Surfactants Monthly - January 2025
Blog – January 2025
ACI 2025 wrapped up last week. As a reminder: We don't traffic in rumors or inside information or anything that is not already in the public domain in the blog. So if you’re hoping to read any “scoops” from the ACI or any other event, this is not the place. This is not a gossip sheet, or page six - or even page three (despite appearances some months, I know). Best join the events yourself and network and engage.
No Gossip!
What I have done is put together a five minute vibe-check video on the surfactants market immediately post ACI. I talk about:
Positive outlook in the US market for business and investment
Caution in the rest of the world, particularly Europe. Particularly around tarrifs.
Dioxane still heavily discussed and concerns around the EU 1 ppm October ’25 proposal.
Willingness to invest and innovate; some forced by regulation; some animal spirits driven.
Counterbalancing concerns about US debt level and interest rate pressure (upward.)
Now – to clarify. I had assumed that the whooping and hollering in the background of the first half of the video was the live, unrestrained appreciation of industry members overhearing the incredibly insightful and cogent remarks that I was making out there. Someone later told me the ACI duck race was taking place behind me. So maybe that was it. Hard to tell. Coulda been either.
And now, keep reading, our promo: The 15th World Surfactants Conference runs May 7 – 8th in Jersey City (link here to the site so you can register https://events.icis.com/website/8544/ ). Registrations are already multiples of last year. Book soon. It will be the best yet.
I know I say it every year, but it just keeps getting better.
The News:
OK let’s come back to dioxane again. It’s February 1st 2025. Do we really think that by October of this year, the EU will regulate the dioxane content of surfactants to 1ppm on an active matter basis? I should never underestimate the capabilities of regulators to shoot their fellow countrymen, and ultimately themselves, in the foot. But still. What do you think? Our tipline is open. (By the way, people ask me about the tipline. It’s not actually one of those old-fashioned telephones on a desk, manned 24/7. I kinda wish it was, but it’s just my email – which you should have).
Not quite like this.
Meanwhile in the US, the EPA published a 32 page Unreasonable Risk Determination regarding dioxane. In summary The Environmental Protection Agency (EPA) has determined that 1,4-dioxane presents an unreasonable risk to human health under its conditions of use. This determination is based on a 2020 risk evaluation and a 2024 supplement, which considered cancer and non-cancer risks to workers, the general population, and fenceline communities. Key conditions of use contributing to unreasonable risk include the manufacture, processing, industrial/commercial uses, and disposal of 1,4-dioxane, particularly when it contaminates surface water used as a source of drinking water. The EPA will propose regulatory actions, focusing on conditions of use that significantly contribute to the unreasonable risk, and also consider actions under the Safe Drinking Water Act. The EPA also notes that the risk determination does not assume the use of personal protective equipment. Blech..I’m not sure if this piling on top of NY State and CA regulations, actually changes anything regarding US compliance standards in surfactants and detergents, but.. let’s see.
By the way, the great Craig Bettenhausen has written an outstanding piece on dioxane in the C&E News here.
I have to say, one thing at ACI, in the innovation showcase that I liked was the new Zero products presented by SCT (Southern Chemicals and Textiles), Inc. I’ve talked a lot about dry products. They’re a big part of the future in ingredients and finished products. I really like what SCT has done. Sopal Zero is a fully formulated surfactant system available in granule and flake form, with the INCI name Sodium C14-16 Olefin Sulfonate, Disodium Lauryl Sulfosuccinate, and Lauryl Hydroxysultaine. The product is designed for use in personal care and household applications and allows for the creation of products that significantly reduce plastic waste and water usage. It can be used to create water-activated powdered products such as shampoos and face washes, where the powder is transformed into foam with the addition of water. Additionally, Sopal Zero can be pressed into shampoo and body bars without the need for processing heat, offering convenience and zero plastic packaging. The product is also suitable for use in reusable containers, where consumers can reconstitute products at home. Sopal Zero is 100% solids, providing formulators with flexibility in product development. It can also be used in foaming body scrubs, providing high-foaming action, even in the presence of oil, and is designed to rinse cleanly. Formulations using Sopal Zero can offer multiple benefits such as cleansing, exfoliating, moisturizing, and pre-shave. Sopal Zero delivers the benefits of traditional liquid products without the need for water and plastic packaging. I know this sounds like an ad. It’s not. I just like what they’ve done with existing well established ingredients.
