists {Thursday's Program) June 2-3, 2005 Mandalay Bay Resort Las Vegas, Nevada 337

338 JOURNAL OF COSMETIC SCIENCE HAIR STYLING & FIXATIVE OVERVIEW Colleen M. Rocafort Ciba Specialty Chemicals Corporation, 4090 Premier Drive, High Point, NC 27265 Introduction Polymers provide many of the attributes during the styling process, as well as the holding and texture characteristics of the hair. However, the total formulation determines the functionality such as the ease of application, the distribution of polymer on the hair, absence from flaking, added shine, longevity of hold, restylability, and removability from the hair. The product performance and efficacy is rarely a function of only one active ingredient. The entire formulation and package and the delivery mechanism also contribute to the final characteristic effects developed on the hair. The final hairstyle and styling technique will also determine the type and level of polymers needed in styling and fixative products. Hair Styling and Fixative products have moved away from products with specific "Hold" properties i.e. soft/flexible, medium, and hard/ultra hold and are now addressing specific hairstyle solutions. Current worldwide fashion trends, the desire by consumers for healthy hair and style control, and the regulatory environment drive this market. This presentation will define the Hair Styling and Fixative market, review it's growth over the last 4 years, define what is driving this market segment, review polymer requirements for styling and fixing hair and the polymer product arsenal that formulators have to play with, and lastly review new styling and fixative products introduced in 2004. Global Styling & Fixative Market Overview: The global hair styling & fixative market is valued at $7 .84 Billion for 2004 and is the 3'd largest market segment behind Shampoos and Hair Colorants. 1 This market segment had a growth rate of25 .5% over the years of2001-2004 due to worldwide fashion trends, changes in the regulatory environment, and the development of new product forms to address specific hair styling issues which have changed the landscape of the whole styling & fixative market segment. Table I shows the retail value (rsp) in US $ dollars of the Hair Styling & Fixative global market segment versus the Total Hair Care category Table I: Retail Value rsp- US$ Mn % Global 2001 2002 2003 2004 Growth Market 2001- Se�ment 2004 Hair 6,268.6 6,526.5 7,244.1 7,864.3 25.45 Styling& Fixative Total Hair 37,885.9 38,914 42,816.7 46,987.7 24.02 Care Ref: Euromomtor International- 2005 This market growth was driven by: current worldwide fashion trends such as "ready to wear hair", "big hair", and the trend towards healthy looking, manageable hair, whether it is curly or straight.' When we look deeper into the market category, we see that the trend towards more natural looking, touchable hair has had the most impact on the Hair Fixative Industry. Hair spray sales continue to decline for the past several years with increased sales in the styling segment in particular the gel/cream/wax market. The hair fixative market continues to be split between stiff-feel and flexible, natural hold. Products that offer multifunctional properties have made the most impact in the marketplace. When we examine the new product introductions we see that many new product forms of styling mousses and gels are emerging. ' The styling gel and the mousse markets have been growing globally at a range of 4 -6% a year with some regions having seen growth up to 10%. Products for the Ethnic - Specific Hair Care Segment, predominantly African- American and multicultural consumers have also been expanded. The directed marketing towards teens, children, and men has been successful with many new innovative products introduced to the marketplace. These products are expected to continue. If we look specifically at regional growth, we observe that in Asia, the men's grooming market is outpacing women's products. Male grooming products represent about 10% of this market. 4 Gels and mousse products are the most popular. Both flexible and stiff feel are required to meet the needs of this region. High humidity hold is also an important parameter due to the environmental conditions (high heat and high humidity) The leading market drivers for this region are products that provide multi­ functional benefits, such as shine, conditioning, smoothing, volume and control, protection, long lasting style, anti-frizz, and moisturizing effects. Market Leaders: Based on Euromonitor International 2005 data, 'the top 12 customers who are leading the market are as follows: L'Oreal is the number I market leader with 20 .3% market share, P&G is second with 16 .1%, Unilever is third with 8.7%, Henkel KgaA is fourth with 7 .7%, Mandom Corp is fifth with 5.2%, Shiseido Co. Ltd is sixth with 4 .7%, Alberto Culver is seventh with 4.0%, Kao Corp is eight with 3 . 6%, Private Label Brands is ninth with 3 .3%, Colgate Palmolive is tenth with 1.6%, Beiersdorf AG is eleventh at 1 .3% , and Sara Lee Corp is twelfth with 0.8% market share. These 12 companies represent $6 .09 Billion dollars or 77.4% of the whole styling & fixative market. Looking further at the brands, we observe that the Studio Line Brand is in the top position followed by Pantene Pro-V. Table 2 lists the top 25 brands. Table 2: The Brand Share Rankim! of the top Global brands Brand Brand Name Brand Brand Name Share Share Ranking Ranking I Studio Line- L'Oreal 13 Gamier Grafic- L'Oreal 2 Pantene Pro-V- P&G 14 Clairol Herbal Essences- P&G 3 Taft/Drei Wetter- 15 Geraid- Shiseido Henkel KGaA 4 Gamier Fruitis - 16 Salon Selectives- L'Oreal Unilever 5 Elnett-L'Oreal I7 Nivea Hair Care- Beiersdorf 6 Alberto Culver VOS 18 Shiseido- Shiseido 7 John Freida- Kao 19 Lucido -Mandom Colll 8 Wellaflex- P&G 20 Vivelle-L'Oreal 9 Gatsby- Mandom 21 Gard --Colgate Corp Palmolive 10 Suave- Unilever 22 Brylcream- Alberto Culver 11 Shock Waves -P&G 2 3 Rave -Unilever 12 Auslese- Shiseido 24 Uno- Shiseido 25 Sunsilk- Unilever Ref: Euromomtor International- 2005 Novel Product Forms: Hair Styling and Fixative products are now addressing style specific hairstyle solutions. Consumers want style versatility. Products are designed to help: straighten, define curls, smooth unruly hair, reduce or eliminate frizz, add volume, be weightless- not build-up, infuse moisture, cover thinning hair, protect from thermal damage, achieve funky hairstyles, achieve multi­ functional effects i.e. hold the hair in place and condition it. The landscape of styling products now includes: tonics, balms, gel of all types, putty/gum type products, mousses, waxes, creams, serums, pomades, elixirs, gel mousses, and lotions and sprays. Consumer Drivers: Consumers prefer not to be locked into one style, they want style flexibility. In focus groups, consumers have stated that they want the following attributes for their styling and fixative products: 6 ► Improved Hair Style Hold ► Conditioning ► No Flaking when Brushed or Combed ► Increased Hair Body and Hair Volume ► Good Hair Feel ► Detangling/ Easy Combing