Creating value, growing together

Ethnic Hair Care market Trends & Formulation Solutions

Creating value, growing together

Value Proposition

Glenn, an Azelis Americas company, provides comprehensive service through the delivery of specialty chemical solutions for the formulation of Personal Care and Home Care & Industrial Cleaning products. Our super-regional footprint accompanied by our technical competence and our optimized marketing engine exemplify our value-added standards to both our supplier partners and customers. 

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Growing Economic Opportunity Justifies Product Development• Greater Black population rise vs.

Whites: the population of Black consumers in the US is expected to rise 5% between 2015 and 2020 vs. 2.8% for White.

• Black spending power: projected to increase to $1.4 trillion by 2020, which would make their spending power in terms of GDP as large as Mexico (only $320 million in 1990).

• Experimenting with different hair/fashion styles: important to 37% of Black women (vs. 14% of men) – boding well for hair styling products.

• Usage: styling products are used by 51% of Black consumers (May 2014) rising to 67% of women.

Sources: Mintel and Atlanta black star

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• In the Black haircare category, styling products saw the greatest gain of 26.8% between 2013 and 2015 (est.) – in contrast to stagnant hair styling sales in the overall US haircare market.

• There was an 18.6% fall for relaxer sales, an 18.3% increase for shampoo, a 9.8% increase for conditioner and a 1.6% increase for home hair colour.

• The fashion for more natural afro hairstyles (vs. straight / relaxed) is arguably driving sales of styling products as a natural look for curly/afro hair often requires consumers to add a few more products to their daily routine.

Targeting Black consumers: US styling product sales rise by biggest share

Source: Mintel Reports, Black Consumers and Haircare - US - August 2015

Madam C.J. Walker Beauty Culture Frizz Fighting Coconut & Moringa Oils

26.8%

Styling products increased

18.6%

Relaxers sales fell

Africa’s Best

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• Consistent with their high engagement in the haircare category, Black haircare users report above-average interest in many new products such as scalp treatments (69%), lightweight hair oils (63%) and hair fragrance (56%).

Targeting Black consumers: interest in scalp treatments, light oils, fragrance

Source: Mintel Reports, Black Consumers and Haircare - US - August 2015; Base: 1,893 internet users aged 18+ who use haircare products

Scalp treatments Lightweight hair oils Hair fragrances

AllBlack

53%

69%

49%

63%

47%56%

Interest in select new products, by race, January 2015

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Hair Treatments Lead in Ethnic Hair Product Launches in NA (2013-July 2016)

Hair Treat-ments, 47.17%

Hair Styling; 33.96%

Shampoo; 11.32%

Conditioner; 7.55%

Moisturising / Hydrating

Botanical/Herbal

Leave-In

Brightening / Il-luminating

Ethical - An-imal

Organic

Friendly Package

Damaged HairTime/Speed

Ethnic Hair Treatment Claims

Strong influence of natural and moisturizing claims in ethnic hair treatments

Sources: Mintel

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Conditioners Evolve, Regular Shampoos Slip

Source: Mintel

Regular shampoo usage dips slightly85% of respondents in the US indicate using shampoo (January 2016) – a small fall on the 89% in 2015 – arguably linked to consumers washing hair less frequently.

Overall usage of regular conditioner stands at a steady 63% of US consumers (January 2016) – rising to 76% of women and falling to 48% of men.

17% of US respondents indicated using cleansing conditioners which provide a gentler wash; men are as likely as women to report usage (16% vs. 18%); and men who use hair care products are also more likely than women to say that they occasionally replace their shampoo with a conditioner (18% vs. 12%).

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Opportunities in Multi-Cultural Beauty

• Cultural shift in beauty ideals• Embracing cultural identity• Large, mixed race population in NA• Opportunity to extend product development beyond ethnicity to

cater to common needs among broader consumer groups• This opens up the opportunity for “specialty” brands to move to

mass channels with products effective for curly, wavy and generally unruly hair

Ethnic hair

Curly hair

Hispanic

Caucasian

Pacific islander

Multicultural market

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Exciting Companies for Inspiration

A collection of handmade hair and skin products

• Whether providing natural or handmade products, these three brands provide consumers with innovated and intriguing products to satisfy an entire hair care regimen

10 Source: naturallycurly.com, Evonik Research

Curl PatternShows the amount of wave or curl in the hair

Well-defined, springy, copious curls from bouncy ringlets to tight corkscrews

Needs

PorosityAbility to absorb and hold moisture by how tightly the cuticle scales adhere to the surface of the hair shaft

High: The curlier the hair, the more areas of discontinuity in the cuticle layer. Coily has fewer cuticle layers, less protection from the damage inflicted by combing, brushing, curling, blow-drying and straightening

Frizz reduction, deep moisturizing, conditioning during the washing process to help restore the hair to a more manageable porosity level

Tight curls, kinky, or very tightly curled

DensityHow closely individual strands of hair are packed together on the scalp. Determines hair volume

Higher for Coily hair. Lots of strands densely packed together. Hair is voluminous

Curly with medium density: Enhance the hair’s texture and play up volume Coily with high density: Hold the curls and reduce volume

Sebum Sebum migration to the hair shaft is very low and not evenly distributed due to the large diameter and tight curvature along the hair fibers

Remove excess oils without stripping hair of its natural oils and sebum. Nurture the dry scalp

Growth Slow growing, at less than 0.9 cm a month Nourishing

Curly CoilyManaging Hair

Textures

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Formulate products that meet consumers’ natural hair care regimens!Maintain and beautify natural curls

Sulfate-FreeWith moisturizing properties

1. ShampooEvery 5-7 days

Use of conditioner instead of shampoo to clean the hair. Opportunity for Cleansing Conditioners!

2. Co-wash for dry hair

Replenishing masks, oils, creams, scalp care balms

3. Deep ConditioningTwice a month

Detanglers, sprays, creams

4. Leave-in ConditionerAfter every wash

Sprays for curl definition/shine, moisturizing gels, hair polish and freeze control serums, heat protectants, curl friendly foams, moisturizing balms

5. Styling

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“Naturalista” Growing, but Straighter Styles Remain in DemandFormulate products to restore and nourish treated hair

Lightweight naturally-derived oils, repair tonics

1. Day Care

Lightweight moisturizer

2. Night Care

Pre-shampoo treatment, shampoo or cleansing conditioner and deep conditioning treatment

3. Weekly

Serum to protect the hair from heatSheen-moisture and/or styling sprays with natural oils and/or siliconesScalp massage treatmentTreatment/Styling hybrid products

4. Styling & Nutritional Support

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“To Build Unwavering Customer Loyalty”

We accomplish through:

Developing long-term customer and supplier relationships by providing innovative solutions to meet the formulating and production needs of our customers.

Employing a leading team of technical sales people, supported by an exceptional service organization.

Demonstrating the highest level of integrity in every transaction to the mutual benefit of our customers, suppliers and employees.

Mission Statement

Creating value, growing together

glenncorp.com300 Jefferson Blvd.Warwick, RI 02888(p): (888) 453 6267