Macroeconomics: Grace Matthews, an investment bank, published their Winter newsletter a little too late to be included in our December blog. Here it is https://gracematthews.com/news-insights/chemical-insights-newsletter/ . First a couple of M&A highlights. :
· Shrieve, a Gemspring Capital co, specializing in lube related chemicals acquired Connection Chemical a PA based distributors of various products, including surfactants. Nice rollup stragtegy there.
· Solenis, which acquired the I&I co, Diversey a while back, acquired the mining flocculants business of BASF, as the latter continues to prune and focus operations.
Other key points from the report: The chemical and material science M&A market experienced increased activity in 2024, with a steady rise in North American deals. This is fueled by acquisitive strategics, private equity (PE) firms with record dry powder, and increasing consumer confidence. Buyers are competing for a limited number of high-quality companies, making a well-defined acquisition strategy crucial. Successful acquirers need to offer competitive value and legal terms, demonstrate speed and certainty in closing, and provide intangible benefits such as senior-level engagement. The M&A environment is expected to maintain positive momentum through 2025, with macroeconomic tailwinds, PE funds needing to deploy capital and strategics continuing to use M&A to grow their businesses. The Grace Matthews Chemical Index shows a current Enterprise Value/EBITDA trading multiple (for publicly quoted chemical stocks) of 11.4x compared to a 10-year average of 11.3x. Good lower / middle market PE funds may see 500-1,000 teasers in a given year (Whoa – I hope the reading load is spread out among a few folks).
Here's that interesting chart, of 10 years-worth of chemical stock trading multiples. Now, our readers (because they are smart) know that specialties and commodities companies trade very differently (see previous blogs for a detailed expansion of this point). However, it’s interesting to see that in chemicals in aggregate we are pretty much today at the 10 year average. Quite unlike tech, for example.
Talking about tech though, there’s tech in our industry right? Maybe we don't talk about it enough. I mean apart from the incredible technology in the making of the actual chemicals, there is consumer tech in their application. Henkel made a bit of consumer press here. : At CES, the consumer electronics show in Vegas, Jan 7 – 10th, Henkel debuted [is that spelled right? Looks weird] a smart dosing technology for its global brands Persil and Somat . The company is establishing partnerships with industry leaders in the home appliance sector (it says in the press release).
The PR goes on to say that many consumers globally have an average of 3-5 detergent bottles in their household [Western world most likely], and more than half are unsure of how much to dose [I dunno – just fill the cap right?]. Henkel aims to take the guesswork out of the equation with smart dosing. As a first step, Henkel is announcing two new smart detergent dosing devices that can be used in existing laundry and dishwashing appliances.
Somat Smartwash: The world's first smart detergent dosing device that automatically senses dishwasher parameters to determine the right dose of detergent and additives at the right time needed to deliver all-in-one optimal results over months.
Persil Smartwash: A groundbreaking laundry solution that autonomously senses washing machine parameters and automatically doses the right amount of detergent at the right time in the wash cycle for the best stain removal and fabric freshness
More details on the laundry one. 'Smartwash', is an advanced AI-driven detergent dosing system for cartridge-based chemistry, designed to be adapted into any washing machine of the future. It offers up to 57% greater stain removal compared to the current best-in-market detergent, and the ability to generate up to 300 quadrillion different dosing configurations [Wow OK – I’d love to see the derivation of that number. I actually think it might be low] to ensure the most optimal wash performance with every wash load. With this hyper-personalized system Henkel charts the course to revolutionize the way consumers wash clothes, while delivering enhanced performance, convenience, and sustainability.
OK so, I’m a sucker for this sort of thing and think it is super-cool. I’m also cheap though and this whole setup sounds expensive. So maybe I’ll just stick with my top-loading LG and a big old sticky bottle of whatever’s on sale at Acme [a US supermarket]. Unless of course Henkel wants to send me one of these and I’ll try it out and shill for it [I mean objectively assess it] on YouTube and in the blog. Tip line is open, Henkel.
