The Surfactant Market

The desire for surfactants may have decreased this year following a strong 2022, but the curiosity in eco-friendly materials remains high. This comes as no shock to Tony Gough, the technical director of Innospec and the leader of the CESIO World Surfactant Congress that took place earlier this year.

Gough stated that sustainability and regulations are clearly two of the most important and relevant topics in the surfactants sector at present, and it is likely that they will continue to be for a long time.

Experts concur. There is a unanimous agreement among forecasters that there is an escalating global need for surfactants across various sectors, increasing at a rate of 4.9% annually. As projected by ResearchandMarkets, based in Dublin, this demand is anticipated to hit a staggering $57.8 billion by the year 2028. It has been predicted that nonionic surfactants will experience the most rapid growth, and once again, the Asia-Pacific region is expected to be the region with the highest growth rate.

According to Jarrod A. Kaltenbach, the Vice President of Surfactants at Coast Southwest, consumer demands for environmentally friendly, gentle, sustainable, and ingredient-free products are driving the surfactant market towards higher standards.

In recent years, Siltech has dedicated its efforts to enhancing the sustainability of its silicones. Instead of using organo-functional components obtained from petroleum sources, the company has opted for feedstocks derived from biobased materials.

Brian Allen, Siltech's global marketing and sales director, highlighted that these fresh PEG-dimethicone surfactants and alkyl dimethicone emulsifiers possess a substantial amount of biobased carbon, all the while not losing the sought-after advantages of top-tier silicones.

BASF executives state that it cannot be denied that there has been a decline in the demand for surfactants compared to last year. This decline is mainly due to the poor performance of the home care cleaning and personal care markets. As a result, retail sales have been directly affected, and the situation has been worsened by inflationary pressures and consumers trying to cut costs. Despite these worrisome circumstances, BASF is still hopeful that the market will eventually bounce back and is ready to take on this challenge.

Allen reported that Siltech is experiencing a decrease in demand compared to the phenomenally active year of 2022; however, it remains higher than the levels witnessed in 2021.

“Supply chains seemed to respond to limited market conditions in 2022, with companies placing orders at levels of demand that were higher than usual, seemingly to guarantee a steady supply,” he explained. “Towards the end of 2022, numerous companies seemed to be dealing with an abundance of stock, which has continued into 2023.”

Different providers of surface-active agents informed Happi magazine that although the beginning of the year was not as fast-paced as usual, the pace has picked up as the year has advanced.

"People desire to appear attractive and indulge in gentle and eco-friendly choices. The independent brands have exerted an impact," Kaltenbach explained to Happi. "Brands that excel at reaching out to specific beauty markets are thriving, especially those that dare to take risks and utilize various channels to reach customers, such as exclusive stores, sections within big retail chains, as well as online sales and promotion through Instagram and TikTok." The ability to swiftly enter the market holds greater significance for these brands now.

"We are taking action by increasing our presence in different areas," Kaltenbach clarified. "By increasing our inventory levels and offering groundbreaking cleansing agent systems designed for various personal care uses, we are able to support brands in accelerating their product launch timelines through direct collaboration and problem-solving with our customers."

According to Marrisa Phillips, who works as a marketing specialist for the Americas region at Brenntag, the demand for HI&I surfactants has been consistently rising in 2023, despite other industries experiencing a lower demand.

“In general, there is now a stable flow of supplies; however, certain chemical products are still experiencing force majeure events,” she clarified.

Suppliers have observed that following a significant increase in inflation in 2022, prices for the majority of chemical products have decreased. However, it is important to recognize that there are additional economic concerns approaching.

Phillips expressed that one of the primary issues revolves around the potential harm caused by imports in the United States, along with the uncertainty surrounding the stability of supply. From a consumer's standpoint, there is a worry regarding persistent inflation due to the apprehension of an impending economic downturn.

She informed Happi that the strategic suppliers have managed to implement price hikes effectively; however, Brenntag, being a distributor, hasn't been able to achieve the same level of success.

