Global Mega Trends 2009Impact of trends on the detergent industry

SDA 2009

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The four major trends

21 3 4

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The effects of recession on the detergent industry

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Private label launches rise in Q4 2008

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GLOBAL DATAMORE PRIVATE LABEL PRODUCTS WERE LAUNCHED GLOBALLY IN Q4 2008 THAN OTHERS QUARTERS.

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Private label launches rise in Q4 2008

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US DATAMORE PRIVATE LABEL PRODUCTS WERE LAUNCHED ESPECIALLY IN THE US IN Q4 2008 THAN OTHERS QUARTERS.

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Getter higher performance at no extra cost

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Replace surfactants and builders with a customized multi-enzyme solution to

• Reduce or stabilize formulation costs

• Increase performance at no extra cost

• Get more consumer claims at no extra cost

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Effects of fluctuating raw material prices on the detergent industry

RESULTS OF VOLATILITY• INCREASED NEED TO STABILIZE FORMULATION COSTS

• NEED TO DECOUPLE FROM OIL-BASED RAW MATERIALS

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Decouple from volatility

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• Surfactants and builders are the biggest chunk of the detergent raw material cost pie

• Surfactant and builders are experiencing volatile pricing

• Stabilize costs by replacing surfactants and builders with price-stable multi-enzyme solutions

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The sustainability push

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Retailers demand compaction

Consumers want high performance, low price

NGOs want more LCA studies

Regulatory bodies want no chemicals

Governments want less environmental impact

Consumers want greener cleaning

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Both EU and US want chemicals out

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• REACH calls for less chemicals in our products

• GHS asks for more extensive labeling

• Eco labels are getting stricter criteria

• The phosphate is nearly there in all of EU and US

• Boric acid limitation is already in place

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Increased transparency of product information

• Consumers will find whatever information they need

• More impact from consumer organizations and NGOs on detergents as consumers look for independent sources of information

• Consumers will buy honest products that live up to their strict requirements

Consumers know what quality means

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Larger consumer and retailer awareness on quality means

• Brands can no longer hide behind their name

• Existence of ’value products’ depends on their ability to match performance of branded products

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More performance, reasonable costs

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• Replace traditional ingredients with customized enzyme solutions to reduce formulation costs

• Increase performance without increasing formulation costs

• Give your customers the cleaning they want, at the price they can afford

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Learn more about Novozymes’ bioinnovation at www.novozymes.com/detergent