Seriously though, as I stress in my one day surfactants business course, Homecare is not boring. If you have an ingredient that you think can move the cleaning efficiency needle in laundry, you should be engaged in-depth with Henkel and the other big guys. For various reasons, the ingredient palette is open, a theme we keep returning to in my courses and conferences.
Not Boring ! (This is Ashley Tisdale. See last month’s blog for relevance)
Speaking of CES, HAPPI reported L’Oreal’s activities there with skin analysis hardware. Another opportunity perhaps for ingredients marketers. I’ll leave it to you to follow up.
HAPPI also referenced the Pinterest 2025 trend prediction, which may be worth a scroll through here. I’ve no idea how much of this is legit analysis and how much is just fanciful nonsense. Although given how much fragrance talk there was at ACI this year, maybe the Cherry theme has some legs for cosmetics and personal care. But the one I really wish were true is Castlecore. Reminds me of the fancy dress parties as a kid where we’d silver spray paint a string vest and be Richard the Lionheart.
This, apparently, is a thing today…
We’re bouncing aroud a bit here. From homecare to skincare. K-Beauty is still a big thing. Korean women have incredible skin. This is well recognized and so the big cosmetics and personal care companies continue to invest in this category. L’Oréal has acquired Korean skin care company Gowoonsesang Cosmetics Co. with the brand Dr.G, from Swiss retail group Migros. The Seoul-based business will become part of L'Oréal Groupe’s Consumer Products Division (CPD). The PR says - “We have been following the brand and its success for many years and we look forward to accelerating its growth in South Korea and the rest of the world, staying true to our mission to democratise and premiumise beauty by bringing the best of Korean skin care to consumers everywhere,” said Alexis Perakis-Valat, Global President of L'Oréal CPD. Aha but but so what? Keep reading. If you are a new company or just have a new interesting ingredient. Get into Korea. Get into some small interesting brands. Then maybe you find yourself a supplier to L’Oreal (or Estee or UL or Shiseido or whoever) when that brand is acquired. It’s a perfectly valid backdoor onto one of these big cosmetics battleships [Terrible metaphor, I know. Give me a better one].
L’Oreal Spokesmodel, Park Soo Joo. Zero imperfections.
From Korea to the UK, where the British Beauty Council has named model Georgia May Jagger, its Wellbeing Ambassador. The 32-year-old British-American supermodel and founder of May Botanicals is the daughter of Mick Jagger, an icon known for healthy living and wellness [it doesn't say in the PR]. She joins existing ambassadors, Kate Moss and Rita Ora. Why am I reporting this? Well, I just dug into the May Botanicals line to see what surfactants they’re using. And in the $58 [for 3 ounces] of cleanser, we have coco glucoside and decyl glucoside. APG’s. OK interesting.
If you want to spend three and half more minutes of your life that you won’t get back on this, here are the three lasses talking makeup together.
On to more serious material. The Journal of Surfactants and Detergents, published by the AOCS published a tribute to George Smith here. Very cool. Within his 38-year career as an industrial scientist, George rose to the position of Research Fellow during
his 20 years with Huntsman. Since then, George has continued in surfactant R&D at Sasol focusing on surfactant applications in the home and personal care consumer product markets. His career accomplishments are reflected in his inventorship on over 40 issued US patents in the field of industrial surfactants.
There’s some interesting articles in this issue which you might want to dig into. Here’s some you might like.
Black soldier fly larvae as feedstock for lauric oils. Yes you read that right and we have mentioned Sasol’s work in this area in the past. Yet another angle on PKO alternatives.
Sulfur supply concerns, is another issue we have written about before here. The great Brian Grady of the University of Oklahoma gives an up to date analysis of this important matter for producers of sulfates and sulfonates.
May not see this much longer
Rhamnolipids in personal care cleansers - an article by Colgate researchers is pretty interesting.
On the critical and frustrating matter of TSCA approval of new chemicals in the US, one of our avid readers reminded me that SOCMA has been doing some good work in this area. I don't often write about SOCMA and so you may want to consider checking them out and consider membership. Here are a couple of relevant recent links.
· Open letter to the new Administration
Mass Balance continues to attract a lot of attention up and down the surfactant value chain. We have, in the blog and on our YouTube channel sought to do various versions of a “Mass Balance 101” Shell Chemicals does a very nice job of that on a web page here. Check it out. It includes also a video – coming in under a minute.