According to Phillips, we greatly appreciate the connections we have with our customers, as it helps them stay competitive in the markets they decide to operate in. Moreover, the rise in prices of basic materials caused by inflation and the decrease in demand have had an impact. However, consumer spending has remained stable. The presence of imported products in certain chemical sectors has caused some market prices to drop.

According to Allen, Siltech continuously aims to reduce increasing expenses by improving production methods and maximizing efficiency. Nevertheless, he acknowledged that this approach is not always feasible, leading the company to revise the prices of certain products in 2023. This adjustment was necessary to maintain a steady supply for Siltech's partners.

"In many sectors, the rise in inflation seems to have calmed down and the supply has become more relaxed in 2023, although some areas still face scarcity," he informed Happi. "As we enter 2024, there are no major worries about the global economy, but we are constantly attentive to market preferences and adapt our range of products to meet customer requirements."

And what are customers looking for? Coast Southwest states that the demand for luxurious products is largely fueled by hair care and skin care items. Consumers are ready to invest their money in products that provide noticeable effects, such as reducing wrinkles, making the skin smoother and more supple, or evening out skin tone, as shared by Kaltenbach.

Brenntag, a company that specializes in supplying chemicals, consistently collaborates with its partners to bring forth a range of novel products.

Phillips explained that there are several emerging patterns in our surfactant collection. These include the use of bio-based and naturally-derived ingredients, as well as a focus on meeting regulatory requirements, such as those related to low 1,4-dioxane levels. Additionally, we have observed a change in preferences from nonylphenol ethoxylates to more environmentally-friendly alternatives.

Each manager interviewed by Happi mentioned that they are always seeking methods to enhance the operations and enhance customer satisfaction. As an illustration, Brenntag has successfully integrated a SLES surfactant dilution facility situated in Toronto, Ontario.

"At this establishment, we decrease the concentration of SLES from 70% to 30%, which facilitates customer formulation," Phillips stated. "Furthermore, we possess a surfactant repackaging facility situated in Houston."

Coast Southwest is getting ready to open its new corporate headquarters in Irving, TX. This big building, which is 105,660 square feet, will be the center of their business and shows how successful Coast Southwest has been over the past 38 years. They used to be a small chemical distributor focused on the West Coast, but now they are a big company that distributes chemicals all across the country. Kaltenbach, a spokesperson for Coast Southwest, says that this expansion in Texas is three times bigger than what they had before. In the past few years, Coast Southwest has also built new facilities in Chicago and South Bend, IN, and they have a team on the East Coast now too, from New Jersey to Florida. They did all this to be able to help their customers all around the US.

Siltech recently started construction on a new site in Fort Erie, Ontario, for its latest manufacturing facility. The investment will increase their production capacity by two times, as confirmed by Allen.

"He mentioned that the new facility will accommodate machinery and skills focused on enhancing and broadening our upgraded eco-friendly merchandise offerings."

BASF is set to boost its worldwide alkyl polyglucosides (APGs) production capacity by expanding its facility in Cincinnati, Ohio. This move will enhance BASF's manufacturing capabilities in the United States, allowing the company to better assist its North American APG customers by providing local supply options and minimizing the need for long-distance transportation. These extra capacities are expected to be ready for use by the year 2025.

In the meantime, over in Switzerland, BASF has expanded their production capacity for Tinopal CBS optical brighteners at their Monthey location. Following the successful completion of the first phase of their gradual capacity increase in 2021, BASF's investment program has greatly enhanced their capacity to keep up with the growing demand from customers worldwide.

At long last, BASF has achieved a successful commencement of operations for a fresh methane sulfonic acid facility situated at the Ludwigshafen Verbund site. This expenditure paves the way for increased sales capacity to become accessible by the completion of the third quarter in 2022. In line with statements from company representatives, this innovative facility equips BASF with the ability to fulfill the rising worldwide consumer requirements for high-quality, high-performing, and eco-friendly compositions.

Suppliers are making significant investments in surfactants to prepare for the future, as concerns about inflation and recession gradually fade away.

