PCHi opened its doors to the three day event at the Guangzhou exhibition centre, in Southern China today, and says it is expecting a high level of visitor numbers from all over the globe, as manufacturers increasingly turn to the China market for sustained growth in the tough economic conditions.
Attracting the visitors to the event are leading exhibitors, including chemical giants such BASF, Dow Chemical Company, Evonik Industries, Rohm & Haas and personal care players such as Proctor & Gamble, Shiseido and L’Oreal.
China market predicted to outshine developed markets
Reed says that in comparison with the subdued performance in developed markets such as North America and Europe, China's personal care market has continued to grow.
In contrast to the shrinking revenues being witnessed by leading players in these markets and predictions of further short terms falls, Reed says that many personal care categories in China are likely to experience strong growth if economic conditions do not deteriorate further.
One example of this is the forecast for the skin care market in China, which Reed says is predicted to grow at a compound annual growth rate (CAGR) of 12.5 per cent to 17.0 per cent in the period 2008 – 2012.
Colour Cosmetics set for further healthy growth
Likewise, Reed also cites figures that predict demand for colour cosmetics will grow by a CAGR of 10 per cent.
Another area for predicted growth is men’s fragrance, which is expected to grow at a faster rate than women’s fragrance, with a CAGR of just below 11 per cent.
Although industry analysts have mixed views on the future of the Chinese economy - many citing that the big drop in sales of China-made consumer products in developing markets will have a knock on effect back home.
Next year's PCHi in China
If the domestic market can sustain further growth, then Reed’s proposal to increase the size and contents of next year’s PCHi event in Shanghai could prove to be a winner.
Expansion of the event will include a series of seminars led by suppliers as well as the implementation of more online activities to provide streamlining of market and company news in the run up to the event.
“We received feedback from customers in other events organized by Reed Sinopharm that they would like to see how they can collaborate with CT ingredient suppliers to manufacture new applications,” said PCHi project manager Jason Li.
“Organising conferences with these themes creates the ideal platform to facilitate new business opportunities through joint collaborations.”