Here’s my coverage where I labor the point a bit for over seven minutes, in case you missed it
Point is though, what is the premium for mass balance? Well, I don't have a reliable, statistically significant answer for that yet. The tip line is open.
Hey remember Mr. Bubble? HAPPI just reported their 60th anniversary. It used to be a Playtex brand and consumed a pretty good quantity of surfactant, particularly SLES. It belongs now the Village Company [no connection to the People, of which I’m aware]. I was curious what the formula looks like now. Here it is: Water, Sodium Laureth Sulfate, Cocamidopropyl Betaine, Sodium Chloride, PEG-80 Sorbitan Laurate, Aloe Barbadensis Leaf Juice, Tocopheryl Acetate, PEG-150 Distearate, Citric Acid, Tetrasodium EDTA, Ethylhexylglycerin, Sodium Benzoate, Phenoxyethanol, Fragrance, Red 33. I really don't think it’s changed much.
Never gets old..
Biosurfactant update: Just a short one. As I come across new marketers (and manufacturers) of biosurfactants, I’ll keep you updated. Rossari of India put out a tease on Instagram about new biosurfactants here. I expect we’ll hear more in the coming weeks.
AOS (Alpha Olefin Sulfonate). I got a bit of feedback on my recent video. Two pieces in fact. First, Syensqo reminded me to tell you that they also make AOS – so now you know. Second, Innospec noted that they are one of the largest producers of AOS in Europe and are the lead registrant for the substance under EU REACH. Interestingly, AOS was compliance checked by the European Chemicals Agency in 2023 and Innospec is leading a project to use a range of novel methods to address this without any further animal testing as (contrary to the ECHA opinion) they do not believe it is necessary from a scientific or ethical perspective to demonstrate its safety profile. [I wish them much success!]. I believe this is the relevant document from ECHA.
More AOS news: Pilot Chemical announced plans to expand production of AOS at the Middletown, OH plant. The expansion project consists of debottlenecking activities, which will commence around now, followed by the installation of a new sulfonation reactor train, which is slated to go online in early 2027. Cool. And then, in a marketing blitz, they followed with an announcement of a collaboration with Kao in the marketing and production of Kao’s Bio IOS (internal olefin sulfonate) which we have written about on the blog some years ago. Also cool. Kudos to both companies.
Yep…
You may have read, like I did, about the Johor / Singapore SEZ (Special Economic Zone). Not sure of the immediate impact on surfactants or oleo but it’s expected to spur a lot of investment. In summary - Singapore and Malaysia have signed a landmark agreement to establish the Johor-Singapore Special Economic Zone (JS-SEZ) to strengthen economic ties. This initiative aims to drive investments in 11 key sectors such as manufacturing, logistics, and energy. The JS-SEZ is expected to generate 20,000 skilled jobs and foster cross-border cooperation, with a goal to expand 50 projects within the first five years and 100 projects within ten years. To facilitate movement of people and goods, both countries plan to enhance clearance capacity, introduce automated immigration lanes, and implement paperless goods clearance. The agreement also focuses on improving cross-border connectivity, supporting talent development, and strengthening the regional business ecosystem. The SEZ covers a large area and includes nine flagship zones. Both governments will jointly finance the JS-SEZ. Good for both countries !
Good
New surfactant? Straight from the pages of Specialty Chemicals Magazine: Nouryon has introduced Structure M3, a novel polymeric co-surfactant derived from starch. The INCI name is Sodium Hydrolyzed Corn Starch Dodecenylsuccinate. It enhances the mildness of surfactant systems in personal care products. [It kinda reminds me of something that J&J presented at one of my conferences a while back….]
Yet another PKO alternative! MKO (stands for Macauba Kernal Oil – pronounced Makka Ooba). In a press release titled BASF and INOCAS sign agreement to develop sustainable Macaúba oil supply in Brazil, BASF notes:
BASF and INOCAS sign offtake agreement for Macaúba kernel oil (MKO) and Macaúba pulp oil (MPO) to further expand BASF’s renewable-based portfolio
Collaboration project supports scale-up of INOCAS’ Macaúba cultivation program which has a positive social and environmental impact
BASF reserves right to acquire a stake in INOCAS
Now as you all know, Macaúba (Acrocomia aculeata) is a native tree in Brazil and is adapted to semi-arid conditions and poor soils. Fruits can be processed into pulp oil, kernel oil and residual biomass. Interesting right?