The shift towards using oils and natural materials is already in progress in the surfactant industry. Kaltenbach states that Coast Southwest's emphasis on adaptability and effectiveness aids clients in bringing surfactant solutions to the market quicker. These solutions meet the emerging regulatory standards and the growing need for sustainable options.

According to Kaltenbach, we provide surfactant systems that are devoid of sulfates and remarkably gentle alternatives for personal care formulations.

One of the products available is Endinol Mild B-SF70A, which is composed of Sodium Cocoyl Isethionate, Cocamidopropyl Hydroxysultaine, Disodium Cocoyl Glutamate, Lauryl Glucoside, Cocamidopropylamine Oxide, and Caprylyl/Capryl Glucoside. According to Kaltenbach, Endinol Mild B-SF70A can be conveniently mixed into natural formulations to achieve an excellent foaming effect and sensation. Moreover, this ingredient has been pre-optimized to be easily processed in cold conditions and simple to manage.

The surfactant mixture in this product utilizes isethionate, which is derived from vegetables and is free from sulfates. These surfactants are known for being mild and gentle on the skin. By incorporating an amino acid surfactant, this product achieves outstanding compatibility with the skin. None of the ingredients in this surfactant package are listed as concerns under Proposition 65. Additionally, it does not contain cocamidopropyl betaine, alkyl ether sulfates, sulfonates, or DEA.

Kaltenbach explained that our clients utilize Endinol Mild B-SF70A for the production of mild cleansing items such as facial cleansers, body washes, cleansers for sensitive skin, and hand soaps that create a foamy lather. He further emphasized that this particular product is highly suitable for medical environments where individuals wash their hands repeatedly within the span of an hour.

Endinol Mild SCI-85, also known as sodium cocoyl isethionate, is a powerful and natural foaming agent that does not contain sulfates. It is an excellent ingredient for formulating gentle and sulfate-free cleansers. When used, it produces a luxurious and smooth lather, leaving the skin feeling soft and refreshed. Additionally, it gives the product a similar texture and foaming properties to traditional soap but without the negative effects of soap on hard water or causing any irritation.

Endicare SD is ultimately an effective cationic conditioner and emulsifier with potent properties that can be conveniently diluted with water and neutralized using citric or lactic acids to produce luxurious and smooth conditioners. This component is available in the form of flakes, making it considerably more manageable in terms of logistics and formulation processes for conditioners and hair masques. It streamlines the conditioner manufacturing procedure and greatly aids in both wet combing and dry combing hair care practices.

Recently, Siltech has dedicated its efforts towards enhancing the eco-friendliness of its silicones. Instead of relying on petroleum-based organo-functional ingredients, the company has switched to using raw materials obtained from biobased sources. This shift has resulted in the development of PEG-dimethicone surfactants and alkyl dimethicone emulsifiers that boast a significant amount of biobased carbon content. Despite this change, these specialty silicones continue to provide the exceptional advantages that customers expect.

BASF has introduced two fresh substances for creating cleaning products for households. Polyquart S Granules, an eco-friendly product made up of 80% organic materials, is an effective dishwashing additive that effectively eliminates tough stains and leaves a noticeable improvement in the shine. It is not only easily broken down by natural processes but also meets the safety standards set by the EPA. By using this ingredient, not only do consumers get the desired cleanliness in their dishes, but they also contribute to a sustainable environment, as stated by BASF.

BASF states that Euperlan Eco, an opacifier suitable for Safer Choice products, has also been given the green light. This innovative modified starch polymer is 43% derived from bio-based sources, offering formulators an environmentally-friendly option to achieve opacity. Additionally, consumers can enjoy a high-quality cleaning experience with the use of this sustainable ingredient.

Incredible answers to sustainability can arise from unexpected sources. During the CESIO World Surfactant Congress in June, Renke Rommerskirchen from Sasol Chemicals shared how utilizing organic waste processed by insects can serve as fresh materials for sustainable goods. More specifically, the oil produced by the black soldier fly contains abundant C12-14 lauric acid. Rommerskirchen explained that this remarkable insect requires minimal space yet generates an impressive yield, being thirty times greater than that of coconut.

"Insects produce valuable resources from worthless waste streams," he clarified. "The oil is already employed in animal feed and renewable fuel."

