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With the development of Kenya’s economy and the improvement of people’s living standards, the country’s demand for home and personal care consumer goods has rapidly increased, thereby promoting the continuous expansion of its anionic surfactant market, which deserves investors’ attention. The study published by the American growth consulting firm Frost & Sullivan in March this year specifically analyzed this.

Anionic surfactants are mainly used in household products in the following categories: general functional products, fabrics and textiles, toilet cleaning, dishwashing products and others. In the personal care sector, this product is mainly used for hair care, skin care and oral care.

Anionic surfactants for home and personal care include SLES (lauryl ether sulfate), LABSA (linear alkylbenzene sulfonic acid), hydroxy acid salts, and the like. In Kenya, 70% to 75% of the anionic surfactants used in personal care products are SLES, while most anionic surfactants in household products are LABSA.

The anionic surfactant market for household and personal care products in Kenya is growing. In 2010, the total sales volume of anionic surfactants in two areas reached 22,000 tons, and the total market sales amounted to US$31 million, a year-on-year increase of 4.5%. The report predicts that by 2015, total sales of anionic surfactant market in Kenya are expected to reach US$45 million, with an average annual growth rate of 7.9% from 2010 to 2015.

According to Frost & Sullivan, overall, 59% of the anionic surfactants used in household and personal care products in Kenya are imported. The dependence on imports is so high that the main reason is that the performance of anionic surfactants produced locally in Kenya is not long enough. Different types of active agents, depending on the extent of imports are also different. For example, 95% of SLES rely on imports, but only 40% of LABSA rely on imports. With the constant devaluation of the Kenyan shilling, the constant reduction of the foreign currency exchange rate and the reliance on imports will place greater pressure on local FMCG manufacturers.

As the Kenyan public is more sensitive to price, the local consumer care product manufacturers also pay more attention to controlling costs. When they find that there is a difference in the prices of locally produced LABSA and imports, they will naturally switch to cheaper imports of active agents.

The two leading companies in Kenya accounted for 36.4% of the total sales of the anionic surfactant market. Among them, Optims accounted for 27.6%, and Henkel Kenya Branch accounted for 8.8%. The remaining small manufacturers and informal manufacturers were completely out of scale. The same is true for the import sector. The two most important multinational companies accounted for 33.9% - Desperado accounted for 20.3%, Decathlon accounted for 13.6%, and the remaining markets were extremely fragmented.

Optim is one of the first companies to produce SLES, sulfuric acid, sulfonic acid and other chemical preparations in East Africa. Its annual production capacity of sulfonation products in Kenya can reach 15,000 tons. In addition to supplying local products, its products are also exported to neighboring countries. In addition, Optim also imports chemical raw materials from all over the world as a distributor.

The Henkel Kenya Branch has local factories that produce home and personal care end products directly, and also supplies anionic surfactants.

Frost & Sullivan pointed out that with the continuous advancement of urbanization in Kenya, the gradual popularization of the concept of sustainable development, and the continuous attention of the government and people to health and safety, Kenya’s demand for home and personal care products will continue to increase. Accordingly, the market for anionic surfactants used in these two fields will also continue to expand. At present, the anionic surfactant market in Kenya has been heavily dependent on imports. The entry of multinational fast-moving consumer goods manufacturers in the future will further increase market demand, and the market will have a better future growth. The company also reminded that changes in the exchange rate and political and economic instability may bring risks to the investment market.

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