The current slowdown in EVs and the renewed demand for catalysts for diesel and petrol cars reveals how sustainability efforts can ebb and flow in certain parts of the chemical industry. When it comes to beauty products, SYENSQO feels the standard chemistry is definitely on borrowed time.
“The technology that got us to this point is not going to be the technology that gets us through the next 10, 15 or 30 years,” Mike Radossich, president of Consumer & Resources at SYENSQO, said in an interview with chemicalESG.
The pressure is on to find new technologies and manufacturing processes.
SYENSQO is in the midst of upgrading its toolbox at Novecare by shifting away from synthetic chemicals toward enzymes, fermentation and extraction technologies.
The Belgian company just acquired South Korean ceramides startup Jinyoung Bio and a Moroccan natural rosemary-based preservatives business, as well as partnering with Allozymes.
Within the functional ingredients space, the Belgian company estimates about 50% of products are well-positioned and already meeting criteria like sustainability. There remains some challenging areas, including synthetic polymers, where replacements have yet to be found. And that’s where the company is looking to innovate as it expands further in skin-care and flavors and fragrances.
Eight months on from being spun out of 161-year-old Solvay, some familiar faces are leading Novecare’s transformation. Radossich joined Solvay in 2015 via the acquisition Cytec Industries. Back then, he was tasked with integrating the U.S. composite maker’s specialty-chemicals division. Likewise, Singapore-based Jean-Guy Le-Helloco, Home & Beauty Care EVP, came across with the iconic Rhodia. A decade later, their focus is on leveraging recently acquired enzyme and ceramide technology and seeking out new active ingredients that meet sustainability criteria.
“We anticipate that a lot of formulations will be reformulated or upgraded between now and 2030 and beyond. Therefore, adapting our portfolio is a must,” Le-Helloco said.
The pressure to innovate coincides with a weaker-than-expected recovery in the wider chemical industry. While there was the usual buzz at the incosmetics trade show in Paris, Radossich and Le-Helloco felt the New York Society of Cosmetic Chemists’ Suppliers’ Day, just over a month later, was a bit down on last year. That could have been down to scheduling. But the independent-brand scene, which exploded in the US pre-Covid, definitely felt a bit quieter. The trade shows are something of a bazaar for the likes of SYENSQO as startups look to partner up.
“Lots of interesting technologies coming out and again sustainability trends focusing on substances of high concern and replacing those chemicals with higher toxicity or maybe a bad label,” Radossich said.
China also put a “bit of a dampener” on the Suppliers’ Day vibe as manufacturers are flooding the market with more commodity or semi-commodity type products that they couldn’t sell locally.
There was also some economic impact, given inflation and consumer affordability, especially at the high-end of the market but, overall, demand remained solid, Le-Helloco said.
“Sustainability is a major change for the industry, creating room to innovate,” he added.
Hair-care is becoming more sophisticated. Shampoos, serums and conditioners are increasingly incorporating actives and innovation for easy-combing, hair-style management and heat resistance.
“We have a strong buy-and-build strategy for personal care. You should see more acquisitions coming from us,” Radossich said. “There’s going to be technology developments that are going to be needed to transition from a portfolio of largely synthetic chemicals to the more natural. It’s about being selective.”