Additionally, the carbon footprint of the bug oil is highly unfavorable, with specialists approximating it to be even lesser than that of coconut oil. While the characteristics of the insect oil are commendable, the question remains: will the general public readily embrace household cleaning products derived from insects? Rommerskirchen referenced a consumer study conducted in 2019, which revealed that a significant 86% of Belgians expressed their willingness to experiment with bug-inspired materials in household cleaning solutions.

However, an individual attending CESIO pointed out that according to Henkel's investigation, only half of the consumers expressed a willingness to utilize formulas derived from insects.

"There might exist certain challenges within the vegan community," he remarked. "We ought to enhance the way we convey the advantages to consumers and disclose our discoveries through scholarly publications."

Certainly, numerous challenges need to be addressed; however, surfactants derived from bugs show promise as practical and environmentally friendly resolutions. Currently, humans consume over 2,100 types of insects as food. Considering that there are two billion individuals worldwide who willingly incorporate bugs into their diet, it is reasonable to assume that they would also be open to utilizing formulas made from insects for dishwashing purposes.

BASF Corporation, located in Florham Park, New Jersey, can be reached for inquiries about detergents and cleaners at the email address [email protected]. More information can also be found on their website www.hcii.basf.us.

Polyquart S is a type of modified starch granules that has amphoteric properties.

Description: Polyquart S Granules is an automatic dish additive made from natural resources (80%) that effectively removes stubborn spots and film, providing a noticeable improvement in shine. This ingredient is easily broken down by natural processes and is also recognized by the Safer Choice program, demonstrating its commitment to sustainability. It enables manufacturers to meet consumer expectations of sparkling clean dishes while satisfying environmental concerns.

of a sustainable, eco-friendly ingredient called Euperlan Eco. This ingredient is made from a blend of starch, alongside polymers such as styrene and methacrylic acid. It comes in the form of a dispersion.

Uses: Hand washing dishes, doing laundry by hand

Characteristics: Authorized for inclusion in Safer Choice goods, Euperlan Eco stands as the pioneering opacifier with a moderate level of biodegradability specifically designed for household cleanliness. With a content deriving 43% from renewable resources, this enhanced starch polymer aids in the achievement of desired opacity using a more eco-friendly element, ultimately delivering a superior cleaning sensation to consumers.

Silwax Sustain 5116 is a product with the chemical name Cetyl Dimethicone, which belongs to the alkylated silicone family.

Uses: can be used as a softening agent in fabrics and tissue paper; improves the spread of products, increases their compatibility with oils, adds smoothness to the skin, and reduces the visibility of white residues in skin and sun care items.

Characteristics: Silwax Sustain 5116 is a liquid silicone compound that has been modified and improved for a more environmentally friendly approach compared to the standard Silwax B116. Instead of using petroleum-based materials, Silwax Sustain 5116 incorporates an alkyl component derived from renewable plant sources. Testing has shown that over 82% of the product's carbon content comes from biobased origins according to ASTM D6866. The inclusion of alkyl pendant groups enhances the solubility in oil and compatibility with organic systems. Silwax Sustain 5116 offers outstanding spreadability, pleasant sensorial qualities, glossy appearance, and beneficial moisturizing properties.

Silube Sustain 4316 International Nomenclature of Cosmetic Ingredients: Cetyl PEG/PPG-10/1 Dimethicone (silicone alkyl polyether)

Uses: Slipperiness and protection against damage in industrial settings, substance that helps mix liquids and promotes the spread of personal care products such as skincare, sunscreen, and cosmetics.

Description: Silube Sustain 4316 is an emulsifier made from a silicone polyether that is soluble in water. This product serves as a sustainable alternative to the regular Silube T308-16-CG. Unlike the non-Sustain version, Silube Sustain 4316's polyether and alkyl components are obtained from plant sources instead of petroleum-based materials. According to ASTM D6866, more than 73% of the carbon in this product comes from renewable plant-based sources. It is a cost-effective emulsifier, wetting agent, and surface tension reducer that can be used in various applications.