The BASF and INOCAS teams together. I had thought about a slightly humorous or even sarcastic caption, but they seem so happy, I’m just going to wish them a load of success in this initiative.
More sulfate free! There’s an article in the journal Cosmetics on this topic. It essentially promotes amino acid based surfactants, particularly sodium lauroyl glutamate and sodium cocoyl alaninate. It’s well referenced and researched so may be worth a read. If you just want to look at the pictures, here are the two key ones.
Glutamate
Alaninate
And finally, in an SEC filing on Jan 27th, Stepan Company provided an update on the construction of its new, 75,000 MT / yr alkoxylation facility in Pasadena, Texas. Due to unforeseen delays, the Company now expects the startup of the facility to occur in the first quarter of 2025. The Company does not expect this change in the startup date to materially impact its first quarter results or otherwise materially impact the Company's business, financial condition or results of operations. The Company plans to provide additional detail regarding the expected startup of the facility during the Company's forthcoming fourth quarter and full year 2024 earnings call.
Market Notes:
In detergent range alcohols
· In Asia, demand is down due to the Lunar New Year holiday. Many businesses in Asia have closed for the holiday. Mid-chain fatty alcohols are holding steady, as there is limited availability. Some plants in southeast Asia are undergoing maintenance.
The US market is tight, especially for products derived from palm. There continues a cost advantage for petrochemicals. EUDR continues to weigh on buyers.
Europe is also tight.
LAB
The LAB market in Asia is quiet due to the Lunar New Year holidays.
ISU announced it has achieved certification to produce bio-based versions of normal paraffin and LAB.
AI Corner:
HAPPI has written about the collaboration between IBM and L’Oréal to build an AI model to create sustainable cosmetics. It gets right to ingredients. Here’s a telling paragraph - In addition, IBM Consulting will support L’Oréal in its aim to rethink and redesign the formulation discovery process. Understanding the behaviors of renewable ingredients in cosmetic formulas will help L’Oréal build out more sustainable product lines with greater inclusivity and personalization for its consumers around the world. I think you (as an ingredient company) need to get plugged into this effort. The guy to contact is Stephan Ortiz – according to the article.
Music Section
As I’ve said many times, our blog has the best, most educated, sophisticated, generous and thoughtful readers. So here we have some detailed responses to my call for – What is new in heavy rock today? As always, I’m keeping the contributors anonymous – unless they request to be identified.
From hereon to the end you are reading reader inputs to the great music section of our blog…
Here is something very interesting: Check out this band Jinjer – My only forewarning, I will give is what was given to me “I wish I could be with you to see your reaction at 1:11 on this one”:
I’ve researched this group in depth, live and recorded - and the vocals are legit.
Here are more suggestions..
Came across a post-punk band from Australia called Amyl and The Sniffers recently, thought I’d share in case you haven’t heard of them. Perhaps blog-worthy (warning: some lyrics and tracks may be NSFW, the links below are the more family friendly ones). I’m particularly into their guitar and bass players’ tones and riffs, some nice edge. Of course, as a chemist, “amyl” (a.k.a. “pentyl’ in IUPAC) immediately catches the eye, and the “sniffers” reference to amyl nitrate is humorous too. Amy’s quite the frontwoman as well.
“Chewing Gum” (great drums and slide guitar here too, little on the poppier side)
U Should not be doing that (w Jools Holland) - Let me know if this is too much for the blog.
“Born to Be Alive: https://www.youtube.com/watch?v=VQs3aHp5494 (fun disco cover)
And continuing ….
Gojira - not terribly new. They made some waves last year with their Olympics performance: https://www.youtube.com/watch?v=5hTMYk7orHw
Tool - Very not new, but this video went viral a few years ago:
TesseracT - Stunning vocals from this relatively newer prog metal band
One of our most avid music readers notes that : “New metal seems to have a certain feel that I know doesn't appeal to a lot of classic metal listeners, with the heavily detuned guitars and constant double-kick drums. For a more classic feel, many of the traditional power metal bands are still going strong and inspiring newer bands like Sabaton.
and female-fronted A Sound of Thunder.